In his first earnings call as CEO of Irving, Texas-based Fluor, Jim Breuer addressed questions about how current trade and tariff policies are affecting the contractor and its clients.
Breuer, the company’s former COO, took the reins on May 1 from David Constable, who transitioned into the role of executive chairman.
During the call with analysts on May 2, Breuer talked about the current economic sentiment in the U.S., saying that Fluor clients always look for the best way to deploy their capital on projects.
“Decisions include where to build, the size of facilities, the best supply chain solution and the timing of projects,” he said.
President Donald Trump’s blanket tariffs and the uncertainty they have created have led many developers to pull back on projects. Breuer said so far Fluor has not seen that with most of its customers.
“We're seeing clients forge ahead with their projects where there is a clear time-to-market driver,” he said. “They're not slowing down.”
However, he said, some clients that are more sensitive to cost and GDP growth require “further market clarity and cost certainty” before committing to final investment decisions. Breuer noted that projects in energy and copper mining “are requiring a little bit more certainty.” Projects in the company’s Advanced Technologies and Life Sciences arena and Mission Solutions space, however, have greater clarity and are proceeding as planned.
“It's no surprise that the entire business community is watching very carefully what's happened with the trade negotiations when we're hopeful that there's going to be some good news on certain fronts in the coming days and weeks so that we can start seeing some clarity in the broader picture,” he said.
Another public contractor, Watsonville, California-based Granite Construction, said last week that tariffs haven’t significantly negatively impacted its business to date. But it also said those policies could lead to higher costs for its equipment outlays in the coming months.
“We do expect there to be some equipment cost increases, parts increases, some repair cost increases,” Granite CEO Kyle Larkin told analysts on a conference call to discuss Q1 results. “So those things are going to happen and we’ve been navigating that environment.”
Q1 earnings
Fluor lost $241 million in the first quarter of 2025, compared to the $59 million it earned in 2024’s first quarter. Its revenue reached $3.98 billion, about a 6% gain year over year.
The company’s backlog fell to $28.72 billion, around a 12% drop from a year ago. New awards in the first quarter reached $5.81 billion, a 17% drop compared to $7 billion in new awards reported in the first quarter of 2024.
On the earnings call, the firm highlighted several new awards, including $671 million for a construction contract for Texas DOT in the College Station area. The project involves widening a 12-mile stretch of highway from two lanes to three in each direction. Construction is set to begin this summer.
