Fluor's Opportunities in Data Centers and Nuclear Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy FLR?
Source: Fool
- Data Center Expansion: Last year, Fluor completed engineering, procurement, and construction management for two data centers in India and is working on a new project in Europe, aiming to leverage this success in North America by targeting hyperscalers that require massive computing power.
- Nuclear Investment Outlook: Fluor has been an early investor in NuScale Power since 2011, making it the only engineering firm collaborating with them, and is currently undertaking front-end engineering design for the RoPower project in Romania, which has received shareholder approval to test one reactor before proceeding with five more if successful.
- Hidden Revenue Source: Fluor's joint venture with BWX Technologies, PanTeXas Deterrence, was awarded a management and operations contract for the Pantex Plant valued at up to $30 billion; although Fluor holds a non-controlling interest, this contract provides recurring cash flow, enhancing financial stability.
- Financial Resilience Measures: To strengthen its balance sheet, Fluor is selling its stake in NuScale to raise capital for share repurchases and shifting to reimbursable contracts to mitigate project cost overruns, demonstrating proactive strategies in navigating market challenges.
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Analyst Views on FLR
Wall Street analysts forecast FLR stock price to rise
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 45.820
Low
40.00
Averages
49.25
High
57.00
Current: 45.820
Low
40.00
Averages
49.25
High
57.00
About FLR
Fluor Corporation is a holding company that provides engineering, procurement, construction (EPC), fabrication and modularization, and project management services. The Company's segments include Energy Solutions, Urban Solutions and Mission Solutions. The Energy Solutions segment provides EPC services for traditional oil and gas markets, including the production and fuels, chemicals, LNG and power markets. The segment serves these industries with comprehensive project life-cycle services. The Urban Solutions segment provides EPC and project management services to the advanced technologies and manufacturing, life sciences, mining and metals, infrastructure industries and professional staffing services. The Mission Solutions segment provides high-end technical solutions to the United States and other governments. These include, among others, the DOE, the Department of Defense, FEMA and intelligence agencies. The segment also provides services to commercial nuclear clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NuScale Power Receives Positive News on SMR Project
- Nuclear Project Progress: RoPower's decision to advance its nuclear power plant project in collaboration with NuScale Power signifies a potential first customer for NuScale, although financing is still required to achieve construction goals.
- Financing Challenges: RoPower's investment decision is merely the first step, as it now needs to secure funding to support the power plant's construction; failure to do so could turn NuScale's good news into a disappointment.
- Business Model Uncertainty: Despite NuScale's estimated liquidity of approximately $1.3 billion by the end of 2025, its business model faces challenges, particularly as the delivery and scalability of SMRs remain untested.
- Technology Validation Critical: The delivery of NuScale Power's first SMR will be crucial for proving its technology; only upon successful validation can it attract more commercial customers, making it currently suitable for aggressive investors only.
See More
NuScale Power Partners with RoPower for Modular Reactors
- Partnership Progress: NuScale Power has partnered with Romanian power company RoPower to utilize six small modular reactors, marking a significant advancement in the European market for NuScale, although financing is still required to realize the project.
- Business Model Challenges: While NuScale Power's revenue primarily comes from services provided to Fluor, its true business model hinges on successfully delivering its first commercial SMR, which has yet to be achieved, posing significant profitability challenges.
- Financing Risks: RoPower's investment decision is merely the first step, as it now needs to secure sufficient funding to construct the nuclear power plant; failure to do so could turn NuScale's positive news into a setback, impacting its market outlook.
- Liquidity Status: As of the end of 2025, NuScale Power estimates it has approximately $1.3 billion in liquidity, indicating ample cash on hand, but the ability to execute and deliver the first SMR remains critical in determining whether future commercial customers will emerge.
See More
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- Board Changes: Fluor announced that Lead Independent Director Jim Hackett will become chairman on May 5, 2026, while Executive Chairman David E. Constable will step down after the May 6 annual shareholders meeting, a shift that may impact the company's governance structure and future strategic direction.
- Leadership Experience: Hackett brings extensive governance and global market experience, having previously served as chairman of the Federal Reserve Bank of Dallas and currently serving on the boards of Enterprise Products Holdings and SLB, which could enhance Fluor's market insights and governance capabilities.
- Stock Price Reaction: Following the announcement, Fluor's shares fell by 2.38%, indicating a cautious market response to the board changes, which may affect investor confidence in the company's future performance.
