Fluor's Strategic Positioning in Nuclear Energy Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Source: Fool
- Nuclear Investment Outlook: Fluor's significant investment in NuScale Power, the only U.S. company with a certified small modular reactor design, highlights its crucial role in nuclear infrastructure development, which is expected to drive future growth for the company.
- Major Contract Opportunity: The management and operations contract for the Pantex Plant, awarded to a joint venture involving Fluor in 2024, is estimated to be worth $30 billion if all options are exercised, providing a stable, high-margin source of government revenue that enhances financial stability.
- Share Repurchase Plan: Fluor plans to utilize funds from selling its stake in NuScale to continue repurchasing $1.3 billion of its own stock, reflecting confidence in its valuation while also potentially boosting earnings per share.
- Contract Structure Shift: To mitigate risks associated with economic cycles and cost overruns on fixed-price contracts, Fluor is transitioning towards reimbursable contracts, with 82% of its backlog consisting of such contracts as of September 30, 2025, thereby reducing inflation's impact on profits.
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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: 52.840
Low
40.00
Averages
49.25
High
57.00
Current: 52.840
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.
Fluor Corp. Shares Surge 35% Amid Strong Earnings and Investment Gains
- Stock Surge: Fluor Corp.'s shares rose approximately 18% this week, contributing to a 35% increase year-to-date, indicating strong market performance and investor confidence in the company's growth prospects.
- Nuclear Investment Returns: In its quarterly earnings report, Fluor announced securing $1.35 billion for its nuclear power startup NuScale Power, highlighting its strategic positioning and investment potential in the nuclear sector.
- Share Buyback Program: From the start of Q4 2025 through February 13, 2026, Fluor repurchased nearly 17 million shares of common stock, spending over $700 million, demonstrating the company's strong liquidity and commitment to returning capital to shareholders.
- Organic Growth Strategy: Fluor is focusing on energy and infrastructure projects, creating a $25.5 billion backlog, which indicates significant growth potential in its core business and future development opportunities.
See More
Trump Administration Releases Gateway Tunnel Funds
- Funding Release: The Trump administration released $98 million previously withheld for the Gateway Tunnel construction and an additional $30 million in reimbursements, significantly enhancing passenger rail capacity into Manhattan.
- Project Resumption: The funding freeze had triggered a work stoppage threatening nearly 1,000 jobs, but contractors are now instructed to prepare for construction resumption next week, ensuring the project stays on track.
- Legal Obligation: Governor Hochul emphasized that the federal government has a legal obligation to fully fund the Gateway project, highlighting the importance of continuous funding support to prevent future disruptions for workers and commuters.
- Infrastructure Significance: The Gateway project is one of the most critical infrastructure initiatives in the U.S., with the existing North River Tunnel carrying 200,000 passengers daily and in urgent need of repairs to meet growing transportation demands.
See More
NuScale Power's Stock Fluctuations Post-IPO
- Stock Fluctuations: NuScale Power went public in 2022 through a SPAC merger, opening at $10.70 and reaching a record high of $53.43 last October, but currently trades around $14, indicating a divided market view on its growth potential.
- Market Valuation: With a market cap of $4 billion and a price-to-earnings ratio of 40, NuScale's valuation reflects that future sales expectations for 2026 are already priced in, despite the company not having sold any reactors, presenting significant investment risks.
- Revenue Sources: Currently, NuScale generates revenue primarily as a subcontractor for Fluor in the planned construction of a 462 MWe nuclear plant for Romania's RoPower, which remains in the front-end engineering and design phase, with a final investment decision expected this year.
- Future Outlook: Although NuScale aims to deploy its first SMRs in Romania by 2030, project delays due to soaring costs mean that the first reactors in the U.S. likely won't be installed until 2032, with most revenue until then coming from FEED study fees.
See More
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- Increased Stakes: The fund raised its stake in Kenvue (KVUE) from 20.93M shares to 27.31M shares, valued at $471.06M, reflecting an optimistic outlook on the company's future performance and potentially enhancing its competitive position in the market.
- Position Reduction: Starboard Value exited its position in Alight (ALIT), previously holding 45.86M shares, indicating a cautious stance on the company's prospects which could affect its stock price performance.
