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Image source: The Motley Fool. Friday, Aug. 7, 2026 at 8:30 a.m. ET Vice President, Investor Relations - Jason Landkamer Chief Executive Officer - Jim Breuer Chief Financial Officer - John Regan Operator: Hello, everyone. Thank you for joining us, and welcome to Fluor's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] A replay of today's conference call will be available at approximately 10:30 a.m. Eastern Time today, accessible on Fluor's website at investor.fluor.com. The web replay will be available for 30 days. At this time, for opening remarks, I would like to turn the call over to Jason Landkamer, Vice President, Investor Relations. Please go ahead, Mr. Landkamer. Jason Landkamer: Thank you, Jade. Good morning, and welcome to Fluor's 2026 Second Quarter Earnings Call. Jim Breuer, Fluor's Chief Executive Officer; and John Regan, Fluor's Chief Financial Officer, are with us today. Fluor issued its second quarter earnings release earlier this morning, and a slide presentation is posted on our website that we will reference while making prepared remarks. Before getting started, I would like to refer to our safe harbor note regarding today's forward-looking statements, which is summarized on Slide 2. During today's presentation, we'll be making forward-looking statements, which reflect our current analysis of existing trends and information. There is an inherent risk that actual results and experience could differ materially. You can find a discussion of our risk factors, which could potentially contribute to such differences in our 2025 Form 10-K and in our Form 10-Q, which was filed earlier today. During this call, we will discuss certain non-GAAP financial measures. Reconciliations of these amounts to the comparable GAAP measures are reflected in today's slide presentation and posted in the Investor Relations section of our website at investor.fluor.com. I'll now turn the call over to Jim Breuer, Fluor's Chief Executive Officer. Jim? James Breuer: Thank you, Jason, and good morning, everyone. I'll start by reviewing some highlights from the quarter. Please turn to Slide 3. First, as we previewed on our call in Q1, the pull-through capture of our prospect pipeline is taking flight. New awards for the quarter were strong at over $6 billion, and backlog grew to almost $27 billion. These figures support a book-to-bill ratio above 1 for the full year. We didn't expect some of these awards until the back half of the year, so it's a positive outcome that our clients are accelerating these decisions. Second, and equally important, this growth is coming from a range of end markets. Clients are choosing Fluor for our ability to deliver large complex projects. Third, in the quarter, we completed 2 legacy infrastructure projects and expect the other 2 remaining projects to complete by the end of the year. And finally, with the award of the Centrus fuel enrichment project, Fluor continues to build its presence in the nuclear value chain. I will expand my thoughts on this in a moment. Turning to Slide 4. Last quarter, I discussed our prospect pipeline and the work required to mature these opportunities into full EPC awards, which then drive backlog and EBITDA. This quarter, we had significant front-end work translate into full EPC programs supporting nuclear fuels, fertilizers, copper and midstream. This is shown in the dark blue area of the chart. Furthermore, as these front-end projects graduate to EPC status, we are replenishing the pipeline with new front-end opportunities in our target markets. Shown in the lighter blue, these opportunities include fertilizers in the U.K., data center work, copper in the Americas, domestic refining, nuclear power, chemicals in the Middle East and LNG. We are leaning into these growth markets and investing time and effort with our clients during the planning phase to set projects up for success once they are fully funded and released. Turning to Slide 5. Urban Solutions continues to contribute a majority of our revenue and will drive further growth over the next several quarters. In mining and metals, our clients have signaled more robust capital spending over the next 18 months. Our in-house M&M pipeline includes nearly $30 billion of potential awards in this time frame, and we expect to capture a significant amount of these opportunities. In infrastructure, we've had an active quarter. On the LBJ project, all main lanes, toll lanes and side roads have been turned over to TxDOT. We also completed the Oak Hill Parkway in Texas, the Red Purple Line elevated rail project in Chicago and the Gordie Howe International Bridge. The bridge opened to traffic on July 27. During the quarter, results for this project were impacted by the effects of foreign currency fluctuation, the bankruptcy of one of our subcontractors and client-driven changes. We continue to work collaboratively with the client, our partners and subcontractors to resolve the remaining commercial matters. For the quarter, Urban Solutions new awards were $3.2 billion and include construction management for a copper mine in Chile, a feasibility study for Anglo's fertilizer project in the U.K. and expanded scope for a fertilizer project in Canada, additional scope on the life sciences project in the U.S. and an infrastructure project in Europe. Looking ahead to our prospect pipeline, we're well positioned for new life sciences work, a rare earth magnet facility, 2 copper projects in South America and an aluminum rolling mill for an existing client in the Middle East. We're also advancing work for TeraWulf and their data center in Kentucky. On a limited release basis, we're currently providing project management and engineering services and are working towards finalizing the commercial terms of the EPC contract. Moving to Slide 6. In Energy Solutions, as you know, we have closed out several mega projects in recent months. We're now executing front-end work that we booked over the past few quarters, which will support the next wave of EPC projects. Starting with power. Demand for electricity generation continues to build, driven by data center growth, industrial expansion and broader electrification. That demand is creating a meaningful set of opportunities in domestic gas-fueled power, where clients are engaging us and seeking to advance work under reasonable commercial terms. We are working on a front-end basis for a combined cycle project on the East Coast, and we recently submitted our proposal to another client for 2 simple cycle projects in the Midwest. We're also advancing a standardized combined cycle design for a third client. These collective efforts will support meaningful growth in our backlog in the first half of 2027. In nuclear, we're progressing the FEED work for the X-energy Dow project and are preparing a detailed cost estimate for the Cernavoda project in Romania. We're also in discussions with SMR and traditional nuclear technology providers for several opportunities. In the oil and gas space, we recently signed a long-term agreement with Aramco. This contract positions Fluor to support a broad portfolio of capital projects around the globe and extends our decades-long relationship with this important client. Last month, we announced the sale of our equity in the Mexican joint venture for $175 million. Over the past 30-plus years, our joint venture completed numerous projects across Mexico's oil and gas, power, mining and manufacturing markets. We are grateful to our partner and to our employees for the tremendous successes we shared, and we are proud of the legacy we have built together. Now given our current strategic priorities and the expected capital spending cycle in Mexico for the rest of the decade, we determined it was the right time to conclude this joint venture. This step gives our former partner more autonomy to pursue opportunities independently. And for Fluor, it sharpens our focus on our targeted growth areas and bolsters our liquidity further. New awards for the quarter include the limited notice to proceed for Phase 2 of the LNG Canada project. This award enables early planning and advances key activities in support of the client's proposed final investment decision expected later this year. We also started execution of a FEED package for a new aromatics facility in Bahrain and booked a gas compression project for a West Coast client. Over the next few quarters, we are positioning for front-end work in the Canadian oil sands. And we're seeing a notable uptick for front-end refinery work domestically that could translate into EPC work in 2027 and '28. With regards to the Middle East, we continue to monitor the evolving situation. The well-being of our employees and their families continues to be our highest priority, and we have been able to execute the work in backlog without significant disruption. We remain engaged with our clients on additional opportunities and are well-positioned to support them once the situation stabilizes and they're ready to move forward. Turning to Slide 7. Mission Solutions continues to work for the Department of Energy and War while expanding into additional EPC opportunities. During the quarter, we received an additional task order to support operation Epic Fury and an extension to an intelligence services contract. When combined with the 2-year extension received last month, every ongoing intelligence contract in our portfolio has been extended this year. Prospects for the next few quarters include the rebid for the Savannah River program. As a reminder, under the rebid, the M&O scope and