Fluor(US:FLR) The Motley Fool·2026-02-03 10:30Core Viewpoint - Fluor's construction business has improved in reliability but remains cyclical, influenced by economic conditions [1] Group 1: Company Overview - Fluor is a large engineering and construction company with a focus on construction projects [1] - The company has invested in NuScale Power, a start-up developing small-scale modular nuclear reactors, and aims to be a key partner in related construction projects [2] Group 2: Investment in NuScale Power - Fluor is looking to monetize its investment in NuScale Power, having sold some shares for net proceeds of $605 million in late 2025, with plans to sell the remaining stake in 2026 [3] - This sale is considered a one-time event that will strengthen Fluor's balance sheet but does not alter its core business [3] Group 3: Contract Structure and Business Cyclicality - Fluor has shifted to using reimbursable contracts, with 82% of its backlog now under this structure, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable [4] - The construction industry is inherently cyclical, with economic downturns leading to project delays or cancellations, which poses challenges for companies like Fluor [6] Group 4: Investment Considerations - While Fluor is proficient in its operations, it may not be a suitable long-term investment for all investors due to potential volatility linked to economic fluctuations [7]