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Mar 31
Fluor Q1 2025 Earnings Report
Fluor Corporation reported its financial results for the first quarter of 2025, showing a decrease in net earnings but an increase in total revenue compared to the previous year.
Key Takeaways
Fluor Corporation experienced a decline in net earnings for Q1 2025, reporting a loss of $232 million compared to a profit of $40 million in Q1 2024. This was primarily due to a significant equity method loss of $393 million. However, total revenue increased to $3,982 million from $3,734 million in the prior year, driven by strong performance in Urban Solutions.
Net earnings attributable to Fluor decreased significantly to a loss of $241 million in Q1 2025, compared to a profit of $59 million in Q1 2024.
Total revenue increased to $3,982 million in Q1 2025 from $3,734 million in Q1 2024, primarily driven by Urban Solutions.
The company recognized a pre-tax loss of $477 million from its investment in NuScale due to mark-to-market adjustments.
Operating cash flow was negative $286 million in Q1 2025, a larger outflow compared to negative $111 million in Q1 2024.
Fluor
Fluor
Fluor Revenue by Segment
Revenue by Segment
Urban Solutions Revenue
CapyFin.comEnergy Solutions Revenue
CapyFin.comMission Solutions Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Fluor expects to repurchase approximately $150 million of its stock during Q2 2025 and approximately $300 million during the latter half of 2025. The company anticipates its Other segment results to be immaterial for 2025.
Positive Outlook
- Anticipated cash generated from operations, unused credit capacity, and cash position are expected to be sufficient to support operating requirements and debt maturities for at least the next 12 months.
- The company has a stock repurchase program in place, with over 24,000,000 shares still available for purchase as of March 31, 2025.
- The company expects to repurchase approximately $150 million of its stock during the second quarter of 2025.
- The company expects to repurchase approximately $300 million of its stock during the latter half of 2025.
- The sale of Stork's U.K. operations was completed, and the divestiture will be complete after winding down Trinidad and Tobago operations later this year.
Challenges Ahead
- The company's investment in NuScale resulted in a pre-tax loss of $477 million for the 2025 Quarter.
- Operating cash flow is typically lower in the first quarter due to the timing of payout of employee incentive awards from the prior year.
- Operating cash flow was negatively impacted by increases in working capital on several large projects.
- The company's liquidity needs are affected by cash and cash equivalents held by consolidated variable interest entities, which are not necessarily readily available for general purposes.
- Moving cash and cash equivalents between countries may not be financially efficient due to statutory dividend limitations and/or adverse tax consequences.
Revenue & Expenses
Visualization of income flow from segment revenue to net income