Until July 31, 2025, shares of Fluor (FLR 0.24%) were up 15.1% in 2025. It took just one day for the stock to give up all of those gains, and then some. Fluor stock plunged on the first day of August and ended the month 27.7% lower.
Is it time to dump Fluor, or is this an opportunity to buy shares in a company that is capitalizing on its majority stake in red-hot nuclear energy play NuScale Power (SMR -4.22%)?
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What happened to Fluor stock?
On Aug. 1, Fluor reported 6% lower revenue and 49% lower adjusted earnings per share (EPS) for its second quarter. Management largely blamed higher costs related to subcontractor errors on three infrastructure projects and an unexpected arbitration ruling in Mexico.
Worse yet, Fluor's backlog fell 12% year over year to $28.2 billion in Q2 because of softness in oil and gas, battery chemicals, and mining markets. Fluor provides engineering, procurement, and construction (EPC) and project management services to diverse industries.
With a rising number of clients delaying or canceling projects amid the ongoing tariff wars and high interest rates, Fluor slashed its adjusted EPS guidance for 2025 to $1.95 to $2.15 from a previous forecast EPS of $2.25 to $2.75. The construction stock crashed after the dismal earnings report.
Should you buy Fluor stock?
Fluor's business may have hit a rough patch, but the company could make a windfall. Fluor is the largest shareholder and has business collaborations with NuScale Power, which develops small modular reactors (SMRs).
With NuScale Power shares surging 350% in just one year, as of this writing, Fluor wants to monetize its stake. In August, Fluor converted 15 million Class B NuScale shares to Class A shares. After 30 days, Fluor can sell those shares, up to 5% at a time, through the end of 2026 and raise big sums of money.
Its relationship with NuScale, however, is not a good reason to buy Fluor stock and investors may want to wait for its end markets to recover before placing a bet.
