Fluor (FLR) Stock Forecast & Price Target

Fluor exhibited a robust financial performance in 2024, generating $16.3 billion in revenue, with notable growth in its Mission Solutions and Urban Solutions segments, which reported year-over-year increases of 20% and 21%, respectively. The company's improved operating cash flow guidance, now projected between $250 million and $300 million, along with early positive indications for EBITDA growth, reflects its transitioning focus towards markets with strong secular growth such as advanced technologies and infrastructure. Furthermore, the company has seen significant improvements in its balance sheet and free cash flow conversion, positioning it favorably for long-term earnings growth with reduced risk as it approaches an investment-grade rating.

Fluor's financial performance reflects significant challenges, as evidenced by a notable decline in operating profit, which decreased to $34 million and resulted in an operating margin of just 4.5%, a decrease of 260 basis points year-over-year. The company's total backlog also shows concerning trends, falling by 10% year-over-year to $28.236 billion, primarily driven by a 42% decline in Energy Solutions backlog, which highlights weakened demand and project delays. Furthermore, the extension of Fluor's medium-term adjusted EBITDA target by four quarters indicates a slowdown in new awards growth, particularly in the Energy Solutions segment, with expectations of continued weakness until the second half of 2026.