Financial Analysis

"Contingencies and Commitments We and certain of our subsidiaries are subject to litigation, claims and other commitments and contingencies, including matters arising in the ordinary course of business, of which the asserted value may be significant. We record accruals in the financial statements for contingencies when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. While there is at least a reasonable possibility that other losses may be incurred in excess of amounts accrued, management is unable to estimate the possible loss or range of loss or has determined such amounts to be immaterial, except as otherwise noted below. At present, except as set forth below, we do not expect that the ultimate resolution of any open matters will have a material adverse effect on our financial position or results of operations. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable outcomes could involve substantial monetary damages, fines, penalties and other expenditures. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position. We might also enter into an agreement to settle one or more such matters if we determine such settlement is in the best interests of our stakeholders, and any such settlement could include substantial payments. Fluor Austr …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt and Letters of Credit Debt consisted of the following: December 31, (in millions) 2025 2024 Borrowings under credit facility $ $ Senior Notes 2028 Notes (4.250% Senior Notes) $ 506 $ 543 Unamortized discount and deferred financing costs (2) (2) 2029 Notes (1.125% Convertible Senior Notes) 575 575 Unamortized deferred financing costs (9) (12) Total debt $ 1,070 $ 1,104 Credit Facility As of December 31, 2025, letters of credit totaling $424 million were outstanding under our $2.2 billion credit facility, which matures in February 2028. The credit facility contains customary financial covenants, including a debt-to-capitalization ratio that cannot exceed 0.60 to 1.00, a limitation on the aggregate amount of debt of the greater of $750 million or 750 million for our subsidiaries, and a minimum liquidity threshold of $1.1 billion, all as defined in the amended credit facility, which may be reduced to $1.0 billion upon the repayment of debt. The credit facility also contains provisions that will require us to provide collateral to secure the facility should we be downgraded to BB by S&P and Ba2 by Moody's, such collateral consisting broadly of our U.S. assets. Borrowings under the facility, which may be denominated in USD, EUR, or GBP, bear interest at a base rate, plus an applicable borrowing margin. As of December 31, 2025, we had not made any borrowings under our credit line and maintained a borrowing capacity of $901 million. Uncommitted Lines of Credit As of Decembe …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation Equity Awards Stock-based compensation expense for equity awards totaled $30 million, $31 million and $48 million during 2025, 2024 and 2023, respectively, with no associated tax benefits. This stock-based compensation primarily related to performance-based award units awarded to our Section 16 officers and also included the amortization of RSU and stock option awards that were less significant. Performance-based award units totaling 278,193, 272,844 and 274,755 were awarded to most officers, including all Section 16 officers, during 2025, 2024 and 2023, respectively. These awards generally cliff vest after 3 years and contain annual performance conditions for each of the 3 years of the vesting period. Under GAAP, performance-based elements of such awards are not deemed granted until the performance targets have been established. The performance targets for each year are generally established in the first quarter. For awards granted under the 2025 performance award plan, 70% of the award is earned based on achievement of earnings before taxes targets over three 1-year periods and 30% of the award is earned based on our 3-year cumulative TSR relative to companies in the S&P 500 on the date of the award. For awards granted under the 2024 and 2023 performance plans, 80% of the award is earned based on achievement of earnings before tax targets over three 1-year periods and 20% of the award is earned based on our 3-year cumulative TSR relative to comp …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels: Level 1 quoted prices in active markets for identical assets and liabilities Level 2 inputs other than quoted prices in active markets for identical assets and liabilities that are observable, either directly or indirectly Level 3 unobservable inputs We perform procedures to verify the reasonableness of pricing information received from third parties for significant assets and liabilities classified as Level 2. The following table delineates assets and liabilities that are measured at fair value on a recurring basis: December 31, 2025 December 31, 2024 Fair Value