Fluor Awards Jump as Revenue Returns to Growth
Adjusted EBITDA rose to $149 million, more than doubling from the first quarter.
Engineering and construction company Fluor Corporation (FLR) returned to growth in the second quarter as new awards climbed to a five-quarter high of $6.103 billion.
Revenue rose 9% from a year earlier to $4.329 billion, reversing an 8% decline in the first quarter and increasing from $3.6 billion sequentially. Adjusted earnings climbed to $0.91 a share from $0.43 a year earlier and $0.14 in the prior quarter.
Consolidated segment profit more than doubled to $170 million from $78 million a year earlier, while the margin widened to 3.9% from 2.0%. The result also marked a rebound from segment profit of $8 million in the first quarter.
Urban Solutions drove the revenue gain, rising 40% to $2.904 billion. Segment profit increased to $38 million despite $44 million of cost growth on the Gordie Howe International Bridge, and the margin edged down to 1.3% from 1.4%.
Energy Solutions revenue fell 38% to $709 million, while favorable project closeouts helped segment profit rise to $88 million from $15 million and lifted the margin to 12.4%. Mission Solutions generated profit of $44 million after a $71 million first-quarter loss, as new awards increased more than sixfold to $2.227 billion and backlog nearly doubled to $3.991 billion.
Total backlog increased to $26.9 billion from $25.7 billion sequentially, though it remained below $28.2 billion a year earlier. Reimbursable work accounted for 85% of backlog, up from 82% in the first quarter and 80% a year earlier, while legacy-project backlog declined by $50 million to $119 million.
Fluor now expects 2026 adjusted EBITDA of $500 million to $525 million, down from its previous range of $525 million to $560 million. The company removed the expected second-half contribution from its divested Mexico joint venture, cutting the guidance midpoint by $30 million.
Operating cash flow swung to an outflow of $317 million, driven by a $357 million tax payment tied to the completed NuScale monetization. Fluor repurchased $300 million of shares during the quarter and maintained its $1.4 billion full-year buyback target, leaving cash and marketable securities at $3.0 billion.