Dow Corp.’s decision to delay work on its estimated $8.9-billion Path2Zero ethylene project in Alberta, Canada will cost Fluor Corp. some near-term revenue on the main part of the project, the project EPC contractor told investors on May 2, but it has plenty of other work underway and in its backlog.

Details of the Dow postponement of what was touted as the world’s first net-zero ethylene and derivatives complex were part of Fluor’s first-quarter 2025 results conference call.

Fluor’s newly elevated CEO James Breuer, who succeeded David Constable in the role on May 1, said Dow asked the contractor to complete home office engineering and procurement to “enhance construction readiness in advance of equipment deliveries expected in the coming quarters.”

Dow CEO Jim Fitterling had announced the delay last month as part of a package of cost-saving measures meant “to align with market realities.”

He said that “with the uncertainty around where tariffs are gonna land” and “with the impact that’s having on demand … we’re at a point right now where we can make this decision to have minimal impact” on the project.” 

Vowing to complete the project at some point, Dow has said it is finishing engineering, has ordered long lead-time items and, in Fitterling’s words, “can pause now before we have a big ramp up in labor in the field.”

Fluor (NYSE: FLR) described its two Dow Path2Zero contracts as reimbursable and therefore very appealing to risk-conscious publicly traded contractors and construction managers. The company had announced its contract wins in 2023, one for front-end engineering and another for design and engineering, procurement and construction management services.

As far as economic uncertainty created by President Donald Trump’s tariff program, AECOM, Granite Construction and Quanta Services, like Fluor, also said in their Q1 results calls that they have not faced impacts.

Upside of Federal Staff Cuts

Looking ahead, AECOM CEO Troy Rudd told investors and analysts in a call May 6 that “given the professional services nature of our work,” the tariffs “are not expected to directly affect our business.”

Nor was Rudd overly concerned about cuts in federal department staffs, referring to them as “a secular tailwind for our industry” that will drive demand “for advisory and program management services.” Plans for deregulation and permitting reform also could help AECOM (NYSE: ACM),

As for Granite Construction (NYSE: GVA), CEO Kyle Larkin confirmed in a May 2 conference call that it was on track to meet financial guidance and targets.

“Although there is a lot of uncertainty in today’s macroeconomic environment, Granite’s markets have largely performed as we were expecting,” with federal and state funding “fueling opportunities” also in the private sector, he said, adding that the contractor “won more work than in the first four months of 2024.” 

Quanta Services (NYSE: PWR) reported May 1 that it beat market expectations on quarter revenue and earnings per share and raised its full year 2025 guidance for both, citing “strong demand in renewable energy and data center infrastructure.”  CEO Duke Austin emphasized the company’s strategic focus, stating, “Transmission infrastructure will be very robust here,” highlighting its critical role in power grid stability. But he emphasized adding that “the supply side is not gonna match demand without renewables.”  

Related to tariff impact potential, CFO Jayshree Jasai said “we believe the terms and conditions in our contracts limit our exposure to direct cost increases associated with the currently implemented tariffs, adding that the firm . also is “proactively collaborating with our customers to provide supply chain, process, and value driven solutions focused on cost optimization and growth.” Quanta Services’ 2025 guidance also “takes into consideration delays that could result from possible changes to the Inflation Reduction Act,” Jasal told investors.