Fluor reports strong cash flow and completes $2.4B NuScale monetization

Fluor (NYSE:FLR) reported a pivotal first quarter for 2026, characterized by high-velocity capital returns and a major cleaning of its balance sheet.

The Irving, Texas-based engineering and construction leader announced it has officially completed the monetization of its investment in NuScale Power, generating total gross proceeds of approximately $2.4 billion since September 2025.

The final tranche of the sale was completed in April 2026, providing the company with a massive liquidity cushion to fund its strategic pivot toward high-margin, reimbursable contracts.

For the quarter ended March 31, 2026, Fluor reported revenue of $3.6 billion, down 8% compared to the prior year.

Despite the lower top-line figure, the company’s underlying cash generation reached a significant milestone: operating cash flow hit $110 million, the strongest first-quarter performance for the company in nine years.

This surge in cash was driven primarily by dividends from joint venture projects and a disciplined focus on project execution.

Armed with proceeds from the NuScale exit and a $124 million divestiture of its fabrication yard in China, Fluor is aggressively returning capital to its shareholders.

During the first quarter, the company repurchased $516 million of its own stock.

Management reaffirmed its goal to deploy a total of $1.4 billion toward share repurchases throughout 2026, representing a significant portion of its current market capitalization.

Meanwhile, Fluor’s total backlog remained steady at $25.7 billion, with 82% of those contracts being reimbursable—a strategic shift that lowers the company's risk profile compared to fixed-price legacy projects.

Notably, the legacy project backlog has been reduced to just $169 million, further insulating the company from the cost overruns that have historically pressured margins.

The company ended the quarter with a robust liquidity position, holding $3.2 billion in cash and marketable securities.

GAAP net earnings attributable to Fluor for the quarter were $160 million, or $1.08 per diluted share.

On an adjusted basis, which excludes the impacts of stock-based compensation and legacy project adjustments, EPS stood at $0.14.

Looking ahead, Fluor reaffirmed its full-year 2026 adjusted EBITDA guidance of $525 million to $585 million.

The company expects to maintain an annual operating cash flow of approximately $300 million.