Strong stock market gains have begun to spread beyond large tech companies at the start of the year. One destination for investor money in January was the construction and engineering company Flour (FLR +0.09%). The stock popped 16.6% in January, according to data provided by S&P Global Market Intelligence.
Investors look to be buying the dip after Flour shares lost almost 20% in 2025. A growing business backlog has sparked renewed confidence in the company. Investors will hear more when Fluor reports its fourth-quarter results on Feb. 17.
Here's a look at Fluor's business to help prepare you for that update.
Massive carriers roll equipment onto the site of Fluor's LNG Canada project. Image source: Fluor Corporation.
Look for a growing backlog
Fluor shares plunged after its second-quarter report last August, and never really recovered over the remainder of 2025. But a growing backlog of construction projects has investors buying that dip to start the new year.
Fluor operates in three segments: Urban Solutions, Energy Solutions, and Mission Solutions. The most important area for investors to watch is Flour's Urban Solutions business. It had a backlog of more than $20 billion as of the end of Q3, representing about three-quarters of the company's total backlog.
Fluor is tapping into fast-growing markets, including metals and mining, data centers, and pharmaceuticals. When Fluor reports fourth-quarter results, project updates to watch include a copper mining facility in Canada, a new rare earth magnet manufacturing facility in Texas, and a potential new pharmaceutical customer plant.
NYSE: FLR
Key Data Points
Long-term mindset
Investors should be thinking longer term with Fluor stock. These engineering and construction projects aren't short-term jobs. In December, the company advised investors that new project awards totaling about $90 billion will be spread over the next several years. Earnings from those projects won't be realized until at least 2027.
Yet if the company continues to concentrate on metals and mining, energy, and advanced technologies, shareholders should be rewarded in time. Fluor already booked large profits from its stake in the small modular nuclear reactor company NuScale Power. Proceeds of over $400 million will strengthen the company's financial position and allow it to focus on its core business.
That was a very positive outcome from Fluor's investment in a start-up company. After Fluor's stock declined last year, some investors jumped back in last month. The company appears well-positioned to drive core business growth in segments that are currently booming. Buying the stock now will likely pay off if the upcoming business update shows continued acceleration in demand for the company's Urban Solutions segment.
