Fluor Secures $671M State Highway 6 Project Contract With TxDOT

Fluor Corporation's FLR infrastructure business has secured a construction contract from the Texas Department of Transportation (TxDOT) for the State Highway 6 project in College Station, TX.The $671 million bid-build contract will be recorded by the company in the first quarter of 2025. Construction is expected to start in summer 2025 and reach substantial completion by spring 2030.FLR Strengthens Partnership With TxDOT for Texas InfrastructureFluor has been involved in designing and building infrastructure projects in Texas for nearly 25 years. The company is currently working on several projects, including the I-635 LBJ East and I-35E projects in Dallas, as well as the Oak Hill Parkway and I-35 Capital Express South projects in Austin. Additionally, Fluor is conducting the I-35 NEX South project in San Antonio.This new award highlights the company's ongoing commitment to infrastructure development in Texas and strengthens its long-term partnership with TxDOT. The SH 6 project marks another significant step in this collaboration as TxDOT continues to address the transportation needs in a rapidly growing area.Per this contract, FLR will reconstruct and widen a 12-mile stretch of SH 6 between College Station and Bryan. The company will expand the highway from two lanes to three in each direction, increasing capacity for commuters traveling to Texas A&M University and surrounding areas. The highway is part of the Texas Highway Freight Network and the Texas Highway Trunk System, and serves as a Hurricane Evacuation Route.FLR’s Diversified Approach Strengthens Market PositionThe company has been implementing its "Building a Better Future" strategy for more than four years. This strategy focuses on driving growth by expanding into markets beyond traditional oil and gas. The company seeks contracts with fair commercial terms, prioritizing reimbursable deals. It also emphasizes financial discipline, aiming to generate steady cash flow and earnings while maintaining a strong balance sheet. The company is committed to fostering a high-performance culture and advancing diversity, equity, inclusion and sustainability.The total backlog at the end of 2024 was $28.5 billion, down from $29.4 billion in the year-ago period. Although the backlog has declined due to softness in the Energy and Mission Solutions segments, moving into 2025, Fluor is optimistic about the growing demand trends for its services, with the signing of new contracts and renewing the existing ones.FLR’s Price PerformanceImage Source: Zacks Investment ResearchShares of this engineering, procurement, construction and maintenance services provider have inched down 27.3% in the past three months compared with the Zacks Engineering - R and D Services industry’s 18.3% decline. Headwinds like foreign currency risks, project delays and cancellations are weighing on the company’s prospects.FLR is likely to benefit from its strategy of maintaining a diversified business portfolio. This approach allows the company to focus on more stable markets while capitalizing on cyclical markets at the right times.FLR’s Zacks Rank & Key PicksFluor currently carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. STRL, EMCOR Group, Inc. EME and Gibraltar Industries, Inc. ROCK.Sterling presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Sterling delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has gained 7.4% in the past year. The Zacks Consensus Estimate for Sterling’s 2025 sales indicates a year-over-year decrease of 4.1% and that for earnings implies an increase of 34.6%.EMCOR currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 29%, on average. The stock has gained 3.1% in the past year.The consensus estimate for EMCOR’s 2025 sales and EPS implies an increase of 12.8% and 8.6%, respectively, from a year ago.Gibraltar currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has lost 25% in the past year.The Zacks Consensus Estimate for Gibraltar‘s 2025 sales and EPS implies an increase of 9.8% and 15.5%, respectively, from a year ago.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluor Corporation (FLR): Free Stock Analysis Report EMCOR Group, Inc. (EME): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks