Fluor (FLU) Q3 2026 Earnings Report

The call was predominantly positive, supported by record $10.9 billion awards, backlog of $34.3 billion, maintained 2026 guidance, strong cash generation in the quarter, continued share repurchases, and a broad pipeline across power, mining, data centers, life sciences, refining, and nuclear. The main negatives were lower adjusted EBITDA, a sharp decline in underlying Energy Solutions profit, a $25 million mining charge, and the potential for an approximately $2 billion backlog reduction. Overall, the breadth of awards, backlog growth, execution pipeline, and shareholder returns significantly outweighed the disclosed challenges.

Fluor maintained full year 2026 adjusted EBITDA guidance of $500 million to $525 million and full year adjusted EPS range of $2.70 and $2.80, implying fourth quarter adjusted EBITDA of roughly $150 million to $175 million and adjusted EPS of about $0.85 to $0.95; adjusted operating cash flow is expected at $430 million to $460 million, full year new awards book to burn ratio potentially approaching 1.4x and well above 1 for all of 2026, G&A approximately $180 million to $190 million excluding up to $15 million in outside costs, a full year tax rate of 25% to 27%, revenue of approximately 65% Urban, 20% Energy, and 15% Mission, and full year segment margins of approximately 2.5% in Urban, 7% in Energy, and 6.5% in Mission; for 2027, adjusted EBITDA growth percentage is expected to be in the low double digits compared to 26, book-to-burn greater than 1, share repurchases anchored around half of expected annual free cash flow, utilization is expected to improve in 2027 and in 2028 with the big step in 2028, and a potential reduction of approximately $2 billion in backlog could occur as early as Q4.