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Mixed but balanced. The company demonstrated material strategic and financial positives: a materially expanded prospect pipeline (+50% YoY), strong liquidity ($3.2B), significant proceeds and value capture from NuScale monetizations (MOIC ~4.5x), a meaningful operating cash-flow recovery and select commercial wins (FEEDs, SMR, data center LNTP). However, the quarter was weighed down by discrete charges (LOGCAP $96M, mining $37M), a steep YoY decline in adjusted EBITDA and EPS, higher G&A from stock-based items, and geopolitical risks (Middle East/Venezuela) that could affect timing and margin conversion. Management characterizes many issues as discrete or temporary and highlights a path to stronger back-half performance, but near-term earnings were meaningfully impacted.
Fluor narrowed its full‑year 2026 guidance to adjusted EBITDA of $525–560 million (previously $525–585M) and adjusted EPS of $2.60–2.80, with expected operating cash flow of $300 million (excluding the NuScale tax payment); corporate G&A is guided to $175–185M (~$40M/quarter in Q2–Q4) with up to $15M of potential ERP costs and an assumed tax rate of 26–28%, and management assumes a revenue mix of ~65% Urban / 20% Energy / 15% Mission. Management also expects a new‑awards book‑to‑burn >1 (weighted to the back half of the year), full‑year reported segment margins of Urban 2.5–3.5% (reflecting the mining charge), Energy Solutions 5–6% and Mission ~6%, plans roughly $1.4 billion of share repurchases in 2026, and anticipates providing an additional ~$200 million of funding for certain JV lost projects by year‑end; the guidance assumes resolution of the Middle East situation by end‑Q2 and will be revisited if disruptions persist into Q3.
Front-end work in-house represents over $60.0 billion of potential revenue with another $40.0 billion of tracked prospects (total ~$100B); prospect pipeline increased ~50% in the past 12 months. Backlog ended at $25.7 billion and was 82% reimbursable.
Consolidated new awards were $2.7 billion in Q1, 98% reimbursable. New-award margins were ~200 basis points higher than the margin currently reflected in backlog, reflecting project selectivity.
Cash and equivalents ended Q1 at $3.2 billion, up ~$1.0 billion from year-end. NuScale sell-downs generated over $2.4 billion of proceeds since Sept '25 (~$2.0B after tax), with a MOIC ~4.5x and IRR ~15%. Fab yard sale produced a $124 million gain; post-quarter NuScale sale generated an additional $473 million.
Operating cash flow of $110 million in Q1 vs an outflow of $286 million a year ago — an improvement of roughly $396 million; the most substantial Q1 operating cash flow generation since 2017.
Energy Solutions segment profit rose to $74 million from $47 million a year ago (+57%). New awards of $213 million included FEED for the America First refinery and a front-end award with X-energy for a small modular reactor at Dow; pipeline includes LNG Canada Phase 2 and other large prospects.
Signed a limited notice to proceed with TeraWulf for master planning and preconstruction of a large data center campus (480 MW access). Management reports encouraging client engagement in power (domestic gas-fired) and growing momentum in nuclear opportunities.
Repurchased ~11 million shares deploying over $0.5 billion in Q1; plan to repurchase ~$1.4 billion in 2026. Company highlights completion of shift to an asset-light model and active review of targeted M&A to support growth.
Good morning, and welcome to Fluor's First Quarter 2026 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] A replay of today's conference call will be available at approximately 10:30 a.m. Eastern Time, accessible on Fluor's website at investor.fluor.com. The web replay will be available for 30 days. A telephone replay will also be available for 7 days through a registration link, also accessible on Fluor's website at investor.fluor.com. 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.
Thanks, Krista. Good morning, and welcome to Fluor's 2026 First 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 first 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 you to our safe harbor note regarding 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 our 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 our Form 10-Q, which was filed earlier today.
During this call, we will discuss certain n...
