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Project delays and cost overruns rattled Fluor investors earlier this year.
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Business is growing from mining and metals, life sciences, and data center projects.
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Fluor is booking profits from its stake in NuScale Power.
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Investors are always looking for opportunities to capitalize on stocks that will benefit from macroeconomic tailwinds. Currently, favorable trends in energy and electricity, as well as artificial intelligence (AI) data centers and general infrastructure, should help boost businesses in these sectors.
One company that could benefit from all this investment is an American engineering and construction firm Fluor Corp. (NYSE: FLR). With the stock nearly 30% down from July highs, Fluor looks like an opportunistic investment right now. Investors who have taken profits on high-tech stocks may find that a stodgy industrial like Fluor is the next million-dollar opportunity.
Fluor stock fell after the company reported disappointing second-quarter earnings in August. The company lowered its 2025 earnings guidance, citing project delays and associated cost overruns resulting from subcontractor design errors. He also noted what he believes is a temporary slowdown in clients’ capital spending plans.
Things looked better with Fluor’s third quarter update, however. The company revised its full-year earnings estimates higher. It also started booking big profits from its stake in the small modular nuclear reactor startup NuScale Power.
Of that investment, Fluor CEO Jim Breuer stated, “Working with NuScale’s management and board over the past few quarters, we recently announced a comprehensive agreement to convert and monetize our remaining stake in NuScale. This allows Fluor to realize significant value from this investment and return it to our shareholders.”
Fluor’s backlog now exceeds $20 billion for projects in its Urban Solutions segment. It recently collected awards for projects in the metals and mining sector, including a copper mining project and an engineering design contract for the new rare earth magnet plant that MP materials is building in Texas.
Future prospects look good too. Several pharmaceutical companies are expanding their domestic manufacturing capacity, and Fluor anticipates securing a new customer project in the current quarter. Data center construction is also boosting Flour’s backlog.
All of this puts Fluor in a good position to bounce back from what was a disappointing 2025. The wave of new construction will be followed by the need for significant growth in power generation and delivery infrastructure. This means that the runway of Flour for growth should extend for several years.