stockrowWhat it does
Fluor Corporation provides engineering, procurement, construction and project management services to industrial and government clients. It helps customers plan facilities, obtain equipment and materials, build projects, and operate or maintain completed facilities. Founded in 1890, Fluor is headquartered in Irving. James R. Breuer is its chief executive officer.
A customer can hire Fluor for an early feasibility study, a design assignment or management of an entire project. On larger assignments, Fluor may coordinate multiple contractors, develop schedules and cost forecasts, buy materials, and manage construction through startup. It can perform construction itself or use subcontractors. The company also provides maintenance and staffing services.
Its work spans data centers, manufacturing plants, pharmaceutical facilities, mines, transportation infrastructure, energy projects and government sites. Urban Solutions serves industries including advanced manufacturing, life sciences, mining and infrastructure. Energy Solutions works on oil and gas, chemicals, liquefied natural gas and power projects. Mission Solutions provides technical and operational services to governments, including nuclear security, environmental cleanup and support for military facilities.
Fluor works through subsidiaries and joint ventures as well as directly on projects. At December 31, 2025, it had 22,995 employees, including salaried staff, craft and hourly workers, and staffing-agency personnel.
How it makes money
Fluor earns revenue by providing professional services and carrying out work under project contracts. Urban Solutions generated $9.2 billion in FY2025, Energy Solutions generated $3.6 billion, and Mission Solutions generated $2.7 billion. Fluor reported Q2 2026 revenue of 4.3 billion.
Contracts generally fall into two categories. Under reimbursable contracts, clients pay negotiated rates and fees for work performed. Fluor’s profit can be a fee, a markup on labor costs or a combination; some fees depend on performance or milestones. At December 31, 2025, 81% of backlog was reimbursable. Mission Solutions generally works under reimbursable government contracts, often with incentive fees.
Under lump-sum contracts, Fluor agrees to a price for a defined scope or a set price per unit of work. It can retain savings if it completes work efficiently, but may be unable to recover overruns. Guaranteed-maximum contracts reimburse costs only up to an agreed ceiling. Some contracts combine fixed-price and reimbursable elements, and some begin as reimbursable work before conversion to a lump-sum price.
Revenue includes some materials and subcontractor costs passed through to customers without a meaningful markup. In 2025, at-cost revenue was approximately $8 billion, or approximately 53% of consolidated revenue. Fluor uses adjusted net revenue, which excludes such amounts, to assess the base on which it earns professional-service fees.
Maintenance, staffing and government programs can extend over time. Some government agreements do not initially specify a fixed amount of work; once a scope is defined, further work can be awarded without another competitive bid. Most contracts require payments as projects progress.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Urban Solutions | $9.2 billion | 59.3% | 27.1% |
| Energy Solutions | $3.6 billion | 22.9% | −40.5% |
| Mission Solutions | $2.7 billion | 17.5% | 4.86% |
| Other | $29.0 million | 0.19% | −94.3% |
Customers and how it sells
Fluor serves companies developing and operating industrial facilities, as well as U.S. and overseas governments. Private-sector customers include businesses in pharmaceuticals, biotechnology, mining, manufacturing, chemicals, power and oil and gas. Government work includes nuclear security and cleanup, military logistics and facilities, disaster recovery, and transportation projects for state departments of transportation.
In 2025, U.S. government agencies accounted for 17% of total revenue through multiple contracts and sometimes joint ventures. A single Urban Solutions customer accounted for 15% of revenue across multiple projects. Fluor also works through partnerships and joint ventures, and its staffing business supplies personnel both to Fluor projects and to third-party clients.
North America generated $11.3 billion of FY2025 revenue, representing 73.0% of the total. Europe contributed $2.9 billion, or 18.7%. Fluor also reported revenue from Asia Pacific, Central and South America, and the Middle East and Africa. Its mining work includes remote and logistically challenging locations; its government work includes facilities and operations outside the United States.
Fluor’s global execution centers support project work, while local partners and training programs help it mobilize resources at project sites.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North America | $11.3 billion | 73.0% | 2.03% |
| Europe | $2.9 billion | 18.7% | 7.66% |
| Asia Pacific (includes Australia) | $604.0 million | 3.90% | −67.1% |
| Central and South America | $538.0 million | 3.47% | 11.2% |
| Middle East and Africa | $152.0 million | 0.98% | −29.6% |
Suppliers and costs
Fluor buys and manages materials, equipment and subcontracted services for client projects. Its procurement work includes sourcing, purchasing, supplier inspections, logistics and contract management. Construction can be performed by Fluor’s own workforce, subcontractors or a combination of both.
Principal materials and components include structural steel, metal plate, concrete, cable, and electrical and mechanical components. Fluor has access to numerous global supply sources, but their availability and cost can vary with logistics, demand, producer capacity, inflation and shortages. Fluor monitors prices and availability of underlying raw materials such as aluminum, copper, nickel and iron ore.
