Fluor Corporation (FLR): A Bull Case Theory

We came across a bullish thesis on Fluor Corporation on r/Valueinvesting by  No_Childhood_3579. In this article, we will summarize the bulls’ thesis on FLR. Fluor Corporation's share was trading at $45.48 as of February 16th. FLR’s trailing and forward P/E were 2.30 and 19.01 respectively according to Yahoo Finance.

Fluor Corporation (FLR) is a globally diversified Construction & Engineering company with operations spanning mining, energy, advanced technologies such as data centers and battery manufacturing plants, chemicals, nuclear project services, nuclear waste management, and defense infrastructure. The company maintains a strong balance sheet with approximately $2.8 billion in cash against $1.1 billion in debt, positioning it more conservatively than many peers in the sector.

Trading at roughly 17.5x forward earnings, valuation appears reasonable, but the core of the bullish thesis lies in operational transformation and capital allocation. Historically, cost overruns weighed heavily on profitability, yet Fluor has shifted decisively toward reimbursable contracts, which now account for 82% of backlog, materially reducing fixed-price execution risk and stabilizing margins. Adjusted EBITDA is growing, guidance has been raised, and prior litigation charges, including a $650 million settlement in late 2025, are largely behind the company.

A major embedded catalyst is Fluor’s approximately 40% stake in NuScale Power, a developer of small modular reactors. While most NuScale projects remain in planning stages, construction could begin as early as 2027, potentially positioning Fluor as a preferred construction partner. Even if Fluor exits its stake by mid-2026 as planned, proceeds potentially ranging between $1–2 billion could significantly enhance buybacks and shareholder returns.

Although the company operates in a competitive, low-moat industry, its expertise in large-scale government and nuclear projects provides differentiation. With de-risked contracts, growing exposure to data center builds, and disciplined capital deployment, Fluor presents an asymmetric upside opportunity with a solid balance sheet underpinning downside protection.

Previously, we covered a bullish thesis on "Quanta Services, Inc. (PWR)" by Bulls On Parade in May 2025, which highlighted its positioning as a key enabler of AI-driven power infrastructure demand through grid modernization and acquisitions. PWR's stock price has appreciated by approximately 79.24% since our coverage. No_Childhood_3579 shares a similar view but emphasizes on contract de-risking and NuScale monetization at "Fluor Corporation (FLR)."

Fluor Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held FLR at the end of the third quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of FLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.