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Fluor Corporation
It's a Construction & Engineering company.
They are diversified all over the world, operations in all possible sectors - Mining, Energy, Advanced Tech (Data centers, Battery Manufacturing Plants), Chemicals, Nuclear project services, Nuclear waste management, Defense infrastructure.
They hold approximately 40% shares of NuScale Power, a company making SMRs. It's their big bet on clean energy, and if some of the NuScale projects get to the actual building phase, Fluor will be the preferred partner and will cash out billions. But all of their projects are in the planning and designing phase and the shovels could be in the ground as early as 2027.
Cash: $2.8 Billion
Debt: $1.1 Billion
Pretty healthy debt, unlike other construction companies.
Their forward PE is around 17.5, which I would consider fairly valued.
They used to have a problem with overrunning their costs, so they are implementing so called reimbursable contracts, which means the cost overrun is paid by the client, not Fluor. Today 82% of their contracts are reimbursable.
Their Adjusted EBITDA is growing and they raised their profit guidance. They had a long history of lawsuits, and paid significant litigation charges ($650 mil. in late 2025), but thanks to better contracts, that shouldn't be a problem now.
But that isn't so great, as they have been using their tax credits from past losses to avoid paying their taxes. In 2026, they could be paying their taxes, which could slash their FCF a lot.
As I previously said, they currently own around 40% of NuScale, they are planning on exiting the whole position mid-2026. This could be bad news, as they could create a great selling pressure and miss out on a lot of cash. They are already holding a large pile of cash, but they wish to use the excess on buybacks.
Downside:
They have very limited moat. Just like any other company in their sector, they are easily replaceable, they do not possess some technological advantage. They are hard to replace in large scale projects, government projects and the nuclear sector.
What could be the catalyst:
While it is mostly a mining, oil and gas company, it is also massively building Data Centers for the Tech companies. If they manage to sell their NuScale shares well, the buybacks would be great for the stock. The de-risked projects will also show their benefits in a few years.
At this valuation, I am putting this company in my watchlist. I believe it to be a potential low-risk investment, mostly thanks to their massive cash pile.
Give me your thoughts, point out my mistakes, or anything misleading I have written. English is not my first language and writing is not as easy as i thought. The next analysis I will be making is on KBR, perhaps a smarter buy.