Fluor Corporation

Fluor Corporation's joint venture with JGC Corporation has been selected to deliver the second phase of the LNG Canada export facility in Kitimat, British Columbia, following LNG Canada's final investment decision. The JGC-Fluor joint venture received a notice to proceed covering engineering, procurement, fabrication, construction and commissioning for Phase 2, and Fluor expects to recognize its $7.5 billion share of the multibillion-dollar contract in the third quarter of fiscal 2026. Phase 2 will be built adjacent to the existing facility and involves construction and commissioning of an additional LNG storage tank and two new liquefaction units, or trains, which are expected to double the facility's production capacity to approximately 28 million tonnes per year. The expansion will be executed by JGC Fluor BC LNG II JV, a Canadian joint venture owned equally by Fluor Canada Ltd. and JGC Constructors (No. 2) BC Ltd., and LNG Canada is backed by Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. The award follows the joint venture's delivery of Phase 1, where LNG production began in June 2025 and facility handover was completed in October 2025, and it converts Fluor's front-end pipeline into a major execution project after the company reported $6.1 billion in second-quarter new awards and $26.9 billion in backlog.

Shell plc has taken a final investment decision on the second phase of the LNG Canada project in Kitimat, British Columbia, clearing the way for an expansion that will double the facility's production capacity. Phase 2 will add two LNG processing trains and lift total production capacity from 14 million tonnes per annum to 28 mtpa, with commercial operations expected to begin in the early 2030s. Shell owns a 40% stake in the joint venture, alongside PETRONAS with 25%, PetroChina with 15%, Mitsubishi Corporation with 15% and Korea Gas Corporation with 5%, and expects to receive nearly 6 mtpa of additional LNG once Phase 2 comes online. The decision also unlocked TC Energy Corporation's related expansion of the Coastal GasLink pipeline, which currently transports about 2.1 billion cubic feet per day and is designed to nearly double that capacity along the existing 670-kilometer route to Kitimat. Fluor Corporation said its joint venture with JGC Corporation has been selected to provide engineering, procurement, fabrication, construction and commissioning services for Phase 2, with Fluor's share of the award valued at approximately $7.5 billion and expected to enter its backlog in the third quarter of fiscal 2026.

Fluor shares rose 6.1% in pre-market trading to $57.52, putting the engineering and construction company's stock close to its 52-week high of $58.35. The advance followed Fluor's second-quarter 2026 financial results, when the company reported adjusted earnings per share of $0.91 against an analyst consensus estimate of $0.71, on quarterly revenue of $4.33 billion. Truist raised its price target on Fluor to $71 from $64 on August 10, while UBS initiated coverage with a Buy rating and a $66 price target. Fluor reported $6.1 billion of new awards during the second quarter, bringing its backlog to $26.9 billion at the end of the period, and investors have also been assessing the company's exposure to nuclear energy and data-centre projects as part of its broader project pipeline. The gain came during a weaker session for major US equity indices, with the S&P 500 down 0.7%, the Dow Jones down 0.2% and the Nasdaq down 1.7%, and no new company-specific announcement was identified to account for the move.

Take-Two Interactive Software surged 6% after reporting first-quarter 2026 earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.31 per share. Fluor Corporation shares surged 16.9% after reporting second-quarter 2026 earnings of $0.91 per share, surpassing the Zacks Consensus Estimate of $0.73 per share. The Wendy's Company rose 4.1% after reporting second-quarter 2026 earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share. Under Armour fell 4.5% after reporting first-quarter 2026 revenues of $1.1 billion, missing the Zacks Consensus Estimate by 0.93%.

Fluor exceeded consensus revenue and earnings expectations for the second quarter of 2026, triggering a 16.9% one-day share price jump. The stock has returned 31.6% over the past 90 days and 227.6% over five years. Despite the beat, a widely followed discounted cash flow model pegs fair value at $52.44, implying the stock is about 9% overvalued at its last close of $57, while a separate SWS DCF model estimates fair value at just $39.51. The company’s strategy shift toward cash generation and earnings growth, along with a strong backlog in life sciences, infrastructure, and urban solutions, supports the revenue outlook, though project delays and foreign exchange impacts remain risks.

