Fluor (FLR) investor relations material

Executive summary

• Q1 2026 revenue was $3.66 billion, down from $3.98 billion YoY, mainly due to project completions and reduced Mission Solutions activity, partially offset by Urban Solutions ramp-up.

• Net earnings attributable to shareholders were $160 million, a turnaround from a $241 million loss in Q1 2025, driven by a $124 million gain on the sale of CFHI and improved equity method earnings.

• Operating cash flow improved to $110 million, the strongest Q1 since 2017, aided by working capital improvements and JV distributions.

• Completed sale of NuScale shares, generating $2.43 billion since September 2025, and divested a fabrication yard in China for $124 million.

• Repurchased 11 million shares for $516 million in Q1 2026; board authorized a 30 million share expansion to the repurchase program, targeting $1.4 billion for 2026.

Financial highlights

• Adjusted EBITDA was $60 million (down from $155 million YoY); adjusted EPS was $0.14; consolidated segment profit was $8 million.

• Gross profit for Q1 2026 was $13 million, down from $140 million YoY; operating profit was $92 million.

• Adjusted net earnings for Q1 were $21 million, with significant adjustments for litigation and asset sales.

• Cash and equivalents plus marketable securities totaled $3.2 billion at quarter end, up from $2.2 billion at year-end 2025.

• G&A expense was $61 million, mainly due to stock compensation accruals; net interest income was $15 million.

Outlook and guidance

• Adjusted EBITDA guidance for 2026 narrowed to $525–$560 million, reflecting mining project cost growth and Middle East project slowdowns.

• Adjusted EPS expected between $2.60 and $2.80/share; operating cash flow guidance at $300 million (excluding NuScale tax bill).

• Revenue split guidance: 65% Urban Solutions, 20% Energy Solutions, 15% Mission Solutions; segment margin targets: Urban 2.5–3.5%, Energy 5–6%, Mission 6%.

• Book-to-burn ratio for new awards expected above 1, with awards weighted to the second half of the year.

• Management expects strong client engagement and robust pipeline, especially in energy, commodities, and advanced technologies.