Fluor Sells Another $159M of SMR as Dilution Overhang Persists

What happened

Fluor Corp, a director and major shareholder, sold 13.5M shares of NuScale Power at an average of $11.81, totaling $159M. This is part of sustained selling, following a 71M-share sale in February. The selling underscores the equity overhang that our master report identifies as a key risk, especially given SMR's reliance on ATM and secondary offerings to fund operations. With no binding revenue contracts and a $259M PMA liability coming due, cash burn continues to pressure the balance sheet, reinforcing our WAIT rating.

Implication

The sustained insider selling confirms that dilution remains a structural headwind to per-share value. While the nuclear-for-AI thesis is intact, the stock's risk/reward is unattractive until binding PPAs or COLA milestones are announced. Wait for a confirmed project financing or a clear reduction in selling pressure before considering entry.

Thesis delta

The Fluor sale is consistent with our thesis that dilution and partner-overhang are key risks. It does not change our fundamental view but validates the cautious stance. We continue to see downside until binding contracts emerge.