FLUOR CORPORATION - 10-Q Summary (Q2 2026)
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026, and the six-month period ended on the same date. Fluor Corporation is a global engineering, procurement, and construction (EPC) firm operating through three primary segments: Urban Solutions, Energy Solutions, and Mission Solutions. The company is a large accelerated filer with 133.7 million shares of common stock outstanding as of July 31, 2026.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | 6ME 2026 | 6ME 2025 |
|---|---|---|---|---|
| Revenue | $4,329 | $3,978 | $7,991 | $7,959 |
| Operating Profit | $135 | ($26) | $226 | $65 |
| Net Earnings (Attributable to Fluor) | $114 | $2,460 | $274 | $2,219 |
| Diluted EPS | $0.81 | $14.81 | $1.89 | $13.19 |
| Operating Cash Flow | — | — | ($207) | ($307) |
| Total Debt | $1,072 | — | $1,072 | — |
| Cash & Equivalents | $2,923 | — | $2,923 | — |
| Backlog | $26,891 | — | $26,891 | — |
Note: Q2 2025 Net Earnings were significantly inflated by a $3.2 billion gain on the fair value of NuScale investment. Excluding equity method earnings, Net Earnings for Q2 2026 were $131 million compared to a loss of $17 million in Q2 2025.
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenue increased 9% year-over-year to $4.33 billion, driven by ramp-up in Urban Solutions (mining/metals) and Mission Solutions. Six-month revenue remained flat at $7.99 billion.
- Profitability: Operating profit improved significantly to $135 million in Q2 2026 from a $26 million loss in Q2 2025. This excludes the massive one-time NuScale gain in the prior year.
- Segment Performance:
- Urban Solutions: Profit increased to $38 million (Q2) due to mining project execution, offset by $44 million in foreign currency and subcontractor issues.
- Energy Solutions: Profit surged to $88 million (Q2) due to favorable close-out items, compared to $15 million in Q2 2025.
- Mission Solutions: Profit rose to $44 million (Q2) on improved award fees, though the six-month period included a $98 million charge from a 2013 lawsuit ruling.
- Divestitures: Completed the full divestiture of NuScale Power Corporation shares in Q2 2026, generating $1.83 billion in proceeds. Sold CFHI interest for $124 million (recognized as a gain due to prior impairment).
Outlook, Risks, and Management Commentary
- Liquidity & Capital Allocation: Cash and cash equivalents increased to $2.92 billion. The company repurchased $816 million of stock in the first half of 2026 and targets $1.4 billion in repurchases for the full year. Credit facility capacity remains at $903 million with no borrowings.
- Backlog: Total backlog increased to $26.9 billion, up from $25.5 billion at year-end 2025, driven by new awards in uranium enrichment, life sciences, and mining. 42% of backlog is outside the U.S.
- Legal Contingencies:
- False Claims Act: A jury awarded $15 million in damages (subject to trebling) on one of four claims regarding Afghanistan support. Fluor is appealing and has filed post-trial motions.
- Santos Litigation: An appeal hearing commenced in July 2026 regarding a $649 million payment made in December 2025 following a court ruling in Australia.
- Securities Litigation: Multiple shareholder class actions and derivative suits are pending regarding NuScale disclosures and infrastructure project costs.
- Risks: Management highlights risks related to geopolitical events, inflation, subcontractor performance, and the cyclical nature of capital investment markets.
Investor Verification Checklist
- NuScale Divestiture Impact: Verify the final tax implications and cash realization from the $2.43 billion in NuScale proceeds generated since late 2025.
- Legal Exposure: Monitor the status of the False Claims Act appeal and the Santos litigation appeal, as outcomes could materially impact reserves.
- Legacy Loss Projects: Review the $119 million in backlog associated with legacy projects in a loss position and the estimated $68 million in unfunded losses.
- Share Repurchase Pace: Confirm if the company can meet its $1.4 billion annual repurchase target given the $816 million already spent in H1.
- Working Capital Trends: Analyze the negative operating cash flow of $207 million for the six-month period, driven largely by $357 million in tax payments related to prior year NuScale conversions.