There are a lot of projects ahead for Fluor Corporation (FLR +0.10%). The engineering, procurement, and construction company has billions in contracts on the docket for 2026, but the stock has still dropped more than 14% in the past week. This begs the question: is Fluor a buy now, or is the market sending a warning sign to investors?
NYSE: FLR
Key Data Points
Fluor's business fundamentals are strong
Fluor has a large contract backlog of $25.5 billion. Of that amount, 81% is reimbursable. This is a good thing as it shifts risk back onto clients, improving Fluor's revenue quality and visibility. These types of contracts are a shift from how Fluor used to operate.
Previously, the company dealt mostly in fixed-price contracts. These deals meant Fluor was tasked with coming in under budget or else the company would need to eat any overages. Reimbursable contracts force clients to pay Fluor for all costs plus a fee for profit. This business structure is far more advantageous for Fluor.
Image source: Getty Images.
Fluor has generally exhibited solid financial discipline, even with short-term challenges related to an adverse ruling on its Santos project in Australia. This long dispute resulted in Fluor owing Santos more than $450 million.
Two of Fluor's three business lines were profitable in 2025. The Energy Solutions division was the only one that reported a loss, and that was directly attributable to the Santos judgment. The metrics for all three businesses should improve this year. Fluor's 2026 outlook included an EBITDA estimate of $525 million to $585 million. This is a modest but steady increase from 2025's result of $504 million.
Fluor is also busy repurchasing shares, which is a bullish signal from the business. In 2025, Fluor repurchased shares worth $754 million and plans another $1.4 billion this year. The share repurchasing program is largely funded by the proceeds from Fluor's exit from a successful NuScale (SMR +1.70%) investment. Fluor was able to monetize that investment to the tune of $2 billion.
NYSE: SMR
Key Data Points
The stock is fairly priced
As Fluor's stock has declined in recent days, the valuation metrics are becoming more appealing for potential investors. As of March 6, Fluor's forward P/E ratio is around 18. This is well under the industrial sector average of 26. The stock is also nearly 23% lower than its 52-week high of $57.
The consensus among analysts is that Fluor is a buy or hold right now. The average price target is $52.22, which Fluor is currently trading well under.
Yes, now is a good time to purchase Fluor for the long term, given its solid balance sheet and large pipeline of reimbursable contracts. This isn't necessarily a high-growth or exciting stock. Instead, it is more of an industrial value play for those who want a piece of the infrastructure boom without as much speculative risk.
