Fluor Corporation (FLR) delivered its fourth-quarter and full-year 2025 results on Tuesday, and the headline number wasn't pretty. The engineering and construction giant posted a net loss of $1.6 billion, or $9.87 per diluted share, for Q4 alone. That's a dramatic swing from the $1.9 billion profit, or $10.57 per share, it recorded in the same period last year.
The culprit? A $2 billion valuation haircut on its investment in NuScale, the small modular reactor company that's been a source of both hope and heartache for Fluor. Strip out that write-down and other adjustments, and you get adjusted earnings of 33 cents per share, which still missed the 34-cent analyst consensus. Revenue came in at $4.175 billion, below the $4.249 billion estimate and down from $4.260 billion a year ago.
The Numbers Behind the Quarter
Consolidated segment profit fell to $120 million from $206 million in Q4 2024, while adjusted EBITDA landed at $91 million. New awards totaled $1.127 billion for the quarter, less than half the $2.308 billion booked in the prior-year period. That's a notable slowdown in new business coming through the door.
Breaking down the segment performance: Urban Solutions pulled in $2.630 billion in revenue, up from $1.999 billion last year, though segment profit declined to $44 million from $81 million. Energy Solutions saw revenue drop to $943 million from $1.520 billion, with segment profit slipping to $56 million versus $63 million. Mission Solutions recorded $600 million in revenue compared to $654 million a year earlier, with segment profit falling to $21 million from $45 million.
Full-Year Picture
For all of 2025, Fluor reported revenue of $15.503 billion, down from $16.315 billion in 2024. The company posted a GAAP net loss of $51 million, or 31 cents per share, versus earnings of $2.145 billion, or $12.30 per share, the previous year. Adjusted EPS came in at $2.19 compared to $2.32 in 2024, and adjusted EBITDA was $504 million versus $530 million.
The full-year results also absorbed a $643 million adverse ruling related to the Santos project in Australia. That judgment forced Fluor to reverse $643 million in previously recognized revenue from the completed project. Operating cash flow turned negative at $387 million compared to positive $828 million in 2024, largely due to a $642 million payment to Santos after accounting for insurance recoveries.
Total new awards for 2025 reached $11.956 billion, down from $15.123 billion in 2024. The company closed the year with backlog of $25.536 billion, compared to $28.484 billion a year earlier. On a positive note, the backlog composition improved: 81% is now reimbursable work (up from 79%), though international exposure decreased to 40% from 55%.
Capital Management and NuScale Exit Strategy
Despite the operational challenges, Fluor finished 2025 in solid financial shape with $2.2 billion in cash and marketable securities and $2.135 billion in cash and cash equivalents. During the year, the company repurchased 18 million shares for $754 million and paid down $37 million in debt. Management is doubling down on shareholder returns with plans to buy back $1.4 billion worth of stock in 2026.
As for NuScale, Fluor is executing its exit. The company received $605 million from share sales in 2025, plus another $1.35 billion in the first quarter of 2026. Management expects to fully monetize the remaining stake by the end of Q2 2026, which should provide additional cash for the buyback program.
Looking Ahead
For 2026, Fluor set adjusted EBITDA guidance of $525 million to $585 million. The company cited the timing of new contract awards and execution pace on existing backlog as key factors. Management also flagged risks including tariffs and evolving trade policies, plus potential GAAP earnings volatility tied to NuScale fair value measurements as the company continues unwinding that position.
Despite the challenging quarterly numbers, investors seemed encouraged by the capital return plans and NuScale exit strategy. Fluor shares traded up 6.95% at $48.64 following the announcement.
