Construction firm Fluor misses Q2 revenue, adjusted EPS estimates

Overview

• Fluor Q2 revenue falls 6% y/y, missing analyst expectations, per LSEG data

• Adjusted EPS for Q2 declines 49% y/y, missing consensus, per LSEG data

• Co repurchased $153 mln in shares during Q2

• Adjusted 2025 guidance downward

Outlook

• Fluor revises 2025 adjusted EBITDA guidance to $475-$525 mln

• Company lowers 2025 adjusted EPS guidance to $1.95-$2.15 per share

• Fluor cites client hesitation and economic uncertainty impacting new awards

• Company assumes 2025 tax rate of 30% for guidance estimates

Result Drivers

• LNG CANADA - First shipment from LNG Canada project marked a key achievement

• INFRASTRUCTURE COSTS - $54 mln net impact from cost growth on three infrastructure projects due to subcontractor design errors

• CLIENT SPENDING SHIFT - Results impacted by temporary shift in expected capital spending from clients, seen as temporary by co

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Fluor Corp is $55.00, about 3.2% below its July 31 closing price of $56.77

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw6NLVkXa