If You Buy Fluor (FLR) Stock Today, Here's the Bull Case for the Next 5 Years

Fluor (NYSE: FLR), 1 of the world's largest engineering and operation firms, saw its banal emergence 120% implicit the past 5 years, outpacing the S&P 500's 70% gain. But tin it proceed to outperform the marketplace implicit the adjacent 5 years?

From 2020 to 2025, Fluor weathered a large crisis, stabilized its business, and faced caller macro headwinds. In 2020 and 2021, it struggled with delays, outgo overruns, and execution issues during the pandemic, and it racked up steep losses connected fixed-price megaprojects.

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From 2021 to 2023, Fluor shifted from fixed-price megaprojects to reimbursable ones, successful which the lawsuit pays each labor, materials, and instrumentality costs, positive an further fee. It avoided and exited its riskier lump-sum projects, and it focused connected gathering a higher-quality backlog crossed the energy, infrastructure, and authorities sectors. It besides streamlined its spending, improved its equilibrium sheet, and addressed its execution issues.

As its concern stabilized, much investors paid attraction to its involvement successful NuScale (NYSE: SMR), an emerging shaper of tiny modular reactors (SMRs) for atomic plants. That involvement became progressively invaluable arsenic the power-hungry unreality and AI markets expanded. Fluor owned implicit fractional of NuScale's shares earlier it went nationalist via a merger with a peculiar intent acquisition institution (SPAC) successful 2022, and it inactive owned astir 40% of its shares successful precocious 2025.

In 2024 and 2025, Fluor faced caller execution issues and outgo overruns, and its lawsuit spending became little predictable successful the messy macro environment. It besides took a large one-time deed from a ineligible outgo to Santos, an Australian lipid and state exploration and accumulation company. At the aforesaid time, its gradual income of NuScale's high-flying shares further distorted its earnings.

Analysts expect Fluor to instrumentality to profitability successful 2026, past turn EPS astatine a 16% CAGR done 2028 arsenic its concern stabilizes. That stabilization should beryllium driven by the ongoing enlargement of its backlog -- which reached $25.5 cardinal astatine the extremity of 2025 -- with much reimbursable contracts (over 80% of its backlog) arsenic it reduces its vulnerability to fixed-price megaprojects. That displacement volition trim its near-term margins but marque them acold much predictable implicit the agelong term.