Is Fluor Stock a Millionaire Maker?

Core Viewpoint - Fluor's business is improving, particularly through the monetization of its investment in NuScale Power, but the stock price may already reflect these developments [1]. Group 1: Business Performance - Fluor's stock has experienced significant volatility in 2025, with a peak decline of 37% followed by a year-to-date gain of 15%, but it has recently fallen again, resulting in an overall year-to-date loss of approximately 17% [1]. - The company raised about $600 million from a partial sale of its stake in NuScale Power in October 2025, capitalizing on the stock's high trading price at that time [6]. - Fluor's backlog at the end of Q3 2025 was $28.2 billion, with 82% of that work utilizing reimbursable contracts, indicating a shift towards more stable revenue sources [9]. Group 2: Investment in NuScale Power - Fluor was an early investor in NuScale Power, which focuses on small-scale modular nuclear reactors, a technology that has attracted investor interest [3]. - Despite NuScale Power's stock price having increased by nearly 200% at one point, it has since declined by about 10% for the year, reflecting the risks associated with the company's lack of operational products [5]. - The cash raised from the NuScale investment is expected to be reinvested in the business rather than distributed to shareholders, which may lead to disappointment for those expecting immediate returns [7]. Group 3: Company Overhaul and Market Position - Fluor is undergoing a significant overhaul to address past financial issues related to fixed-cost projects, moving towards a model where it is reimbursed for costs, which should enhance profitability [8]. - The company's current and historical price-to-earnings (P/E) ratios are not reliable for valuation due to recent losses, while the price-to-sales (P/S) ratio is above its five-year average, suggesting potential overvaluation [12]. - Major construction projects are cyclical, making it challenging to assign a clear valuation to Fluor despite improvements in its business fundamentals [11].