Fluor Navigates NuScale Wind-Down and Project Challenges in Q4 2025
Engineering and construction giant FLUOR CORP (NYSE:FLR) reported financial results for the fourth quarter and full year ended December 31, 2025, delivering a mixed performance against analyst expectations while navigating significant one-time charges related to its investment in NuScale Power. The company's core operational results were overshadowed by a substantial non-cash write-down, leading to a stark headline loss for the quarter.
Earnings and Revenue Versus Estimates
For the fourth quarter, Fluor reported revenue of $4.18 billion, which fell short of the consensus analyst estimate of approximately $4.29 billion. The company's adjusted earnings per share (EPS), a non-GAAP metric that excludes certain one-time items, came in at $0.33. This also missed the Street's expectation of $0.35 per share.
The market's immediate reaction to the earnings release was negative, with the stock trading lower in pre-market activity. This price action suggests investor disappointment with the revenue miss and lower-than-anticipated adjusted profitability for the quarter. The stock's performance over the past week has also been negative, further reflecting a cautious sentiment following the report.
Key Factors in the Quarterly Results
The quarterly figures were heavily impacted by two major factors, as detailed in the company's press release:
- NuScale Investment Valuation: The most significant item was a $2.0 billion reduction in the valuation of Fluor's investment in NuScale Power Corporation, a small modular reactor technology company. This non-cash charge resulted in a GAAP net loss attributable to Fluor of $1.57 billion, or ($9.87) per diluted share, for Q4. This compares to a net earnings of $1.86 billion in the prior-year period, which included a large positive valuation adjustment for the same investment.
- Legacy Project Issues: The company's core segment results were pressured by cost growth on legacy infrastructure projects and additional reserves recognized on a Department of Defense project. These items contributed to a year-over-year decline in consolidated segment profit.
Full-Year 2025 and Segment Performance
For the full year 2025, Fluor reported revenue of $15.5 billion and a GAAP net loss of $51 million. The company highlighted an adjusted EBITDA of $504 million and adjusted EPS of $2.19 for the year. The annual results were significantly affected by a $643 million adverse ruling related to the completed Santos project in Australia, which was recorded in the Energy Solutions segment.
A segment breakdown reveals a divergent performance:
- Urban Solutions: Revenue grew to $9.2 billion, driven by increased activity, though segment profit declined to $205 million due to cost growth on legacy projects.
- Energy Solutions: The segment reported a loss of $414 million, primarily due to the Santos ruling reversal and lower execution activity. Revenue declined to $3.6 billion.
- Mission Solutions: Profit decreased to $94 million on roughly flat revenue of $2.7 billion, impacted by project reserves.
Capital Allocation and NuScale Monetization
A central theme of the earnings release was capital allocation and the ongoing monetization of the NuScale investment. Fluor received $605 million in proceeds from NuScale in 2025 and an additional $1.35 billion in the first quarter of 2026. The company anticipates full monetization of its remaining stake by the end of the second quarter of 2026.
Management emphasized that this liquidity enhances financial flexibility for organic growth, potential mergers and acquisitions, and continued share repurchases. In 2025, Fluor expended $754 million to repurchase 18 million shares.
Outlook and Analyst Estimates
Looking ahead, Fluor provided adjusted EBITDA guidance for 2026 in the range of $525 million to $585 million. The company does not provide GAAP earnings guidance. This outlook can be compared to the broader analyst expectations for the coming year. Currently, analysts are estimating sales of approximately $16.74 billion and an EPS of $2.36 for the full year 2026. Fluor's provided EBITDA range offers a management perspective on core operational profitability but does not directly translate to the bottom-line EPS figure tracked by the market.
Conclusion
Fluor's fourth-quarter results present a complex picture. While core operations faced headwinds from specific project challenges, leading to a revenue and adjusted EPS miss, the overwhelming influence on the financial statements was the accounting treatment of the NuScale investment. The market's negative reaction appears to weigh the operational misses alongside the uncertainty being removed as the NuScale chapter closes. Investors will now focus on the company's ability to convert its strong liquidity position and $25.5 billion backlog—81% of which is reimbursable—into improved project execution and the capture of new awards in what management calls an "improving capital spending environment."
For a detailed look at Fluor's historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investing carries risks, including the potential loss of principal.
