Fluor Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 7 November 2025: press release. Guidance figures: 3 raised, 1 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell on Santos reversal: Third-quarter revenue was $3.4 billion, down 18% from a year earlier, reflecting a $653 million reversal for the Santos ruling. Source
• Adjusted EBITDA and EPS rose: Adjusted EBITDA was $161 million, up 29% from a year earlier, and adjusted EPS was $0.68, up 33%. Source
• GAAP net loss on Santos, NuScale: GAAP net loss attributable to Fluor was $697 million, with EPS of ($4.30); the figure includes the Santos charge and the NuScale share price reduction. Source
• Energy Solutions loss of $533 million: Energy Solutions recorded a loss of $533 million against a $50 million profit a year earlier, including a revenue reduction recorded in the quarter. Source
• New awards rose 21% year over year: New awards totaled $3.3 billion, up 21% year over year, and were 99% reimbursable. Source
• Backlog down 10% year over year: Backlog ended at $28.2 billion, down 10% from $31.3 billion a year ago and flat with the second quarter. Source
• NuScale stake converts to Class A: A comprehensive agreement covers conversion and monetization of the remaining NuScale stake, which management says lets Fluor realize significant value. Source

“Fluor’s third quarter results demonstrate our commitment to disciplined project delivery and creating value for our clients and shareholders”

Jim Breuer, chief executive officer of Fluor

Guidance

What changed from last quarter

• Guidance raised: Adjusted EBITDA and adjusted EPS guidance for 2025 were raised. Source
• Guidance raised: Full-year operating cash flow guidance was raised to $250 - $300 million. Source
• New: Comprehensive agreement to convert and monetize the remaining NuScale stake. Source

Results and growth drivers

• Revenue fell on Santos reversal: Third-quarter revenue was $3.4 billion, down 18% from a year earlier, reflecting a $653 million reversal for the Santos ruling. Source
• Adjusted EBITDA and EPS rose: Adjusted EBITDA was $161 million, up 29% from a year earlier, and adjusted EPS was $0.68, up 33%. Source
• GAAP net loss on Santos, NuScale: GAAP net loss attributable to Fluor was $697 million, with EPS of ($4.30); the figure includes the Santos charge and the NuScale share price reduction. Source

Segment results

• Urban Solutions profit lower year over year: Urban Solutions profit was $61 million against $68 million, including a $25 million delay-related adjustment partly offset by a favorable negotiation. Source
• Urban revenue rose on ramp-ups: Urban revenue rose to $2.3 billion from $1.9 billion, reflecting the ramp-up of recently awarded life sciences and mining projects. Source
• Energy Solutions loss of $533 million: Energy Solutions recorded a loss of $533 million against a $50 million profit a year earlier, including a revenue reduction recorded in the quarter. Source
• Energy revenue fell on Santos: Energy Solutions revenue was $262 million against $1.4 billion a year earlier; management ties the decline to the Santos litigation. Source
• Mission Solutions profit lower: Mission Solutions profit was $34 million against $45 million; reserves on a defense support project were mostly offset by a favorable weapons-project claim resolution. Source

“This allows Fluor to realize significant value from this investment and return it to our shareholders.”

Jim Breuer, chief executive officer of Fluor

Regions and reimbursable mix

• Outside-U.S. share of awards fell: New awards from projects outside the U.S. were 30% of the quarter’s total, against 68% a year earlier. Source
• Outside-U.S. share of backlog: Backlog from projects outside the U.S. was 41% of the total, against 56% a year earlier. Source
• Reimbursable share of backlog: Backlog tied to reimbursable projects was 82%, against 80% a year earlier. Source

Demand and order book

• New awards rose 21% year over year: New awards totaled $3.3 billion, up 21% year over year, and were 99% reimbursable. Source
• Backlog down 10% year over year: Backlog ended at $28.2 billion, down 10% from $31.3 billion a year ago and flat with the second quarter. Source
• Energy Solutions awards declined: Energy Solutions new awards were $222 million, against $1.5 billion a year earlier; its backlog was $5.1 billion against $8.8 billion. Source
• Portsmouth contract extends Ohio presence: Mission Solutions awards reached $1.3 billion, including a six-year contract extending Fluor’s presence at the Portsmouth project in Ohio. Source

“We remain confident in our ability to deliver significant value over time.”

Jim Breuer, chief executive officer of Fluor

Margins and costs

• Consolidated segment margin negative: Total segment margin was (13.0)% against 2.9% a year earlier; total segment loss was $439 million. Source
• Urban Solutions margin lower: Urban Solutions margin was 2.6% against 3.5% a year earlier. Source
• Mission Solutions margin lower: Mission Solutions margin was 4.5% against 7.1% a year earlier. Source
• G&A up 16% with restructuring: G&A expenses were $43 million, up 16% year over year, including $12 million of restructuring costs. Source

Cash, capital and returns

• Operating cash flow for the quarter: Third-quarter operating cash flow was $286 million against $330 million; the company cites year-to-date gains from lower working capital needs and project distributions. Source
• Cash and securities reached $2.8 billion: Cash and marketable securities at quarter end improved to $2.8 billion. Source
• NuScale net proceeds received: Net proceeds of $605 million were received through early October for 15 million NuScale shares converted in the third quarter. Source

Strategy and NuScale investment

• NuScale stake converts to Class A: A comprehensive agreement covers conversion and monetization of the remaining NuScale stake, which management says lets Fluor realize significant value. Source
• Capital allocation and reimbursable focus: Management lists disciplined execution, a predominantly reimbursable portfolio and a clear capital allocation strategy as its positioning. Source
• NuScale collaboration over several quarters: The company says it worked with NuScale’s management and board over several quarters before reaching the agreement. Source

Coming up, as management said on 7 November 2025

• NuScale stake fully monetized by Q2 2026: Management expects full monetization of the NuScale investment by the end of the second quarter of 2026. Source
• Santos payment expected in Q4: Payment on the Santos ruling is anticipated in the fourth quarter, and the company has submitted its appeal. Source

Figures management reported

Risks management discussed

• Demand: Management cites continued short-term uncertainty in some markets. Source
• Regulatory: A $653 million Santos ruling reduced revenue; the company has submitted an appeal. Source
• Operational: Urban Solutions carries a $25 million adjustment for delay-related effects on an infrastructure project. Source
• Operational: Mission Solutions recognized reserves for questioned and disputed costs on a defense support project. Source

Earlier plans management reported on

• Not stated: Management says it is consistent with prior practice not to provide GAAP net earnings or GAAP EPS guidance. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.