11 Best Engineering Stocks to Invest in Now

6. Fluor Corporation (NYSE:FLR)

Number of Hedge Fund Holders: 48

Fluor Corporation (NYSE:FLR) delivers engineering, procurement, and construction (EPC) solutions across diverse sectors. These include urban infrastructure, energy (both traditional and renewable), and government projects. Its expertise spans complex project management, fabrication, and technical consulting, with a focus on delivering large-scale and mission-critical infrastructure.

The company’s Urban Solutions segment reported a Q4 2024 profit of $81 million. New awards totaled $1.4 billion, and the year-end backlog surged 20% year-over-year to $17.7 billion. This growth is driven by projects in Advanced Technologies & Life Sciences (ATLS), Mining and Metals, and Infrastructure. In ATLS, the company secured an additional $243 million for Lilly’s LP1 project and won further semiconductor tool installation work.

It’s also targeting the data center market with agreements with major developers. Mining and Metals won a project in Australia and anticipates tens of billions in potential awards for resource expansion. Infrastructure projects like Gordie Howe and LAX Automated People Mover are progressing. As older projects near completion, Fluor Corporation (NYSE:FLR) is selectively pursuing new opportunities in Texas, North Carolina, and the Netherlands. For 2025, the company expects growth in Urban Solutions, with segment margins projected at 4% to 5%.

ClearBridge Small Cap Growth Strategy added Fluor Corporation (NYSE:FLR) to its portfolio due to its position to benefit from high-priority investments from its strong market position and improved financials. It stated the following regarding the company in its Q4 2024 investor letter:

2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time provided company execution and end market prospects remain intact. In the fourth quarter we initiated five new investments: Oscar Health, TG Therapeutics, Clearwater Analytics, Fluor Corporation (NYSE:FLR) and Modine.

Fluor is one of the largest engineering, procurement and construction firms, with global scale supporting megaprojects across various end markets. With an improved contract structure mix and balance sheet, the company is poised to benefit from an array of high-priority investment projects in markets such as data centers, GLP-1 manufacturing, mining and nuclear energy.