Fluor's bold shift: Reimbursable deals and a nuclear energy exit

Fluor Corporation is making major changes to its business strategy while continuing to secure large-scale contracts. The engineering and construction giant has shifted focus toward reimbursable agreements to reduce financial risks. At the same time, it is selling off its stake in NuScale Power, a leading developer of small modular nuclear plant cells.

Fluor has long been known for designing and building major indoor plants worldwide. These include factories, mines, power plants, and data centres for clients in multiple industries. One of its most significant contracts is the Pantex Plant joint venture, which could generate up to $30 billion over 20 years if all options are exercised. Though not included in Fluor's reported backlog, this deal promises high-margin government revenue.

By the end of September 2025, 82% of Fluor's backlog consisted of reimbursable contracts. This shift helps the company avoid risks tied to inflation and unexpected cost increases. The firm has also been reducing its involvement in NuScale Power, a U.S.-based nuclear technology company. Last October, Fluor sold part of its stake and plans to fully exit by the second quarter of 2026.

The funds from these sales will support Fluor's ongoing $1.3 billion share repurchase programme. Despite stepping back from NuScale's ownership, Fluor remains a contractor for its projects, including the RoPower nuclear plant in Romania. This facility will use NuScale's small modular reactor technology, which is the only design of its kind certified by the U.S. Nuclear Regulatory Commission.

Fluor's strategic moves aim to strengthen its financial position while maintaining a role in key energy projects. The company's focus on reimbursable contracts reduces exposure to cost overruns, and the Pantex Plant deal could provide long-term revenue. With its NuScale divestment nearly complete, Fluor is repositioning itself for future growth in engineering and construction.