Earnings Recap: Watsco, Fluor, and Knife River Report Q4 Results

As the latest earnings season unfolds, a diverse array of companies have reported their financial results, each reflecting unique industry dynamics and strategic priorities. Watsco, Inc. (NYSE: WSO), a leader in the HVAC distribution sector, faced headwinds but maintained its strategic focus on innovation and growth. Fluor Corporation (NYSE: FLR), a global engineering and construction firm, highlighted significant financial maneuvers, including the monetization of its stake in NuScale Power. Meanwhile, Knife River Corporation (NYSE: KNF), a construction materials and contracting services company, reported robust financial performance, driven by strategic acquisitions and operational efficiencies.

The earnings reports reveal a mixed bag of outcomes, with Watsco and Fluor falling short of earnings expectations, while Knife River exceeded both earnings and revenue projections. These results underscore the varied challenges and opportunities facing companies today, from regulatory changes and supply chain disruptions to strategic asset sales and market expansions.

As we delve into the specifics of each company’s performance and future guidance, it becomes clear that adaptability and strategic foresight remain critical in navigating the current economic landscape.

Q4 Earnings: Who Beat and Who Missed

Watsco, Inc. reported a challenging fourth quarter, with revenues decreasing by 10% to $1.58 billion, falling short of the expected $1.62 billion. Earnings per share (EPS) also missed expectations, coming in at $1.68 compared to the anticipated $1.88. Despite these setbacks, Watsco achieved record gross margins, thanks to strategic pricing and operational efficiencies.

The company continues to navigate industry volatility, driven by regulatory transitions and macroeconomic factors, while focusing on long-term growth through technology investments and acquisitions.

Fluor Corporation’s financial results were marked by the ongoing monetization of its NuScale Power stake, with $605 million received during 2025 and an additional $1.35 billion collected in Q1 2026. The company’s adjusted EPS for the quarter fell short of expectations, reporting $0.33 against the expected $0.35.

Revenue came in at $4.2 billion, falling short of the estimated $4.24 billion, providing analysts and investors with a clearer but disappointing picture of the company’s overall financial performance. Fluor’s strategic focus remains on enhancing shareholder value through share repurchases and asset monetization

Knife River Corporation delivered an impressive performance, surpassing expectations with a 15% increase in quarterly revenue to $755.1 million and an EPS of $0.56, beating the anticipated $0.41. The company’s success was driven by strategic acquisitions and increased aggregate pricing, supported by favorable weather conditions and an extended construction season. Knife River’s focus on operational excellence and market expansion positions it well for continued growth.

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What’s Next for Watsco, Fluor, and Knife River

Looking ahead, Watsco is optimistic about its growth prospects in 2026, despite the challenges faced in the past year. The company has increased its annual dividend by 10% to $13.20 per share, reflecting confidence in its long-term strategy.

Watsco plans to leverage its strong financial position to invest in technology and acquisitions, aiming to capture market share and enhance customer experience through digital solutions.

Fluor Corporation is set to continue its asset monetization strategy, with full monetization of its NuScale investment anticipated by the end of Q2 2026. The company has established adjusted EBITDA guidance for 2026 of $525 million to $585 million, supported by an improving capital spending environment and growing client commitments for EPC awards. Fluor also plans to repurchase $1.4 billion in shares during 2026, reflecting its continued commitment to shareholder returns through disciplined capital allocation.

Knife River Corporation has provided robust guidance for 2026, with revenue projections ranging from $3.3 billion to $3.5 billion and adjusted EBITDA between $520 million and $560 million. The company plans to continue its strategic M&A activity, with a deal pipeline similar to 2025.

Knife River’s focus on optimizing materials pricing, driving efficiencies, and expanding its market footprint positions it for sustained growth and profitability. With a record year-end backlog of $1 billion, the company is well-positioned to capitalize on public funding and market opportunities.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.