Fluor Corporation's stock has experienced a turbulent path in 2025. At one point, the stock price declined by 37%, only to rally and achieve a 52-week high, resulting in a 15% gain year-to-date. Subsequently, the stock retraced those gains, culminating in a year-to-date loss near 17%. This pattern of steep rises and falls has raised questions about the stock's capacity to deliver substantial long-term returns for investors.
NuScale Power Investment and its Impact
A significant development influencing Fluor's recent stock activity is its early investment in NuScale Power, a company focusing on small modular nuclear reactors (SMRs). This technology represents an innovative approach in the nuclear energy arena, attracting considerable interest from the investment community. Fluor's ongoing divestiture efforts include a partial sale of its NuScale stake, which yielded about $600 million in October 2025, when NuScale shares were near their annual highs.
Despite those gains, the NuScale stock has displayed substantial idiosyncratic risk, given that the company has yet to construct or market any SMR units. Following earlier enthusiasm, the stock has cooled off, falling approximately 10% for the year to date. With NuScale’s current valuation trending lower, Fluor's remaining stake is likely less valuable than at the time of the initial sale. Fluor plans to monetize this remaining interest by mid-2026, although market volatility poses challenges in accurately assessing its worth.
It is important to note that the funds Fluor raises from NuScale's stake sales are not scheduled for direct shareholder distribution. Instead, these proceeds are expected to support reinvestment into Fluor's core operations or to bolster the company’s financial position.
Business Model Transformation and Backlog Composition
Fluor's divestiture of NuScale shares is part of a broader corporate restructuring aimed at mitigating financial risks and enhancing operational consistency. In previous years, Fluor's engineering and construction divisions grappled with cost overruns under fixed-price contracts, often resulting in financial losses.
The company is now pivoting toward projects that operate on a reimbursable basis, thus receiving payment for actual costs incurred plus a fee. This shift is designed to foster steadier profitability and reduce exposure to project overruns. By the end of the third quarter of 2025, Fluor reported a substantial backlog valued at $28.2 billion, with 82% of this volume tied to reimbursable contract work.
However, the backlog has declined by approximately 10% compared with the prior year, signaling some softness in future workload. Earnings subject to generally accepted accounting principles (GAAP) have also been erratic, reflecting not only fluctuations in NuScale’s share price but also other one-time financial items, which complicate clarity on ongoing profitability.
Market Cyclicality and Valuation Challenges
Investors considering Fluor must also account for the cyclical nature typical of large-scale construction and engineering enterprises. The sector’s economic sensitivity and project timing introduce complexity in assessing accurate company valuations during transitional periods.
Recent losses have rendered traditional price-to-earnings (P/E) ratios less informative for Fluor, as these metrics rely on consistent profitability. Alternatively, price-to-sales (P/S) ratios, which tend to fluctuate less, currently indicate a valuation above the five-year average for the company, suggesting the stock might be priced higher relative to revenue levels than usual.
Investor Considerations and Outlook
Given these factors, Fluor's stock may be best suited to risk-tolerant, aggressive investors who can navigate the uncertainties stemming from ongoing restructuring, project cyclical dynamics, and valuation volatility. While the company’s efforts to realign its business model and financial footing show promise, these adjustments alone do not guarantee transformative returns or shield investors from significant share price fluctuations.
For conservative investors seeking stability or substantial financial windfalls, Fluor may present challenges. The stock's recent roller-coaster behavior underscores the potential for unpredictability, possibly leading to uncomfortable volatility rather than consistent growth.