NuScale Power Stock Surges Amid Fluor's Stock Sale Amid Excitement Over SMR Technology

NuScale Power stock surged 4% on Tuesday, recovering from a steep decline on Friday. The rise comes as Fluor, a major NuScale shareholder, looks to sell 15 million Class B shares to convert them into Class A shares. This move is due to the extreme volatility of NuScale's stock affecting Fluor's accounting. Despite the excitement around small modular reactors, NuScale is still an emerging technology with significant risk, making it a good pick for investors comfortable with substantial risk and volatility.

NuScale Power stock surged 4% on Tuesday, recovering from a steep decline on Friday. The rise comes as Fluor, a major NuScale shareholder, looks to sell 15 million Class B shares to convert them into Class A shares. This move is due to the extreme volatility of NuScale's stock affecting Fluor's accounting. Despite the excitement around small modular reactors (SMRs), NuScale is still an emerging technology with significant risk, making it a good pick for investors comfortable with substantial risk and volatility.

NuScale Power is scheduled to release its second-quarter 2025 results on August 7. The Zacks Consensus Estimate for the second quarter's revenues is $9.07 million, indicating an 834.54% increase from the year-ago quarter's levels. The Zacks Consensus Estimate for a loss is pegged at 12 cents per share, which has widened by a penny over the past 30 days [1].

NuScale Power's second-quarter performance is likely to have benefited from strong demand for electricity supporting AI-driven data centers and the global push toward clean energy solutions. The company's SMR technology is gaining momentum across various sectors, particularly as energy demand continues to rise. Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power [2].

NuScale Power has made significant strides in the manufacturing and commercialization of its SMR technology. The company's collaboration with ENTRA1 Energy continues to gain momentum, with the partnership's commercial structure designed to mitigate risks and align with customer requirements around scalability, availability, and reliability. These key factors remain central to SMR deployment success in the to-be-reported quarter [1].

Despite NuScale Power's advancements in SMR technology and expanding partner base, the company is facing stiff competition in the SMR sector of the nuclear energy industry from companies like Oklo (OKLO) and BWX Technologies (BWXT). In May 2025, OKLO signed a memorandum of understanding with Korea Hydro & Nuclear Power to collaborate on the development and global deployment of its advanced nuclear technology. This partnership aims to jointly advance the design and verification of Oklo’s Aurora powerhouse and cooperate on early project development efforts. OKLO’s shares have surged 260% in the year-to-date period [1].

Fluor's Q2 2025 earnings report highlighted the company's continued focus on disciplined project delivery in growth markets. The report noted that Fluor's second quarter revenue was $4.0 billion, down 6% year-over-year (y/y), and GAAP net earnings attributable to Fluor were $2.5 billion. The company also reported an adjusted EBITDA of $96 million, down 42% y/y, and EPS of $14.81, adjusted to $0.43, down 49% y/y. One of the key updates in the earnings report was the conversion of 15 million class B shares of NuScale into class A securities. Fluor, being NuScale's largest shareholder, is excited about the opportunities this conversion presents for deploying NuScale's technology [2].

Fluor's strategy to monetize its NuScale stake aligns with its broader approach of focusing on disciplined project delivery and growth markets. The company's revised guidance for 2025 reflects a cautious outlook, with adjusted EBITDA guidance reduced to $475 to $525 million and adjusted EPS guidance revised to $1.95 to $2.15 per share [2].

The recent 14.2% plunge in NuScale Power's stock has sent ripples through the SMR sector, a market already grappling with the dual challenges of technological unprovenness and capital intensity. While short-term investors may have been spooked by insider selling and Fluor's share unlocking, the long-term potential of SMR technology remains promising. NuScale Power's U.S. $3.2B DOE funding and NRC-approved design position it as a 12-18 month lead in SMR deployment against global competitors [3].

In conclusion, while NuScale Power faces significant challenges and risks, its strategic partnerships and modular reactor advantages justify cautious long-term bets. The company's 2030 commercialization success will be key to transforming its speculative status. Investors should monitor the company's earnings and progress closely, as the SMR sector continues to evolve.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/OKLO/pressreleases/33894411/should-you-buy-sell-or-hold-nuscale-power-stock-before-q2-earnings/
[2] https://www.ainvest.com/news/fluor-seeks-capitalize-nuscale-investment-market-mechanisms-2508/
[3] https://www.ainvest.com/news/nuscale-power-stock-plunge-test-faith-small-modular-reactors-2508/