Fluor wins position on $3.5 billion defense threat reduction contract

Published 08/09/2025, 21:10
Fluor wins position on $3.5 billion defense threat reduction contract

IRVING, Texas - Fluor Corporation (NYSE:FLR), a prominent player in the Construction & Engineering industry with a market capitalization of $6.6 billion, has secured a position on the Defense Threat Reduction Agency’s (DTRA) Cooperative Threat Reduction Integrating Contract (CTRIC) IV, according to a company press release issued Monday.

The engineering and construction firm is one of six companies selected for the indefinite delivery/indefinite quantity contract, which has a combined value not to exceed $3.5 billion over a potential 10-year period. Under the contract, Fluor will compete for specific task orders to provide services related to chemical, biological, radiological and nuclear threat reduction capabilities in cooperation with partner nations. According to InvestingPro analysis, Fluor maintains strong financial health with more cash than debt on its balance sheet, positioning it well for such large-scale contracts.

"The contract’s scope of work fits well with what we do best — managing, integrating and executing complex projects and large teams globally," said Al Collins, Group President of Fluor’s Mission Solutions business.

The DTRA enables the Department of Defense, the U.S. government and international partners to counter and deter weapons of mass destruction and emerging threats.

Fluor, headquartered in Irving, Texas, reported revenue of $16.3 billion in 2024 and is ranked 257 among the Fortune 500 companies. The firm employs nearly 27,000 people worldwide and provides engineering, procurement, construction and maintenance services. Trading at a low P/E ratio of 1.69, InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

The award builds on Fluor’s extensive history of providing services to U.S. government and commercial clients, often in challenging and remote environments, according to the company’s statement.

In other recent news, Fluor Corporation reported its second-quarter 2025 financial results, which missed Wall Street expectations. The company posted earnings per share (EPS) of $0.43, falling short of the forecasted $0.56, and revenue reached $4 billion, below the anticipated $4.55 billion. Additionally, Fluor has been awarded a three-year Logistics Support Services contract by the United States Army’s Regional Contracting Office in Bavaria. In legal matters, Fluor acknowledged a Supreme Court of Queensland decision that ruled in favor of Santos in a dispute over the Gladstone LNG project in Australia. Despite these developments, DA Davidson reiterated its Buy rating for Fluor, maintaining a $50.00 price target, while noting slower bookings momentum. Meanwhile, NuScale Power announced a collaboration with Tennessee Valley Authority and ENTRA1 Energy to deploy up to 6 GW of new nuclear capacity. BofA Securities maintained its Neutral rating on NuScale Power, with a price target of $38.00. These updates reflect recent developments for both companies.

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