Fluor to Provide EPCM Services for a Second Multi-Billion-Dollar Pharmaceutical Facility in Indiana

Rhea-AI Summary

Fluor (NYSE: FLR) has received a letter of intent for a multi-billion-dollar EPCM contract to build a second pharmaceutical facility in Lebanon, Indiana. The project, to be recognized as a new award in Q1 2025, follows a previous multi-billion-dollar project awarded in 2023.

The facility will manufacture peptide-based drugs for Type 2 diabetes and weight control, representing the largest investment in an active pharmaceutical ingredient facility in U.S. history. The project is described as one of the largest life science endeavors ever undertaken in a single initiative.

Fluor, with $16.3 billion in revenue in 2024 and ranked 265 on Fortune 500, will provide engineering, procurement and construction management services for this mega-project.

Positive

• Secured new multi-billion-dollar EPCM contract for pharmaceutical facility
• Second major contract win in Indiana, following 2023 award
• Project represents largest-ever U.S. investment in active pharmaceutical ingredient facility
• Strong revenue of $16.3 billion reported for 2024

Negative

• None.

Insights

Construction & Infrastructure Financial Analyst

Fluor's announcement represents a significant positive catalyst for the company. This new multi-billion-dollar reimbursable contract, set to be recognized in Q1 2025, comes on top of a previous multi-billion-dollar project awarded in 2023 from the same pharmaceutical client - demonstrating strong repeat business capability.

The scale of this pharmaceutical manufacturing facility is extraordinary, described as "the largest investment in an active pharmaceutical ingredient facility in U.S. history" and "one of the largest life science endeavors ever undertaken in a single initiative." While the exact contract value remains undisclosed, the multi-billion-dollar classification signals a substantial addition to Fluor's backlog and future revenue stream.

The reimbursable contract structure is particularly favorable for Fluor as it typically provides more predictable margins and reduces financial risk compared to fixed-price arrangements. With Fluor reporting $16.3 billion in 2024 revenue, this contract represents a meaningful percentage of their annual business volume.

This award strengthens Fluor's position as a leader in the highly specialized pharmaceutical facility construction market, particularly for advanced manufacturing capabilities. The facility's focus on peptide-based drugs for diabetes and weight control places it in a high-priority therapeutic area, suggesting potential strategic importance beyond just the contract value.

Investors should view this as reinforcement of Fluor's competitive positioning in high-value EPCM services and its ability to secure complex, large-scale projects from premier clients.

IRVING, Texas--(BUSINESS WIRE)-- Fluor Corporation (NYSE: FLR) announced today that it has received a letter of intent from one of the world’s leading pharmaceutical makers to provide engineering, procurement and construction management (EPCM) services for its Lebanon, Indiana, mega-project. Fluor will recognize the multi-billion-dollar reimbursable contract as a new award in the first quarter of 2025.

This investment is in addition to its first multi-billion-dollar project that was awarded to Fluor in 2023.

The facility will manufacture groundbreaking peptide-based drugs for Type 2 diabetes and weight control and represents the largest investment in an active pharmaceutical ingredient facility in U.S. history.

“This monumental project stands as one of the largest life science endeavors ever undertaken in a single initiative and demonstrates Fluor’s EPCM leadership position in the sector,” said Richard Meserole, President of Fluor’s Advanced Technologies & Life Sciences business. “The products this facility manufactures have the ability to enhance the overall wellbeing of its users globally. Fluor is honored to be delivering it."

About Fluor Corporation:

Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s nearly 27,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $16.3 billion in 2024 and is ranked 265 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than a century. For more information, please visit www.fluor.com or follow Fluor on Facebook, Instagram, LinkedIn, X and YouTube.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250402439876/en/

Brett Turner

Media Relations

864.281.6976

Jason Landkamer

Investor Relations

469.398.7222

Source: Fluor Corporation

FAQ

What is the size and scope of Fluor's new pharmaceutical facility contract in Indiana?

It's a multi-billion-dollar EPCM contract for a pharmaceutical facility in Lebanon, Indiana, representing the largest investment in an active pharmaceutical ingredient facility in U.S. history.

When will Fluor (FLR) recognize the new Indiana facility contract as revenue?

Fluor will recognize the multi-billion-dollar contract as a new award in the first quarter of 2025.

What type of medications will be manufactured at Fluor's new Indiana facility?

The facility will manufacture peptide-based drugs for Type 2 diabetes and weight control.

How many major pharmaceutical facility projects does Fluor (FLR) now have in Indiana?

Fluor now has two multi-billion-dollar pharmaceutical facility projects in Indiana, with the first awarded in 2023 and the second announced for 2025.