- Future Outlook: With Hackett's appointment, Fluor may adjust its governance and strategic decision-making to respond to market changes and enhance its competitive position, prompting investors to monitor subsequent developments closely.
See More
NuScale Power Stock Plummets 26.5% Amid Project Delays
- Significant Stock Decline: NuScale Power's stock plummeted 26.5% in February, erasing all prior gains and trading nearly 18% lower in 2026, indicating extreme market pessimism regarding its future prospects.
- Project Delay Risks: TD Cowen analyst Marc Bianchi downgraded NuScale's rating from buy to hold, warning that its flagship project in Romania could be delayed until 2034, which undermined investor confidence and exacerbated the stock's decline.
- Increased Financial Pressure: NuScale reported an operating loss of nearly $690 million in its Q4 2025 results, a significant increase from a $139 million loss in 2024, while also incurring a $507.4 million milestone payment, further straining its finances.
- Shareholder Sell-off Impact: NuScale's largest shareholder, Fluor, has been consistently selling shares with plans to exit entirely by the end of Q2 this year, having sold 71 million shares at around $19.05 each on February 13, reflecting market concerns about the company's outlook.
See More
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- Stock Plunge: NuScale Power's stock plummeted 26.5% in February, erasing all gains from January and trading nearly 18% lower in 2026, reflecting extreme market pessimism regarding its future prospects.
- Project Delay Risks: TD Cowen analyst Marc Bianchi downgraded NuScale's rating from buy to hold, warning that its flagship project in Romania could be delayed until 2034, significantly undermining investor confidence in the company's future.
- Massive Expenditure Impact: NuScale disclosed a $507.4 million milestone payment to ENTRA1 Energy in its fourth-quarter report, despite not having built any plants yet, raising concerns about its financial health and operational viability.
- Shareholder Sell-off Pressure: NuScale's largest shareholder, Fluor, is consistently selling its shares with plans to exit entirely by the end of Q2 this year, having sold 71 million shares at around $19.05 each on February 13, further exacerbating negative market sentiment.
See More
Fluor Corporation's Strong Outlook Amid Stock Decline Raises Investor Questions
- Strong Contract Backlog: Fluor Corporation currently boasts a contract backlog of $25.5 billion, with 81% being reimbursable contracts, which shifts risk back to clients, enhancing revenue quality and visibility, and is expected to positively impact future performance.
- Robust Financial Discipline: Despite facing a $450 million liability due to the Santos project ruling, Fluor's 2026 EBITDA outlook ranges from $525 million to $585 million, demonstrating the company's financial resilience amid short-term challenges.
- Share Repurchase Program: Fluor repurchased $754 million worth of shares in 2025 and plans to buy back another $1.4 billion in 2026, indicating strong confidence in its value, funded by $2 billion from a successful NuScale investment exit.
- Attractive Valuation Metrics: With a forward P/E ratio of around 18, below the industrial sector average of 26, and a stock price nearly 23% lower than its 52-week high, analysts generally view this as a good time to buy or hold Fluor, appealing to long-term investors seeking infrastructure exposure.
See More
NuScale Power Receives Positive News on SMR Project
- Nuclear Project Progress: RoPower's decision to advance its nuclear power plant project in collaboration with NuScale Power signifies a potential first customer for NuScale, although financing is still required to achieve construction goals.
- Financing Challenges: RoPower's investment decision is merely the first step, as it now needs to secure funding to support the power plant's construction; failure to do so could turn NuScale's good news into a disappointment.
- Business Model Uncertainty: Despite NuScale's estimated liquidity of approximately $1.3 billion by the end of 2025, its business model faces challenges, particularly as the delivery and scalability of SMRs remain untested.
- Technology Validation Critical: The delivery of NuScale Power's first SMR will be crucial for proving its technology; only upon successful validation can it attract more commercial customers, making it currently suitable for aggressive investors only.
See More
NuScale Power Partners with RoPower for Modular Reactors
- Partnership Progress: NuScale Power has partnered with Romanian power company RoPower to utilize six small modular reactors, marking a significant advancement in the European market for NuScale, although financing is still required to realize the project.
- Business Model Challenges: While NuScale Power's revenue primarily comes from services provided to Fluor, its true business model hinges on successfully delivering its first commercial SMR, which has yet to be achieved, posing significant profitability challenges.
