Fluor (NYSE: FLR) reported Q2 2026 revenue of $4.329 billion, up 9% from $3.978 billion a year earlier, while adjusted EPS rose to $0.91 from $0.43. New awards increased to $6.103 billion, but Fluor lowered its full-year adjusted EBITDA outlook after divesting its Mexico joint venture. Quarterly operating cash flow was negative $317 million, including a $357 million tax payment related to the NuScale monetization.
Core earnings data
Revenue growth and favorable project closeouts lifted consolidated segment profit to $170 million from $78 million. The corresponding margin expanded to 3.9% from 2.0%, while adjusted EBITDA increased 55% to $149 million.
GAAP comparisons were less representative of underlying performance because Q2 2025 included $3.212 billion of equity-method earnings, partly offset by $765 million of tax expense. That drove the sharp year-over-year declines in GAAP net earnings and diluted EPS even as adjusted earnings improved.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $4.329 billion | $3.978 billion | +9% |
| Consolidated segment profit and margin | $170 million; 3.9% | $78 million; 2.0% | Approx. +118%; +1.9 points |
| Net earnings attributable to Fluor | $114 million | $2.460 billion | Approx. -95% |
| Diluted EPS | $0.81 | $14.81 | Approx. -95% |
| Adjusted net earnings | $129 million | $72 million | Approx. +79% |
| Adjusted EPS | $0.91 | $0.43 | Approx. +112% |
| Adjusted EBITDA | $149 million | $96 million | Approx. +55% |
| Operating cash flow | $(317) million | Not provided | Not available |
Business and segment performance
Urban Solutions generated the quarter’s revenue growth, while Energy Solutions reported substantially higher profit despite a revenue decline. Mission Solutions also improved profitability on slightly lower revenue.
| Segment | Q2 revenue | Q2 segment profit and margin |
|---|---|---|
| Urban Solutions | $2.904 billion vs. $2.070 billion | $38 million; 1.3% vs. $29 million; 1.4% |
| Energy Solutions | $709 million vs. $1.143 billion | $88 million; 12.4% vs. $15 million; 1.3% |
| Mission Solutions | $716 million vs. $762 million | $44 million; 6.1% vs. $35 million; 4.6% |
Urban Solutions benefited from increased execution on mining and metals projects. However, its margin slipped slightly as the substantially completed Gordie Howe International Bridge project recorded $44 million of cost growth related to foreign-exchange movements, a subcontractor bankruptcy, and client-driven changes.
Energy Solutions’ profit increase reflected favorable closeout items on certain projects, including the former Mexico joint venture. Because revenue fell 38% and closeouts supported earnings, the segment’s Q2 margin should not be viewed solely as evidence of comparable operating growth.
Mission Solutions’ higher profit and margin reflected improved award-fee performance within Fluor’s Department of Energy portfolio.
Profitability, cash flow, and capital allocation
The increase in segment profit was supported by favorable Energy Solutions closeouts and lower general and administrative expenses, which fell to $41 million from $52 million. Urban Solutions’ project cost growth partly offset those benefits.
Quarterly operating cash flow was negative $317 million, but that figure included a $357 million tax payment associated with the NuScale share sales. For the first six months of 2026, operating cash outflow improved to $207 million from $307 million a year earlier, clearly separating the year-to-date comparison from the quarterly figure.
Fluor ended June with $3.0 billion of cash and marketable securities. It received $1.831 billion from NuScale share sales during the first half and completed the monetization in April. The company repurchased $300 million of shares during Q2 and $816 million during the first half, while maintaining its $1.4 billion repurchase target for 2026.
Award momentum has not yet reversed the backlog decline
New awards reached $6.103 billion, compared with $1.768 billion a year earlier, and 89% were reimbursable. Management attributed the increase to the conversion of front-end work and said Fluor continued to replenish its opportunity pipeline.
Despite the award increase, total backlog was lower year over year. The mix became more heavily reimbursable, while backlog trends varied considerably among the three segments.
| Metric | June/Q2 2026 | June/Q2 2025 | Change |
|---|---|---|---|
| New awards | $6.103 billion | $1.768 billion | Approx. +245% |
| Total backlog | $26.891 billion | $28.205 billion | Approx. -5% |
| Reimbursable share of backlog | 85% | 80% | +5 points |
| Urban Solutions backlog | $19.439 billion | $20.576 billion | Approx. -6% |
| Energy Solutions backlog | $3.461 billion | $5.583 billion | Approx. -38% |
| Mission Solutions backlog | $3.991 billion | $2.046 billion | Approx. +95% |
Mission Solutions’ new awards rose to $2.227 billion from $363 million and included the reimbursable EPC contract for the Centrus nuclear fuel enrichment facility. Urban Solutions also recorded $3.172 billion of awards, while Fluor reduced legacy project backlog to $119 million. The next operating test is whether the award momentum translates into renewed total backlog growth.
Earnings guidance
Fluor lowered and narrowed its 2026 adjusted EBITDA range because the latest outlook removes the previously estimated second-half contribution from the divested Mexico joint venture. The midpoint declined by approximately $30 million.
| Metric | Latest guidance | Previous guidance | Change |
|---|---|---|---|
| 2026 adjusted EBITDA | $500 million-$525 million | $525 million-$560 million | Lowered and narrowed |
The change reflects the portfolio divestiture rather than a demand explanation in the release, but it reduces the earnings contribution expected during the second half.
Recent insider transactions
The supplied six-month summary reports 447,408 shares purchased across 32 transactions and 83,482 shares sold across 10 transactions, resulting in 363,926 net shares purchased. The latest ten individual records consist of nine zero-price director stock awards dated May 6, 2026, for which share counts were not supplied, and one cash sale with transaction value details.
| Date | Insider | Position | Transaction | Price | Reported value |
|---|---|---|---|---|---|
| March 10, 2026 | Alvin C. Collins III | Officer | Sale | $45.62 per share | $712,088 |
The nine award recipients were Teri Plummer McClure, Lisa Glatch, Alan M. Bennett, Matthew K. Rose, H. Paulett Eberhart, James T. Hackett, Rosemary T. Berkery, Robert G. Card, and Charles P. Blankenship Jr. These grants should be distinguished from cash purchases.
Risks investors need to watch
- Lower full-year earnings contribution: The Mexico joint-venture divestiture led Fluor to reduce its adjusted EBITDA outlook by approximately $30 million at the midpoint.
- Project execution costs: The Gordie Howe project recorded $44 million of additional costs from currency movements, subcontractor bankruptcy, and client-driven changes, constraining Urban Solutions’ margin.
- Backlog conversion: New awards increased substantially, but total backlog remained about 5% below the prior-year level, with particularly large declines in Energy Solutions.
- Nonrecurring profit support: Energy Solutions’ higher profit benefited from favorable project closeouts, while the prior-year GAAP result was heavily affected by equity-method earnings. These items complicate period-to-period comparisons.
- Cash conversion: Quarterly operating cash flow remained negative, although the disclosed NuScale-related tax payment more than accounted for the reported outflow. Cash generation after that payment is an important follow-up measure.
Summary
Fluor’s Q2 2026 results combined higher revenue, stronger adjusted earnings, and a substantial increase in new awards. Urban Solutions drove the top line, while project closeouts supported Energy Solutions’ profit and a tax payment weighed on cash flow. The main items to monitor are the conversion of awards into backlog, execution costs on remaining projects, post-tax-payment cash generation, and the lower earnings base following the Mexico joint-venture divestiture.
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