Orin
FLRNYSE·Engineering & Construction

Fluor Corporation FLR

Market cap $7.1BP/E —no earnings to divide byGross margin -0.8%Reports Fri 6 Nov, before the open
$50.78
+0.15 (+0.31%)live 11:20 ET
52-wk $39.33 – $58.35
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Orin's take
0.62conviction · moderate
Refreshed 1 Sep · take v4. A new filing or a print queues the next refresh.

Fluor's Q2 2026 results — revenue of $4.33B (+8.8% YoY), gross profit of $179M, and operating income of $135M — confirm a sequential recovery from the FY2025 trough when the company posted negative gross profit of -$120M and FCF of -$437M. However, the stock has already rallied to $56.25, above both the 50-day ($51.71) and 200-day ($47.66) moving averages with a bullish MACD histogram of +0.246, pricing in much of the turnaround before it is fully proven across multiple quarters.

With a negative trailing P/E, mixed insider signals (net share accumulation of +531K but net dollar selling of -$26.3M over 24 months), and only one clean quarter of operating profitability after a deeply negative FY2025, the risk/reward is balanced at current levels.

What could go wrong

  • Unproven turnaround consistency. Q1 2026 still showed operating income of -$48M and gross profit of just $13M; one strong quarter (Q2 2026) does not yet establish a reliable earnings trajectory after FY2025's negative gross profit of -$120M.
  • Legacy contract exposure. FY2025's negative gross margin of -0.77% and Q3 2025 gross profit of -$449M indicate potential for further write-downs on fixed-price projects despite the reported shift to 85% reimbursable contracts.
  • Valuation already reflects recovery. Stock at $56.25 trades well above the 200-day MA of $47.66, up roughly 43% from the 52-week low of $39.33, leaving limited margin of safety if execution stumbles.
  • Mixed insider and smart-money signals. A Group President sold 5,000 shares at $55.24 on 2026-08-07; 24-month insider net dollar value is -$26.3M despite positive net share count, and smart-money score is only marginally positive at 0.0105.

What would change my mind

Q3 2026 sustained profitability. Q3 2026 operating income remains positive and gross margin holds above 3%, confirming the Q2 2026 inflection is durablebullish
Return to negative gross profit. Any quarter reverts to negative gross profit or a large project charge exceeding $100M is disclosedbearish
FCF inflection to positive. Trailing-twelve-month free cash flow turns positive, reversing FY2025's -$437M outflowbullish
Backlog-to-revenue conversion acceleration. Quarterly revenue growth sustains above 8% YoY for two consecutive quarters, demonstrating the $27B backlog is converting at scalebullish

Where this comes from: quarterly_results Q2 2026 · fundamentals FY2025 / derived_metrics FY2025 · quarterly_results Q1 2026 · technicals as of 2026-09-01. Orin's read on FLR; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Portfolio Management$352.2M0.0% of fund
Vanguard Capital Management$330.1M0.0% of fund
State Street$294.2M0.0% of fund
Geode Capital Management$271.7M0.0% of fund
DME Capital Management$244.1M6.2% of fund
Hotchkis & Wiley Capital Management$242.9M0.7% of fund

83 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 144 Form 4 filings, net −$24.6M. Of the 50 on hand, 0 were open-market purchases and 8 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

· Industrials
MetricNowOwn medianSector
P/S0.46×——
P/B2.6×——

What Wall Street published

28 firms · 2026-09-24
Consensus target

$62

$50 – $71 · +23% against today's price

How they rate it
  • 15 buy or overweight
  • 13 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 27.8× of 9 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
FLRFluor Corporation$7B——-0.8%-12.8%-57%
ACMAecom$8B26.5×—5.7%1.9%13%
EMEEMCOR Group, Inc.$33B23.5×14.7×19.7%7.7%38%
GVAGranite Construction Incorporated$5B—30.0×15.6%-3.3%-16%
JJacobs Solutions Inc.$16B47.2×20.9×22.1%2.4%10%
KBRKBR, Inc.$4B10.5×8.2×14.5%5.5%27%
MTRXMatrix Service Company$276M—10.5×7.3%-0.3%-2%
MYRGMYR Group Inc.$5B27.8×15.3×12.4%4.1%24%
PRIMPrimoris Services Corporation$4B28.0×15.7×8.6%1.9%8%
PWRQuanta Services, Inc.$97B72.8×33.9×14.4%4.1%15%
ROADConstruction Partners, Inc.$5B35.1×16.3×15.8%4.1%15%
TTEKTetra Tech, Inc.$9B20.1×14.3×18.8%8.6%24%

The median is of the 9 peers listed above and nothing else — check it against the column. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 18.7×FY24 4.0×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $50.78
52-week range$39 – $58
Analyst targets$50 – $71

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.