Hierarchy Fair Value Hierarchy (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Investment in NuScale (1) $ 1,579 $ 1,579 $ $ $ 2,266 $ 2,266 $ $ NuScale forward contract (2) 208 208 Trading securities (3) 2 2 18 18 (1) We recognize the fair value of our investment in NuScale on a mark-to-market basis based upon the prevailing price of their stock on our balance sheet dates. (2) In November 2025, through an indirect, wholly-owned subsidiary, we entered into a variable price forward sale agreement whereby we pledged and granted a security interest in 71 million of our shares in NuScale, while maintaining continuing involvement and ownership rights, and committed to sell, convey, transfer, assign and deliver those shares at the final settlement dat …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The components of income tax expense (benefit) are as follows: Year Ended December 31, (in millions) 2025 2024 2023 Current: Federal $ 235 $ (10) $ (3) Foreign 138 214 240 State and local 190 13 12 Total current 563 217 249 Deferred: Federal (477) 326 Foreign (37) 19 (13) State and local (88) 72 Total deferred (602) 417 (13) Total income tax expense $ (39) $ 634 $ 236 A reconciliation of U.S. statutory federal tax expense to total income tax benefit follows: Year Ended December 31, (in millions) 2025 U.S. statutory federal tax expense (includes equity method earnings) $ (21) 21 % Increase (decrease) in taxes resulting from: State and local income taxes (1) 61 (60) % Foreign tax effects: Australia: Valuation allowance 34 (34) % Other (11) 11 % Other foreign jurisdictions 60 (59) % Valuation allowance (130) 129 % Foreign tax credits (56) 55 % Other, net 24 (24) % Total income tax benefit $ (39) 39 % (1) State taxes in Alabama, Indiana, South Carolina made up the majority of the tax effect in this category for 2025. A reconciliation of the provision for income taxes to the amount computed by applying the 21% of statutory U.S. federal income tax rate to income before income taxes for years prior to the adoption of ASU 2023-09 is as follows: Year Ended December 31, (in millions) 2024 2023 U.S. statutory federal tax expense (includes equity method earnings) $ 571 $ 66 Increase (decrease) in taxes resulting from: State and local income taxes 66 6 Sale of foreign subsidi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements In 2025, we adopted ASU 2023-05, which requires certain joint ventures to apply a new basis of accounting upon formation by recognizing and initially measuring most of their assets and liabilities at fair value. The guidance does not apply to joint ventures that may be proportionately consolidated and those that are collaborative arrangements. The adoption did not have any impact on our consolidated results. In 2025, we adopted ASU 2023-09 on a prospective basis. This ASU requires us to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes and to provide more details in our rate reconciliation about items that meet a quantitative threshold. The adoption did not have any impact on our consolidated results. During 2024, the FASB issued ASU 2024-03 on the disaggregation of income statement expenses or ""DISE."" This ASU requires additional footnote disclosure of the details of certain income statement expense line items, without changing amounts reported on the consolidated income statement. ASU 2024-03 is first effective for our annual reporting for 2027 and for our quarterly reporting beginning in 2028. We do not expect this ASU to have any impact on our consolidated results. In May 2025, the FASB issued ASU 2025-03 on identifying the accounting acquirer in transactions involving VIEs. This ASU revises the guidance to require consideration of the same factors used in other business combinations when the …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement Plans DC Plans Domestic and international DC plans are available to eligible salaried and craft employees. Company contributions to DC plans are based on an employee's eligible compensation and participation rate. We recognized expense of $148 million, $145 million and $143 million in 2025, 2024 and 2023, respectively. Multiemployer Pension Plans We participate in multiemployer pension plans for unionized construction and maintenance craft employees. Company contributions are based on the hours worked by employees covered under various collective bargaining agreements and totaled $38 million, $56 million and $75 million during 2025, 2024 and 2023, respectively. Upon withdrawal from a multiemployer plan, we may have an obligation to make additional contributions for our share of any unfunded benefit obligation, but only if we do not meet the requirements of any applicable exemptions. The preceding information does not include amounts related to benefit plans applicable to employees associated with certain contracts with the U.S. Department of Energy because we are not responsible for the current or future funding of these plans.