Fluor Corp reported second-quarter revenue of $4.3 billion, up 9% year-over-year, with adjusted EBITDA of $149 million and adjusted EPS of $0.91. New awards exceeded $6 billion in the quarter, pushing backlog to $26.9 billion and supporting a book-to-bill ratio well above 1 for the full year. The company revised its full-year 2026 adjusted EBITDA guidance to $500 million to $525 million and adjusted EPS to $2.70 to $2.80, while raising adjusted operating cash flow guidance to $300 million to $320 million, excluding tax payments related to NuScale and the joint venture sale. Operating cash flow was negative $317 million, including a $357 million tax payment tied to the NuScale share conversion, but normalized positive operating cash flow would have been $40 million. Fluor also repurchased 6 million shares for $300 million in the quarter and is modeling $1.4 billion in buybacks for all of 2026.

Fluor shares surged to a new 52-week high after the company reported second-quarter 2026 financial results that exceeded analyst expectations. Revenue grew 9% year-over-year to $4.3 billion, beating the consensus estimate of $3.9 billion, while adjusted earnings per share came in at $0.91, more than double the $0.43 reported a year ago and well above the $0.70 forecast. New awards jumped to $6.1 billion from $1.8 billion in the prior-year period, driven by a fertilizer project in Canada, an incremental life sciences award in the U.S., and an infrastructure project in Europe. The stock was up 16.5% as of 11:24 a.m. ET.

The Motley Fool highlights Vertiv Holdings and Fluor as two industrial infrastructure stocks poised for above-average performance as sector leadership shifts. Vertiv, which supplies power and cooling solutions for AI data centers, reported first-quarter revenue growth of 30% year over year to $2.65 billion and holds a consensus analyst price target of $376.99, implying 24% upside. Fluor, an engineering and construction firm focused on large-scale projects like semiconductor plants and nuclear facilities, has improved its contract mix to 82% reimbursable out of a $25.7 billion backlog, with analysts projecting 7.5% sales growth next year and a 27% jump in per-share profits as higher-margin projects ramp up.

Fluor Corporation has been selected by Gulf Petrochemical Industries Company to execute the front-end engineering and design for a new aromatics facility in the Kingdom of Bahrain. The project will expand GPIC's existing complex, which currently produces ammonia, urea and methanol. The new facility will use commercially proven process technologies to produce approximately 1.2 million metric tons of paraxylene and 0.5 million metric tons of benzene annually. Paraxylene and benzene are critical building blocks for plastics, polyester fibers and packaging materials.

Fluor has divested its equity stake in the ICA-Fluor Daniel joint venture to its existing partner ICA for $175 million. The joint venture, formed in 1993, has completed numerous projects in Mexico's oil and gas, power, mining, and manufacturing markets. Fluor CEO Jim Breuer stated that given current strategic priorities, this is the right time to conclude the long-standing JV, allowing ICA to grow independently while Fluor focuses on other growth areas. The expected gain on sale, combined with year-to-date operating income from the JV, will exceed Fluor's anticipated 2026 earnings contribution from ICA-Fluor Daniel. Fluor will provide additional details and update guidance on its second quarter earnings call on August 7.

Uranium Energy Corp. is positioning itself as a key player in the U.S. nuclear fuel supply chain by pairing its domestic in-situ recovery production with a proposed uranium conversion facility. The company holds what it describes as the largest uranium resource base and most licensed production capacity in the United States, with hub-and-spoke operations in Wyoming and South Texas totaling about 12 million pounds of licensed annual capacity. Its subsidiary United States Uranium Refining & Conversion Corp. has received a U.S. Nuclear Regulatory Commission docket number for a planned conversion facility, with engineering and design work by Fluor ongoing and a formal license application expected after site selection. UEC also adds critical-mineral exposure through its Alto Paraná project in Paraguay, where a preliminary economic assessment showed a net present value of up to $1.55 billion and a 25% post-tax internal rate of return for the larger-scale development case. Despite the strategic narrative, near-term execution remains a concern, with the Zacks Consensus Estimate projecting a loss of 19 cents per share for fiscal 2026 and a loss of 11 cents for fiscal 2027, and the stock currently carrying a Zacks Rank #4 (Sell).

Fluor has been selected by Saudi-based Aramco as a program management consultancy contractor under a long-term agreement to support its global capital projects portfolio. The agreement will allow efficient deployment of Fluor’s global expertise, local workforce and digital project delivery capabilities.