the Plutonium pit project will be combined. Our proposal is in, and we're confident in our value proposition. While we anticipate a decision early next year, we do expect a 6-month extension for our current work at this site later this year. Finally, during the quarter, we booked an award on the Centrus fuel enrichment facility. This significant award demonstrates our ability to apply our project delivery experience to the combined mission of national security and energy independence. And while we're on the topic of nuclear and before I turn the call over to John, I'd like to expand on our broader nuclear offering and how it supports our growth strategy. Please turn to Slide 8. Fluor's experience spans the full life cycle of the industry, including commercial power generation, plant operation and maintenance, SMRs, nuclear fuels, national security, lab management, decontamination and decommissioning. Starting with conventional power gen, Fluor has performed design or construction work on 21 nuclear power plants. Beyond initial construction, we have supported ongoing operation of the domestic nuclear fleet through maintenance, outage and operational services at more than 90 reactors nationwide. Internationally, we're currently executing front-end development work for a 2-reactor expansion at an existing power gen station in Europe. In SMR technology, we continue to build capability across multiple platforms, including NuScale, X-energy and a third technology partner, which we hope to unveil in the near future. Across nuclear fuels, Fluor is helping expand uranium enrichment capability in the U.S. with our recent award. This work complements decades of experience spanning uranium mining, conversion and enrichment. In National Security & Site Management, Fluor supports some of the nation's most critical nuclear security and strategic infrastructure programs across DOE and NNSA sites. And finally, in environmental cleanup and decommissioning, Fluor has led some of the world's largest and most complex nuclear remediation, waste management and site closure programs. Taken together, Fluor has meaningful experience across the full nuclear value chain. And as global investment in nuclear infrastructure accelerates in the coming years, we believe this capability will continue to create attractive opportunities for us. I'll now turn the call over to John for a financial update. John Regan: Thanks, Jim, and good morning, everyone. Today, I want to spend some time covering a few topics, namely Q2 results, the divestiture of our JV in Mexico and our updated '26 guidance, including the capital returns expected in the second half. Please turn to Slide 10. For the second quarter, revenue was $4.3 billion, up 9% from a year ago as we saw strong execution across our portfolio. This also drove adjusted EBITDA to $149 million compared to $96 million a year ago. And Q2 adjusted EPS was $0.91 compared with $0.43 last year. Ending backlog was $26.9 billion and reflects our sizable Q2 awards and the removal of just over $650 million of backlog related to our now former JV in Mexico. We decided to remove the backlog preemptively even though we didn't close the sale until Q3. I hope this kind of transparency helps our investors better digest the impact of our portfolio decisions. From a legacy project perspective, the remaining backlog decreased to $120 million at the end of Q2 and will continue to wane across the back half of '26. Now let's review our business segments starting on Slide 11. Urban Solutions reported a Q2 segment profit of $38 million compared to $29 million a year ago. Profits did include $44 million in additional losses on the Gordie Howe project, which stem from the factors Jim discussed earlier. Energy Solutions reported a segment profit of $88 million compared to only $15 million a year ago, largely arising from higher contributions on projects nearing completion. This evidences the high quality of our closeout efforts on these projects. Mission Solutions had a segment profit of $44 million versus $35 million last year, driven primarily by improved fee performance across our DOE portfolio. Let's move to Slide 12. We ended Q2 with $3 billion in cash and cash equivalents compared to -- only compared to $3.2 billion at March 31, meaning we have robust liquidity to support continued share repurchases and pursue inorganic opportunities. Looking ahead to July 31, that cash balance has seen a slight increase back to $3.2 billion. As reported, operating cash flow for the quarter was a negative $317 million. This includes a tax payment of $357 million associated with the conversion of our NuScale shares in 2025. So the result without the tax effects would have been $40 million of positive OCF on a more normalized basis. As a reminder, we had signaled the tax payment since Q4 of last year, so it should come as no surprise. As it relates to our loss projects, having completed $96 million in Q2 funding, including $43 million reflected inside of OCF, we only see an additional $94 million in future funding, all of which could be concluded in Q3. We certainly have the liquidity to make those payments now, but we don't complete the funding until our partners also fund. It will be momentous to put this execution chapter behind us. As Jim mentioned, in July, we sold out of our JV in Mexico for $175 million. This triggers a pretax book gain of $90 million and a tax payment of $33 million, which we funded earlier this month. Through the end of the decade, we saw diminishing backlog and limited prospects, so it made sense for both parties to pursue other opportunities aligned to our different growth strategies. Turning to our revised guidance on Slide 13. I want to walk you through the components of our EBITDA bridge from our previous midpoint to our new target. First, we have incorporated the foregone profit of about $23 million in the second half of the year that would have been generated by our former JV in Mexico. This makes the comparable starting point $519 million. By laying this out, we are trying to provide more of that heightened transparency. Second, we are managing the remaining impact from our lost contracts. The good news is that with the Gordie and LBJ projects now complete, we can focus our remaining efforts on completing LAX and I-35 Phase 2 by the end of this year. Third, we continue to see improved performance across our portfolio with segments delivering at or above expectations in most cases. And fourth, despite the continued hostilities in the Middle East, we saw no impact to our guidance directly related to the conflict. We do continue to evaluate the implications for our clients and any residual impacts on our supply chain efforts across the existing portfolio. While the region remains a source of uncertainty, our Q2 new awards demonstrate confidence from clients generally moving forward with capital projects outside the region. Turning to Slide 14. With these considerations, our revised adjusted EBITDA guidance is $500 million to $525 million, which implies an adjusted EPS range between $2.70 to $2.80 at our current repurchase tempo. Our key full year assumptions are outlined on the slide, including an adjusted operating cash flow guide of $300 million to $320 million, which exclude the Q2 tax payment directly related to NuScale and the Q3 tax payment for our JV sale, both of which represent the tax bill on transactions reported within investing cash flow. I'll point out this is a slight raise to our earlier guidance. We expect a new awards book-to-burn ratio well above 1, G&A of $170 million to $180 million, including up to $15 million -- excluding -- I'm sorry, excluding up to $15 million across the full year for a potential replacement of our ERP and for other technology enhancements. An assumed tax rate of 28% to 30%, which includes the effect of taxes for the Q3 sale of our Mexican JV; a revenue split of approximately 65% Urban, 20% Energy and 15% Mission, which is unchanged from our May guide. Assuming these splits, as-reported full year segment margin expectations are 2.5% to 3% in Urban, 6% to 7% in Energy and 6% in Mission. As we outlined last quarter, our capital allocation priorities remain centered on returning meaningful value to shareholders while preserving flexibility to invest in our own business. In the second quarter, we continued to execute against that framework, repurchasing 6 million shares and deploying $300 million. We still model $1.4 billion of repurchases for all of '26. Beyond the share repurchases, we will seek to drive long-term growth in our chosen end markets. This includes continued investment in our capabilities, systems and people. It also considers a disciplined evaluation of inorganic opportunities in selected growth markets that are aligned to our strategic objectives. As we reflect on the quarter, our core business remains healthy. We delivered strong awards in the quarter, and we have taken decisive steps to further simplify the portfolio, complete our legacy projects and put capital to work in ways that support long-term growth. With that, operator, let's open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Jamie Cook from Truist. Jamie Cook: I guess my 2 questions. One, obviously, we had the favorable closeout in Energy Solutions. John, just any way you can help us think about the underlying profitability of that business, excluding that, the favorable closeout, understanding that's good that you guys got the favorable closeout. But just any help there so we can think about normalized margins. And then I guess my second question, Jim, it was nice