Fluor Corp. (NYSE:FLR) shares traded lower Friday after the company reported third-quarter 2026 results before the market opened.
The company posted adjusted EPS of 77 cents, missing the 80-cent estimate, while revenue of $3.72 billion fell short of the $4.164 billion estimate.
The stock traded lower as investors weighed record new awards, a 21% increase in backlog and reaffirmed 2026 guidance against an adjusted EPS and revenue miss.
Management also disclosed that a project scope change could reduce backlog by about $2 billion as early as the fourth quarter.
Profitability Improves Despite EBITDA Pressure
GAAP diluted EPS was $1.16, compared with a $4.30 loss a year earlier.
Net earnings attributable to Fluor were $158 million versus a $697 million loss, including a $73 million pretax gain from the sale of its interest in ICA-Fluor.
Adjusted EBITDA declined to $142 million from $161 million, while adjusted EBITDA margin fell to 3.8% from 4.8%.
Consolidated segment profit improved to $248 million from a $439 million loss.
Record Awards Rise, But Backlog Could Reset
New awards reached a record $10.9 billion, up from $3.3 billion, with a 2.9-times book-to-burn ratio.
Backlog increased 21% to $34.3 billion, the highest this decade.
Chief Financial Officer John Regan said on Friday’s third-quarter earnings call, “During late October one of our reimbursable clients notified us of changes to its project scope. We are still evaluating the impact on backlog, but based on our early assessment we could expect a reduction of approximately $2 billion as early as Q4.”
Regan said, “Yeah, I think it’s just project-specific and kind of somewhat ordinary in terms of in-flight projects and clients from time to time reevaluating the scope of what they want us to do.”
Energy Solutions Leads Segment Growth
Urban Solutions revenue was $2.33 billion, roughly flat year over year, while segment profit rose 64% to $100 million.
Energy Solutions revenue rose 159% to $679 million, with segment profit improving to $93 million from a $533 million loss.
New awards totaled $7.7 billion, including $7.5 billion for LNG Canada Phase 2.
Mission Solutions revenue fell 6% to $714 million, while segment profit increased 62% to $55 million.
Cash Returns And Outlook
Operating cash flow was $186 million, and cash and equivalents totaled $3.1 billion.
Fluor repurchased $300 million in shares during the quarter and $1.1 billion year to date.
Fluor affirmed 2026 adjusted EBITDA guidance of $500 million-$525 million and adjusted EPS guidance of $2.70-$2.80. It raised adjusted operating cash flow guidance to $430 million-$460 million from $300 million-$320 million.
For 2027, Fluor expects adjusted EBITDA to grow at a low-double-digit rate versus 2026, with earnings from 2026 new awards beginning in 2027 and peaking in 2028-2030.
FLR Price Action: Fluor shares were down 3.09% at $43.59 at the time of publication on Friday, according to Benzinga Pro data.
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