A global engineering, procurement, and construction firm, Fluor designs and builds everything from oil-and-gas and LNG plants to mining, life-science, and government nuclear-security projects. A Swiss immigrant named John Simon "Si" Fluor founded it in 1912 in Santa Ana, California. It also runs staffing arm TRS Staffing Solutions, and its roots trace back to a saw and paper mill the Fluor brothers opened in Wisconsin before the company ever turned a spade.
Fluor's Q2 segment profit doubled to $170M as Energy Solutions close-outs and Urban Solutions growth lifted margins, but infrastructure charges and a legacy legal loss weigh on the year.
doubled, but the quarter's clean result was the exception in a year still carrying large one-off charges. rose 9% to $4.3 billion and segment profit reached $170 million, a 3.9% margin, driven by favorable close-outs on multi-year Energy Solutions projects and a ramp-up in Urban Solutions life sciences and mining work. The core business is performing, but $44 million in new infrastructure charges and a $98 million legal loss from earlier in the year show the legacy overhang is not yet cleared.
Key takeaways
Total doubled to $170 million from $78 million a year ago, as Energy Solutions swung from a $15 million profit to $88 million on favorable project close-outs and the absence of a prior-year $31 million arbitration loss.
Consolidated rose 9% to $4.3 billion, led by the continued ramp-up of Urban Solutions life sciences and mining projects, which offset declines in Energy Solutions and Mission Solutions.
Urban Solutions profit rose to $38 million but was reduced by $44 million in charges from foreign exchange impacts, a subcontractor bankruptcy, and client-driven changes on an infrastructure project.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 9% to $4.3B driven by Urban Solutions ramp-up; segment profit doubled to $170M on favorable project close-outs.
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Consolidated increased 9% in Q2 FY2026 to $4.3B, led by a ramp-up in Urban Solutions life sciences and mining projects, partially offset by declines in Energy Solutions and Mission Solutions.
Mission Solutions profit improved to $44 million in the quarter, though the six-month period includes a $98 million charge from an unfavorable court ruling on a legacy Department of Defense project recorded in Q1.
was a $317 million use of cash in the quarter, bringing the first-half outflow to $207 million, as the company funded on large projects and made $25 million in payments on a loss infrastructure project.
Liquidity remained strong at $3.0 billion in cash and marketable securities, bolstered by $1.8 billion in proceeds from the sale of NuScale shares, with the company targeting approximately $1.4 billion in share repurchases for 2026.
What changed
The Q1 2026 watch item on the $37 million mining joint venture cost growth in Urban Solutions did not repeat; instead, a new set of $44 million in charges emerged from FX, a subcontractor bankruptcy, and client-driven changes on a different infrastructure project.
Energy Solutions' 42% decline flagged in Q1 continued, with revenue falling further, but more than doubled to $88 million as the favorable close-outs that began in Q1 accelerated, partially answering the question of how the would perform as large projects wound down.
The $96 million adverse court ruling on the 2013 Mission Solutions lawsuit flagged in Q1 was not appealed or reversed; the charge stands, and the Q2 result shows the returning to a $44 million profit in the quarter without additional legal hits.
The $1.4 billion target for 2026 remains in place, with the company's cash position at $3.0 billion after the NuScale share sales, though the pace of buybacks in the second half will determine the impact on liquidity.
What to watch
Whether the $44 million in new Urban Solutions infrastructure charges—from FX, a subcontractor bankruptcy, and client-driven changes—are fully resolved or lead to further cost growth in the second half of 2026.
Whether Energy Solutions can sustain its improved profitability as the favorable close-out benefits fade, and whether it secures new awards to rebuild a depleted by the completion of multi-year projects.
Whether the $1.4 billion in targeted share repurchases for 2026 is executed in full and what impact the resulting cash outflow has on Fluor's $3.0 billion liquidity position.
Whether turns positive in the second half of 2026, as it did in 2024, or whether builds on ramping projects and payments on loss infrastructure projects continue to pressure cash generation.
Total profit doubled to $170M (3.9% margin) in Q2 FY2026, driven by favorable close-out items on multi-year Energy Solutions projects and improved DOE award fees in Mission Solutions.
Urban Solutions Q2 profit rose to $38M but was partially offset by $44M in charges from FX, a subcontractor bankruptcy, and client-driven changes on an infrastructure project.
Energy Solutions Q2 profit surged to $88M (12.4% margin) from $15M a year ago, primarily due to favorable close-outs; the prior-year quarter included a $31M adverse arbitration ruling.
Mission Solutions Q2 profit improved to $44M, but the six-month period included a $98M charge from an unfavorable court ruling on a legacy DOD project.
Liquidity remains strong with $3.0B in cash and marketable securities, bolstered by $1.8B in NuScale share sale proceeds; the company targets ~$1.4B in share repurchases for 2026.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to market risk during the 2026 Quarter. Accordingly, our disclosures provided in the 2025 10-K remain relevant. 22 Table of Contents
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There have been no material changes to market risk during the 2026 Quarter. Accordingly, our disclosures provided in the 2025 10-K remain relevant.
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Table of Contents
As part of our normal business activities, we are party to a number of legal proceedings and other matters in various stages of development. Management periodically assesses our liabilities and contingencies in connection with these matters based upon the latest information avai…
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As part of our normal business activities, we are party to a number of legal proceedings and other matters in various stages of development. Management periodically assesses our liabilities and contingencies in connection with these matters based upon the latest information available. We disclose material pending legal proceedings pursuant to SEC rules and other pending matters as we may determine to be appropriate.
Additional information on matters in dispute may be found in Part I, Item 1 of this Q2 2026 10-Q.