Fluor Corp

Fluor (FLR US) is an engineering and construction company with most of its revenue from projects where it provides full Engineering, Procurement, and Construction (EPC) services. The Company’s stock underperformed in the quarter following a weak earnings report that also included reduced forward guidance. Fluor is a high-quality professional services company with a medium-risk business model that we expect will grow with no reinvested capital. Valuation is extremely attractive on normal earnings and even more attractive if its NuScale small-scale nuclear reactor business realizes its potential.

Fluor Corp. (FLR) is one of the largest contractors in the US, providing full Engineering, Procurement, and Construction (EPC) services. The company's shares rose in the quarter due to improving margins and increased stock buyback guidance. Fluor is characterized as a high-quality professional services company with a medium-risk business model that grows without the need for reinvested capital. The valuation is extremely attractive based on normal earnings and even more so if its NuScale small-scale nuclear reactor business realizes its potential.

Fluor Corp. (FLR) is one of the largest contractors in the US. Fluor reported a disappointing 4Q24 with revenue and margins weak as the company deals with unusually low utilization driven by volatility in its businesses. Initial guidance for 2025 revenue and margin were also below consensus estimates driven by weakness at Energy Solutions partly offset by growth at Urban Solutions that is expected to be back-half weighted. Unlike many competitors that specialize in elements of project delivery, most of Fluor’s revenue comes from projects where it provides full Engineering, Procurement, and Construction services. Fluor also has significant fabrication capabilities including a joint venture that operates the world’s largest fabrication facility. In addition, Fluor also owns a substantial stake in NuScale (tk: SMR).