Key Takeaways:
Shares of engineering and construction firm Fluor (NYSE: FLR) have fallen 26 percent since its first-quarter 2026 earnings release, even as the company announced a major cash infusion from the sale of its stake in NuScale Power.
Despite the recent stock performance, Wall Street analysts see the company growing earnings by about 15 percent annually over the next three to five years, based on its exposure to high-growth infrastructure markets like data centers and energy.
The company did not disclose specific revenue or earnings-per-share figures for the first quarter in the provided materials. However, Fluor did monetize its investment in nuclear reactor developer NuScale Power for a $2.4 billion profit, which increased its cash on hand to $3.2 billion. The firm carries a substantial project backlog of $25.7 billion, with shares trading at a price-to-earnings ratio of about 15.5 times 2026 earnings estimates.
The sale of its NuScale stake provides a significant boost to Fluor's balance sheet, which holds a BB+ credit rating, just below investment grade. The move strengthens the company's financial position as it navigates the cyclical engineering and construction sectors, which are sensitive to recessions. Most of Fluor's current backlog is reimbursable, a contractual structure that helps protect against heavy losses from project cost overruns.
The recent stock decline could present a buying opportunity for investors, considering the long-term demand for infrastructure projects in energy and data centers. The key for Fluor will be consistent execution on its project backlog over the coming quarters to restore investor confidence.
This article is for informational purposes only and does not constitute investment advice.