- Portfolio Adjustments: The fund also trimmed its holdings in Autodesk (ADSK) from 1.31M shares to 1M shares and in Salesforce (CRM) from 1.24M shares to 940.32K shares, suggesting a reassessment of the growth potential of these companies moving forward.
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Fluor Reports $1.6 Billion Loss in Q4 2025 Results
- Significant Net Loss: Fluor reported a net loss of $1.6 billion in Q4 2025, translating to a diluted loss of $9.87 per share, a stark contrast to the $1.9 billion profit recorded in the same quarter last year, primarily due to a $2 billion reduction in the valuation of its NuScale investment.
- Revenue and Profit Decline: The company's revenue for the quarter was $4.175 billion, falling short of the $4.249 billion analyst estimate and down from $4.260 billion a year earlier, while consolidated segment profit dropped from $206 million to $120 million, indicating a weakening overall profitability.
- Decrease in New Awards: Fluor secured new awards totaling $1.127 billion in the quarter, significantly down from $2.308 billion in the prior-year period, suggesting challenges in market competitiveness that could impact future revenue growth.
- Cautious Future Outlook: The company established adjusted EBITDA guidance for 2026 in the range of $525 million to $585 million, and while planning to repurchase $1.4 billion in shares in 2026, it must remain vigilant regarding risks associated with tariffs, trade policies, and GAAP earnings volatility linked to NuScale fair value measurements.
See More
Fluor Corporation Q4 2025 Earnings Call Insights
- Strategic Transition Progress: CEO James Breuer highlighted that Fluor deployed $754 million in share repurchases in 2025 and an additional $335 million in 2026, reflecting a proactive strategy in capital returns aimed at boosting shareholder confidence and enhancing market performance.
- Financial Performance Overview: Fluor reported consolidated new awards totaling $12 billion for 2025, with a year-end backlog of $25.5 billion, of which 81% is reimbursable, indicating strong market demand and future growth potential for the company.
- Outlook for 2026: CFO John Regan set initial adjusted EBITDA guidance for 2026 in the range of $525 million to $585 million, with expectations for new awards to significantly exceed those of 2025, showcasing the company's optimistic outlook, particularly in LNG and nuclear projects.
- Risks and Challenges: Management noted the $643 million Santos charge's impact on revenue and cash flow volatility risks; however, they remain confident in project delivery and capital returns, emphasizing a continued focus on growth opportunities.
See More
Fluor Corp. Shares Surge 35% Amid Strong Earnings and Investment Gains
- Stock Surge: Fluor Corp.'s shares rose approximately 18% this week, contributing to a 35% increase year-to-date, indicating strong market performance and investor confidence in the company's growth prospects.
- Nuclear Investment Returns: In its quarterly earnings report, Fluor announced securing $1.35 billion for its nuclear power startup NuScale Power, highlighting its strategic positioning and investment potential in the nuclear sector.
- Share Buyback Program: From the start of Q4 2025 through February 13, 2026, Fluor repurchased nearly 17 million shares of common stock, spending over $700 million, demonstrating the company's strong liquidity and commitment to returning capital to shareholders.
- Organic Growth Strategy: Fluor is focusing on energy and infrastructure projects, creating a $25.5 billion backlog, which indicates significant growth potential in its core business and future development opportunities.
See More
Trump Administration Releases Gateway Tunnel Funds
- Funding Release: The Trump administration released $98 million previously withheld for the Gateway Tunnel construction and an additional $30 million in reimbursements, significantly enhancing passenger rail capacity into Manhattan.
- Project Resumption: The funding freeze had triggered a work stoppage threatening nearly 1,000 jobs, but contractors are now instructed to prepare for construction resumption next week, ensuring the project stays on track.
- Legal Obligation: Governor Hochul emphasized that the federal government has a legal obligation to fully fund the Gateway project, highlighting the importance of continuous funding support to prevent future disruptions for workers and commuters.
- Infrastructure Significance: The Gateway project is one of the most critical infrastructure initiatives in the U.S., with the existing North River Tunnel carrying 200,000 passengers daily and in urgent need of repairs to meet growing transportation demands.