Project costs also include labor and subcontractor work. Some reimbursable contract revenue includes material and third-party costs billed to clients without meaningful markup, so those amounts increase both revenue and project cost. Project working-capital needs vary with contract payment terms, billing schedules and the stage of construction. Clients sometimes make advance payments, which are used as projects progress.
Fluor uses joint ventures and other teaming arrangements on some contracts, including where a project’s size, scale or location calls for them.
- Revenue$15.5B
- Cost of revenue−$15.6B
- Selling, general and administrative−$196.0M
- Other operating costs−$62.0M
- Operating income−$378.0M
Competitive position
Fluor competes with U.S. and international engineering, construction and technical-services companies. Named competitors include AECOM, Bechtel, Jacobs Solutions, KBR and WorleyParsons. The company also faces a fragmented staffing market and competition for government work.
For Urban Solutions and Energy Solutions, competition centers on design, engineering, planning, project management and execution. For Mission Solutions, performance and personnel with appropriate security clearances also matter. Staffing customers consider price, service quality, client relationships, the breadth of services and access to qualified people.
Fluor uses global execution centers, procurement capabilities, local partners and project-management teams to serve clients. It also has long-standing client relationships and experience on complex projects. In government services, it employs security-cleared personnel and works on nuclear and national-security programs.
Our reading: Fluor’s ability to coordinate complex projects and source internationally offers a meaningful competitive advantage, but rivals also compete on execution and have substantial resources. Our reading: Client relationships and security-cleared personnel can support repeat work, although government contracts can be modified or put out for competition. Our reading: Staffing is less protected by specialization because customers can choose among a fragmented field of providers.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| AECOM | Fluor’s engineering and project-services markets | Medium |
| Bechtel Group, Inc. | Fluor’s engineering and project-services markets | Medium |
| Jacobs Solutions, Inc. | Fluor’s engineering and project-services markets | Medium |
| KBR, Inc. | Fluor’s engineering and project-services markets | Medium |
| WorleyParsons Limited | Fluor’s engineering and project-services markets | Medium |
Growth opportunities
Fluor is pursuing work in data centers, advanced manufacturing, critical minerals, power, nuclear facilities, LNG and national security. It aims to develop projects during their early planning stages and convert some of that work into larger engineering and construction assignments. In 2025, new Urban Solutions awards included a pharmaceutical facility, mining projects and infrastructure contracts.
In Q2 2026, Fluor reported over $6 billion in new awards and ending backlog of $26.9 billion. It said front-end work had moved into full engineering and construction programs involving nuclear fuels, fertilizers, copper and midstream energy. Awards included a limited notice to proceed for the second phase of LNG Canada, enabling early planning ahead of the client’s proposed investment decision.
Fluor said its mining and metals pipeline contained nearly $30 billion of potential awards over the next 18 months. It also said it was providing limited-release engineering and project management for a Kentucky data center while working toward final commercial terms for an engineering and construction contract. In power, Fluor is working on early-stage gas-fired projects and nuclear opportunities.
Backlog represents expected future revenue from awarded work, not a guarantee of completed revenue: cancellations, deferrals and scope changes can occur. Fluor also said it sold its Mexican joint-venture equity in July for $175 million.
- $14.2BFY2021
- $13.7BFY2022
- $15.5BFY2023
- $16.3BFY2024
- $15.5BFY2025
Structural risks
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Project execution: Complex projects can suffer delays and cost overruns from design problems, incorrect site assumptions, labor costs, supply disruptions, inflation or tariffs. Lump-sum and guaranteed-maximum contracts can leave Fluor responsible for costs it cannot recover.
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Legacy and disputed projects: Fluor reversed $643 million of revenue in 2025 following a judgment on the completed Santos project, which it has appealed. It also reported $44 million in additional losses on the Gordie Howe project in Q2 2026, associated with currency movements, a subcontractor bankruptcy and client-driven changes.
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Market and customer spending: Fluor is exposed to cyclical markets. Clients can delay investment decisions because of cost pressures or commodity prices, while backlog can be reduced by cancellations, deferrals and scope changes.
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Government contracts: Changes in funding, spending priorities or agency operations can delay or cancel projects. Government clients can terminate, renegotiate or modify contracts at their convenience, and many contracts require annual renewal or extension.
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International and supply-chain exposure: Trade restrictions, sanctions, currency movements, political instability and changing labor conditions can disrupt overseas operations. Materials and equipment costs and availability can also change significantly.
Bottom line
Our reading
Fluor is a project-services business whose earnings depend on winning and executing complex industrial and government work, rather than on sales of a standardized product (item1; item7). Its reimbursable backlog reduces some exposure to construction-cost overruns, but project disputes, fixed-price work and client investment cycles remain material risks (item1; item1a; item7). Recent awards provide work across several markets, while the conversion of early-stage opportunities into full projects remains important to future backlog (call_prepared; item7).