Q2 2026 Fluor Corp Earnings Call Transcript
Key Points
- Fluor Corp (FLR) reported strong new awards of over $6 billion in Q2, leading to a backlog of almost $27 billion and supporting a book-to-bill ratio well above 1 for the full year.
- The company is seeing growth across a range of end markets, including nuclear fuels, fertilizers, copper, and midstream, with clients accelerating project decisions.
- Fluor Corp (FLR) completed two legacy infrastructure projects in the quarter and expects to complete the remaining two by the end of the year, reducing risk and freeing up management focus.
- The company is building a strong presence in the nuclear value chain, with the Centrus Fuel Enrichment award and a full suite of capabilities from power generation to decommissioning.
- Fluor Corp (FLR) delivered strong financial results with revenue up 9% year-over-year to $4.3 billion and adjusted EBITDA increasing to $149 million from $96 million, while also raising its full-year adjusted operating cash flow guidance.
- The company is seeing improved margins on new awards, driven by selective commercial negotiations and a focus on reimbursable contracts, which are lower risk.
- Fluor Corp (FLR) is well-positioned in the power market, with multiple front-end projects for gas-fired power that are expected to translate into meaningful backlog growth in the first half of 2027.
- The sale of its Mexican joint venture for $175 million sharpens the company's focus on targeted growth areas and bolsters its already robust liquidity.
- Fluor Corp (FLR) recorded an additional $44 million loss on the Gordie Howe project in Q2, impacted by foreign currency fluctuations, a subcontractor bankruptcy, and client-driven changes.
- The company's operating cash flow was negative $317 million in Q2, largely due to a $357 million tax payment related to the conversion of NuScale shares, which weighed on cash generation.
- Fluor Corp (FLR) lowered its full-year adjusted EBITDA guidance to $500 million to $525 million, partly due to the foregone profit of about $23 million from the divested Mexican joint venture.
- The company continues to face uncertainty in the Middle East due to ongoing hostilities, which could impact clients and supply chains, although no direct impact has been seen so far.
- The remaining legacy loss projects, including LAX and I-35 Phase II, still require additional funding of $94 million, which is expected to be concluded in Q3, creating ongoing execution risk.
- The company's backlog duration is extending, with peak execution expected in late 2027 and early 2028, meaning the earnings growth profile from new awards will be more back-end loaded.
- Fluor Corp (FLR) is still working to resolve additional scope items on the mining project, which could impact the timing and schedule, adding uncertainty to its completion.
Hello, everyone. Thank you for joining us, and welcome to Fluor's second quarter 2026 earnings conference call. (Operator Instructions) A replay of today's conference call will be available at approximately 10:30 AM Eastern Time today, accessible on Fluor's website at investor.fluor.com. The web replay will be available for 30 days.
At this time, for opening remarks, I would like to turn the call over to Jason Landkamer, Vice President, Investor Relations. Please go ahead, Mr. Landkamer.
Thank you, Jade. Good morning, and welcome to Fluor's 2026 second quarter earnings call. Jim Brewer, Fluor's Chief Executive Officer; and John Regan, Fluor's Chief Financial Officer, are with us today. Fluor issued its second quarter earnings release earlier this morning and a slide presentation is posted on our website that we will reference while making prepared remarks. Before getting started, I would like to refer to our Safe Harbor note regarding today's forward-looking statements, which is
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