to see the $6.1 billion in new awards. Obviously, things are moving quicker than you had anticipated. So that's a positive. How are you thinking about the book-to-bill? And I'm just wondering, given what we saw in the first quarter, are you seeing any other projects move forward at a more rapid pace than you initially expected versus last year? And does that contribute at all to the 2026 guidance? John Regan: Yes. Maybe I'll start on the closeout. So energy has been in a space where some of their mega projects have been drawing to conclusion. And so when we generally refer to closeout efforts, we are talking about subcontractor settlements. We are talking about warranty satisfaction. And so the closeout efforts themselves really represent profits that could have been recognized theoretically earlier in the process. That said, those efforts did contribute meaningfully to Energy Solutions in the quarter. Looking ahead to the back half of the year, you do see some diminution in the PGM or the segment profit percentage in Energy Solutions as they begin to reload their business with things like maybe a large LNG project and with some of the power opportunities that Jim talked about. So what you'll see in the back half of the year is a shift in the portfolio, whereby Urban Solutions is more meaningfully contributing to the absolute quantum of EBITDA as opposed to Energy Solutions. So it will be a slight inversion to what we saw in the first half of the year. Jamie Cook: Just one clarification. Sorry, one, John, clarification. Was the favorable closeouts embedded in your original guidance? And then I wanted to thank you on the EBITDA bridge for guidance. That was very helpful. John Regan: Yes. I would say, in large part, yes, those closeout efforts were part of our original guidance. Maybe just an acceleration from the back half or maybe from third quarter specifically coming back into the first half. Jamie Cook: Okay. And then go ahead, Jim on the new awards. James Breuer: On the new awards, yes, we are very pleased with the $6.1 million in Q2. The prospects that we're tracking for Q3 and Q4 are looking very good, whether it's LNG or it's copper or it's rare earth magnets. There's a big data center prospect. It's always a little challenging for us to predict the exact timing of these full releases. I will tell you that we have enough resilience in that plan that we feel very good about a book-to-bill well above 1. I don't know that I see a trend in many of them being accelerated, but I can -- I feel pretty good about a pretty good book-to-bill ratio by the end of the year. Jamie Cook: And now we're saying well above 1 versus above 1. James Breuer: We did say that. John Regan: That's what we have said, yes. Operator: Your next question comes from the line of Andy Kaplowitz from Citigroup. Andrew Kaplowitz: Jim and John, it's good to see the progress on the legacy projects. I think that backlog is now only at $119 million. Maybe you can just update us on where you are on the remaining projects and particularly the mining project. It seems like no news is good news. So maybe talk about percent complete there and how that's progressing. James Breuer: Thanks, Andy. I'll take that. So the project continues to advance. We have already started handing over early portions of the project to the client, and we'll continue to do so throughout this year. Now that being said, we're working with the client on some additional scope items, Andy, that once agreed, would likely impact the timing and the schedule of the project. So we've made some good progress in certain areas, and other areas we need to resolve with the client to further advance them. Andrew Kaplowitz: Okay. And when would we find out about that scope changes? James Breuer: Conversations are ongoing. I would say, it would take a couple of months to resolve that. Andrew Kaplowitz: Okay. Got it. And then, Jim, maybe just sort of backing up, and I'll call it sort of the data center ecosystem projects. You sound more positive on the power projects, more customers, then obviously, there's TeraWulf. And I guess I'll include the magnet facility in the U.S. on that. Like do you sense that there's just a wider variety of projects that you can get on your terms? And what does that mean over the next few quarters for your bookings and your potential earnings? James Breuer: That's right, Andy. We see power to be the best play for us in the whole data center ecosystem and then we made some great progress in recent months. I mentioned in my prepared remarks several projects we're working on the front end with various clients, not just with one client. And we're advancing these projects nicely towards an EPC negotiation and award. Because we're doing it in a methodical way and we don't want to convert to lump sum until we can properly understand and price the risk. My sense is that these things will happen first half of next year. So that's why we're saying these front-end activities are going to lead to meaningful awards first half of next year. Around data centers, we are working very closely with the one client for the data center in Kentucky. We are looking at other opportunities. But as we said before, many of those projects don't quite match our selectivity and our sweet spot. So we will continue to look at the data center market selectively. And if we can find the right opportunity, we'll go after it with full force. So power #1, data center is #2. Operator: Your next question comes from the line of Sangita Jain from KeyBanc Capital Markets. Sangita Jain: So if I can start with the Centrus booking first. Can you walk us through when we should start to see that project burn in revenue for you and what the margin profile would look like versus your current MS margin? James Breuer: Let me start with the timing of the project. So we have been working on that project, Sangita, for at least 6 months in the early phases. We took the bigger award in Q2. We have a full team, several hundred people working on that. We have started some early procurement. And because this is a percent of cost completion, the margin take-up is a function of the procurement and the construction. So we're going to see some of it this year, but I think the heavier side of it, we're going to see next year and beyond. John Regan: That's right. Sangita, maybe I'll say that when you look at the EBITDA bridge that was in the prepared materials, certainly, the Centrus award is part of that pull-forward effect that is giving rise to -- I think what was a gray bar in there. So the pull-forward effect of Q2 new awards was really important. Closeout effects were certainly a factor there. But as a part of the overall bridge, that pull-through was a part of it. Sangita Jain: Got it. And then on the new EBITDA guide, I just want to see if you're including any probability adjusted potential charges on the mining project that Andy referenced earlier or LAX or LBJ or vice versa, if there are any positives there? John Regan: Yes. So maybe I'll somewhat evasively answer the question. So we're not going to get into the mechanics of exactly how we develop the guidance range, but we are looking across the portfolio and looking at our risk-adjusted outcome suite on those. And so I would say we feel pretty comfortable of the landing spot that we printed this morning. Operator: Your next question comes from the line of Michael Dudas from Vertical Research. Michael Dudas: Maybe, Jim, again, encouraging on the bookings. It seems like you have some more here in the second half into 2027 of a good pace. Can you share what the back -- or the margins, the as sold margins coming into the backlog of these suites of projects, more of the EPC relative to some of the FEED, relative to what we've seen booked maybe over the last 6 to 12 months? And what -- is that derisked and is the terms and conditions on these contracts leading to more visible profit pickup as you move through the cycle? James Breuer: Yes, Mike. not only are we encouraged by the revenue side of these new awards, but we're also very pleased to see that margins continue to tick up in our new awards compared to what we had in backlog. So it's an encouraging trend. Overwhelmingly, the awards were on the reimbursable side. But even then, the margins are ticking up. So that is a combination of very selective commercial negotiations, which is us pursuing projects where we think we can add value and the client recognizes that. Now as we take on some lump sum work in the future, whether it's in LNG or power, you would also expect those margins to be higher. And we're making sure that those estimates have enough contingency in there so that we protect our margin well. That's part of the smart lump sum strategy. So my hope and my plan, Mike, is to continue to drive margin up in the backlog. And as that backlog grows, we did -- we had a good step in this quarter, but we need more of that. We need to continue to see backlog growth in the next few quarters. And as that happens, I think you'll start seeing that margin translate into the income statement. Michael Dudas: Excellent. I appreciate that. And John, you mentioned with the significant cash balance and the profile you have, you're starting to sharpen a little bit more on inorganic opportunities. Maybe you could share a little bit about early stage, what do you think? What do you need? And since we haven't had many acquisitions over the last several years, the process, development team and what you -- we should be thinking about on size and kind of what skill sets you need in your new asset-light business, I