Fluor Corporation (FLR): A Bull Case Theory

We came across a bullish thesis on Fluor Corporation on r/Valueinvesting by u/TheRaul5677070. In this article, we will summarize the bulls’ thesis on FLR. Fluor Corporation’s share was trading at $44.31 as of January 13th. FLR’s trailing and forward P/E were 2.25 and 18.62 respectively according to Yahoo Finance.

Fluor Corporation (FLR) is widely mischaracterized by the market as a legacy construction firm, yet its current fundamentals point to a de risked, cash rich engineering leader uniquely positioned for the nuclear and AI driven data centre buildout.

Despite a roughly $7 billion market cap, Fluor trades at a headline P/E near 2x, distorted by NuScale accounting but still dramatically below peers like AECOM and Jacobs at 20x plus. The balance sheet tells the real story, with nearly $3 billion in cash and marketable securities, aggressive buybacks already underway, and management openly signaling that the stock is deeply undervalued.

A key overlooked asset is Fluor’s roughly 39% ownership in NuScale Power, the only small modular reactor company with US regulatory design approval. Fluor has monetized portions of this stake to repurchase its own shares, effectively rotating capital from speculative nuclear equity into its discounted core business, while retaining strategic exposure to SMR deployment where Fluor would be the natural EPC partner.

The company’s prior collapse stemmed from fixed price contracts that transferred inflation risk onto Fluor, a model that has now been decisively abandoned. Under CEO David Constable, roughly 80% to 97 % of new awards are reimbursable, structurally protecting margins and fundamentally altering risk. This shift is supported by a $31.3 billion backlog that provides multi year revenue visibility.

Fluor is also a critical enabler of AI infrastructure, quietly constructing hyperscale data centers that require advanced power and cooling engineering as compute density rises. While legacy loss making projects, cyclicality, and litigation remain near term overhangs, these risks are finite.

As fixed price projects burn off and energy constraints intensify, Fluor stands as a misunderstood beneficiary of the nuclear renaissance and AI infrastructure wave, offering a rare combination of strategic assets, margin protection, and extreme valuation disconnect.

Previously, we covered a bullish thesis on NANO Nuclear Energy Inc. by Charly AI in May 2025, which highlighted the company’s vertically integrated microreactor platform and exposure to AI driven power demand. The company’s stock price has appreciated by approximately by 24.35% since our coverage. u/TheRaul5677070 shares a similar thesis but emphasizes on de risked nuclear exposure and cash flows through Fluor.

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Disclosure: None.