Fluor’s stock underperformed the S&P 500 in 2025, declining 20% while the S&P 500 rose 17%. The company faced challenges with cost overruns, scheduling delays, and design problems in key projects. Despite this, Fluor’s stock looks undervalued and could see growth over the next 12 months. In 2024, Fluor’s revenue increased by 5%, but adjusted EBITDA dropped 14%. Analysts expect a 4% decline in revenue and a 19% drop in EBITDA for the full year, but predict a 7% revenue increase and a 10% EBITDA rise in 2026. Starboard Value, an activist investor, acquired nearly 5% of Fluor’s shares in October and is pushing for changes, including monetizing Fluor’s stake in NuScale.

Fluor agreed to pay Santos $653 million to resolve a legal dispute, which impacted its revenue. The company also faced declining backlogs and challenges in securing new contracts. Despite these issues, analysts believe Fluor’s stock could gradually rise over the next 12 months as the business stabilizes. Starboard Value’s involvement and potential actions like buybacks could also support the stock. The Motley Fool Stock Advisor team did not select Fluor as one of the top 10 stocks to buy now, but investors should monitor the company’s progress and potential future developments.

Read more at Nasdaq: Where Will Fluor Corporation (FLR) Stock Be in 1 Year?