Fluor said on its second-quarter earnings call on August 7 that its core business remains healthy, with demand continuing to strengthen in power, mining, nuclear fuel, life sciences, and refining. Customers are approving projects faster than the company expected.

"We originally expected some contracts would not be approved until the second half of the year," CEO Jim Breuer said on the call. "Customers are accelerating decisions, which is a positive signal."

Thanks to this trend, the company reported new orders of $6.1 billion, an increase of $1.8 billion compared with the same period last year.

However, legacy infrastructure projects weighed on results. Fluor recorded an additional $44 million in cost growth on the Gordie Howe International Bridge project, due to foreign exchange rate fluctuations, a subcontractor bankruptcy, and customer-driven changes.

The latest orders provide evidence for Fluor's previously forecast recovery—the company saw a sharp decline in orders in the first quarter. Breuer said second-quarter data supports expectations for a book-to-bill ratio well above 1 for the full year, while more opportunities in areas such as LNG, copper, rare earth magnets, and data centers are advancing.

Breuer noted that the power business is Fluor's preferred path into the data center construction boom. Power demand continues to grow due to data centers, industrial expansion, and broader electrification. Fluor is currently performing front-end engineering design for multiple gas-fired power projects and expects this work to convert into substantial EPC contracts in the first half of 2027.

"We believe power is our best entry point into the entire data center ecosystem," Breuer said. "We have made significant progress in recent months."

Breuer also said Fluor remains cautious about directly building data center projects, because many potential projects do not match the company's preferred project characteristics.

"Power is the first priority, and data centers are the second priority," Breuer said.

The mining business also offers significant growth opportunities. Fluor is studying potential mining and metals projects worth nearly $30 billion over the next 18 months, covering projects in copper, fertilizer, aluminum, and steel across multiple regions. Breuer said strong commodity prices support demand, but customers are still reviewing capital efficiency, permitting requirements, cost escalation, and supply chain disruption risks. Most of the potential mining work will be under reimbursable contract models, which limits Fluor's risk exposure.

In addition, executives noted that conflicts in the Middle East have not disrupted the backlog or directly affected guidance. Fluor also reported increased domestic front-end refining activity, which could convert into EPC contracts in 2027 and 2028 if projects move forward.

Breuer said profitability on new orders is also improving as the company selectively negotiates and pursues projects where customers recognize its value.

"This is an encouraging trend," Breuer said.

But returns will take time. CFO John Regan said new multi-year contracts are extending the duration of the backlog, with execution peaks expected in late 2027 and early 2028. He added that most of the work supporting Fluor's second-half 2026 outlook is already in the backlog.

Key figures at a glance

The contractor, headquartered in Irving, Texas, reported revenue of $4.33 billion, an increase of 8.8% from $3.98 billion in the same period last year.

Fluor's net income attributable to shareholders was $114 million, down from $2.46 billion in the same period last year—which was boosted by a $3.2 billion pretax mark-to-market gain on its investment in NuScale.

Despite higher new orders, Fluor's backlog fell to $26.9 billion, down 4.7% from the second quarter of 2025.