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Fluor Q1 Earnings & Revenues Miss Estimates, Stock Down
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Key Takeaways
FLR posted adjusted EPS of $0.14 and revenues of $3.66B, both below consensus.
FLR took charges from an Afghanistan court ruling and a fixed-price mining project cost overrun.
FLR cash rose to $3.19B on NuScale share-sale proceeds; it repurchased $516M in stock.
Fluor Corporation (FLR - Free Report) delivered a weak first quarter of 2026, with adjusted earnings and revenues missing the Zacks Consensus Estimate and declining on a year-over-year basis.
Fluor's first-quarter results were pressured by an adverse legal ruling tied to legacy Afghanistan-related work, which resulted in a meaningful charge during the quarter. The Urban Solutions segment faced a setback as declining field productivity on a mining project in the Americas led to higher expected completion costs and a related charge. Results were further weighed down by higher corporate general and administrative expenses, mainly due to stock-based compensation linked to share price appreciation. Geopolitical uncertainty also slowed development on a major project in Pakistan and remains a risk to supply chains and client capital spending.
However, performance was supported by proceeds from the China fabrication yard sale and the monetization of its remaining stake in NuScale Power. Higher profits in Energy Solutions, driven by favorable project closeouts and improved project selectivity, with stronger margins on new awards, also supported results.
Following the results, shares of FLR declined 15.2% during trading hours on Friday.
Inside Fluor’s Q1 Results
The company reported adjusted earnings per share (EPS) of 14 cents, missing the Zacks Consensus Estimate of 66 cents by 78.8%. In the year-ago quarter, it reported an adjusted EPS of 73 cents.
Fluor Corporation Price, Consensus and EPS Surprise
Revenues were $3.66 billion, down 8% year over year and 3.6% shy of the consensus mark of $3.8 billion.
Operationally, results were weighed by a sizeable litigation-related charge and cost growth on a mining project. Still, Fluor ended the quarter with a backlog of $25.7 billion, 82% of which was reimbursable, underscoring its continued bias toward risk-mitigated contracting.
FLR’s Segment Mix Shifts Sharply in Q1
Urban Solutions generated revenues of $2.44 billion, up 13% year over year, but segment profit slid to $6 million after a $37 million impact tied to a fixed-price mining project in the Americas.
Urban Solutions posted $2.1 billion of new awards in the quarter, including a metals project in the Middle East, incremental work on a pharmaceutical facility and an infrastructure expansion for a mining facility in Chile. The ending backlog for the segment was $19 billion, representing 74% of the total company backlog.
Energy Solutions’ revenues fell to $0.70 billion from $1.21 billion, reflecting lower activity on projects nearing completion, yet segment profit improved to $74 million from $47 million a year ago on favorable closeout items across three projects.
New awards totaled $213 million in the quarter, including a FEED award for the America First Refinery and a contract with X-energy for Dow’s Seadrift SMR project. The ending backlog was $4.3 billion.
Mission Solutions recorded revenues of $0.52 billion, down 12.4% from the prior-year level. The segment reported a loss of $71 million, primarily due to a $96 million court ruling related to LOGCAP activities in Afghanistan, which management said it plans to appeal.
New awards were $332 million, including a significant FEED services award for the Centrus uranium enrichment plant expansion and a $100 million task order supporting military operations in the Middle East. The ending backlog was $2.5 billion.
Fluor’s Cash Position Improves on NuScale Monetization
Fluor ended the quarter with $3.19 billion of cash and cash equivalents, up from $2.43 billion at the end of 2025. Operating cash flow was $110 million, improving from a $286 million outflow a year ago, aided by working-capital reductions on several large projects and distributions from joint ventures.
The cash build was also driven by proceeds from NuScale share sales. Investing cash flow included $1.36 billion of proceeds from the sale of NuScale shares during the quarter. Fluor also returned capital aggressively, repurchasing $516 million of common stock, or 11 million shares, during the period.
FLR Narrows 2026 Targets, Keeps Cash Flow Goal
For 2026, Fluor narrowed its adjusted EBITDA outlook to a range of $525 million to $560 million (prior expectation was $525-$585 million) and guided for adjusted earnings of $2.60 to $2.80 per share. Management maintained its operating cash flow target of roughly $300 million, excluding tax payments tied to the 2025 NuScale conversion.
The company’s framework assumes a book-to-burn above one and corporate G&A expense of $175 million to $185 million, along with an effective tax rate of 26% to 28%. Segment margin expectations call for Urban Solutions at 2.5% to 3.5%, Energy Solutions at 5% to 6% and Mission Solutions at about 6%, reflecting management’s view that backlog quality and selectivity are improving even as near-term execution risks persist.
Vulcan Materials Company (VMC - Free Report) posted exceptional first-quarter 2026 results with adjusted earnings and total revenues beating the Zacks Consensus Estimate and increasing year over year. The quarter’s results reflect benefits realized from the aggregates-led business and consistent focus on its strategic disciplines. Besides, efforts to incorporate top-tier innovation and technology advancements also aided the quarter’s financial performance.
Vulcan reiterated its full-year adjusted EBITDA outlook of $2.4-$2.6 billion and cited a healthy backlog supported by large projects and public construction activity.
EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year on strong demand across its core markets.
EMCOR’s quarterly results reflect continued momentum across key end markets and customers’ confidence in the company’s ability to execute complex and mission-critical projects. Strong activity in sectors like Network and Communications, Institutional, Healthcare, and Water and Wastewater supported growth and drove higher remaining performance obligations (RPOs). EMCOR now expects revenues between $18.50 billion and $19.25 billion, and diluted earnings per share are projected in the range of $28.25 to $29.75.
Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.
Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. The backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion on Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.
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Fluor Q1 Earnings & Revenues Miss Estimates, Stock Down
Key Takeaways
Fluor Corporation (FLR - Free Report) delivered a weak first quarter of 2026, with adjusted earnings and revenues missing the Zacks Consensus Estimate and declining on a year-over-year basis.
Fluor's first-quarter results were pressured by an adverse legal ruling tied to legacy Afghanistan-related work, which resulted in a meaningful charge during the quarter. The Urban Solutions segment faced a setback as declining field productivity on a mining project in the Americas led to higher expected completion costs and a related charge. Results were further weighed down by higher corporate general and administrative expenses, mainly due to stock-based compensation linked to share price appreciation. Geopolitical uncertainty also slowed development on a major project in Pakistan and remains a risk to supply chains and client capital spending.
However, performance was supported by proceeds from the China fabrication yard sale and the monetization of its remaining stake in NuScale Power. Higher profits in Energy Solutions, driven by favorable project closeouts and improved project selectivity, with stronger margins on new awards, also supported results.
Following the results, shares of FLR declined 15.2% during trading hours on Friday.
Inside Fluor’s Q1 Results
The company reported adjusted earnings per share (EPS) of 14 cents, missing the Zacks Consensus Estimate of 66 cents by 78.8%. In the year-ago quarter, it reported an adjusted EPS of 73 cents.
Fluor Corporation Price, Consensus and EPS Surprise
Fluor Corporation price-consensus-eps-surprise-chart | Fluor Corporation Quote
Revenues were $3.66 billion, down 8% year over year and 3.6% shy of the consensus mark of $3.8 billion.
Operationally, results were weighed by a sizeable litigation-related charge and cost growth on a mining project. Still, Fluor ended the quarter with a backlog of $25.7 billion, 82% of which was reimbursable, underscoring its continued bias toward risk-mitigated contracting.
FLR’s Segment Mix Shifts Sharply in Q1
Urban Solutions generated revenues of $2.44 billion, up 13% year over year, but segment profit slid to $6 million after a $37 million impact tied to a fixed-price mining project in the Americas.
Urban Solutions posted $2.1 billion of new awards in the quarter, including a metals project in the Middle East, incremental work on a pharmaceutical facility and an infrastructure expansion for a mining facility in Chile. The ending backlog for the segment was $19 billion, representing 74% of the total company backlog.
Energy Solutions’ revenues fell to $0.70 billion from $1.21 billion, reflecting lower activity on projects nearing completion, yet segment profit improved to $74 million from $47 million a year ago on favorable closeout items across three projects.
New awards totaled $213 million in the quarter, including a FEED award for the America First Refinery and a contract with X-energy for Dow’s Seadrift SMR project. The ending backlog was $4.3 billion.
Mission Solutions recorded revenues of $0.52 billion, down 12.4% from the prior-year level. The segment reported a loss of $71 million, primarily due to a $96 million court ruling related to LOGCAP activities in Afghanistan, which management said it plans to appeal.
New awards were $332 million, including a significant FEED services award for the Centrus uranium enrichment plant expansion and a $100 million task order supporting military operations in the Middle East. The ending backlog was $2.5 billion.
Fluor’s Cash Position Improves on NuScale Monetization
Fluor ended the quarter with $3.19 billion of cash and cash equivalents, up from $2.43 billion at the end of 2025. Operating cash flow was $110 million, improving from a $286 million outflow a year ago, aided by working-capital reductions on several large projects and distributions from joint ventures.
The cash build was also driven by proceeds from NuScale share sales. Investing cash flow included $1.36 billion of proceeds from the sale of NuScale shares during the quarter. Fluor also returned capital aggressively, repurchasing $516 million of common stock, or 11 million shares, during the period.
FLR Narrows 2026 Targets, Keeps Cash Flow Goal
For 2026, Fluor narrowed its adjusted EBITDA outlook to a range of $525 million to $560 million (prior expectation was $525-$585 million) and guided for adjusted earnings of $2.60 to $2.80 per share. Management maintained its operating cash flow target of roughly $300 million, excluding tax payments tied to the 2025 NuScale conversion.
The company’s framework assumes a book-to-burn above one and corporate G&A expense of $175 million to $185 million, along with an effective tax rate of 26% to 28%. Segment margin expectations call for Urban Solutions at 2.5% to 3.5%, Energy Solutions at 5% to 6% and Mission Solutions at about 6%, reflecting management’s view that backlog quality and selectivity are improving even as near-term execution risks persist.
FLR’s Zacks Rank & Recent Construction Releases
Fluor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vulcan Materials Company (VMC - Free Report) posted exceptional first-quarter 2026 results with adjusted earnings and total revenues beating the Zacks Consensus Estimate and increasing year over year. The quarter’s results reflect benefits realized from the aggregates-led business and consistent focus on its strategic disciplines. Besides, efforts to incorporate top-tier innovation and technology advancements also aided the quarter’s financial performance.
Vulcan reiterated its full-year adjusted EBITDA outlook of $2.4-$2.6 billion and cited a healthy backlog supported by large projects and public construction activity.
EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year on strong demand across its core markets.
EMCOR’s quarterly results reflect continued momentum across key end markets and customers’ confidence in the company’s ability to execute complex and mission-critical projects. Strong activity in sectors like Network and Communications, Institutional, Healthcare, and Water and Wastewater supported growth and drove higher remaining performance obligations (RPOs). EMCOR now expects revenues between $18.50 billion and $19.25 billion, and diluted earnings per share are projected in the range of $28.25 to $29.75.
Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.
Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. The backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion on Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.