Morningstar Rating

Stock Research and Analysis

by Keith Schoonmaker, CFA

Bulls Say

Major multiyear project awards will provide top-line stability over a number of years.
Much of the world's easily accessible natural resources have already been harvested, meaning that future mining and extraction projects will increasingly take place in remote areas. Fewer companies can service these types of projects, which should benefit Fluor.
Fluor has a solid balance sheet with plenty of cash to spare for buybacks and making strategic bolt-on acquisitions where necessary. Read more 

Bears Say

Working on large projects in remote areas may create a greater chance of cost overruns and geopolitical risks.
Fixed-price contracts will become more common in the coming years. Though they can carry higher margins than cost-plus contracts, fixed-price contracts are also riskier as they put more of the burden on the contractor to control costs and manage unforeseen circumstances like poor weather.
With more than 40,000 employees around the world, rising labor costs in emerging markets could keep pressure on Fluor's margins. Read more 

Management

David Seaton was appointed CEO in 2011 and became chairman of the management board in 2012. Since joining Fluor in 1984, Seaton has held numerous positions in sales and global operations, including COO. Biggs Porter joined the company as CFO in 2012.  Read more 

Profile

Fluor is a global provider of engineering, procurement, construction, and maintenance services to a wide range of customers, including oil and gas, manufacturing, and mining   Read more 

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