Breaking Down Fluor Corporation (FLR) Financial Health: Key Insights for Investors

Are you looking to invest wisely and want to ensure a company is financially sound before you commit? Has Fluor Corporation (FLR) caught your eye, and you're wondering about its financial health? In 2024, Fluor Corporation's full-year revenue reached $16.3 billion, marking a 5.4% increase from the previous year, and its net income soared to $2.1 billion, or $12.30 per diluted share. But how does this translate into overall financial stability? Delve into this analysis to discover key insights about Fluor's balance sheet, including its $4.0 billion in total shareholder equity, $1.1 billion in total debt, and robust operating cash flow of $828 million, the highest since 2015, to help you make informed decisions.

Fluor Corporation (FLR) Revenue Analysis

Fluor Corporation's financial health can be understood by examining its revenue streams, growth, and segment contributions. The company operates through various business segments, each contributing differently to its overall revenue.

Here’s a breakdown of Fluor Corporation’s revenue streams based on the latest available information:

• Energy Solutions: This segment focuses on providing engineering, procurement, and construction (EPC) services to the energy industry.
• Urban Solutions: This segment caters to infrastructure, advanced technologies, and life sciences projects.
• Mission Solutions: This segment serves government and defense clients.
• Other: This includes other smaller business activities and adjustments.

Fluor Corporation's total revenue for the fiscal year 2024 was $14.9 billion. Here's a more detailed look at the revenue contributions from each segment:

• Energy Solutions: Generated $6.3 billion in revenue.
• Urban Solutions: Contributed $5.4 billion.
• Mission Solutions: Accounted for $3.1 billion.

Analyzing year-over-year revenue growth rates provides insights into Fluor's performance trends. The company experienced an overall revenue increase of 9.4% in 2024 compared to 2023.

Here's a table summarizing the revenue contributions by segment for fiscal year 2024:

For further insights into Fluor's strategic objectives, explore Mission Statement, Vision, & Core Values of Fluor Corporation (FLR).

Fluor Corporation (FLR) Profitability Metrics

Understanding a company's profitability is crucial for investors. This section dives into Fluor Corporation's key profitability metrics, providing insights into its financial health and operational efficiency. For additional context, explore Mission Statement, Vision, & Core Values of Fluor Corporation (FLR).

For the year ended December 31, 2024, Fluor Corporation reported:

• Revenue of $16.3 billion
• Net income attributable to Fluor of $2.1 billion, or $12.30 per diluted share. This reflects the deconsolidation and subsequent remeasurement of Fluor's investment in NuScale.
• Consolidated segment profit of $635 million, compared to $537 million in 2023.
• Adjusted EBITDA of $530 million
• Adjusted diluted earnings per share of $2.32

Here's a deeper look into specific profit margins and related data:

Gross Profit Margin:

• Fluor's gross profit margin for the trailing 12 months (TTM) ending December 31, 2024, was 3.51%. This represents a 13.93% change year-over-year.
• For Q4 2024, the gross profit margin was 4.91%, with a gross profit of $209 million on revenue of $4.26 billion.
• Fluor's gross profit for the three months ended in December 2024 was $208 million.

Operating Profit Margin:

• Fluor's operating margin as of March 2025 (TTM) was 4.03%.
• At the end of 2024, the company had an operating margin of 3.76%, an 84.57% increase from 2023.

Net Profit Margin:

• Fluor's net profit margin for the TTM ending December 31, 2024, was 13.15%, a 1,669.07% change year-over-year.
• The net profit margin for the quarter ending December 31, 2024, was also 13.15%.

Trends in Profitability Over Time:

The following table shows the trend in Fluor's Net Income over the recent years:

Additional Financial Data:

• Revenue for 2024 was $16.3 billion.
• Cost of goods sold for 2024 was $15.741 billion, a 4.96% increase from 2023.
• Operating cash flow for 2024 was strong at $828 million, the highest since 2015.
• The company recognized a $1.6 billion gain from the deconsolidation of its investment in NuScale.

Segment Performance:

• Urban Solutions saw a significant increase in revenue, reaching $7.2 billion in 2024, compared to $5.3 billion in 2023.
• Energy Solutions reported a profit of $256 million in 2024, down from $381 million in 2023.
• Mission Solutions profit improved to $153 million in 2024, compared to $116 million in the previous year.

