Data Center Boom Fuels New Growth Opportunities For Fluor, CEO Says

Fluor Corporation (NYSE: FLR ) shares surged Friday after the engineering and construction company reported second-quarter results that topped Wall Street estimates, driven by strong project execution and a sharp increase in new awards.

Adjusted earnings of 91 cents per share beat the analyst consensus estimate of 70 cents.

Revenue rose 9% year over year to $4.33 billion, exceeding estimates of $3.92 billion.

CEO Jim Breuer said several awards arrived earlier than expected as major opportunities progressed from the pipeline to full engineering, procurement and construction contracts.

Adjusted EBITDA increased to $149 million from $96 million a year earlier.

Fluor repurchased $300 million of its shares during the quarter.

Operating cash flow was negative $317 million, primarily due to a $357 million tax payment related to the NuScale monetization.

The company ended the quarter with $3.0 billion in cash and marketable securities.

New Awards Drive Backlog Growth Fluor secured more than $6 billion in new awards during the quarter, up from $1.8 billion a year earlier, reflecting strong demand across nuclear fuels, fertilizers, copper, midstream, infrastructure and energy markets.

The awards increased backlog to $26.9 billion and support a full-year book-to-bill ratio above 1.0.

The company also said its mining and metals pipeline remains robust, with about $30 billion in potential awards expected over the next 18 months.

Fluor Key Business Updates In July, Fluor completed the sale of its stake in a Mexican joint venture for $175 million, generating a $90 million pretax book gain.

The company also completed the NuScale monetization in April.

In addition, Fluor signed a long-term agreement with Saudi Aramco to support global capital projects and secured several Energy Solutions awards, including a limited notice to proceed for Phase 2 of LNG Canada, a FEED package for an aromatics facility in Bahrain and a gas compression project for a U.S.

West Coast customer.

Segment Performance Urban Solutions revenue increased to $2.9 billion from $2.1 billion a year earlier, while segment profit rose to $38 million from $29 million.

New awards climbed to $3.2 billion from $856 million.

Energy Solutions segment profit jumped to $88 million from $15 million, aided by favorable project closeout items, including the former Mexico joint venture.

Revenue declined to $709 million from $1.1 billion, while new awards increased to $704 million from $549 million.

Mission Solutions reported segment profit of $44 million, up from $35 million a year earlier.

Revenue declined to $716 million from $762 million, while new awards surged to $2.2 billion from $363 million, driven by the reimbursable EPC contract for the Centrus nuclear fuel enrichment facility.

Fluor Outlook Fluor revised its 2026 adjusted EBITDA guidance to $500 million-$525 million from $525 million-$560 million, reflecting the removal of the Mexican JV’s expected second-half contribution.

The company maintained its segment margin outlook of 2.5%-3.0% for Urban Solutions, 6%-7% for Energy Solutions and 6% for Mission Solutions.

Fluor also said it remains on track to achieve its 2026 share repurchase target of $1.4 billion.

During the earnings call, Breuer said data center demand is creating new growth opportunities for Fluor, noting that electricity demand is rising alongside industrial expansion and broader electrification.

He added that the company is already advancing data center work, including project management and engineering services for TeraWulf Inc.’s (NASDAQ: WULF ) Kentucky facility, while also identifying data centers as a key opportunity within its expanding project pipeline.

FLR Price Action: Fluor shares were up 17.79% at $57.42 at the time of publication on Friday.

The stock is trading at a new 52-week high, according to Pro data.

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