guess? John Regan: Yes. Well, it won't be a heavy steel business. I'm confident we can say that. Look, I think whatever we're looking at is certainly aligned to our strategic end markets. So that's going to mean power, mining, government services, particularly those with -- that feature security clearance and then certainly in the life sciences, pharma space. And in terms of size, that is kind of the art of the deal behind the curtain. And we certainly feel like management has the bandwidth and the breadth of resources necessary to pull those across the finish line. And I think you'll understand that we can't really talk much more about specifics on anything until we have a deal in hand. Operator: Your next question comes from the line of Andy Wittmann from Baird. Andrew J. Wittmann: Jim, I wanted to ask about the mining. The press release talks about how some of your metals and mining revenue starting to ramp and your comments about $30 billion of relatively near-term opportunities. Just hoping you could drill into that a little bit more. Do all these $30 billion have you guys listed as the FEED agent on this one? And I'm guessing that's what gave you the confidence. What is it going to take for some of these to actually wind up as final investment decisions? Do these need governmental approvals, other permitting, things like that? What should we be looking for? And then also, I'd be kind of curious as to where the margin profile on these jobs and risk profiles stands? James Breuer: Thank you, Andy. Happy to answer the question. So yes, we did say in remarks roughly $30 billion of in-house pipeline. So we're doing the studies on these. There's other projects that we're tracking outside of the $30 billion that are not currently in-house, but the $30 billion is just in-house. So let me step back. When we say mining and metals, we're talking about primarily copper, fertilizers. The fertilizer market is picking up. Mined fertilizer, potash and the like. Metals being steel and aluminum. So that's the primary universe of commodities. Geographically, fairly widespread, South America, North America, Australia, U.K., Middle East. So our mining and metals market is more global than any of our other markets, I would say. What are the main hurdles to overcome to get to a full release? Combination. Some of it is regulatory and permitting. But I would say that the majority of it is clients are looking for capital efficiency, Andy. They want to make sure that their investments are going to pan out and be profitable. And so we are working very, very closely with our clients to make sure that we're only designing what's actually needed in that plant, the minimum viable solutions is a term. And we're working very closely to try to minimize the impact of escalation, supply chain disruption and all the noise that you hear in the market. So I would say that's the biggest hurdle is how do we work together with the clients to make sure these projects are economically sound. And we feel very good because the commodity pricing for these things are pretty high. So there's demand for copper, fertilizers, aluminum, steel, et cetera. So there's demand in those end markets, and we feel that -- I can't say that all of them are going to go forward, but I think a good chunk of them will go forward. Andrew J. Wittmann: Thoughts on risk that you might be taking and/or margins associated with that? James Breuer: Most of the vast majority of the work is going to be reimbursable, lower risk, therefore, attracting margins that have been historic margins in the mining and metals business. Andrew J. Wittmann: Okay. And then, John, just one question on you, just on backlog conversion here. Obviously, the backlog and the awards for the quarter are one of the highlights here. If you drill a little bit deeper and we look at remaining unperformed performance obligations here. Actually, it looks like within 1 year content there has been trending a little lower. So should we assume that this backlog is extending in its duration? What does it mean about kind of when you see the earnings growth profile or EBITDA accelerating? Is that really more of a '27 event than -- or is it beyond that? I'm just kind of curious as to how we should read the RPOs versus backlog and how you see that conversion? John Regan: Yes. So on the RPO front, which we do kind of cascade across the horizon, as we think about that next year or the succeeding 12 months, what you're seeing is the impact of a lot of those large energy mega projects rolling out. And with the Q2 new awards, those having a horizon of several years of execution. And so I don't think there's anything anomalous about it, but it does just reflect the difference between some of those maybe energy projects that are going to conclusion vis-a-vis the reload in Q2 extending meaningfully into '27, but with peak execution in late '27 and in early '28. Operator: Your next question comes from the line of Judah Aronovitz from UBS. Judah Aronovitz: On for Steven Fisher today. I just wanted to ask one further clarification on the EBITDA guide, if I could. You mentioned that the $90 million pretax gain from the sale, is that also factored in? And then I just wanted to gauge your confidence in achieving the new guide for the year. You're implying a small step-up in the second half relative to the Q2 run rate. So what are the moving pieces between Q2 versus Q3 and Q4? And is there anything else you still need to book? Or are you covered for the year? John Regan: So the $90 million gain is outside of the guide. So we would not consider that part of the run rate of earnings. With respect to the guide, you're right, it does kind of imply a similar trajectory from Q2 into the back half of '26. But as I said, it is a very different profile in terms of the contribution from our segments. So by and large, you'll see a similar contribution from the first half of the year into the back half of the year on the Mission side. Energy kind of goes from a larger contributor in the first half to a lesser contributor in the back half and Urban Solutions meaningfully picks up their EBITDA generation in the back half. And so that's part of the overall resilience of the business that we've built. But in terms of new awards in the back half of the year necessary to attain the guide, that's not really critical because the things that we would book in Q3 generally are not going to contribute a lot in the way of EBITDA within the back half of the year. So we'd look for those to begin burning into our income statement more meaningfully in 2027 and beyond. So I think we're -- that leads us to the conclusion that a majority of the expected EBITDA in the second half already reposes within our backlog today. Judah Aronovitz: Okay. And just one clarification on that. So the $90 million gain outside of your guide, would that be excluded once recognized? Is that what you're saying? John Regan: Yes, that's essentially what I'm implying. Yes. Judah Aronovitz: Okay. That's helpful. And then you mentioned a bit of a ramp in Urban in the second half. In Q2, I guess, excluding the charge, margins were still below. I think you target 3% to 4% in that business. So it was a little bit below that. So could we see margins improve in the second half? Or is it more on the revenue side? And in terms of margins, what are the key drivers in getting the margins higher? Is it better utilization? Or is the mix changing at all? John Regan: There is a little bit of a mix implication there. But yes, we do expect a slight uptick in Urban margins in the back half. I think that's more just the way the portfolio is going to perform and what the different margins are within their individual business lines. But I don't think there's anything that will be earthshattering in terms of the print when we get there for the back half. Operator: At this time, there are no further questions. I will now turn the call back to Jim Breuer for closing remarks. James Breuer: Thank you, operator, and thank you for joining today's call. I am pleased to see solid momentum across our end markets and continued strength in our opportunity pipeline as evidenced by a strong Q2. Thank you, and have a good day. Operator: This concludes today's call. Thank you all for attending. You may now disconnect. Before you buy stock in Fluor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fluor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fluor (FLR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

