Fluor Corporation (FLR) Slid on Weak Earnings Report

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2025, equity markets posted strong gains with the S&P 500 Index, Nasdaq Composite, Dow Jones Industrial Average, and Russell 2000 Index hitting all-time highs. Enthusiasm over artificial intelligence (AI), a long-awaited Federal Reserve rate cut, and stronger-than-expected corporate earnings supported the investor sentiments in the quarter. The fund outperformed the Russell Midcap Value Index in the third quarter, gaining 7.74% vs 6.18% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks such as Fluor Corporation (NYSE:FLR). Fluor Corporation (NYSE:FLR) is an engineering, procurement, and construction (EPC) company. The one-month return of Fluor Corporation (NYSE:FLR) was -5.10%, and its shares lost 22.26% of their value over the last 52 weeks. On December 09, 2025, Fluor Corporation (NYSE:FLR) stock closed at $43.40 per share with a market capitalization of $7.016 billion.

Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Fluor Corporation (NYSE:FLR) in its third quarter 2025 investor letter:

"Fluor Corporation (NYSE:FLR) is an engineering and construction company with most of its revenue from projects where it provides full Engineering, Procurement, and Construction (EPC) services. The Company’s stock underperformed in the quarter following a weak earnings report that also included reduced forward guidance. Fluor is a high-quality professional services company with a medium-risk business model that we expect will grow with no reinvested capital. Valuation is extremely attractive on normal earnings and even more attractive if its NuScale small scale nuclear reactor business realizes its potential."

Fluor Corporation (NYSE:FLR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Fluor Corporation (NYSE:FLR) at the end of the third quarter, which was 57 in the previous quarter. While we acknowledge the potential of Fluor Corporation (NYSE:FLR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Fluor Corporation (NYSE:FLR) and shared a bullish thesis on the company. Hotchkis & Wiley Mid-Cap Fund’s performance in the prior quarter benefited from Fluor Corporation’s (NYSE:FLR) margin expansion and increased buyback share repurchase outlook. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.