Fluor (FLR) Stock Forecast & Price Target

Fluor's positive outlook is supported by significant revenue growth, demonstrating a 20% year-over-year increase in Mission Solutions sales, reaching $761 million, and a 21% rise in Urban Solutions sales to $2.343 billion. The company's operational cash flow guidance has been upgraded to a range of $250 million to $300 million, while early indications show that EBITDA for the upcoming fiscal year may exceed prior forecasts, particularly driven by strong performance in metals and mining within Urban Solutions. Additionally, Fluor's improved balance sheet and a book-to-burn rate of 0.8x suggest robust earnings growth potential in the medium term, aided by increased free cash flow as legacy projects conclude.

Fluor's operating profit for 2024 was reported at $34 million, with an operating margin of 4.5%, a decline of 260 basis points attributed to questioned and disputed costs on a Department of Defense project. The company's total backlog decreased by 10% year-over-year to $28.236 billion, highlighting significant weaknesses in the Energy Solutions segment, which saw a staggering 42% decline. Furthermore, Fluor's push to extend its medium-term adjusted EBITDA target by four quarters indicates subdued growth expectations due to slowing new awards, particularly in the Energy Solutions sector, projected to remain weak until the latter half of 2026.