Fluor (FLR) Will there be a turnaround in 2026?

This 113-year-old engineering company saw its stock price drop by 15% this year, while five other mid-cap stocks in the same industry rose by 20-120%. Who says old companies don't have opportunities?

Two things need to be known:

**1. Execution determines life and death**
The problem with Fluor is instability—revenue has missed expectations for eight consecutive quarters, with a 18% drop in Q3 to only $3.4 billion. However, the contract expectations are good, with new contracts worth $3.3 billion and a total contract pool of $28.2 billion. The key point is that 82% are reimbursable contracts (cost-plus), which means they don't have to cover cost overruns themselves, which is a good signal for reducing risk.

**2. NuScale cashing out may change the situation**
The stock price of NuScale, a small nuclear reactor company held by Fluor, has risen 600% over the past two years. The company has already earned over $600 million through its first round of share reduction in October and plans to liquidate the remaining 39% of its shares before February, potentially raising another $800 million. This money will be used to buy back its own shares, which is expected to improve the balance sheet.

In simple terms, Fluor is transforming - lower risk and more stable returns. But the premise is to improve execution and break out of the curse of consistently missing expectations. If that can be achieved, even without explosive growth, the market will reassess it.