Fluor's Q2 2025 Earnings Call: Navigating Contradictions in Customer Sentiment, Backlogs, and Infrastructure Challenges

Revenue and New Awards:
- Fluor reported revenue of $4 billion for the second quarter, with new awards totaling $1.8 billion, of which 72% were reimbursable.
- The revenue was supported by positive backlog adjustments of $1.7 billion for scope changes on existing reimbursable work.

Segment Profit Variability:
- Segment profits in Urban Solutions were $29 million, affected by a $54 million net impact from cost growth and expected recoveries on infrastructure projects.
- Energy Solutions experienced a decline to a $15 million profit, primarily due to reduced contributions from projects nearing completion and an unexpected arbitration ruling.

Infrastructure Project Challenges:
- Infrastructure projects experienced cost increases, primarily due to rework, labor, and subcontractor issues, affecting projects like Gordie Howe and I-35 Phase 2.
- The company is taking actions to address these issues and recover funds from third parties.

NuScale Investment and Conversion:
- Fluor's ownership of NuScale Class B shares will convert 15 million shares into Class A securities, showcasing a commitment to returning value to shareholders.
- The conversion is expected to contribute to utilizing tax credits and supports Fluor's long-term investment strategy in NuScale technology.