Why a New $10 Million Fluor Stock Buy Signals Confidence After a Rough Year

Kentucky-based Aristides Capital initiated a new position in Fluor Corporation (NYSE:FLR) during the third quarter, acquiring 224,842 shares in an estimated $9.46 million stake as of September 30.

What Happened

According to a filing with the Securities and Exchange Commission dated November 13, Aristides Capital LLC established a new position in Fluor Corporation (NYSE:FLR) during the third quarter. The fund reported holding 224,842 shares with a market value of approximately $9.46 million at quarter-end, representing approximately 2.84% of its total reportable U.S. equity assets.

What Else to Know

Top five holdings after the filing:

• NYSEMKT: SPY: $53.02 million (15.9% of AUM)
• NASDAQ: IBIT: $25.17 million (7.6% of AUM)
• NASDAQ: GOOGL: $15.19 million (4.6% of AUM)
• NYSE: CRC: $11.29 million (3.4% of AUM)
• NASDAQ: ITRN: $10.02 million (3.0% of AUM)

As of Friday, Fluor shares were priced at $40.69, down 20% over the past year and well underperforming the S&P 500, which is up about 15% in the same period.

Company Overview

Company Snapshot

• Fluor Corporation provides engineering, procurement, and construction (EPC) services, project management, fabrication, modularization, and asset integrity solutions across energy, infrastructure, government, and technology markets.
• The company operates a project-driven business model, generating revenue through large-scale contracts in energy transition, infrastructure, advanced technologies, life sciences, mining, and government services.
• It serves oil, gas, petrochemical, infrastructure, mining, life sciences, advanced technology firms, and U.S. government agencies as primary customers.

Fluor Corporation is a global leader in engineering and construction services, with a diversified portfolio spanning energy, infrastructure, technology, and government projects. The company leverages its scale and technical expertise to deliver complex projects and solutions for both private and public sector clients. Its strategic focus on energy transition and mission-critical government services positions Fluor to capitalize on long-term industry trends and evolving client needs.

Foolish Take

Stepping into Fluor Corporation after a difficult stretch for the civil engineer firm suggests a willingness to look past headline noise and focus on normalized earnings power. Fluor’s third quarter was messy on the surface. Revenue fell 18% year over year and GAAP results were dragged down by legacy project charges and NuScale mark-to-market volatility. But dig deeper and the underlying picture looks steadier. Adjusted EBITDA climbed 29% year over year to $161 million, and management raised full-year adjusted EPS and EBITDA guidance. Just as important, 82% of the $28.2 billion backlog is reimbursable, limiting downside risk from cost overruns and execution surprises.

Capital allocation is also doing some quiet heavy lifting. The company repurchased $70 million of stock in the quarter and is targeting up to $800 million more through early 2026, supported by $2.8 billion in cash and marketable securities. Meanwhile, new awards totaled $3.3 billion in the quarter, with nearly all of it reimbursable work. For long-term investors, this looks less like a turnaround gamble and more like a patience play. The risk is real, but so is the margin of safety if execution holds.

Glossary

13F assets under management: The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Assets under management (AUM): The total market value of assets a fund or investment firm manages on behalf of clients.
Position: The amount of a particular security or investment held by an investor or fund.
Stake: The ownership interest or share an investor holds in a company or asset.
Top five holdings: The five largest investments in a fund's portfolio, ranked by market value.
Filing: An official document submitted to a regulatory agency, often disclosing financial or investment information.
Engineering, procurement, and construction (EPC) services: Comprehensive project services covering design, material sourcing, and building for large-scale infrastructure or industrial projects.
Project-driven business model: A business approach where revenue is primarily generated from executing individual client projects rather than recurring sales.
Energy transition: The shift from traditional fossil fuels to renewable and low-carbon energy sources.
Modularization: The process of constructing sections of a project off-site for later assembly at the final location.
Asset integrity solutions: Services ensuring that physical assets, such as infrastructure or equipment, remain safe, reliable, and efficient throughout their lifecycle.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Ituran Location And Control, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.