Citi reaffirms Fluor’s buy rating despite trimming its price target amid strong nuclear energy backlog and long-term project momentum.
Fluor Corporation (FLR) reported Q1 2026 revenue of $3.7 billion, down 8% year-over-year, as a $96 million litigation impact and rising project costs weighed on earnings. Adjusted EBITDA fell to $61 million, with EPS at $0.14, though operating cash flow hit a record $110 million for the quarter.
The company’s backlog reached $25.7 billion, with 82% cited as reimbursable, supporting unchanged full-year operating cash flow guidance of $300 million. However, Fluor lowered the top end of its adjusted EBITDA guidance to $560 million from $585 million while keeping the lower bound at $525 million.
Management highlighted strong nuclear energy momentum, including a FEED award for a uranium enrichment plant expansion, reinforcing long-term growth prospects despite near-term headwinds.