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Contract Assets and Liabilities The following summarizes information about our contract assets and liabilities: December 31, (in millions) 2025 2024 Information about contract assets: Contract assets Unbilled receivables - reimbursable contracts $ 1,100 $ 1,050 Contract work in progress - lump sum contracts 46 88 Contract assets $ 1,146 $ 1,138 Year Ended December 31, 2025 2024 Information about contract liabilities: Revenue recognized that was included in contract liabilities as of January 1 $ 542 $ 511 We periodically evaluate our project forecasts and the amounts recognized with respect to our claims and unapproved change orders. We include estimated amounts for claims and unapproved change orders in project revenue to the extent it is probable we will realize those amounts. As of December 31, 2025 and 2024, we had recorded $214 million and $244 million, respectively, of revenue associated with claims for costs incurred to date. The settlement of these claims, which are included in contract assets and accounts receivable on the balance sheet, may extend beyond one year. Additional costs, which will increase this balance over time, are expected to be incurred in future periods. We had up to $105 million and $23 million of back charges that may be disputed as of December 31, 2025 and 2024, respectively. Remaining Unsatisfied Performance Obligations We estimate that our RUPO will be satisfied over the following periods: (in millions) December 31, 2025 Within 1 year $ 12,047 1 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Operating Information by Segment and Geographic Area Year Ended December 31, (in millions) 2025 2024 2023 Revenue Urban Solutions $ 9,200 $ 7,239 $ 5,262 Energy Solutions 3,554 5,976 6,307 Mission Solutions 2,720 2,594 2,655 Other 29 506 1,250 Total revenue $ 15,503 $ 16,315 $ 15,474 Cost of revenue Urban Solutions $ (9,018) $ (6,931) $ (4,978) Energy Solutions (3,963) (5,715) (5,942) Mission Solutions (2,619) (2,427) (2,525) Other (23) (668) (1,552) Total cost of revenue $ (15,623) $ (15,741) $ (14,997) Segment profit (loss) Urban Solutions $ 205 $ 304 $ 268 Energy Solutions (414) 256 381 Mission Solutions 94 153 116 Other 6 (78) (228) Total segment profit (loss) $ (109) $ 635 $ 537 G&A (196) (203) (232) Foreign currency gain (loss) (62) 92 (98) Interest income (expense), net 67 150 168 Earnings (loss) attributable to NCI (11) (61) (60) Earnings (loss) before taxes $ (311) $ 613 $ 315 Depreciation (all but Corporate included in segment profit) Urban Solutions $ 27 $ 27 $ 10 Energy Solutions 29 24 Mission Solutions 8 5 3 Other 8 19 Corporate 4 9 42 Total depreciation $ 68 $ 73 $ 74 Capital expenditures Urban Solutions $ 17 $ 21 $ 20 Energy Solutions Mission Solutions 4 3 4 Other 6 15 Corporate 29 134 67 Total capital expenditures $ 50 $ 164 $ 106 (in millions) December 31, 2025 December 31, 2024 Total assets Urban Solutions $ 1,769 $ 1,472 Energy Solutions 621 729 Mission Solutions 733 734 Other 1,581 2,338 Corporate 3,532 3,870 Total assets $ 8,236 $ 9,143 Goodwill Urban …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Significant Accounting Policies Principles of Consolidation The financial statements include the accounts of Fluor Corporation and its subsidiaries. All intercompany transactions of consolidated subsidiaries are eliminated. Certain amounts in 2024 and 2023 have been reclassified to conform to the 2025 presentation. Certain amounts in tables may not total or agree to the financial statements due to immaterial rounding differences. Management has evaluated all material events occurring subsequent to December 31, 2025 through the filing date of the 2025 10-K. We frequently form joint ventures or partnerships with others primarily for the execution of single contracts or projects. If a joint venture or partnership is a VIE and we are the primary beneficiary, the joint venture or partnership is consolidated and our partners' interests are recognized as NCI. As is customary in our industry, for unconsolidated construction partnerships and joint ventures, we generally recognize our proportionate share of revenue, cost and profit and use the one-line equity method for the investment. In other instances, the cost and equity methods of accounting are used, depending on our respective ownership interest and amount of influence we have over the entity, as well as other factors. At times, we also execute projects through collaborative arrangements for which we recognize our relative share of revenue and cost. Equity Method Investment with Fair Value Option We elected the fair value optio …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Convertible Preferred StockIn September 2023, we exercised our mandatory conversion rights on our CPS in which all of the outstanding shares of CPS converted to 44.9585 shares of our common stock, plus a cash payment of $45.23 per CPS for a make-whole premium of $27million. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing