You may view Fluor (FLR 3.56%) as an engineering and construction company, but there's much more beneath the surface. A big part of Fluor's value is linked to nuclear energy and reliable power grid buildout.
If you're bullish about the nuclear energy renaissance but hesitant to buy uranium miners or small modular reactor companies, Fluor is one stock that should be on your list. With Fluor, you can invest in a company that will help build the infrastructure, while steering clear of volatile uranium prices. Here's why investors should pay attention.
NYSE: FLR
Key Data Points
Fluor invested in NuScale early on
Fluor designs, builds, and manages large-scale projects across the world, providing engineering and construction services to clients across a variety of sectors. The company is a key partner in helping clients construct factories, mines, power plants, and data center infrastructure.
What makes Fluor intriguing is its role in the nuclear energy buildout. The company was a major investor in NuScale Power, the only U.S. company with a certified small modular reactor design from the Nuclear Regulatory Commission. It is also a contractor for NuScale projects and is key in helping it build out its RoPower nuclear plant in Romania, which will utilize NuScale's small modular reactors.
Fluor was a longtime investor in NuScale, but it has decided to sell its stake after NuScale's large run-up last year. The company sold part of its stake last October and aims to exit its position entirely by the second quarter of 2026. The company plans to use these funds to continue repurchasing $1.3 billion of its own stock, which it views as undervalued.
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Its $30 billion nuclear contract could be a huge tailwind
Another component of Fluor's nuclear portfolio is its Pantex Plant contract. In 2024, a joint venture involving Fluor was awarded the management and operations contract for the Pantex Plant, which is responsible for nuclear weapons assembly and disassembly in Texas. The contract has an estimated value of $30 billion for the joint venture if all options are exercised over its 20-year lifetime.
Because Fluor has a non-controlling interest, this is an equity-method investment that is not reported in its consolidated backlog. For this reason, management notes that this is a potentially massive, recurring, high-margin source of government revenue that could be a big contributor to growth down the road.
What to watch for
One risk Fluor faces is its reliance on cyclical industries such as energy and mining. A slowing economy could delay construction, hurting the company's earnings. Another risk is cost overruns on fixed-price contracts, where Fluor often absorbs the costs of delays or expensive materials, thereby reducing profits.
To mitigate these risks, Fluor is shifting toward reimbursable contracts, in which clients pay actual costs plus a fee, thereby protecting Fluor from inflation. As of Sept. 30, 2025, 82% of the company's backlog consisted of reimbursable contracts.
Fluor has an excellent opportunity in the nuclear energy buildout. The company was an early investor in NuScale and could be a key partner for the up-and-coming nuclear reactor company down the road. If you're looking to tap into the nuclear energy buildout without getting involved in mining, Fluor is a wise choice to consider today.