See More
NuScale Power's Stock Fluctuations Post-IPO
- Stock Fluctuations: NuScale Power went public in 2022 through a SPAC merger, opening at $10.70 and reaching a record high of $53.43 last October, but currently trades around $14, indicating a divided market view on its growth potential.
- Market Valuation: With a market cap of $4 billion and a price-to-earnings ratio of 40, NuScale's valuation reflects that future sales expectations for 2026 are already priced in, despite the company not having sold any reactors, presenting significant investment risks.
- Revenue Sources: Currently, NuScale generates revenue primarily as a subcontractor for Fluor in the planned construction of a 462 MWe nuclear plant for Romania's RoPower, which remains in the front-end engineering and design phase, with a final investment decision expected this year.
- Future Outlook: Although NuScale aims to deploy its first SMRs in Romania by 2030, project delays due to soaring costs mean that the first reactors in the U.S. likely won't be installed until 2032, with most revenue until then coming from FEED study fees.
See More
Starboard Value's Q4 Investment Moves: New Holdings and Exits
- New Holdings: Starboard Value established new positions in Clearwater Analytics (CWAN) with 9.95M shares and Fluor Corporation (FLR) with 5.19M shares in Q4, indicating strong confidence in their growth potential which may positively impact their market performance.
- Increased Stakes: The fund raised its stake in Kenvue (KVUE) from 20.93M shares to 27.31M shares, valued at $471.06M, reflecting an optimistic outlook on the company's future performance and potentially enhancing its competitive position in the market.
- Position Reduction: Starboard Value exited its position in Alight (ALIT), previously holding 45.86M shares, indicating a cautious stance on the company's prospects which could affect its stock price performance.
- Portfolio Adjustments: The fund also trimmed its holdings in Autodesk (ADSK) from 1.31M shares to 1M shares and in Salesforce (CRM) from 1.24M shares to 940.32K shares, suggesting a reassessment of the growth potential of these companies moving forward.
See More
Fluor Reports $1.6 Billion Loss in Q4 2025 Results
- Significant Net Loss: Fluor reported a net loss of $1.6 billion in Q4 2025, translating to a diluted loss of $9.87 per share, a stark contrast to the $1.9 billion profit recorded in the same quarter last year, primarily due to a $2 billion reduction in the valuation of its NuScale investment.
- Revenue and Profit Decline: The company's revenue for the quarter was $4.175 billion, falling short of the $4.249 billion analyst estimate and down from $4.260 billion a year earlier, while consolidated segment profit dropped from $206 million to $120 million, indicating a weakening overall profitability.
- Decrease in New Awards: Fluor secured new awards totaling $1.127 billion in the quarter, significantly down from $2.308 billion in the prior-year period, suggesting challenges in market competitiveness that could impact future revenue growth.
- Cautious Future Outlook: The company established adjusted EBITDA guidance for 2026 in the range of $525 million to $585 million, and while planning to repurchase $1.4 billion in shares in 2026, it must remain vigilant regarding risks associated with tariffs, trade policies, and GAAP earnings volatility linked to NuScale fair value measurements.
See More
Fluor Corporation Q4 2025 Earnings Call Insights
- Strategic Transition Progress: CEO James Breuer highlighted that Fluor deployed $754 million in share repurchases in 2025 and an additional $335 million in 2026, reflecting a proactive strategy in capital returns aimed at boosting shareholder confidence and enhancing market performance.
- Financial Performance Overview: Fluor reported consolidated new awards totaling $12 billion for 2025, with a year-end backlog of $25.5 billion, of which 81% is reimbursable, indicating strong market demand and future growth potential for the company.
- Outlook for 2026: CFO John Regan set initial adjusted EBITDA guidance for 2026 in the range of $525 million to $585 million, with expectations for new awards to significantly exceed those of 2025, showcasing the company's optimistic outlook, particularly in LNG and nuclear projects.
- Risks and Challenges: Management noted the $643 million Santos charge's impact on revenue and cash flow volatility risks; however, they remain confident in project delivery and capital returns, emphasizing a continued focus on growth opportunities.
See More
