Fluor Corporation (NYSE:FLR) shares dropped 5.05% in premarket trading on Friday after the engineering and construction company reported weaker-than-expected first-quarter results and tightened its full-year outlook.
Earnings and revenue fall below expectations
The company posted adjusted earnings per share of $0.14 for the quarter, significantly below analyst forecasts of $0.61 per share.
Quarterly revenue came in at $3.6 billion, missing Wall Street estimates of $3.9 billion and declining 8% from $4.0 billion recorded in the same period last year.
Fluor said results were impacted by rising project costs and delays tied to geopolitical conditions.
Company tightens full-year EBITDA outlook
Fluor revised its full-year adjusted EBITDA guidance to a range between $525 million and $560 million.
The updated outlook compares with the company’s previous forecast range of $525 million to $585 million. The midpoint of the revised guidance, $542.5 million, is below the prior midpoint of $555 million.
Management said the adjustment reflected higher costs associated with a mining project in the Americas as well as a temporary slowdown affecting another project linked to geopolitical tensions in the Middle East.
Operating cash flow improves sharply
Despite the weaker adjusted earnings performance, Fluor reported GAAP net earnings attributable to the company of $160 million, or $1.08 per share.
That compares with a loss of $241 million reported during the prior-year period.
Operating cash flow reached $110 million during the quarter, representing the company’s strongest first-quarter cash generation performance in nine years. In the same period last year, operating cash flow was negative $286 million.
“I am encouraged by the significant number of new awards we secured in recent months across diverse markets, including gas-fueled and nuclear power, refining, data centers, mining, and uranium enrichment,” said Jim Breuer, Chief Executive Officer.
Backlog remains strong despite lower awards
New contract awards totalled $2.7 billion during the quarter, down 54% from a year earlier.
However, Fluor noted that 98% of the new awards were structured as reimbursable contracts.
The company ended the quarter with backlog valued at $25.7 billion, of which 82% consisted of reimbursable work.
Share repurchases and NuScale sale support liquidity
During the quarter, Fluor completed $516 million in share repurchases and said it remains on track to target $1.4 billion in buybacks during 2026.
The company also confirmed it completed the sale of its investment in NuScale in April 2026.
According to Fluor, the transaction has generated total proceeds of $2.4 billion since September 2025.