Can Fluor's $25.5B Backlog Support Revenue Growth in 2026?

Fluor Corporation FLR entered 2026 with strong project visibility supported by a large backlog and diversified end markets. The company operates across complex engineering, procurement and construction projects where long development cycles often translate into stable revenue pipelines. Exposure to sectors such as LNG, mining and metals, advanced technologies, life sciences, nuclear fuels and national security programs is helping Fluor maintain a steady flow of opportunities that support growth.

Fluor ended 2025 with a backlog of $25.5 billion, of which roughly 81% is reimbursable, offering better cost visibility and balanced project risk. Consolidated new awards totaled $12 billion in 2025, with approximately 87% structured as reimbursable contracts. The company also recorded nearly $1 billion in positive backlog adjustments tied to normal project growth activity. 

Segment performance supported backlog strength during the year. Urban Solutions secured $8.7 billion in awards, including a major pharmaceutical facility, two mining projects and two highway developments. Mission Solutions booked $1.8 billion in awards, supported by a six-year contract extension at the Portsmouth, OH, site. Energy Solutions added $1.4 billion in awards, mainly tied to higher-margin engineering services that are expected to convert into larger EPC opportunities over the next two years. 

Fluor also indicated improved client confidence entering 2026, supported by increased front-end activity and projects moving toward final negotiations. The company expects the 2026 book-to-burn ratio to exceed 1, supported by prospects across LNG, copper, gas-fired power, nuclear remediation, data centers and defense programs. In addition, Fluor expects roughly half of the ending 2025 backlog to convert into revenues in 2026, highlighting the backlog’s ability to support revenue growth in the year ahead.

How Fluor Stacks Up Against Industry Peers

Fluor operates in a competitive engineering and infrastructure services market alongside companies such as KBR, Inc. KBR and Sterling Infrastructure, Inc. STRL. These firms compete across projects linked to defense programs, energy infrastructure and other mission-critical developments.

KBR is witnessing steady activity across its Sustainable Technology Solutions and Mission Technology segments. The company continues to expand in areas such as LNG, ammonia technologies and global engineering services while also strengthening its presence in defense, intelligence and space-related programs. KBR ended the year with a Sustainable Tech backlog of about $4.2 billion and a strong pipeline supported by repeat customers and global opportunities, providing good visibility into future work. 

Sterling is also benefiting from strong demand in mission-critical infrastructure. The company continues to see project activity across data centers, manufacturing facilities and e-commerce distribution networks. Growth in Sterling’s E-Infrastructure Solutions business remains an important driver, supported by steady project flow and ongoing demand for digital and logistics infrastructure.

Fluor Stock’s Price Performance & Valuation Trend

Shares of Fluor have gained 13.2% in the past six months compared with the Zacks Engineering - R and D Services industry’s 17.9% growth.

Fluor stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 16.6, as evidenced by the chart below.

Earnings Estimate Revision of FLR

Fluor’s earnings estimates for 2026 have trended upward in the past 30 days to $2.70 per share. The Zacks Consensus Estimate for Fluor’s 2026 revenues indicates a 3.4% year-over-year increase, while the same for EPS implies 23.3% growth.

FLR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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