Can Fluor Stock Deliver Significant Returns for Long-Term Investors?

Understanding Fluor’s Strategic Pivot

Fluor, one of the world’s largest engineering and construction firms, has undergone a significant strategic transformation. Previously, the company faced substantial financial headwinds from fixed-cost contracts that resulted in project overruns and unexpected losses. The corporation has fundamentally restructured its business approach, now prioritizing reimbursable contracts where costs are passed directly to clients, eliminating the downside risk inherent in fixed-price agreements.

This operational shift is already showing measurable results. As of Q3 2025, Fluor maintained a project backlog worth $28.2 billion, with 82% consisting of reimbursable-model work. This represents a meaningful step toward more predictable and stable revenue streams. However, investors should note that the total backlog declined 10% compared to the prior year, suggesting underlying market challenges within the construction sector.

The NuScale Investment: A Double-Edged Sword

Fluor’s early investment in NuScale Power, a developer of small modular nuclear reactors (SMRs), has been a focal point for Wall Street interest. NuScale’s technology addresses growing demand for next-generation nuclear power solutions. During 2025, the stock experienced exceptional volatility, reaching near 200% gains at its peak before retreating.

The company capitalized on this enthusiasm by selling a portion of its NuScale stake in October 2025, generating approximately $600 million in proceeds. Fluor intends to monetize the remaining position by mid-2026. This strategy allows the parent company to unlock value without waiting for NuScale to achieve full commercialization of its reactor technology.

However, investors eyeing Fluor primarily for NuScale exposure should temper expectations. The nuclear reactor startup remains pre-revenue, having not yet constructed or delivered any commercial units. The stock has since retreated roughly 10% year-to-date as initial enthusiasm has moderated. Given the timing risk and volatility of NuScale’s valuation, the remaining stake’s ultimate value remains highly uncertain. Additionally, cash proceeds are unlikely to be distributed to shareholders; instead, they will likely strengthen Fluor’s balance sheet or fund ongoing business development.

Valuation Challenges and Market Headwinds

Assigning a fair valuation to Fluor presents distinct challenges. The company’s recent history of losses renders traditional price-to-earnings ratios unreliable. More concerning, gains and losses tied to fluctuations in NuScale Power’s share price create significant volatility in reported GAAP earnings, obscuring the true profitability of the core engineering business.

The price-to-sales ratio offers a cleaner analytical lens, yet current levels sit above the five-year average—a metric suggesting the stock may already reflect optimistic assumptions about operational improvements. Additionally, the construction industry maintains inherent cyclicality, making it difficult to forecast with precision when major project activity might accelerate or decelerate.

Investment Verdict: Proceed With Caution

While Fluor’s business restructuring addresses legitimate operational issues, meaningful uncertainties persist. The company’s connection to NuScale, though potentially lucrative, introduces speculative elements inappropriate for conservative portfolios. Even as the fundamentals improve, the stock exhibits characteristics typical of highly volatile equities—the kind likely to generate substantial anxiety for risk-averse investors.

For those considering Fluor, the reality is straightforward: the investment thesis remains incomplete. The company is neither a clear bargain nor a compelling growth opportunity at current valuations. Investors seeking large windfall returns would likely find more attractive opportunities elsewhere in the market. The practical takeaway is that Fluor represents a contrarian, higher-risk holding—one best suited to investors with above-average risk tolerance and conviction in the company’s turnaround trajectory.