Fluor (FLR) Plunges 27% After Q2 Earnings Disappointment

by MarketNewsData

Fluor Corporation shares plunged 27% on August 1, marking the worst single-day decline in the company’s history. The selloff followed a disappointing Q2 earnings report and a sharp downward revision to full-year guidance.

Key Results (Q2 2025):

  • Revenue: $3.98 billion, down 6% year-over-year, missing expectations.
  • Adjusted EPS: $0.43 vs. estimates of $0.56; down nearly 50% from $0.85 a year ago.
  • Adjusted EBITDA: $96 million, down 42% from Q2 2024.
  • Operating cash flow: –$21 million vs. +$282 million in Q2 2024.

What Went Wrong:
The Urban Solutions segment took a $54 million hit from design errors and subcontractor-related cost overruns on three major infrastructure projects. Management also cited client caution and slower capital spending as added headwinds.

Guidance Revision:

  • 2025 Adjusted EPS now expected at $1.95–$2.15, down from $2.25–$2.75.
  • Adjusted EBITDA guidance slashed to $475–$525 million from $575–$675 million.

Context and Peer Comparison:
This is the fourth straight quarter Fluor has missed both revenue and profit estimates. Unlike peers such as AECOM or Jacobs, which have stabilized execution and grown backlogs, Fluor continues to battle legacy project drag and cost control issues.

Investor Takeaway:
The stock’s steep selloff reflects collapsing investor confidence in execution. The core issue isn’t macro uncertainty—it’s internal delivery problems. Until Fluor fixes that, guidance cuts and margin pressure will likely remain recurring themes.

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