Fluor's project pipeline is swelling, but many newly signed contracts have not yet been formally booked. In fact, according to the company's first-quarter earnings call released Friday, new contract awards fell sharply and revenue also declined. Executives said on the call that the decline in orders reflects a timing issue, not a demand issue.

"We remain very confident that new contract awards in 2026 will be higher than in 2025," Fluor CEO Jim Breuer said on the call. "This is supported by the high-quality project opportunities in front of us, many of which we are currently advancing."

The Irving, Texas-based contractor reported that its front-end engineering and design work involves more than $60 billion in potential projects, with another $40 billion in project opportunities being evaluated over the next three years. Many of these projects are in early stages, and Fluor expects to convert them into backlog later this year.

Overall, Fluor's project pipeline has grown 50% over the past year, Breuer said.

Jim Breuer headshot
Jim Breuer
Image source: Fluor
 

"This expansion reflects growing demand in critical minerals, life sciences, LNG, nuclear, refining, and power markets," Breuer said. "That's why we are optimistic about the future and confident in the company's ability to grow."

Breuer said Fluor will continue to target opportunities related to AI infrastructure construction, including data centers and their supporting power systems. For example, the company recently signed a limited notice to proceed for a large data center campus project in Kentucky that can access 480 megawatts of power.

But Breuer added that the direct data center construction market remains a challenging one.

"Contract and commercial terms in the data center market remain challenging, especially regarding risk allocation," Breuer said. "We remain disciplined and selective, and we work to shape deals on a contract-by-contract basis to ensure opportunities meet our return expectations."

Instead, Breuer sees greater potential in adjacent areas, especially power generation. He said demand for these projects is rising due to AI-driven electricity needs.

"We believe the biggest growth opportunity—profitable growth—around data center and AI construction is actually in the power sector," Breuer said. "That fits better with our expertise, strong engineering capabilities, and global supply chain."

Geopolitical tensions in the Middle East have brought some uncertainty to Fluor's project timing and execution in the region. Breuer said the company is closely monitoring the situation and watching for reconstruction and energy-related opportunities that may emerge once stability is restored.

"Despite the conflict, our activities in the Middle East continue without interruption," Breuer said. "We continue to serve projects in the region and mitigate supply chain constraints."

First-quarter key figures

Fluor reported a profit of $160 million for the first quarter of 2026, compared with a loss of $241 million in the same period last year. Revenue declined approximately 8% year over year, from $3.98 billion to $3.66 billion.

Backlog decreased to $25.73 billion, down about 10% from $28.72 billion in the same period last year. New contract awards totaled $2.69 billion, down 54% from $5.81 billion a year earlier. According to Fluor, reimbursable work accounted for 82% of total backlog.

According to Andrew Wittmann, senior research analyst at Milwaukee-based financial services firm Baird, the report presented a "modestly negative" result.

"Results were messy and came in well below expectations," Wittmann wrote in a research note. "In short, investors wanted to see clean results and strong new awards; the report missed on results and was passable on new awards."