FL FLR Fluor Corporation Loading... : Investor Sentiment and Bull/Bear Views

Fluor Corporation is an engineering/construction firm that suffered from fixed-price contracts signed before the inflation surge, causing margin compression. Those legacy contracts are now almost fully worked off (only 19% fixed-price left), and the majority of new business is cost-plus, guaranteeing margins. The company sold its NuScale stake for $1.35B, enabling a massive 25% share buyback. Margins are inflecting: EBITDA is expected to rise from $540M to $900M by 2028. David Einhorn assigns a $115 target (160% upside) using conservative multiples. Current valuation is below historical average, providing a compelling risk/reward.

Replying to a follower about the FLR drop, he says it is not a semiconductor stock and that he expects to hold it for 2-3 years. He says most stocks he buys fall before they rise, which he calls stochastics in a diversified portfolio of risk.

Fluor is a rare builder of nuclear power plants. With an immense nuclear energy buildout required to power AI and the broader electrification, Fluor will see massive demand. The stock is not too expensive, making it an attractive way to play the nuclear renaissance.