Fluor Corporation's Stock Plummets 27% Amid Reduced Growth Outlook and Market Pessimism.

Fluor Corporation (NYSE:FLR) shares plummeted 27.04% to $41.42 as investors reacted to the company's reduced adjusted EBITDA guidance for 2025 and lower adjusted EPS outlook. Despite a 1,355% jump in Q2 attributable net earnings to $2.46 billion, total revenues dropped 5.9% to $3.98 billion. CEO Jim Breuer attributed the results to long-standing infrastructure projects and client spending shifts.

Fluor Corporation (FLR) reported a significant drop in its adjusted EBITDA and EPS guidance for 2025, leading to a 27.04% plunge in its stock price to $41.42. Despite a substantial increase in Q2 attributable net earnings to $2.46 billion, total revenues declined by 5.9% to $3.98 billion. CEO Jim Breuer attributed the results to long-standing infrastructure projects and shifts in client spending.

The company revised its adjusted EBITDA guidance for 2025 to a range of $475 to $525 million, down from the prior guidance of $575 to $675 million. Adjusted EPS was projected to be between $1.95 and $2.15 per share, a significant reduction from the previous range of $2.25 to $2.75 per share [1].

The second quarter results were impacted by cost overruns on legacy projects, project delays, and a decline in segment profits. Urban Solutions reported a profit of $29 million, down from $105 million in the same period last year, primarily due to a $54 million hit from cost overrun disputes on three infrastructure projects. Energy Solutions saw a 28.3% year-over-year decline in GAAP revenue and a sharp fall in segment profit and margin, driven by an unexpected $31 million arbitration loss on a completed joint venture project [2].

Despite the setbacks, management emphasized that the issues are temporary and that the company's long-term strategy of disciplined project delivery in growth markets will continue to benefit both clients and shareholders. The company also reported a $3.2 billion pre-tax mark-to-market gain on its NuScale Power investment, which significantly distorted net earnings but did not affect core operational performance [2].

Investors should monitor margin recovery in Urban and Energy Solutions, new project awards activity, and the company's ability to resolve legacy project cost issues. The company's full-year 2025 adjusted EBITDA and EPS ranges were reduced by over 15% at the midpoint, highlighting the challenges in the near term [2].

References:
[1] https://www.nasdaq.com/articles/fluor-adjusts-2025-guidance
[2] https://www.nasdaq.com/articles/fluor-flr-q2-profit-drops-60