NuScale Power's stock has fallen more than 80% from its record high, but its revenue could skyrocket in the 2030s once its first small modular reactors are deployed. The company is working with Fluor to deploy six 77 MWe reactors in a 462 MWe plant for Romania's RoPower and recently agreed to deploy up to six gigawatts of SMR capacity across seven states for the Tennessee Valley Authority. Analysts expect NuScale's revenue to rise from $31 million in 2025 to $311 million in 2028, though it will remain unprofitable until commercial reactors come online. The stock trades at 11 times its 2028 sales, but its long-term growth potential may make it an attractive speculative buy before that explosive growth occurs.

Fluor Corporation has reached substantial completion on the Chicago Transit Authority Red and Purple Line Modernization project, the largest capital project in CTA history. The company has also been engaged by Voyageur Pharmaceuticals to conduct studies on a North American based pharmaceutical supply chain. These developments expand Fluor's activity across urban transit infrastructure and integrated pharmaceutical supply chains. Fluor shares are at $49.45 with a year-to-date return of 18.6% and a five-year return of 187.3%, though the stock is down 7.8% over the past week and 6.3% over the past year.

Fluor Corporation and its joint venture partner Walsh Construction Company have reached Substantial Completion on the Chicago Transit Authority's $2.1 billion Red and Purple Line Modernization Phase One Project, the largest completed capital project in CTA's history. The milestone reflects the collaboration of an exceptional project team including Fluor, Walsh Construction, Stantec, Hitachi, and Meade. Since commencing in 2019, the program has modernized and replaced just over two miles of 100-year-old elevated track between Lawrence and Bryn Mawr, rebuilt four stations into modern, fully accessible facilities, and constructed the Red-Purple Bypass to eliminate track conflicts and improve throughput for Red, Purple, and Brown Line service. Additionally, 11 miles of new digital track circuit signaling have been installed, increasing capacity today while enabling future enhancements. The new stations and tracks fully opened in the summer of 2025, with final completion for RPM Phase One scheduled for November 2026.

Fluor, one of the world's largest engineering and construction firms, has shifted over 80% of its backlog to reimbursable contracts and liquidated its NuScale stake for an estimated $1.86 billion profit. Analysts expect adjusted earnings per share to rise 18% in 2026 and 28% in 2027, driven by tailwinds from cloud, AI, industrial, and nuclear markets. If the stock maintains a price-to-earnings ratio of 21 times current-year earnings, it could potentially climb about 28% over the next 12 months.

NOVAGOLD Resources filed its second quarter 2026 report, highlighting progress on the Donlin Gold project's bankable feasibility study update and a strong cash position of approximately $370.2 million as of May 31, 2026. The company reported a net loss of $25.5 million, or $0.06 per share, for the quarter, with operational cash expenditures of $22.7 million, of which $16.3 million funded its 60% share of Donlin Gold and $6.4 million covered corporate costs. Under Fluor's leadership, engineering integration of major work packages is advancing with specialist contractors WSP, Worley, and Hatch, targeting BFS completion in 2027. Donlin Gold, one of the world's largest undeveloped gold assets with approximately 40 million ounces of measured and indicated resources at a grade of 2.22 grams per tonne, is expected to produce over one million ounces annually over a 27-year mine life. The project's sole remaining state permit challenge saw oral arguments in the Alaska Supreme Court in June, with a decision pending.

Voyageur Pharmaceuticals has engaged Fluor Corporation to complete feasibility studies for two strategic projects advancing its vertically integrated North American supply chain for radiology contrast drugs. The first study covers a proposed iodine extraction and production facility in Oklahoma using Voyageur's patent-pending Meuller process, developed in collaboration with Bayer AG under a milestone-based funding agreement. The second study covers Voyageur's planned pharmaceutical manufacturing plant that is expected to produce finished barium and iodine-based contrast media products, integrating high-purity barite from its wholly owned Frances Creek deposit in British Columbia with domestically sourced iodine. Voyageur has budgeted US$2,350,000 for the Bayer project feasibility study and will create a final budget for the integrated drug facility study after testing its proprietary Streamline iodine drug manufacturing process. The studies are expected to be completed in early 2027, paving the way for a potential construction decision that year.