Fluor (FLR): Examining Valuation After Project Delays, Cost Overruns, and Class Action Lawsuits

Fluor’s (FLR) stock has been in the spotlight after its second quarter 2025 results came in below expectations, mainly due to project setbacks, increased costs, and clients pulling back on spending. In addition, the company cut its full-year outlook and now faces several class action lawsuits from investors concerned about transparency around these challenges.

See our latest analysis for Fluor.

After a choppy few months marked by disappointing Q2 results, class action lawsuits, and a lowered outlook, Fluor’s share price has clawed back about 7% over the past month but remains down 18% for the last quarter. Looking further out, total shareholder return over the past year sits at -13.9%. Those who held for three or five years have seen gains of nearly 68% and an impressive 303% respectively, highlighting how sentiment and perceived risk can shift quickly in this sector.

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With so much recent turbulence and analyst targets still sitting above the current share price, the real question is whether Fluor is trading at a discount or if the market is already accounting for future growth headwinds. Is this a buying opportunity, or has everything been priced in?

Most Popular Narrative: 11.8% Undervalued

Fluor’s last close at $43.98 sits well below the most widely followed narrative’s fair value estimate of $49.89, suggesting a significant valuation gap. Momentum in the stock is being weighed against the company’s new growth strategy, shifting industry conditions, and anticipated results from major project completions. These are all critical factors in the headline price target.

The company’s new strategy focusing on cash generation and earnings growth is likely to improve net margins and enhance earnings. Expansion into strategic markets, coupled with project completions and acquisitions, is expected to increase revenue and enhance shareholder value.

Read the complete narrative.

Curious about the aggressive forecasts baked into this price? This narrative’s fair value isn’t just based on projected growth. It leans heavily on evolving profit margins, big bets on future projects, and a sharp focus on cash flow. What quantitative drivers tipped the scales in favor of a premium valuation? Dive deeper to uncover what could fuel or challenge this upside story.

Result: Fair Value of $49.89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent project delays and currency fluctuations may undermine earnings growth, which could challenge the current undervaluation narrative.

Find out about the key risks to this Fluor narrative.

Build Your Own Fluor Narrative

If you have a different view or want to dig into the numbers yourself, you can put together your own take in just a few minutes. Do it your way

A great starting point for your Fluor research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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