Fluor Executes Major NuScale Stake Sale, Unlocking $1.35 Billion for Capital Returns

What happened

Fluor Corporation sold 71 million shares of SMR (NuScale) common stock on February 13, 2026, generating approximately $1.35 billion in proceeds. This transaction aligns with the company's strategy, detailed in the DeepValue master report, to monetize its NuScale stake by Q2 2026 and recycle proceeds into share buybacks. The sale reduces Fluor's indirect holdings from about 111.4 million to 40.4 million shares, a 64% reduction, significantly accelerating the divestment timeline. While the cash infusion supports the capital return thesis, investors should critically assess whether this move reflects strategic urgency or underlying concerns about NuScale's value, given Fluor's history of project write-downs and earnings volatility. This step reinforces the narrative that NuScale monetization can fund buybacks, but the core investment case still hinges on stabilizing margins and executing a de-risked, reimbursable backlog.

Implication

The $1.35 billion proceeds from the NuScale sale provide Fluor with immediate cash to accelerate its targeted ~$800 million in near-term buybacks, potentially enhancing EPS through share count reduction. However, by divesting 64% of its stake, Fluor sacrifices future upside from NuScale, shifting investor focus entirely to the volatile EPC business and its ability to maintain stable margins. Management's deployment of these funds will be critical; any deviation from stated buyback plans or use for non-core purposes could signal poor capital allocation, undermining confidence. This transaction reduces mark-to-market noise from NuScale, which has previously caused earnings swings, but it also eliminates a potential growth lever, increasing reliance on project execution. Ultimately, while the sale aligns with the de-risking strategy, it does not address Fluor's fundamental challenges, such as backlog stagnation and legacy project risks, requiring continued scrutiny of operational metrics.

Thesis delta

The news confirms Fluor is executing its NuScale monetization plan on schedule, strengthening the capital return component of the thesis. However, it does not materially shift the investment premise, which remains contingent on stable backlog execution, margin recovery, and avoidance of new project losses. The accelerated divestment may reduce timeline risk but does not mitigate underlying operational volatility, keeping the thesis unchanged in its core dependencies.