Fluor Sells NuScale Stake Raising $600 Million Amid Overhaul
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stock Volatility: Fluor's shares have experienced a roller-coaster ride in 2025, initially declining by 37% before rallying to a year-to-date gain of 15%, only to fall again, resulting in a year-to-date loss of approximately 17%, indicating significant market uncertainty about its future.
- Investment Monetization: Fluor raised about $600 million from a partial sale of its stake in NuScale Power, with the funds earmarked for other business purposes rather than direct shareholder distribution, highlighting the company's funding needs during its restructuring phase.
- Business Overhaul: The company is shifting towards cost-reimbursable projects, with a backlog of $28.2 billion at the end of Q3 2025, of which 82% utilizes reimbursable contracts, a strategy that is expected to enhance profitability consistency in the future.
- Market Outlook: Despite improvements in Fluor's operations, the volatility of NuScale Power's stock and the cyclical nature of major construction projects pose valuation challenges, making the stock less appealing for conservative investors.
FLR
$40.4+Infinity%1D
Analyst Views on FLR
Wall Street analysts forecast FLR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLR is 49.25 USD with a low forecast of 40.00 USD and a high forecast of 57.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 40.820
Low
40.00
Averages
49.25
High
57.00
Current: 40.820
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.
