Fluor Corporation (FLR.N): Positive Catalysts Now "Above the Horizon" for FLR

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Fluor Corporation (FLR.N): Positive Catalysts Now "Above the Horizon" for FLR

Fluor Corporation (FLR.N)

26 June 2026 Citi Research

Positive Catalysts Now “Above the

Horizon” for FLR

After traveling with FLR Management, we continue to view FLR as a “work-in-

progress”, but with considerable positive catalysts now “above the horizon”. FLR

still needs to get through its final stages of legacy project work and its existing

backlog (relatively low by historical standards) means that any continued noise

from that legacy work seems like it will continue to be more “noticeable” than it

would have been with a more robust book of business. That said, legacy work

continues to wind down, and Management seems to be ultra-focused on ending

legacy jobs with the majority of work handed over to customers by 1H27. Arguably

more importantly, we continue to sense a strong positive bookings inflection

coming (starting as early as 3Q26), and together with capital deployment in the

form of ongoing repurchases, we see an increasingly favorable environment for

FLR’s EPS/stock to positively inflect in in 2H26 and beyond.

Bookings environment does appear “target rich” – we get the sense that timing of

large project bookings remains in some flux given some lingering geopolitical

uncertainty, but they are “getting closer to the finish line”. FLR has publicly

discussed that its bookings pipeline is up 50% in the last twelve months led by

LNG, mining, and power, and we see the potential for FLR to book more than its

recorded ~$12bn of 2025 bookings in 2H26 alone.

We would actually be surprised if the discussion regarding FLR’s backlog six

months from now is not whether FLR’s backlog will inflect, but how high will it

inflect. LNG Canada is a known potentially larger booking (Management has