NuScale Power Corporation SMR recently delivered a mixed second-quarter 2026 report, leaving investors to weigh weak near-term financial results against improving commercial readiness. The company’s loss of 13 cents per share matched the Zacks Consensus Estimate, but revenues of just $0.1 million fell 98.8% year over year and missed the $1 million consensus estimate. The decline mainly reflected the completion of Fluor’s Phase 2 engineering work for the RoPower project in late 2025, which left no comparable activity this year. Still, NuScale continues to prepare for potential large-scale deployments, making the investment case more about future contract conversion than current revenues. NuScale’s key advantage is that it has already made significant progress in preparing its reactor technology for commercial use. The company has received U.S. Nuclear Regulatory Commission approvals for two designs and plans to use commercially available low-enriched uranium as fuel. NuScale has also built a network of more than 60 specialized suppliers and signed agreements with over half of them. Doosan Enerbility is working on major reactor components, while Framatome is developing the fuel and Paragon is completing a key safety and control system. This progress could give NuScale an advantage as competition in advanced nuclear energy grows. Oklo Inc. OKLO is developing a broader business covering nuclear power, fuel and isotopes, while NANO Nuclear Energy NNE is working on its KRONOS microreactor and fuel-related capabilities. OKLO is also investing in manufacturing and fuel infrastructure, while NNE has submitted a construction permit application for its University of Illinois project. NuScale’s approved designs, readily available fuel and established supplier network could help reduce some of the challenges involved in moving from development to actual deployment. For NuScale, turning potential projects into firm contracts is now the key challenge. ENTRA1 Energy is continuing discussions with the Tennessee Valley Authority (“TVA”) on a potential power purchase agreement using NuScale’s technology. Management said the talks are progressing, with the proposed projects potentially covering 6-8 gigawatts of capacity. If agreements are finalized, NuScale could move ahead with licensing, engineering work and negotiations with equipment suppliers. The RoPower project in Romania is another potential growth opportunity. NuScale is working with Nuclearelectrica and RoPower to advance plans for a six-module project at Doicesti. The next stage would involve engineering, procurement and construction work, which could eventually lead to a final decision to begin the project. NuScale also expects to reuse about 60% of the licensing work completed for an earlier U.S. project, which could help reduce the time and cost needed for another domestic deployment. Image Source: NuScale Power Corporation Competition, however, remains strong. OKLO is developing its nuclear power, fuel and recycling businesses, while NANO Nuclear is targeting applications such as AI data centers with its KRONOS microreactor. NNE has completed a feasibility study for up to 1 gigawatt of power for a Texas data-center and manufacturing campus. These developments highlight the importance of NuScale securing firm customer agreements and turning its technology and regulatory progress into actual projects and revenues. SMR shares have gained 17.6% over the past month, suggesting renewed investor interest, but the stock remains down nearly 31% year to date. That compares with year-to-date declines of 32.6% for OKLO and 21.5% for NANO Nuclear. The weakness across SMR, OKLO and NNE highlights how advanced-nuclear stocks remain sensitive to project timelines, financing needs and expectations for commercialization. Image Source: Zacks Investment Research The earnings outlook also argues against becoming overly aggressive. The Zacks Consensus Estimate for NuScale’s 2026 loss is 45 cents per share, implying a 79.3% improvement from 2025. However, the estimated loss has widened to 79 cents per share for 2027, or 76.3% from the 2026 level. This uneven trajectory shows that NuScale may need substantial time before its commercial progress translates into consistent earnings improvement. Image Source: Zacks Investment Research NuScale ended the second quarter with roughly $1.9 billion in cash, cash equivalents and investments. That provides a substantial financial cushion for supplier commitments, design completion, fuel-system work and other commercialization needs. It also gives SMR flexibility while waiting for major projects to reach definitive agreements. Still, investors should not overlook the risks. Current revenues are minimal, operating expenses are rising as NuScale invests in readiness, and the timing of major projects remains dependent on customers and partners. OKLO and NANO Nuclear are also moving quickly, raising the competitive stakes. Although SMR appears well prepared technically, the next major proof point must come from converting negotiations into binding commercial activity. NuScale’s second-quarter results support a balanced investment view. Its regulatory approvals, conventional fuel strategy, mature supply chain, strong liquidity and progress with TVA and RoPower strengthen the long-term case. At the same time, weak current revenues, continued losses, uncertain project timing and growing competition from OKLO and NNE argue against chasing the stock after its recent rebound. Investors may want to wait for clearer evidence of contract conversion and better earnings visibility before becoming more bullish. SMR stock is currently a Zacks Rank #3 (Hold), appropriately reflecting its promising commercial position alongside meaningful execution and earnings risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NuScale Power Corporation (SMR) : Free Stock Analysis Report Nano Nuclear Energy Inc. (NNE) : Free Stock Analysis Report Oklo Inc. (OKLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Fluor Corporation? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 9% year over year to $4.3 billion, while adjusted EBITDA increased to $149 million and adjusted EPS reached $0.91. More than $6 billion in new awards lifted backlog to $26.9 billion, supporting expectations for a full-year book-to-bill ratio well above one. Growth pipeline expands across key markets: New work spans mining and metals, fertilizers, nuclear fuel, LNG, power generation and data centers, with nearly $30 billion of potential Mining & Metals awards identified over the next 18 months. Fluor also expects power-related opportunities to drive meaningful backlog growth in 2027. Guidance and capital returns updated: Fluor forecast 2026 adjusted EBITDA of $500 million to $525 million and adjusted EPS of $2.70 to $2.80, while maintaining plans to repurchase $1.4 billion of shares this year. Results benefited from Energy Solutions project closeouts, but Gordie Howe Bridge losses and the planned Mexico exit remain notable portfolio issues. Insider Trades: Nike Sees More CEO Buys, Aehr Sold on 300% Gain Fluor (NYSE:FLR) reported second-quarter revenue of $4.3 billion, up 9% from a year earlier, as strong project execution helped lift adjusted EBITDA to $149 million from $96 million in the prior-year period. Adjusted earnings per share rose to $0.91 from $0.43. The engineering and construction company also reported more than $6 billion in new awards during the quarter, lifting ending backlog to $26.9 billion. Chief Executive Officer Jim Breuer said several client decisions arrived sooner than expected, supporting the company’s expectation for a full-year book-to-bill ratio “well above” one. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Is NuScale's Plunge the Ultimate AI Contrarian Play? “The pull-through capture of our prospect pipeline is taking flight,” Breuer said, pointing to awards across nuclear fuels, fertilizers, copper and midstream markets. Breuer said Fluor is converting front-end engineering and planning assignments into larger engineering, procurement and construction, or EPC, programs while replenishing its pipeline with additional front-end opportunities. Areas of focus include fertilizers in the United Kingdom, data centers, copper projects in the Americas, domestic refining, nuclear power, Middle Eastern chemicals and liquefied natural gas. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Industrial Names That Will Benefit from Rising CapEx in 2026 Urban Solutions received $3.2 billion in new awards during the quarter, including construction management for a Chilean copper mine, a feasibility study for an Anglo fertilizer project in the U.K., expanded Canadian fertilizer-project scope, added U.S. life-sciences work and a European infrastructure project. Breuer said Fluor sees nearly $30 billion of potential Mining & Metals awards over the next 18 months within its in-house pipeline. These opportunities include copper, fertilizers, potash, steel and aluminum projects across South America, North America, Australia, the U.K. and the Middle East. → No Hangover: Revisiting Microsoft One Week After Earnings He said most anticipated Mining & Metals work would be reimbursable and lower risk, with margins consistent with the segment’s historical profile. Clients remain focused on capital efficiency, permitting and project economics, Breuer said, though demand and commodity prices for copper, fertilizers, aluminum and steel remain supportive. Fluor said it completed two legacy infrastructure projects during the quarter and expects its remaining two legacy projects to be completed by year-end. Remaining legacy-project backlog fell to $120 million at the end of the second quarter. Urban Solutions generated segment profit of $38 million, compared with $29 million a year earlier. However, the result included $44 million of additional losses related to the Gordie Howe International Bridge project. The company attributed the project impact to foreign-currency fluctuations, the bankruptcy of a subcontractor and client-driven changes. All main lanes, toll lanes and side roads on the LBJ project were turned over to the Texas Department of Transportation, Breuer said. Fluor also completed the Oak Hill Parkway in Texas, Chicago’s Red Purple Line elevated rail project and the Gordie Howe International Bridge, which opened to traffic July 27. Breuer said Fluor continues to work with the Gordie Howe project client, partners and subcontractors to resolve remaining commercial matters. On a separate remaining mining legacy project, he said the company has begun handing over early portions to the client but is also discussing additional scope that could affect project timing and