Fluor (FLR) Stock Forecast & Price Target

Fluor is favored because its 2Q’26 results showed resilient execution, with sales of $4.329 billion, adjusted EBITDA of $149 million, and EPS of $0.91, while new awards of $6.1 billion and a backlog of $26.9 billion support a book-to-burn above 1.0x. Its outlook is strengthened by a highly reimbursable backlog of about 85% cost reimbursable, improving mix across Urban Solutions, Mission Solutions, and Energy Solutions, and a pipeline spanning LNG Canada Phase 2, data centers, power, nuclear, mining, and metals. The balance sheet is also compelling, with $3.0 billion in cash, $816 million of share repurchases year to date, and only two legacy problem projects left at about $120 million, suggesting earnings quality should improve as legacy noise fades.

Fluor is facing a more cautious fundamental setup as management lowered the high end of its 2026 adjusted EBITDA guidance to $525M–$560M, with the midpoint cut to $542.5M after a 1Q mining project charge and a temporary shutdown tied to Middle East geopolitical concerns. Although the business is still expected to be second half weighted and more than 75% of the work is already in backlog, the revised Urban margin outlook of 2.5%–3.5% and the narrowing of adjusted EPS to $2.60–$2.80 point to less cushion than previously expected. The company’s exposure to project execution, macro and capex uncertainty, regulatory and environmental issues, supply chain and inflation pressures, competitive intensity, and labor risk supports a negative outlook despite planned $1.4B in 2026 share repurchases and $300M of operating cash flow.