By Rashika Singh and Anshuman Tripathy (Reuters) -Shares of Fluor Corp rose 2% on Tuesday after a Reuters report that activist investor Starboard Value took a nearly 5% stake aiming to unlock value from the construction firm’s 40% holding in NuScale Power <SMR.N>. Shares of NuScale Power were down 12%. Analysts at Citigroup said Starboard’s […]
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Fluor shares gain on report of Starboard acquiring stake, urging NuScale holding review
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By Rashika Singh and Anshuman Tripathy
(Reuters) -Shares of Fluor Corp rose 2% on Tuesday after a Reuters report that activist investor Starboard Value took a nearly 5% stake aiming to unlock value from the construction firm’s 40% holding in NuScale Power <SMR.N>.
Shares of NuScale Power were down 12%.
Analysts at Citigroup said Starboard’s stake backs their view that Fluor’s shares have room to gain, citing value in the NuScale holding and potential improvement in the company’s core operations.
They added that Fluor’s stake in NuScale still represents more than 60% of its market cap and could sell more of its remaining 111 million shares in the nuclear reactor developer over time.
“We look forward to continued engagement with Starboard,” Fluor told Reuters, adding that it “appreciates additional perspectives to advance (its) goal of enhancing long-term shareholder value”, while maintaining an active dialogue with shareholders.
Fluor’s stock is down ~3% so far in 2025.
Meanwhile, NuScale shares have soared over 145% this year, buoyed by rising demand for clean energy solutions to power AI-driven data centers and defense infrastructure.
Starboard did not immediately respond when contacted by Reuters.
Fluor’s core business, which includes infrastructure and energy projects, has come under pressure, with the company posting a 6% drop in second-quarter revenue to $4 billion, missing analyst estimates. Starboard argues the segment is undervalued compared to Fluor’s NuScale stake and is pushing for strategic options.
Starboard said in a presentation that its NuScale stake separation, via taxable or tax-free structures, would unlock significant value for shareholders.
The activist push comes as Fluor is positioned to benefit from infrastructure policies under President Donald Trump that could boost investment in energy and construction.
“As competitors have exited the construction market, Fluor is now better positioned to capture a greater share of rising construction spend and to pursue projects under more disciplined, rational terms,” Starboard said.
(Reporting by Rashika Singh and Anshuman Tripathy; Editing by Krishna Chandra Eluri and Maju Samuel)