schedule. Energy Solutions posted segment profit of $88 million, up from $15 million a year earlier, primarily due to higher contributions from projects nearing completion. Chief Financial Officer John Regan said closeout activity included subcontractor settlements and warranty satisfaction, and represented profits that theoretically could have been recognized earlier in the projects’ life cycles. Regan said closeout benefits were largely included in Fluor’s original outlook, though some may have accelerated from the second half into the first half of 2026. He expects Energy Solutions’ segment-profit percentage to decline in the second half as the business reloads with new work, while Urban Solutions makes a larger contribution to EBITDA. In Energy Solutions, Fluor received limited notice to proceed for Phase 2 of LNG Canada, began a front-end engineering and design package for an aromatics facility in Bahrain and booked a West Coast gas-compression project. The company is also pursuing domestic gas-fired generation opportunities tied to electricity demand from data centers, industrial expansion and electrification. Breuer said the company is performing front-end work on a combined-cycle power project on the East Coast, has submitted a proposal for two single-cycle Midwest projects and is advancing a standardized combined-cycle design for a third client. He expects these efforts to support meaningful backlog growth in the first half of 2027. Fluor is also providing limited-release project management and engineering services for TeraWulf’s Kentucky data center while working toward finalizing EPC contract terms. Breuer said power generation is Fluor’s primary play within the data-center ecosystem, while data-center construction opportunities are being evaluated selectively. During the quarter, Fluor booked an award at Centrus’ fuel-enrichment facility. Breuer said the company had been working on the project for at least six months and now has several hundred people assigned to it, with early procurement underway. Revenue contribution is expected to begin this year, with heavier activity expected in 2027 and beyond. The award expands Fluor’s presence across the nuclear value chain, which Breuer said includes conventional plant construction, reactor operations and maintenance, small modular reactors, nuclear fuel, national-security programs and decommissioning work. Fluor is progressing FEED work for the X-energy Dow project and preparing a detailed cost estimate for the Cernavoda project in Romania. In July, Fluor sold its equity stake in a Mexican joint venture for $175 million. The transaction will result in a $90 million pre-tax book gain and a $33 million tax payment, according to Regan. The gain is excluded from the company’s adjusted EBITDA guidance. Fluor removed more than $650 million of backlog related to the joint venture from its second-quarter balance, even though the sale closed in the third quarter. Regan said the company saw diminishing backlog and limited prospects in Mexico through the end of the decade, making the divestiture consistent with its strategic priorities. Fluor revised its 2026 adjusted EBITDA outlook to a range of $500 million to $525 million and projected adjusted EPS of $2.70 to $2.80 at its current repurchase pace. The company raised its adjusted operating cash flow outlook slightly to $300 million to $320 million, excluding tax payments associated with the 2025 NuScale share conversion and the Mexican joint-venture sale. Second-quarter operating cash flow was negative $317 million, reflecting a $357 million tax payment tied to the NuScale conversion. Excluding that tax effect, Regan said operating cash flow would have been positive $40 million on a more normalized basis. Fluor ended the quarter with $3 billion in cash and cash equivalents, rising to $3.2 billion as of July 31. It repurchased 6 million shares for $300 million during the second quarter and continues to model $1.4 billion in share repurchases for the full year. Regan said the company expects most of its second-half EBITDA to come from projects already in backlog, rather than from awards that may be booked later this year. He added that Fluor will evaluate disciplined acquisitions in power, mining, government services and life sciences, while ruling out a return to “heavy steel” businesses. Fluor Corporation (NYSE: FLR) is a global engineering and construction firm that provides integrated solutions across the energy, chemicals, mining, clean energy, infrastructure and government services markets. The company's core offerings include engineering, procurement, fabrication, construction, maintenance and project management services, with capabilities spanning feasibility studies, detailed design and turnkey delivery. Fluor's diversified portfolio encompasses conventional oil and gas facilities, liquefied natural gas (LNG) plants, petrochemical facilities, power generation projects, transportation infrastructure and federal government programs. Founded in 1912 by John Simon Fluor as the Fluor Construction Company in Pomona, California, the firm has grown into an industry leader headquartered in Irving, Texas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fluor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Fluor (FLR) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +24.66%. A quarter ago, it was expected that this engineering, construction and operations company would post earnings of $0.66 per share when it actually produced earnings of $0.14, delivering a surprise of -78.79%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Fluor, which belongs to the Zacks Engineering - R and D Services industry, posted revenues of $4.33 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 13.97%. This compares to year-ago revenues of $3.98 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fluor shares have added about 23% since the beginning of the year versus the S&P 500's gain of 12.6%. While Fluor has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fluor was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.85 on $3.92 billion in revenues for the coming quarter and $2.63 on $15.66 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Engineering - R and D Services is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, TSS Inc. (TSSI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. TSS Inc.'s revenues are expected to be $51.9 million, up 18% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluor Corporation (FLR) : Free Stock Analysis Report TSS Inc. (TSSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NuScale Power Corporation SMR reported a second-quarter 2026 loss of 13 cents per share, in line with the Zacks Consensus Estimate. Revenues of $0.1 million plunged 98.8% from $8.1 million a year ago and missed the consensus mark of $1 million by 92.5%. The revenue decline reflected the completion of Fluor’s front-end engineering and design Phase 2 work for the RoPower project in late 2025. That work contributed to the prior-year quarter but had no comparable activity in the second quarter of 2026. Operationally, NuScale continued advancing commercial readiness, supported by more than 60 specialized suppliers and over 30 executed agreements. Management expects product and services revenues to increase as project activity advances and additional commercial work moves forward. NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote NuScale continued preparing for future reactor construction by expanding its supplier network. The company said the detailed designs for many of its most important reactor components are largely complete, and that it has signed agreements with more than half of its supplier base. One key partner, Doosan Enerbility, has already started producing large steel components for NuScale Power Modules, helping reduce manufacturing delays for future projects. Other suppliers are also making progress. Framatome is developing nuclear fuel for NuScale's reactors, while Paragon is completing the final design of an important reactor safety and control system. NuScale also plans to use commercially available low-enriched uranium, making fuel sourcing simpler than relying on newer fuel types that are not yet widely available. NuScale's expenses increased during the quarter as it continued investing in future growth. Research and development expenses rose by $6.6 million, mainly because the company spent $7.1 million more on improving reactor designs and preparing its technology for commercial deployment. This was partly offset by $0.6 million of lower regulatory costs. General and administrative expenses increased by $4.4 million, driven by $1.2 million of higher employee and stock-based compensation costs, and $3.9 million of higher organizational expenses. These increases were partly offset by $1 million of lower legal costs. Other expenses rose by $8 million as more engineering and project teams focused on preparing future commercial projects instead of current customer work, reflecting NuScale's continued investment in building its technology, supply chain and workforce. ENTRA1 Energy continues discussions with the Tennessee Valley Authority toward a definitive power purchase agreement using NuScale technology. Management described the negotiations as active and progressing and said the company is prepared to begin licensing, front-end engineering and OEM contracting activities once agreements are finalized. In Romania, NuScale is working with Nuclearelectrica and RoPower to satisfy conditions for advancing a six-module project at Doicesti. Management expects the next pre-engineering, procurement and construction phase to run toward a final notice to proceed, while roughly 60% of prior combined operating license application work can be reused for another U.S. project. NuScale ended June with $766.5 million in cash and cash equivalents, $305.7 million in short-term investments and $820.8 million in long-term investments. The company characterized its liquidity strategy as preparation for commercialization, working-capital requirements and investments needed to reduce deployment timelines. Investment income increased $8.5 million year over year, reflecting the stronger cash position and larger holdings of cash equivalents and investments. Management also emphasized disciplined operating spending while continuing to fund supply-chain agreements, design finalization and fuel-system development. NuScale Power currently carries a Zacks Rank #4 (Sell). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Celestica CLS, Amphenol APH and Broadcom AVGO, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of Celestica have gained 6.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.61 per share, up 4.4% over the past 30 days, indicating an increase of 75.4% year over year. Amphenol shares have gone up 26.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up by 11.7% over the past 30 days, indicating an increase of 57.2% year over year. Shares of Broadcom have gained 21.5% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating an increase of 72.1% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NuScale Power Corporation (SMR) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. New award momentum of $6.1 billion was driven by clients accelerating final investment decisions for large, complex projects in nuclear fuels, fertilizers, and copper. The divestiture of the Mexican joint venture for $175 million reflects a strategic shift to sharpen focus on targeted growth areas and bolster liquidity as the regional capital cycle wanes. Energy Solutions performance was bolstered by high-quality closeout efforts on mega projects, which allowed for the recognition of profits previously held for subcontractor and warranty contingencies. Management is prioritizing 'smart lump sum' strategies, utilizing front-end engineering work to properly price risk before converting to fixed-price contracts in power and LNG. Urban Solutions continues to be the primary revenue driver, supported by a $30 billion in-house mining and metals pipeline focused on copper and fertilizer demand. The company has successfully reduced legacy infrastructure backlog to $120 million, with two projects completed in Q2 and the remaining two expected to finish by year-end 2026. Full-year 2026 adjusted EBITDA guidance of $500 million to $525 million assumes a shift in segment contribution, with Urban Solutions is expected to meaningfully pick up EBITDA generation and become a larger contributor than Energy Solutions in the second half of the year. Management expects a book-to-bill ratio well above 1 for the full year, supported by a robust prospect pipeline in data centers, rare earth magnets, and South American copper projects. Strategic positioning in the nuclear value chain is expected to drive long-term growth as global investment in SMRs and fuel enrichment infrastructure accelerates. The company anticipates peak execution for recently booked awards to occur in late 2027 and early 2028, reflecting the multi-year horizon of new EPC programs. Capital allocation remains focused on a $1.4 billion share repurchase target for 2026 while evaluating inorganic opportunities in power, mining, and government services. The Gordie Howe International Bridge project incurred $44 million in additional losses due to foreign currency fluctuations, subcontractor bankruptcy, and client-driven changes. A $357 million tax payment related to the 2025 NuScale share conversion impacted Q2 operating cash flow, though management had previously signaled this non-recurring item. Ongoing hostilities in the Middle East are being monitored; while no direct impact to guidance has occurred, management noted potential residual risks to supply chains and client timelines. The sale of the Mexican JV resulted in a $90 million pretax book gain and the removal of $650 million from the backlog, which management excluded from its adjusted EBITDA run-rate guidance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while closeouts boosted Q1/Q2, segment margins will likely diminish in the second half as the portfolio reloads with new, early-stage projects. The profit contribution will shift toward Urban Solutions in the latter half of the year to maintain the overall EBITDA trajectory. Fluor is currently handing over early portions of the project to the client but is negotiating additional scope items that could impact final timing. Management expects to resolve these commercial discussions within a couple of months. Fluor views domestic gas-fueled power as the primary opportunity within the data center ecosystem, with meaningful backlog growth expected in the first half of 2027. The company remains selective regarding direct data center construction, only pursuing projects that match their risk profile and 'sweet spot' for complexity. Future acquisitions will focus on asset-light businesses in power, mining, and government services, particularly those requiring security clearances. Management confirmed they have the internal bandwidth to execute deals but declined to provide specific size or timing details.

This article first appeared on GuruFocus. Revenue: $4.3 billion, up 9% year-over-year. Adjusted EBITDA: $149 million, compared to $96 million a year ago. Adjusted EPS: $0.91, compared to $0.43 last year. Backlog: $26.9 billion at quarter end, reflecting strong Q2 awards and the removal of over $650 million related to the former JV in Mexico. New Awards: Over $6 billion in the quarter. Urban Solutions Segment Profit: $38 million, compared to $29 million a year ago, including $44 million in additional losses on the Gordie Howe project. Energy Solutions Segment Profit: $88 million, compared to $15 million a year ago. Mission Solutions Segment Profit: $44 million, versus $35 million last year. Operating Cash Flow: Negative $317 million, including a $357 million tax payment related to the NuScale share conversion; normalized positive OCF would have been $40 million. Cash and Cash Equivalents: $3 billion at quarter end, compared to $3.2 billion at March 31. Revised Adjusted EBITDA Guidance: $500 million to $525 million for full-year 2026. Revised Adjusted EPS Guidance: $2.70 to $2.80. Adjusted Operating Cash Flow Guidance: $300 million to $320 million, excluding tax payments related to NuScale and the JV sale. Share Repurchases: 6 million shares repurchased in Q2, deploying $300 million; modeling $1.4 billion for all of 2026. Warning! GuruFocus has detected 4 Warning Sign with FLR. Is FLR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fluor Corp (NYSE:FLR) reported strong new awards of over $6 billion in Q2, leading to a backlog of almost $27 billion and supporting a book-to-bill ratio well above 1 for the full year. The company is seeing growth across a range of end markets, including nuclear fuels, fertilizers, copper, and midstream, with clients accelerating project decisions. Fluor Corp (NYSE:FLR) completed two legacy infrastructure projects in the quarter and expects to complete the remaining two by the end of the year, reducing risk and freeing up management focus. The company is building a strong presence in the nuclear value chain, with the Centrus Fuel Enrichment award and a full suite of capabilities from power generation to decommissioning. Fluor Corp (NYSE:FLR) delivered strong financial results with revenue up 9% year-over-year to $4.3 billion and adjusted EBITDA increasing to $149 million from $96 million, while also raising its full-year adjusted operating cash flow guidance. The company is seeing improved margins on new awards, driven by selective commercial negotiations and a focus on reimbursable contracts, which are lower risk. Fluor Corp (NYSE:FLR) is well-positioned in the power market, with multiple front-end projects for gas-fired power that are expected to translate into meaningful backlog growth in the first half of 2027. The sale of its Mexican joint venture for $175 million sharpens the company's focus on targeted growth areas and bolsters its already robust liquidity. Fluor Corp (NYSE:FLR) recorded an additional $44 million loss on the Gordie Howe project in Q2, impacted by foreign currency fluctuations, a subcontractor bankruptcy, and client-driven changes. The company's operating cash flow was negative $317 million in Q2, largely due to a $357 million tax payment related to the conversion of NuScale shares, which weighed on cash generation. Fluor Corp (NYSE:FLR) lowered its full-year adjusted EBITDA guidance to $500 million to $525 million, partly due to the foregone profit of about $23 million from the divested Mexican joint venture. The company continues to face uncertainty in the Middle East due to ongoing hostilities, which could impact clients and supply chains, although no direct impact has been seen so far. The remaining legacy loss projects, including LAX and I-35 Phase II, still require additional funding of $94 million, which is expected to be concluded in Q3, creating ongoing execution risk. The company's backlog duration is extending, with peak execution expected in late 2027 and early 2028, meaning the earnings growth profile from new awards will be more back-end loaded. Fluor Corp (NYSE:FLR) is