In his first earnings call as CEO of Irving, Texas-based engineering and construction giant Fluor Corp., Jim Breuer addressed how tariffs and trade policy uncertainty are affecting the company’s operations and client projects. Breuer, who officially assumed the top role on May 1 after previously serving as COO, replaced David Constable, now executive chairman.

Speaking to analysts on May 2, Breuer outlined the economic headwinds that Fluor and its customers are navigating, including evolving trade policies, inflationary pressures and supply chain disruptions. Yet despite these challenges, Breuer painted an optimistic picture of market activity, noting that many clients are staying the course with planned capital projects.

“Decisions include where to build, the size of facilities, the best supply chain solution and the timing of projects,” Breuer explained.

While broad tariffs imposed during the Trump administration and ongoing trade policy uncertainty have caused some developers to hit pause, Breuer emphasized that Fluor hasn’t seen widespread delays among its client base.

“We’re seeing clients forge ahead with their projects where there is a clear time-to-market driver,” Breuer said. “They’re not slowing down.”

At the same time, he acknowledged that certain sectors are taking a more cautious approach, waiting for economic signals to stabilize before proceeding. “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 said. He pointed specifically to energy and copper mining projects as areas where investors are hesitant. In contrast, Breuer noted that work in the firm’s Advanced Technologies and Life Sciences arena and Mission Solutions division are advancing as planned due to greater visibility and confidence in those markets.

“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 added.

Industry peers feeling similar impacts

Fluor’s experience mirrors that of other major contractors navigating the uncertain economic landscape. Watsonville, California-based Granite Construction recently told analysts that while tariffs haven’t yet significantly hurt its business, the company anticipates cost increases in the months ahead.

“We do expect there to be some equipment cost increases, parts increases, some repair cost increases,” Granite CEO Kyle Larkin said on a call discussing first-quarter results. “So those things are going to happen and we’ve been navigating that environment.”

Financial results highlight challenges

Fluor reported a net loss of $241 million for the first quarter of 2025, a sharp reversal from the $59 million profit it posted in the same period last year. Revenue rose 6% year-over-year to $3.98 billion, driven by ongoing project work across several business lines.

The company’s backlog stood at $28.72 billion at the end of the quarter, representing a 12% decline from a year earlier. New awards totaled $5.81 billion, down 17% compared to the $7 billion booked in the first quarter of 2024.

Despite the dip in awards, Breuer pointed to key wins, including a $671 million construction contract from the Texas Department of Transportation to widen a 12-mile stretch of highway near College Station from two lanes to three in each direction. Construction is expected to kick off this summer.

The company’s mixed earnings results reflect the broader market challenges facing large contractors, including labor shortages, fluctuating material prices, and the ripple effects of global trade tensions.

Still, Breuer remained upbeat about the long-term trajectory for Fluor and its markets. “Our clients continue to seek ways to position themselves competitively, and we’re committed to helping them navigate uncertainties while delivering complex projects safely and efficiently,” he said.

Originally reported by Jennifer Goodman in Construction Dive.