Management Effectiveness:

• Return on Assets (ROA) (TTM): 2.98%
• Return on Equity (ROE) (TTM): 68.96%

Fluor Corporation (FLR) Debt vs. Equity Structure

Understanding Fluor Corporation's (FLR) financial health involves a close look at how it manages its debt and equity. This balance is crucial for funding growth, managing risk, and maintaining investor confidence. Let’s delve into the specifics of Fluor's debt levels, ratios, and financing strategies as of the latest available data.

As of the end of the 2024 fiscal year, Fluor Corporation's debt profile includes both short-term and long-term obligations. Analyzing these components provides a clear picture of the company's leverage and its ability to meet its financial commitments.

• Long-Term Debt: This represents the debt due beyond one year, crucial for funding significant capital projects and strategic initiatives.
• Short-Term Debt: This includes obligations due within a year, such as accounts payable and the current portion of long-term debt.

The interplay between these debt types impacts Fluor's liquidity and overall financial stability.

The debt-to-equity (D/E) ratio is a key metric for assessing Fluor's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater financial risk, as the company relies more on debt than equity. Conversely, a lower ratio indicates a more conservative financing approach.

To provide a clear perspective, here is an overview of Fluor Corporation's key financial ratios:

Compared to industry standards, Fluor's debt-to-equity ratio positions it as moderately leveraged. The construction and engineering industry often requires significant capital, leading to higher debt levels. However, Fluor's ratio suggests a balanced approach, indicating prudent financial management.

Recent activities in debt management can significantly influence Fluor's financial structure. These include:

• Debt Issuances: New bond offerings or loans to fund projects or refinance existing debt.
• Credit Ratings: Assessments by agencies like Moody's and Standard & Poor's, reflecting Fluor's creditworthiness.
• Refinancing Activities: Efforts to lower interest rates or extend debt maturities.

For example, in 2024, Fluor may have engaged in refinancing activities to take advantage of favorable interest rates, thereby reducing its interest expenses and improving its profitability.

Fluor strategically balances debt financing with equity funding to optimize its capital structure. Debt financing can provide tax advantages and lower costs of capital, but it also increases financial risk. Equity funding, through retained earnings or new stock issuances, strengthens the balance sheet but can dilute existing shareholders' ownership.

Fluor's approach involves:

• Maintaining a Target Capital Structure: Aiming for an optimal mix of debt and equity to minimize the cost of capital.
• Strategic Use of Debt: Utilizing debt for projects with predictable cash flows and returns.
• Equity as a Buffer: Relying on equity to absorb unexpected losses and maintain financial flexibility.

By carefully managing its debt and equity, Fluor aims to achieve sustainable growth and deliver value to its shareholders. A balanced capital structure supports operational efficiency and strategic investments, ensuring Fluor's competitive position in the market.

Learn more about Fluor Corporation and its investors: Exploring Fluor Corporation (FLR) Investor Profile: Who’s Buying and Why?

Fluor Corporation (FLR) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Fluor Corporation (FLR), assessing these metrics provides insights into its financial stability and risk profile. Here's an overview of Fluor's liquidity position based on its recent financial data.

Assessing Fluor Corporation's Liquidity:

Understanding Fluor Corporation's liquidity involves analyzing key financial ratios and cash flow trends. These metrics help evaluate the company's ability to cover its short-term liabilities and maintain smooth operations.

Current and Quick Ratios:

The current and quick ratios are fundamental measures of a company's ability to meet its short-term obligations. The current ratio assesses whether a company has enough current assets to cover its current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative view.

For the fiscal year 2024, Fluor Corporation reported:

• A current ratio of 1.22.
• A quick ratio of 1.14.

These ratios indicate that Fluor possesses sufficient liquid assets to cover its short-term liabilities.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a vital measure of a company's short-term financial health. Monitoring trends in working capital can reveal whether a company is efficiently managing its short-term resources.

As of 2024, Fluor Corporation's working capital stood at $747 million, indicating a positive ability to cover short-term obligations. This reflects the company's effective management of its current assets and liabilities.

Cash Flow Statements Overview:

An examination of Fluor Corporation's cash flow statements offers insights into its cash generation and usage patterns. Cash flows are categorized into operating, investing, and financing activities, each providing a unique perspective on the company's financial activities.

For the fiscal year 2024:

• Net cash provided by operating activities: $47 million.
• Net cash used for investing activities: $66 million.
• Net cash provided by financing activities: $49 million.

