| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 50.50 | 9 |
| Intrinsic value (DCF) | 21.47 | -54 |
| Graham-Dodd Method | 64.10 | 38 |
| Graham Formula | 126.30 | 173 |
Fluor Corporation (LSE: 0IQC) is a global leader in engineering, procurement, and construction (EPC) services, serving diverse industries including energy, infrastructure, and government sectors. Headquartered in Irving, Texas, Fluor operates through four key segments: Energy Solutions, Urban Solutions, Mission Solutions, and Other. The company specializes in energy transition projects such as carbon capture, hydrogen, and nuclear power, positioning it at the forefront of sustainable infrastructure development. Fluor's Urban Solutions segment supports advanced technologies, life sciences, and mining, while Mission Solutions provides critical services to U.S. government agencies, including nuclear security and environmental remediation. With a history dating back to 1912, Fluor has established itself as a trusted partner for complex, large-scale projects worldwide. The company’s diversified portfolio and expertise in decarbonization and modular construction make it a key player in the Industrials sector, particularly in Engineering & Construction. Fluor’s strong cash position ($2.83B) and revenue base ($16.32B in FY 2023) underscore its financial stability and capacity for growth in emerging markets.
Fluor Corporation presents a compelling investment case due to its strong positioning in energy transition and government contracting, sectors with long-term growth potential. The company’s diversified revenue streams, including high-margin nuclear and decarbonization projects, mitigate cyclical risks in traditional energy markets. Fluor’s net income of $2.15B (FY 2023) and diluted EPS of $12.33 reflect robust profitability, though investors should note its beta of 1.24, indicating higher volatility than the broader market. The lack of dividends may deter income-focused investors, but Fluor’s $828M operating cash flow and low debt-to-equity ratio suggest financial flexibility for strategic investments. Risks include exposure to geopolitical tensions (given government contracts) and potential cost overruns in large-scale EPC projects. The stock’s appeal hinges on execution in renewable energy and modular nuclear reactor initiatives.
Fluor Corporation competes in the global EPC market by leveraging its technical expertise in complex projects, particularly in energy transition and government services. Its Energy Solutions segment differentiates through capabilities in carbon capture and hydrogen, where it rivals specialized firms like Technip Energies. Fluor’s government-focused Mission Solutions segment benefits from long-term contracts and high barriers to entry, though it faces competition from defense-oriented players like Amentum. The company’s scale allows competitive bidding on mega-projects, but it lacks the vertical integration of oilfield services giants like Schlumberger. Fluor’s emphasis on modular construction and SMR (small modular reactor) technology provides a niche advantage, though commercialization risks remain. Its $16.3B revenue trails industry leader Bechtel (private), but Fluor’s public listing offers transparency. Weaknesses include reliance on U.S. federal spending and lower margins than pure-play renewable firms. The acquisition of Stork (2016) strengthened asset integrity services, but Fluor must continue investing in digital engineering to match competitors like Jacobs in tech-driven project delivery.