Fluor (FLR) Stock Forecast & Price Target

Fluor's revenue reached $16.3 billion in 2024, with notable growth observed in its Mission Solutions and Urban Solutions segments, which reported sales increases of 20% and 21% year-over-year, respectively. The company's operational cash flow guidance was raised to $250 million-$300 million, and early signs indicate that EBITDA generation is expected to exceed prior forecasts, particularly driven by the metals and mining sectors within Urban Solutions. Additionally, an improved balance sheet and a book-to-burn rate rising from 0.4x to 0.8x suggest a favorable outlook for double-digit earnings growth over the medium term, supported by enhanced free cash flow conversion as legacy projects conclude.

Fluor's financial outlook appears negative due to a significant decline in operating profit, which dropped to $34 million with an operating margin of only 4.5%, influenced largely by disputed costs on a Department of Defense project. The company is experiencing a concerning decrease in backlog, down 10% year-over-year to $28.236 billion, primarily driven by a drastic 42% drop in the Energy Solutions segment. Furthermore, Fluor has postponed its medium-term adjusted EBITDA target by a year, highlighting challenges in new awards growth and weak projections for Energy Solutions until the latter half of 2026.