Is Fluor Stock a Buy for Long-Term Growth in 2026?

Fluor Corporation (FLR) has long been a cornerstone of the engineering and construction sector, but its recent strategic pivot and alignment with global macroeconomic tailwinds position it as a compelling candidate for long-term growth in 2026. With a consensus of Wall Street analysts projecting a 19–24% upside in its stock price over the next year, Fluor's re-rating potential is underpinned by structural transformation, a robust backlog, and a favorable industry environment. This analysis evaluates whether FLR is a buy for investors seeking exposure to the energy transition and infrastructure boom.

Analyst Consensus and Valuation: A Case for Optimism

Wall Street analysts remain cautiously optimistic about Fluor's near-term prospects. As of December 2025, 7 of 11 analysts covering the stock have assigned a "Buy" rating, with a median price target of $52.00-implying a 24.7% upside from its current price of $41.70. Citigroup's Andrew Kaplowitz, a prominent voice in the sector, has set the highest target at $57.00, reflecting confidence in Fluor's ability to capitalize on decarbonization and infrastructure spending.

The stock's valuation also suggests untapped potential. Fluor trades at a P/E ratio of 2.06, significantly below the industry average. This discount, while historically common for engineering firms due to cyclical risks, may be narrowing as the company transitions from a "fix and build" phase to a "grow and execute" strategy according to MarketBeat. Analysts at MarketBeat note that the stock's low P/E could attract value investors, particularly as Fluor's reimbursable backlog-now $28.2 billion, with 82% of it reimbursable-provides a stable revenue runway.

Structural Transformation: From Cost-Cutting to Growth

Fluor's strategic overhaul has been a key driver of its re-rating potential. In 2025, the company shifted focus from deleveraging to expanding its footprint in high-growth markets. This includes monetizing its remaining stake in NuScale Power, a nuclear energy startup, with proceeds expected by Q2 2026. The move not only reduces exposure to capital-intensive projects but also injects liquidity for reinvestment in higher-margin opportunities.

The company's Q3 2025 results underscore this transformation. Fluor reported adjusted earnings per share of $0.68, surpassing estimates by 47.83%, and generated $286 million in operating cash flow. These metrics highlight improved operational efficiency, a critical factor for sustaining growth in a sector prone to project-specific volatility.

Macro Tailwinds: Energy Transition and Infrastructure Spending

Fluor's long-term growth is further bolstered by global megatrends. The energy transition-driven by decarbonization mandates and renewable energy investments-positions Fluor as a key player in hydrogen, carbon capture, and nuclear projects. Its expertise in emissions reduction technologies aligns with regulatory pressures, particularly in the U.S. and Europe, where governments are incentivizing clean energy infrastructure.

Simultaneously, infrastructure spending remains a tailwind. Fluor secured $3.3 billion in new awards in Q3 2025, with 99% of the backlog reimbursable. This includes contracts in data centers and semiconductors, sectors experiencing surging demand due to AI adoption and supply chain reshoring. Fluor's ability to diversify its revenue base- 78% of its 2024 revenue came from non-traditional oil and gas sectors-reduces reliance on cyclical energy markets and enhances resilience.

Risks and Considerations

While the case for Fluor is strong, risks persist. The stock's 5.82% short interest ratio suggests bearish sentiment, though this could also indicate a potential short squeeze if earnings continue to outperform according to MarketBeat. Additionally, macroeconomic headwinds, such as rising interest rates or geopolitical instability, could delay infrastructure projects. However, Fluor's focus on reimbursable contracts mitigates some of these risks by aligning cash flows with project milestones.

Conclusion: A Buy for Long-Term Growth

Fluor's combination of structural transformation, macroeconomic tailwinds, and undervaluation makes it a compelling buy for long-term investors. Analysts' price targets, ranging from $40 to $57, reflect confidence in its ability to execute on its growth strategy.

With a robust backlog, a diversified revenue stream, and a strategic pivot toward high-margin sectors, Fluor is well-positioned to deliver outsized returns in 2026. For investors seeking exposure to the energy transition and infrastructure renaissance, FLR offers a rare blend of value and growth potential.