Fluor 2025 Q3 Earnings Earnings Beat Estimates, Net Loss Widens 1443.8%

Fluor (FLR) reported Q3 2025 earnings that topped adjusted EPS estimates but missed revenue expectations due to a $653M Santos legal charge. The company raised full-year guidance, reflecting confidence in its asset-light model and new awards.

Revenue

Fluor’s Q3 revenue fell 17.7% year-over-year to $3.37 billion, driven by a $653 million reversal in Energy Solutions tied to the Santos litigation. Urban Solutions led with $2.34 billion in revenue, bolstered by life sciences and mining projects. Mission Solutions contributed $761 million, supported by a DOE construction project and hurricane relief efforts, while Energy Solutions dropped to $262 million.

Earnings/Net Income

The company swung to a $4.30 per-share loss, a 1443.8% deterioration from a $0.32 profit in 2024 Q3, and reported a net loss of $707 million. The Santos ruling and a $401 million NuScale fair-value reduction were primary drivers. The EPS outcome reflects significant deterioration in profitability.

Post-Earnings Price Action Review

The strategy of buying Fluor shares post-earnings and holding for 30 days showed moderate performance, with an annualized return of 12.77% and a 18.97% maximum drawdown. While the approach captured some earnings-driven momentum, volatility and legal risks limited its effectiveness. Market reactions to Fluor’s mixed results and litigation exposure underscored the strategy’s risks, particularly amid ongoing lawsuits and revenue uncertainties.

CEO Commentary

CEO James Breuer emphasized Fluor’s asset-light model, with 82% reimbursable backlog, and highlighted $3.3 billion in new awards. Challenges include trade uncertainty and energy transition defunding, but traditional oil and gas remains resilient. Strategic priorities include monetizing NuScale shares and expanding in mining, life sciences, and power.

Guidance

CFO John Regan raised 2025 adjusted EBITDA guidance to $510–$540 million and adjusted EPS to $2.10–$2.25. Segment margins are projected at ~2.5% for Urban Solutions, ~6% for Energy Solutions (excluding Santos), and ~4.5% for Mission Solutions.

Additional News

Fluor announced plans to fully monetize its NuScale stake by Q2 2026, following a $605 million net gain from selling 15 million shares in Q3. The company also secured a $3.5 billion 10-year contract with the DTRA for threat reduction services and a three-year logistics support deal with the U.S. Army in Bavaria. Institutional investors, including Bank of Montreal Can, reduced stakes in Q3, while others like Hantz Financial Services Inc. increased holdings.