Fluor Corporation (NYSE: FLR) has divested its equity stake in ICA-Fluor Daniel, a joint venture formed in 1993, to its existing partner ICA for $175 million, according to a company statement.

The joint venture operated across Mexico's oil and gas, power, mining, and manufacturing markets. Fluor said it will retain the ability to support ICA's efforts in Mexico on a project-by-project basis following the transaction.

"Given our current strategic priorities and in agreement with our partner, we determined that this is the right time to conclude this long-standing JV, allowing ICA more opportunity to grow independently and Fluor to direct attention to other growth areas," said Jim Breuer, Fluor's Chief Executive Officer.

Fluor said the expected gain on sale, combined with year-to-date operating income from the joint venture, will exceed its anticipated 2026 earnings contribution from ICA-Fluor Daniel. The company said it will provide additional details on the transaction and update its full-year guidance during its second quarter earnings call scheduled for August 7.