Potential Liquidity Concerns or Strengths:

Based on the analysis of Fluor Corporation's liquidity, several key points emerge:

Strengths:

• Healthy Current and Quick Ratios: The current ratio of 1.22 and quick ratio of 1.14 suggest a strong ability to meet short-term obligations.
• Positive Working Capital: A working capital of $747 million indicates efficient management of short-term assets and liabilities.

Concerns:

• Fluctuations in Cash Flow: While operating cash flow is positive, fluctuations in investing and financing activities require monitoring to ensure sustainable liquidity.

Comprehensive Financial Data:

Here's a summary of Fluor Corporation's key financial data for the fiscal year 2024:

In conclusion, Fluor Corporation demonstrates robust liquidity positions with healthy current and quick ratios, alongside positive working capital. Investors should monitor cash flow trends to ensure sustained financial stability. For further insights, explore: Breaking Down Fluor Corporation (FLR) Financial Health: Key Insights for Investors

Fluor Corporation (FLR) Valuation Analysis

Determining whether Fluor Corporation (FLR) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include valuation ratios, stock price trends, dividend information, and analyst ratings.

Here's a breakdown to help assess Fluor's current valuation:

• Price-to-Earnings (P/E) Ratio:
• The trailing P/E ratio is 2.76.
• The forward P/E ratio is 13.42.
• Price-to-Book (P/B) Ratio: The P/B ratio is 1.46.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is 8.43.

These ratios provide a snapshot of how the market values Fluor relative to its earnings, book value, and operational cash flow. Compared to the Engineering & Construction industry's forward P/E of 23.5x, Fluor appears attractively valued.

Fluor's market capitalization is $5.71 billion, and its enterprise value is $3.85 billion.

Stock Price Trends:

As of April 17, 2025, Fluor's stock price is $33.96.

• The intraday high is $34.22.
• The intraday low is $33.29.
• The 52-week high is $60.10.
• The 52-week low is $29.20.

Despite a 500% increase over the past five years, the stock has experienced volatility and is currently trading below its 21-month moving average. The stock is up only 30% over the past 20 years, compared to the S&P 500's 410% run and its sector’s 121%.

Dividend Yield and Payout Ratios:

Fluor does not currently pay a dividend.

Hypothetically, if Fluor were to pay a dividend, based on its next fiscal year EPS estimate of $2.53:

• A 10% payout ratio would result in an annual dividend of $0.25, yielding 0.75%.

The company's dividend payout ratio was 0.00% for the trailing twelve months (TTM).

Analyst Consensus on Stock Valuation:

Based on ratings from 8 Wall Street analysts:

• The consensus rating is 'Moderate Buy.'
• 5 analysts have given a 'Buy' rating.
• 3 analysts have given a 'Hold' rating.

The average twelve-month price target is $49.43, with a high forecast of $63.00 and a low forecast of $40.00.

Several analysts have adjusted their price targets and ratings for Fluor:

• Truist Securities maintains a 'Strong Buy' rating with a price target of $66.
• DA Davidson maintains a 'Buy' rating but lowered the price target to $55 from $65.
• Baird downgraded the stock to 'Hold' with a price target of $58.

Overall, the analyst consensus suggests a positive outlook, with a forecasted upside of 45.42% from the current price of $33.99.

See more on Fluor Corporation's (FLR) Financial Health: Breaking Down Fluor Corporation (FLR) Financial Health: Key Insights for Investors

Fluor Corporation (FLR) Risk Factors

Fluor Corporation (FLR) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Industry Competition: The engineering and construction industry is intensely competitive. Fluor competes with numerous global and regional players, some of which may have greater financial resources or specialized expertise in certain sectors. Intense competition can lead to pressure on profit margins and the ability to secure new projects. Maintaining a competitive edge requires continuous innovation, efficient project execution, and strong client relationships.

Regulatory Changes: Fluor's operations are subject to a wide array of environmental, labor, and safety regulations across various jurisdictions. Changes in these regulations can increase compliance costs and impact project timelines. For example, stricter environmental standards may require additional investment in pollution control technologies, while changes in labor laws could affect workforce costs and availability.

Market Conditions: Economic downturns, fluctuations in commodity prices, and geopolitical instability can significantly affect Fluor's business. A decrease in capital spending by clients in the energy, chemicals, or mining sectors, for instance, can reduce demand for Fluor’s services. Geopolitical events can also disrupt supply chains and project execution, leading to delays and cost overruns.

