The Case for Fluor Corporation in a Nuclear Renaissance

The global energy landscape is undergoing a profound transformation, driven by the urgent need to decarbonize while meeting surging electricity demand. At the heart of this shift lies a renewed focus on nuclear energy, particularly small modular reactors (SMRs), which promise scalable, low-carbon power solutions. Fluor Corporation, a century-old engineering and construction giant, is uniquely positioned to capitalize on this "nuclear renaissance," leveraging its deep expertise in nuclear infrastructure, strategic partnerships, and a robust financial position. This analysis explores why Fluor represents a compelling long-term investment in the context of the nuclear energy sector's evolution.

Strategic Positioning in the SMR Revolution

Fluor's leadership in the nuclear renaissance is anchored in its 51% stake in NuScale Power, a pioneer in SMR technology. NuScale's VOYGR design, the first U.S. SMR to receive regulatory certification, is already advancing toward commercial deployment, with projects in Ghana and Romania. Fluor's role extends beyond ownership: the company provides engineering, procurement, and construction services for NuScale's projects, ensuring its technical expertise remains central to the SMR value chain.

The global SMR market is expanding rapidly, with 74 active designs under development and over 80 diverse technologies in the pipeline, according to the OECD Nuclear Energy Agency (NEA) SMR Dashboard. Fluor's early-mover advantage in SMRs is further strengthened by its recent agreement to monetize its remaining NuScale shares, generating $1 billion in profit and freeing capital for reinvestment. This strategic move underscores Fluor's ability to balance long-term growth with near-term financial discipline.

Financial Resilience and Contract Momentum

Fluor's financial performance in 2025 reflects its adaptability in a volatile market. Despite a $697 million GAAP net loss in Q3 2025-primarily due to litigation charges- adjusted EBITDA rose 29% year-over-year to $161 million, demonstrating resilience in core operations. The company's $28.2 billion backlog, 82% of which is reimbursable, provides visibility into future cash flows and insulates it from short-term volatility.

Recent contract wins further solidify Fluor's infrastructure-centric growth strategy. In Q4 2025, the U.S. Navy awarded Fluor a $2 billion contract to support the Naval Nuclear Propulsion program, while the Defense Threat Reduction Agency (DTRA) selected Fluor for a $3.5 billion indefinite delivery/indefinite quantity contract to address nuclear threats according to recent reports. These contracts highlight Fluor's critical role in national security and energy infrastructure, sectors with stable, long-term demand.

Industry Tailwinds and Policy Support

The nuclear renaissance is not a speculative trend but a policy-driven inevitability. Governments worldwide are accelerating nuclear deployment to meet climate goals and energy security needs. The International Atomic Energy Agency (IAEA) projects that nuclear power generation will reach a record high in 2025, with global capacity expected to more than double by 2050 under a high-growth scenario. SMRs are poised to account for 24% of new capacity additions by 2050, driven by their flexibility and lower upfront costs compared to traditional reactors.

Technological and financial innovations are also accelerating SMR adoption. Tech giants like Amazon and Google are investing heavily in SMRs to power data centers, with Amazon committing $500 million to SMR development and Google partnering with Kairos Power for 500 MW of clean energy by 2030. Meanwhile, regulatory frameworks are evolving to streamline approvals, as seen in the U.S.-UK Atlantic Partnership for Advanced Nuclear Energy and Canada's Darlington SMR project according to industry analysis. These developments create a favorable environment for Fluor's SMR-focused strategy.

Challenges and Mitigation Strategies

While the outlook is positive, challenges remain. SMRs face hurdles such as high upfront costs, complex licensing, and unresolved waste management issues. Fluor mitigates these risks through its diversified portfolio, which includes nuclear decommissioning projects and traditional energy infrastructure. For instance, Fluor's recent contract for a U.S. nuclear decommissioning project underscores its ability to profit from both the construction and retirement phases of nuclear assets.

Moreover, Fluor's share repurchase program-$70 million in Q3 2025, with $800 million targeted through 2026-signals confidence in its intrinsic value and provides a floor for shareholder returns during market fluctuations.

Conclusion

Fluor Corporation is a linchpin in the global transition to clean, reliable energy. Its strategic investments in SMRs, robust financial position, and alignment with policy-driven growth make it a standout player in the nuclear renaissance. While challenges persist, Fluor's diversified infrastructure expertise and proactive capital management position it to thrive in a sector poised for decades of expansion. For investors seeking exposure to the energy transition, Fluor offers a compelling blend of strategic relevance and long-term profitability.