Fluor Corporation (NYSE:FLR) is a global engineering and construction firm known for its work in infrastructure, energy, and government projects. As FLR prepares to release its quarterly earnings on November 7, 2025, Wall Street anticipates an earnings per share (EPS) of $0.44 and revenue of approximately $4.2 billion. However, the company is currently embroiled in multiple securities fraud class action lawsuits, which could impact investor sentiment.
The lawsuits, announced by firms like Glancy Prongay & Murray LLP, Schall Law Firm, and Gross Law Firm, allege that FLR failed to disclose critical information about escalating costs in projects such as Gordie Howe, I-635/LBJ, and I-35. These issues stem from subcontractor design errors, price increases, and scheduling delays. The legal actions cover investors who purchased FLR securities between February 18, 2025, and July 31, 2025, with a lead plaintiff deadline set for November 14, 2025.
Despite these legal challenges, FLR's financial metrics suggest a potentially undervalued stock. The company's price-to-earnings (P/E) ratio is approximately 1.84, indicating a low valuation relative to its earnings. Additionally, the price-to-sales ratio of 0.45 and enterprise value to sales ratio of 0.38 suggest that FLR's stock is trading at less than half of its annual sales per share, which may appeal to value investors.
FLR's financial health is further supported by a debt-to-equity ratio of 0.18, indicating a low level of debt compared to its equity. The current ratio of 1.62 suggests that the company has sufficient liquidity to cover its short-term liabilities. However, the enterprise value to operating cash flow ratio of 17.67 reflects a higher valuation in relation to its cash flow from operations, which investors should consider.
As FLR approaches its earnings release, the outcome of the lawsuits and the company's ability to manage project costs and client hesitancy amid economic uncertainty will be crucial. Investors will be keenly watching how these factors influence FLR's financial performance and stock valuation in the coming months.