Operational Risks:

• Project Execution: Fluor's financial performance heavily relies on its ability to manage and execute projects effectively. Complex projects often involve numerous subcontractors, suppliers, and stakeholders, increasing the risk of delays, cost overruns, and disputes.
• Cost Estimation: Inaccurate cost estimates can lead to significant financial losses. Fluor must accurately forecast labor, material, and other project-related expenses.
• Health, Safety, and Environment (HSE): Maintaining high HSE standards is critical. Incidents can result in project delays, regulatory penalties, and reputational damage.

Financial Risks:

• Liquidity and Cash Flow: Maintaining sufficient liquidity is essential to fund ongoing operations and capital expenditures. Economic downturns or project delays can strain cash flow.
• Debt and Financing: Fluor's debt levels and financing costs can impact its financial flexibility. Changes in interest rates or credit market conditions can increase borrowing costs.
• Insurance and Guarantees: Fluor uses insurance and guarantees to mitigate certain risks. However, these may not fully cover all potential losses.

Strategic Risks:

• Strategic Planning: The success of Fluor’s long-term strategic plans depends on various factors that may be difficult to predict, such as technological changes, evolving market dynamics, and changes in clients’ business strategies.
• Acquisitions and Divestitures: Fluor may pursue acquisitions or divestitures to expand or streamline its operations. These transactions carry integration and execution risks.

Mitigation Strategies: Fluor employs several strategies to mitigate these risks:

• Risk Management Framework: Fluor has a comprehensive risk management framework to identify, assess, and manage risks across its operations.
• Project Controls: Implementing robust project controls, including detailed planning, cost tracking, and change management processes, helps minimize project-related risks.
• Insurance Programs: Fluor maintains insurance programs to cover various risks, including property damage, liability, and business interruption.
• Compliance Programs: Fluor has compliance programs to ensure adherence to applicable laws and regulations, including those related to anti-corruption, trade compliance, and data privacy.
• Contingency Planning: Developing contingency plans to address potential disruptions, such as natural disasters, supply chain disruptions, or geopolitical events, enhances resilience.

For further insights into Fluor Corporation and its investors, check out: Exploring Fluor Corporation (FLR) Investor Profile: Who’s Buying and Why?

Fluor Corporation (FLR) Growth Opportunities

Fluor Corporation's future growth prospects are underpinned by several key drivers, strategic initiatives, and competitive advantages. The company's ability to capitalize on these factors will be crucial in achieving its revenue growth projections and earnings estimates.

Key growth drivers for Fluor Corporation include:

• Product Innovations: While Fluor is primarily an engineering and construction firm, innovations in project management, sustainable construction practices, and digital solutions can drive efficiency and attract new clients.
• Market Expansions: Fluor can pursue growth by expanding its services in growing markets, such as renewable energy, sustainable infrastructure, and data centers.
• Acquisitions: Strategic acquisitions can enable Fluor to expand its capabilities, enter new markets, and gain access to proprietary technologies.

Future revenue growth projections and earnings estimates are vital for investors. While specific figures require up-to-date financial analysis, understanding the trajectory is key. For example, in February 2024, Fluor Corporation announced a new strategic direction, targeting selective pursuits and a move away from lump-sum projects. The company aimed for a compound annual growth rate (CAGR) of 8-10% through 2026, with an adjusted segment profit margin target of 4.5-6.0%.

Strategic initiatives and partnerships are also crucial growth drivers:

• Government Programs: With significant government funding allocated to infrastructure projects, Fluor is strategically positioned to benefit. The company is actively pursuing opportunities arising from these programs.
• NuScale Strategic Partnership: Fluor has a strategic partnership with NuScale, focusing on the development of small modular reactors (SMRs). This collaboration aims to deliver innovative and cost-effective nuclear energy solutions.

Fluor Corporation possesses several competitive advantages that position it for growth:

• Global Presence: Fluor's extensive global network allows it to serve clients in diverse markets and execute complex projects worldwide.
• Technical Expertise: With a strong focus on engineering, procurement, and construction management, Fluor brings deep technical expertise to its projects.
• Strong Client Relationships: Fluor's long-standing relationships with major clients in various industries provide a stable base for future growth.

To illustrate Fluor's financial performance and growth strategy, consider the following summary based on available information:

For more insights into Fluor Corporation's investor profile, explore: Exploring Fluor Corporation (FLR) Investor Profile: Who’s Buying and Why?