Fluor (FLR) Stock Forecast & Price Target

Fluor's financial reports indicate a robust performance, with Mission Solutions sales reaching $761 million, reflecting a 20% year-over-year increase that exceeded expectations. Urban Solutions also demonstrated significant growth, with sales rising 21% year-over-year to $2.343 billion, emphasizing the company's strength in sectors with positive long-term trends such as metals, mining, and infrastructure. Furthermore, an improved book-to-burn ratio of 0.8x, combined with a strengthened balance sheet and increased free cash flow generation, positions Fluor for potential double-digit earnings growth in the medium term.

Fluor's financial performance has deteriorated, as evidenced by a significant operating loss of $533 million in the most recent quarter, which starkly contrasts with a profit of $120 million when excluding the Santos project. The company's total backlog has declined by 10% year-over-year to $28.236 billion, marking a particularly concerning 42% drop in the Energy Solutions segment, which now accounts for only $5.121 billion. Additionally, Fluor has postponed its medium-term adjusted EBITDA target by four quarters, reflecting weakened growth in new awards and highlighting challenges expected in the Energy Solutions division until at least the second half of 2026.