KeyBanc analyst Sangita Jain has revised her rating for Fluor (FLR, Financial), moving it from Overweight to Sector Weight. This change suggests a more cautious stance on the stock's expected performance in comparison to its industry peers. Such analyst adjustments can influence investor sentiment and impact stock trading strategies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Fluor Corp (FLR, Financial) is $49.83 with a high estimate of $60.00 and a low estimate of $36.50. The average target implies an downside of 5.89% from the current price of $52.95. More detailed estimate data can be found on the Fluor Corp (FLR) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Fluor Corp's (FLR, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Fluor Corp (FLR, Financial) in one year is $41.49, suggesting a downside of 21.64% from the current price of $52.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Fluor Corp (FLR) Summary page.
FLR Key Business Developments
Release Date: May 02, 2025
- Revenue: $4 billion for the first quarter.
- New Awards: $5.8 billion, with a book-to-burn ratio of 1.5.
- Backlog: $28.7 billion, with 79% reimbursable.
- Urban Solutions Profit: $70 million for the first quarter.
- Energy Solutions Profit: $47 million, down from $68 million a year ago.
- Mission Solutions Profit: $5 million, compared to $22 million a year ago.
- Adjusted EBITDA: $155 million, compared to $88 million a year ago.
- Adjusted EPS: $0.73, compared to $0.47 in the previous year.
- Cash and Marketable Securities: $2.5 billion as of March 31.
- Operating Cash Flow: Outflow of $286 million for the quarter.
- Share Repurchase: 3.6 million shares repurchased, spending $142 million in Q1.
- 2025 Guidance: Adjusted EBITDA of $575 million to $675 million; Adjusted EPS of $2.25 to $2.75.
- Operating Cash Flow Guidance: $450 million to $500 million for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fluor Corp (FLR, Financial) reported strong consolidated new awards for the quarter at $5.8 billion, with a book-to-burn ratio of 1.5.
- The Urban Solutions segment, the largest and most diverse business, reported a profit of $70 million in the first quarter.
- Fluor Corp (FLR) secured significant awards in life sciences and infrastructure, contributing to a total backlog of $28.7 billion.
- The company announced a new award from a leading pharmaceutical maker, showcasing its commitment to the life sciences market.
- Fluor Corp (FLR) maintained its 2025 adjusted EBITDA guidance of $575 million to $675 million and adjusted EPS guidance of $2.25 to $2.75, indicating confidence in future performance.
Negative Points
- Segment profit for Energy Solutions decreased to $47 million from $68 million a year ago, reflecting projects nearing completion and a reserve related to a long-completed project in Mexico.
- Mission Solutions reported a segment profit of $5 million, down from $22 million a year ago, due to a $28 million reserve from a recent ruling on a long-standing claim.
- Fluor Corp (FLR) lost a recompete for the strategic petroleum reserve, potentially impacting future revenue.
- Operating cash flow for the quarter was an outflow of $286 million, compared to an outflow of $111 million a year ago, due to increased working capital on larger projects.
- The company faced a $477 million negative impact in Q1 due to the mark-to-market of its investment in NuScale, as their stock price decreased.
