NuScale Power’s stock has experienced a remarkable rise, peaking at $57 per share, prompting Fluor Corporation to capitalize on its early investment in the small modular reactor developer. Fluor, which invested $570 million in NuScale back in 2011, has successfully sold its entire 126 million-share stake for approximately $2.43 billion, achieving a 326% return. This strategic move not only bolsters Fluor’s balance sheet but also mitigates the volatility associated with holding a pre-revenue technology stock.
The surge in interest in nuclear energy, particularly small modular reactors (SMRs), aligns with the U.S. government’s push for advanced energy solutions. Fluor’s exit as a majority owner allows it to transition to a preferred engineering, procurement, and construction partner, enabling the company to earn service fees while avoiding equity risk. This shift positions Fluor to pursue additional growth opportunities in both nuclear and other sectors, such as carbon capture and critical mineral mining, making it a compelling option for investors focused on the energy transition.
Investors should note that Fluor’s recent windfall not only strengthens its financial position but also enhances its capacity to engage in high-growth projects, reinforcing its role in the evolving energy landscape.
Source: fool.com