Why Is Fluor (FLR) Down 9.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Fluor (FLR). Shares have lost about 9.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Fluor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Fluor Q4 Earnings & Revenues Lag Estimates, Backlog Down Y/YFluor reported tepid fourth-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate and declining on a year-over-year basis.Inside Fluor’s Q4 ResultsThe company reported adjusted earnings per share (EPS) of 33 cents, which missed the Zacks Consensus Estimate of 34 cents by 2.9%. In the year-ago quarter, it reported an adjusted EPS of 48 cents.Quarterly revenues of $4.18 billion missed the consensus mark of $4.24 billion by 1.6%. Additionally, the figure declined 2% from the year-ago quarter’s level of $4.26 billion.As of the end of 2025, Fluor secured $12 billion in new awards, 87% of which were reimbursable. Ending backlog stood at $25.5 billion (down 10.3% year over year), approximately 81% reimbursable, underscoring the company’s continued emphasis on risk-mitigated contracting. Management also highlighted nearly $1 billion of positive backlog adjustments during the year.FLR’s Segmental DiscussionUrban Solutions generated revenues of $2.63 billion, with segment profit of about $44 million. Results were supported by continued execution on life sciences, mining & metals and infrastructure projects, though margins remained pressured by legacy infrastructure cost growth.New awards totaled $8.7 billion, marking the third consecutive year near the $9 billion level. Ending backlog was $18.7 billion. Growth was driven by pharmaceutical manufacturing, mining (including copper and iron ore) and semiconductor-related opportunities.Energy Solutions reported revenues of $943 million, year over year down from $1.52 billion and posted a substantial segment profit of about $56 million, primarily driven by the Santos court ruling impact and project completion timing effects.New awards were $1.4 billion, largely tied to higher-margin engineering services expected to convert into larger EPC projects. Backlog ended at $4.6 billion.Mission Solutions recorded revenues of nearly $600 million, delivering a segment profit of $21 million, supported by steady activity in nuclear remediation and national security programs.New awards reached $1.8 billion, including a six-year contract extension at the Portsmouth, Ohio, site. Backlog stood at $2.2 billion.Financial Details of FLRAs of Sept. 30, 2025, Fluor had cash and cash equivalents of $2.78 billion, down from $2.91 billion at the end of 2024.Cash used by operating activities was negative $387 million in 2025, against $828 million in the year-ago period.Fluor strengthened shareholder returns, deploying $754 million in share repurchases during 2025, with an additional $335 million repurchased in early 2026. The company also received nearly $2 billion in proceeds from NuScale monetization, enhancing liquidity and balance sheet flexibility.Fluor Highlights 2026 ViewManagement expects the 2026 book-to-burn to exceed one, supported by improving client confidence and prospects across LNG, gas-fired power, nuclear, mining and advanced technologies. Additionally, Fluor outlined a 2026 adjusted EBITDA target of $525-$585 million, reflecting confidence in margin quality and execution discipline under its “Grow & Execute” strategy.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresAt this time, Fluor has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Fluor has a Zacks Rank #1 (Strong Buy). 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Click to get this free report Fluor Corporation (FLR): 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