Nuclear energy is enjoying a resurgence as data center energy demand grows rapidly and regulators emphasize the need for reliable, domestic energy. One promising technology that could revolutionize nuclear energy as we know it is small modular reactors (SMRs), like those developed by NuScale Power (SMR +1.58%).
The stock surged amid positive developments in the nuclear industry over the past year, reaching as high as $57 per share last October. The surge in the stock provided an exit opportunity for Fluor, which was an early investor in NuScale Power. The company began selling its stake in NuScale last October and completed the sale in April, creating significant selling pressure on NuScale, which is now down nearly 80% from its 52-week high.
With Fluor done selling its NuScale stake, is it time to buy the next-gen nuclear energy stock? Let's dive into the business to find out.
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NuScale's small reactors are a promising development in nuclear technology
Nuclear energy is an excellent source of reliable, baseload power that produces zero emissions. However, traditional nuclear power plants are massive projects that require custom-built components, which can vary from plant to plant. Traditional nuclear plants can take years to build, creating a bottleneck in the deployment of nuclear energy.
This is where NuScale's SMRs could change the game. They are compact, factory-fabricated units that can be shipped to customers. Their modular design allows customers to link multiple modules to meet their energy needs. This makes its technology particularly compelling for data center operators and industrial facilities seeking reliable on-site power.
Right now, NuScale is the only company with a standard design approval by the U.S. Nuclear Regulatory Commission (NRC) for its SMRs. In mid-2025, the NRC approved its uprated 77-megawatt electric (MWe) module (from its previously approved 50-MWe module), giving it a first-mover advantage in the space. With nuclear energy gaining traction and energy demand intensifying, NuScale Power's stock soared by more than 1,670% since the start of 2024.
NYSE: SMR
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Fluor sold its entire stake in NuScale Power
Fluor, an engineering, procurement, and construction company, was a very early investor in NuScale back in 2011, injecting roughly $570 million into the nuclear energy start-up. The company took advantage of the surging price and has sold down its stake over the past several months, netting $2.43 billion in proceeds. Fluor owned as many as 126 million shares in the company at one point, and its sales have likely put downward pressure on NuScale stock, which has plummeted in recent months.
It seemed like a good time for Fluor to take its chips off the table. While NuScale's technology is promising, the company remains years away from commercial operations. Right now, it has one project in Doicești, Romania. This project achieved a Final Investment Decision in February, with shareholders and the Romanian government signing off. The project is now entering a 15-month pre-EPC phase, and operations are targeted for 2033.
One concern right now is that NuScale hasn't secured any more firm commitments. The company has partnered with ENTRA1, which will help NuScale find customers and handle the heavy lifting, including financing, developing, and owning the plants, while NuScale licenses the technology.
That said, some investors have flagged concerns about ENTRA1, saying it is a small entity with few employees, and they have also scrutinized the payout structure, which places a large burden on NuScale Power. Last year, NuScale paid $507 million to ENTRA1, triggered by a nonbinding development agreement with the Tennessee Valley Authority (TVA).
SMR Revenue (TTM) data by YCharts
NuScale still needs to prove itself
Fluor completed the sale of its NuScale stock, which could help remove a significant overhang. The stock is much more attractively priced today than it was when Fluor first began selling its stake, so for aggressive investors who are optimistic about NuScale's future, this could be a place to nibble on some shares.
That said, I'd like to see NuScale secure more firm agreements to deploy its SMR technology, which could be a huge catalyst for the stock. Until then, the company remains a story-driven stock that will likely remain highly volatile for investors investing in it today.
