CEO Shift to Jim Breuer Set for May 1 as Firm Expands in Critical Sectors

IRVING, Texas, Feb. 20 – Fluor Corporation is maintaining a strong focus on data centers, energy, and federal contracting despite an upcoming leadership transition, the company detailed in its Feb. 18 full-year earnings report. Jim Breuer, currently Fluor’s chief operating officer, will take over as CEO on May 1, succeeding David Constable, who will step into the role of executive chairman.

While the leadership shift marks a new chapter, Fluor executives emphasized that the firm’s core strategy remains unchanged, with continued investment in high-growth markets.

Data Centers at the Forefront of Growth Strategy

Data centers are expected to be a major revenue driver for Fluor, with the company recently securing a master agreement with a leading technology provider and initiating work under the deal.

“We’re in conversations or have agreements with the top four data center developers,” said Breuer. “We continue to see this market as a significant contributor to the grow-and-execute phase of our strategy.”

This expansion comes as global demand for data centers surges, fueled by artificial intelligence, cloud computing, and hyperscale infrastructure development. Industry analysts predict exponential growth in data center power consumption, with U.S. installed capacity projected to more than triple by the end of the decade.

Power Sector Growth and Nuclear Expansion

As the data center sector expands, Fluor sees power generation, particularly nuclear energy, as an essential enabler. The firm is actively involved in front-end design for the expansion of a nuclear power plant in Romania and anticipates a broader role for nuclear energy in powering hyperscale data centers across the U.S.

“Our expertise in power generation, both thermal and nuclear, is going to play a key role in supporting our client needs,” said Constable. “We’re already currently ramping up our capabilities further on the power side.”

Fluor is also managing its investment in NuScale Power, a small modular reactor (SMR) firm. While NuScale’s commercialization has been slower than anticipated, Fluor remains committed to ensuring its long-term success.

“The timeline to monetization has been slower than desired,” said Constable. “However, anything in the nuclear space that is in startup, pre-commercialization mode does take patience, and we want to get this right for decades to come, not just the next few years.”

Infrastructure and Semiconductor Work Continue Steady Growth

Beyond data centers and power, Fluor continues to make strides in infrastructure development. Major projects, including the Gordie Howe International Bridge and the LAX Automated People Mover, are progressing steadily, with substantial completion expected in late 2025.

Additionally, Fluor has seen an uptick in semiconductor-related work, having secured new tool installation contracts from a leading chip manufacturer in Arizona. This aligns with ongoing federal initiatives to boost domestic semiconductor production and reduce supply chain vulnerabilities.

Federal Contracting Business Holds Steady

Fluor’s government contracting division remains a reliable revenue stream, with ongoing projects for the Department of Energy, Department of Defense, and Federal Emergency Management Agency (FEMA). Breuer expressed confidence in the sector’s stability, given its ties to national security and critical infrastructure.

“The project work we do and the support work we do for the government is tied to their very critical missions, so we expect the work to continue,” Breuer said. “We feel good about the continuity of them. We feel good about our future opportunities with these two big departments, with FEMA, and other civil agencies that we’re pursuing work for.”

Financial Performance: A Strong Year Despite Challenges

Fluor reported earnings of $1.86 billion in the fourth quarter of 2024, a significant rebound from a $21 million loss in the same period the previous year. Quarterly revenue grew 12% year over year to $4.26 billion.

For the full year, Fluor posted $2.15 billion in earnings, a dramatic improvement over $139 million in 2023. Annual revenue reached $16.32 billion, marking a 5% increase from the prior year.

However, the company’s backlog declined slightly to $28.48 billion, a 3% drop from $29.44 billion a year ago. New project awards in Q4 2024 totaled $2.31 billion, a sharp decline from $7.61 billion in Q4 2023.

Investor Sentiment and Industry Outlook

Despite positive financial results, some analysts expressed concerns about Fluor’s earnings report, citing delays in monetizing NuScale and a softer-than-expected 2025 outlook.

“The fourth-quarter 2024 report was disappointing with the initial 2025 outlook likely viewed as soft,” said Andrew Wittmann, senior research analyst at Baird, in a research note. “Investors looking for a more concrete path to NuScale monetization were left disappointed with only a $1.6 billion non-cash mark-to-market being run through the income statement.”

Looking ahead, Fluor remains focused on capitalizing on high-growth sectors such as data centers, power, and semiconductor manufacturing. As demand for AI-driven computing, clean energy, and advanced infrastructure rises, the company’s positioning in these markets may yield long-term benefits despite near-term volatility.

“The numbers are just astronomical for power demand for data centers,” said Constable. “We’ve got 26,000 megawatts installed in the U.S. right now. They say 92,000 megawatts is required by the end of the decade. So, a big focus here on data centers, combined with power generation.”

With a leadership transition on the horizon, Fluor’s strategic focus remains clear: expanding its presence in the world’s most rapidly growing industrial sectors while navigating challenges in the nuclear and federal contracting spaces.

Originally reported by Sebastian Obando in Construction Dive.