- Financing Risks: RoPower's investment decision is merely the first step, as it now needs to secure sufficient funding to construct the nuclear power plant; failure to do so could turn NuScale's positive news into a setback, impacting its market outlook.
- Liquidity Status: As of the end of 2025, NuScale Power estimates it has approximately $1.3 billion in liquidity, indicating ample cash on hand, but the ability to execute and deliver the first SMR remains critical in determining whether future commercial customers will emerge.
See More
Fluor Board Changes with New Chairman Appointment
- Board Changes: Fluor announced that Lead Independent Director Jim Hackett will become chairman on May 5, 2026, while Executive Chairman David E. Constable will step down after the May 6 annual shareholders meeting, a shift that may impact the company's governance structure and future strategic direction.
- Leadership Experience: Hackett brings extensive governance and global market experience, having previously served as chairman of the Federal Reserve Bank of Dallas and currently serving on the boards of Enterprise Products Holdings and SLB, which could enhance Fluor's market insights and governance capabilities.
- Stock Price Reaction: Following the announcement, Fluor's shares fell by 2.38%, indicating a cautious market response to the board changes, which may affect investor confidence in the company's future performance.
- Future Outlook: With Hackett's appointment, Fluor may adjust its governance and strategic decision-making to respond to market changes and enhance its competitive position, prompting investors to monitor subsequent developments closely.
See More
NuScale Power Stock Plummets 26.5% Amid Project Delays
- Significant Stock Decline: NuScale Power's stock plummeted 26.5% in February, erasing all prior gains and trading nearly 18% lower in 2026, indicating extreme market pessimism regarding its future prospects.
- Project Delay Risks: TD Cowen analyst Marc Bianchi downgraded NuScale's rating from buy to hold, warning that its flagship project in Romania could be delayed until 2034, which undermined investor confidence and exacerbated the stock's decline.
- Increased Financial Pressure: NuScale reported an operating loss of nearly $690 million in its Q4 2025 results, a significant increase from a $139 million loss in 2024, while also incurring a $507.4 million milestone payment, further straining its finances.
- Shareholder Sell-off Impact: NuScale's largest shareholder, Fluor, has been consistently selling shares with plans to exit entirely by the end of Q2 this year, having sold 71 million shares at around $19.05 each on February 13, reflecting market concerns about the company's outlook.
See More
NuScale Power Stock Plummets Amid Project Delays and Earnings Shock
- Stock Plunge: NuScale Power's stock plummeted 26.5% in February, erasing all gains from January and trading nearly 18% lower in 2026, reflecting extreme market pessimism regarding its future prospects.
- Project Delay Risks: TD Cowen analyst Marc Bianchi downgraded NuScale's rating from buy to hold, warning that its flagship project in Romania could be delayed until 2034, significantly undermining investor confidence in the company's future.
- Massive Expenditure Impact: NuScale disclosed a $507.4 million milestone payment to ENTRA1 Energy in its fourth-quarter report, despite not having built any plants yet, raising concerns about its financial health and operational viability.
- Shareholder Sell-off Pressure: NuScale's largest shareholder, Fluor, is consistently selling its shares with plans to exit entirely by the end of Q2 this year, having sold 71 million shares at around $19.05 each on February 13, further exacerbating negative market sentiment.
See More
Fluor Corporation's Strong Outlook Amid Stock Decline Raises Investor Questions
- Strong Contract Backlog: Fluor Corporation currently boasts a contract backlog of $25.5 billion, with 81% being reimbursable contracts, which shifts risk back to clients, enhancing revenue quality and visibility, and is expected to positively impact future performance.
- Robust Financial Discipline: Despite facing a $450 million liability due to the Santos project ruling, Fluor's 2026 EBITDA outlook ranges from $525 million to $585 million, demonstrating the company's financial resilience amid short-term challenges.
- Share Repurchase Program: Fluor repurchased $754 million worth of shares in 2025 and plans to buy back another $1.4 billion in 2026, indicating strong confidence in its value, funded by $2 billion from a successful NuScale investment exit.
- Attractive Valuation Metrics: With a forward P/E ratio of around 18, below the industrial sector average of 26, and a stock price nearly 23% lower than its 52-week high, analysts generally view this as a good time to buy or hold Fluor, appealing to long-term investors seeking infrastructure exposure.
See More
