Fluor Sells NuScale Stake for $605 Million, Supporting Nuclear Expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: NASDAQ.COM
- Equity Change: Fluor has been an investor in NuScale for 14 years and recently sold part of its stake at approximately $40 per share, generating $605 million to optimize its capital structure and mitigate risks associated with NuScale's declining stock price.
- Project Collaboration: Fluor and NuScale are jointly developing the RoPower project in Romania, planning to deploy a six-module small modular reactor with a total capacity of 462 megawatts at a decommissioned coal power plant site, demonstrating confidence and investment in small-scale nuclear technology.
- Market Outlook: Despite NuScale's stock price falling 64% from last year's peak, its small modular reactor technology is still viewed as crucial for future nuclear energy development, with the first commercial power plant expected to be operational by 2030, potentially driving long-term growth for the company.
- Investment Strategy: Fluor intends to use the proceeds from selling its NuScale stake for stock repurchases and other investments, indicating ongoing interest in the nuclear energy market while also reminding investors of the risks associated with holding pre-revenue companies.
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Analyst Views on FLR
Wall Street analysts forecast FLR stock price to fall
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 49.340
Low
40.00
Averages
49.25
High
57.00
Current: 49.340
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 Urban Solutions, Energy Solutions and Mission Solutions. 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 Energy Solutions segment provides EPC services for traditional oil and gas markets, including production and fuels, chemicals, LNG and power markets. The segment serves these industries with comprehensive project life-cycle services. The Mission Solutions segment provides 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.
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- Clear Funding Allocation: At the time of award, $232.99 million will be obligated, including $130.49 million (56%) from Navy operation and maintenance funds, indicating the Navy's commitment to the project and trust in Fluor.
- Diverse Funding Sources: The contract also includes $54.5 million (23%) in non-appropriated funds and $48 million (21%) in shipbuilding and conversion funds, which helps mitigate project risks and ensures funding stability.
- Contract Expiration Consideration: The $130.49 million portion is set to expire at fiscal year-end, necessitating Fluor Marine to maintain efficiency in project execution to ensure effective use of funds and smooth project progression.
See More
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- Joint Venture Progress: Fluor's 50-50 joint venture with JGC Corp. has received limited notice to proceed for the Phase 2 expansion of the LNG Canada export facility, indicating a significant step forward for the project.
- Project Delivery Achievements: In 2025, the joint venture successfully delivered two processing units and supporting infrastructure, including storage tanks, a rail yard, a water treatment facility, flare stacks, and a marine terminal, showcasing its robust execution capabilities.
- Capacity Enhancement Potential: The LNG Canada facility has an annual production capacity of approximately 14 million metric tons of liquefied natural gas, and the Phase 2 expansion could double this capacity if a final investment decision is reached, further solidifying Canada's position as a supplier of lower-carbon natural gas in global markets.
- Joint Venture Structure Analysis: The LNG Canada joint venture comprises Shell with a 40% stake, Malaysia's Petronas with 25%, PetroChina and Mitsubishi each holding 15%, and KOGAS with 5%, providing a strong support network for the project through its diversified shareholder structure.
See More
Fluor (FLR) Q1 2026 Earnings Transcript
See More
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- Nuclear Market Opportunity: As data centers strain traditional power grids, nuclear companies like Fluor, Uranium Energy, and Cameco are filling roles across engineering, construction, and mining, poised to benefit from the demand for 24/7 baseload power, driving market performance in 2026.
- Fluor Financial Dynamics: Fluor reported total revenue of $3.6 billion in Q1 2026, an 8% year-over-year decline; however, its energy solutions division saw profitability increase, with revenue rising from $47 million to $74 million, indicating growth potential in the nuclear sector.
- Uranium Energy Strategic Development: Uranium Energy reported $20.2 million in revenue for Q2 2026, and despite facing price volatility risks, its unhedged strategy could yield higher returns as nuclear demand rises, with the stock doubling over the past year.
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See More
Nuclear Energy Companies Poised for Growth Opportunities
- Fluor Company Update: Fluor reported total revenue of $3.6 billion in Q1 2026, an 8% decline, yet its energy solutions division saw profitability rise from $47 million to $74 million, indicating growth potential in nuclear energy, particularly through its partnership with X-Energy for small modular reactors.
- Uranium Energy Development: Uranium Energy's revenue for Q2 2026 was $20.2 million, still modest, but its collaboration with Fluor and unhedged strategy may yield significant returns as nuclear demand rises, especially if uranium prices increase.
- Cameco Financial Performance: Cameco reported revenue of CA$845 million in Q1 2026, a 7% increase, with net earnings soaring 87% to CA$131 million, showcasing its strong position in the nuclear market and positioning it as a key beneficiary of sector growth.
- Market Outlook Analysis: As data centers strain traditional power grids, nuclear companies like Fluor, Uranium Energy, and Cameco are leveraging the flexibility and continuous power supply of small modular reactors, expected to emerge as winners in the energy market by 2026, attracting increased investor interest.
See More
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- Financial Improvement: Fluor's sale of its stake in NuScale Power for approximately $2.4 billion boosts its cash reserves to $3.2 billion, significantly enhancing financial stability despite a BB+ credit rating, which is below investment grade.
- Optimistic Market Outlook: Analysts project Fluor's earnings to grow by about 15% annually over the next three to five years, driven by strong demand in infrastructure markets like energy and data centers, particularly with the U.S. remaining a key oil and gas exporter.
- Strong Backlog: With a backlog of $25.7 billion, Fluor has a solid revenue foundation; although it faces risks from economic downturns and cyclical fluctuations, most of its backlog consists of reimbursable projects, which helps mitigate losses from project failures.
- Investment Opportunity Emerges: Despite a decline in Fluor's stock price following a disappointing Q1 2026 earnings report, its price-to-earnings ratio of about 15.5 times suggests that the market remains optimistic about its long-term infrastructure project potential, presenting a favorable buying opportunity for investors.
See More