still working to resolve additional scope items on the mining project, which could impact the timing and schedule, adding uncertainty to its completion. Q: Can you provide more detail on the favorable closeout in Energy Solutions and how we should think about normalized margins for that business? Also, given the strong $6.1 billion in new awards, how are you thinking about the book-to-bill ratio and are other projects moving faster than expected?A: John Regan (CFO) explained that the Energy Solutions closeout profits stem from subcontractor settlements and warranty satisfaction on mega projects, which were largely included in original guidance but accelerated from the back half into Q2. Looking ahead, segment profit margins in Energy Solutions will diminish as they reload with new projects like LNG and power. Jim Breuer (CEO) added that the Q2 awards were strong, and with a robust prospect pipeline for Q3 and Q4 across LNG, copper, and rare earth magnets, they feel confident in achieving a book-to-bill ratio "well above 1" for the full year. Q: Can you update us on the remaining legacy projects, particularly the mining project, and its progress and timing?A: Jim Breuer (CEO) stated that the mining project continues to advance, with early portions already being handed over to the client. However, they are in discussions with the client regarding additional scope items that could impact the project's timing and schedule. He noted that conversations are ongoing and it would take a couple of months to resolve these scope changes. Q: You sound more positive on the power and data center ecosystem projects. Do you sense a wider variety of projects available on your terms, and what does that mean for bookings and earnings over the next few quarters?A: Jim Breuer (CEO) confirmed that power is the best play in the data center ecosystem, with several front-end projects advancing with various clients. He emphasized a methodical approach to avoid converting to lump-sum until risks are properly priced, expecting meaningful awards in the first half of 2027. For data centers, they are working closely with one client on a Kentucky project but remain selective, pursuing only opportunities that fit their sweet spot. Q: Regarding the Centrus award, when should we start to see revenue burn, and what is the margin profile compared to current Mission Solutions margins?A: Jim Breuer (CEO) said they have been working on the project for at least six months, with a full team of several hundred people now in place. Since it's a percent-of-cost completion contract, margin take-up will depend on procurement and construction, with some impact this year but heavier impact next year and beyond. John Regan (CFO) added that the Centrus award is part of the pull-forward effect in the EBITDA bridge. Q: Are you including any potential charges or positives on the mining project, LAX, or LBJ in the new EBITDA guidance?A: John Regan (CFO) declined to detail the mechanics of guidance development but stated they are looking across the portfolio with a risk-adjusted outcome suite, and they feel comfortable with the landing spot for the revised guidance. Q: Are the margins on new bookings improving relative to the existing backlog, and are these contracts derisked with better terms?A: Jim Breuer (CEO) confirmed that margins on new awards are ticking up compared to the existing backlog, driven by selective commercial negotiations. While most awards are reimbursable, even those margins are improving. He expects higher margins on future lump-sum work in LNG and power, with adequate contingency to protect margins, and plans to continue driving backlog growth and margin improvement. Q: Can you share more about your inorganic opportunities strategy, including size and skill sets needed?A: John Regan (CFO) stated that any acquisition would be aligned with strategic end markets like power, mining, government services with security clearances, and life sciences/pharma. He declined to discuss specifics on size but expressed confidence in management's bandwidth to execute deals. Q: Regarding the $30 billion mining and metals pipeline, are these projects where Fluor is the FEED agent, and what hurdles remain for FIDs? What is the risk and margin profile?A: Jim Breuer (CEO) confirmed the $30 billion is an in-house pipeline where they are performing studies. The primary commodities are copper, fertilizers, and aluminum, with a global geographic spread. The main hurdle is capital efficiency, as clients want to ensure investments are profitable. They are working on minimum viable solutions to minimize escalation and supply chain impacts. He noted commodity prices are high, supporting demand, and expects a good chunk of these projects to proceed. The vast majority of work will be reimbursable, with lower risk and historic margins for the mining and metals business. Q: The within-one-year RPO content is trending lower. Does this mean backlog duration is extending, and when should we see EBITDA acceleration?A: John Regan (CFO) explained that the RPO trend reflects large energy mega projects rolling out, while new awards have multi-year execution horizons. Peak execution for the reload is expected in late 2027 and early 2028, with EBITDA growth accelerating accordingly. Q: Is the $90 million pretax gain from the Mexican JV sale factored into the EBITDA guide? What are the moving pieces between Q2 and the back half, and is the guide covered by existing backlog?A: John Regan (CFO) clarified that the $90 million gain is outside the guidance. The back half implies a similar trajectory to Q2 but with a different segment mix: Mission Solutions remains stable, Energy Solutions contributes less, and Urban Solutions picks up meaningfully. He confirmed that new awards in the back half are not critical for achieving guidance, as the majority of expected EBITDA is already in backlog. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Fluor stock has delivered a very strong 177.6% return over the past 5 years, yet current valuation checks suggest it no longer looks obviously cheap or excessively expensive at around US$50.42 per share. For investors, the question now is whether that past compounding still leaves enough value on the table or whether most of the easy gains are already behind it. Over 5 years, Fluor has returned 177.6%, which puts long term holders in a strong position but raises the bar for future returns to justify the current price. Future valuation may be most influenced by how consistently Fluor can convert its project backlog into reliable cash flows. Any pressure on margins or project execution setbacks could weigh quickly on what investors are willing to pay. The stock scores 3 out of 6 on Simply Wall St’s valuation checks, which points to a mixed picture rather than a clear bargain or clear overvaluation. You can see the breakdown here 3/6 valuation score. The issue now is whether Fluor’s current price fairly reflects that 5 year run or if the stock is starting to stretch beyond what the fundamentals support. Find out why Fluor's 14.8% return over the last year is lagging behind its peers. The P/E ratio is a useful yardstick for Fluor because earnings tend to be a key focus for construction and engineering stocks. Fluor currently trades on a P/E of about 20.1x, which sits well below the Construction industry average of roughly 39.4x and also below the peer group average of about 29.8x. Simply Wall St’s model suggests a fair P/E ratio for Fluor of around 20.9x, only slightly above where the stock trades today. That small gap indicates the market price is broadly in line with what the model implies after considering factors such as growth prospects, margins, size and risk profile. Fluor therefore does not screen as either especially cheap or especially expensive on earnings compared with its own tailored benchmark, even if it appears lower than some sector peers. On the P/E multiple, Fluor stock appears roughly fairly valued at current levels. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Fluor pick up where the valuation puzzle leaves off and explain which assumptions about Fluor's future growth, margins and earnings would need to hold for the stock to be worth materially more or less than it is today. Each Narrative links a particular fair value estimate to a clear story about Fluor's potential catalysts and risks, so you can track over time which version of events is actually playing out on the Community page. Fluor attracts two very different community views right now, with one side focused on backlog and cash generation and the other on contract risk and changing end markets. Bull case: roughly fairly valued Read the full Bull Case to see why Fluor could be undervalued Bear case: 23% overvalued Read the full Bear Case to see why Fluor could be overvalued Do you think there's more to the story for Fluor? Head over to our Community to see what others are saying! Fluor now trades on a P/E that suggests the market multiple is about right, rather than clearly cheap or stretched. The mixed valuation checks point to a stock where neither the bull nor bear case dominates. This puts the focus squarely on execution from here. The key question is whether Fluor can turn its project backlog into steady earnings and protect margins on complex contracts. That execution record is likely to decide whether today’s roughly fair looking valuation ends up being an attractive entry point or a sign that most of the easy upside has already been used. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FLR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]