Why This Overlooked Nuclear Stocks Play Could Transform Your Portfolio in 2026

When investors think about capitalizing on the nuclear energy renaissance, their minds typically jump to uranium miners or small reactor manufacturers. But there’s a more compelling angle hiding in plain sight: the companies actually building the infrastructure to make nuclear power viable at scale. Fluor Corporation (NYSE: FLR) represents exactly this kind of nuclear stocks opportunity—a construction and engineering powerhouse positioned to profit from the massive buildout ahead.

The $30 Billion Government Contract Nobody’s Talking About

While most investors focus on Fluor’s early-stage investments, the real story involves a cornerstone government contract that could reshape the company’s trajectory. In 2024, a joint venture featuring Fluor secured the management and operations contract for the Pantex Plant in Texas, the nation’s primary facility for nuclear weapons assembly and disassembly. The deal carries an estimated $30 billion valuation over its 20-year lifespan if all options are exercised.

What makes this particularly noteworthy is the contract structure. Unlike speculative ventures, this represents recurring, high-margin government revenue with built-in stability. Because Fluor holds a non-controlling interest, it’s accounted for as an equity-method investment, meaning it won’t appear in consolidated backlog figures. Yet management views this as a potentially massive, long-term growth driver that could substantially boost earnings down the road.

Why NuScale’s Breakthrough Matters for Fluor

Fluor’s strategy in nuclear stocks extends beyond government contracts into emerging small modular reactor technology. The company was an early, substantial investor in NuScale Power, the only U.S. firm with Nuclear Regulatory Commission certification for a commercially viable small modular reactor design. Beyond equity ownership, Fluor serves as a critical contractor for NuScale’s projects.

Most significantly, Fluor is playing a central role in the RoPower facility in Romania, where NuScale’s reactors will be deployed for commercial power generation. This project represents real-world application of small reactor technology—the kind of infrastructure build that could validate the entire small modular reactor sector.

Here’s the twist: Fluor is actually exiting its NuScale position. The company sold part of its stake last October and aims to fully exit by Q2 2026. Rather than hold onto the equity, Fluor is redirecting those proceeds toward repurchasing $1.3 billion of its own stock, which management believes is undervalued. This strategic shift signals confidence in Fluor’s independent nuclear stocks prospects without needing to rely on NuScale’s eventual success.

How Fluor Shifted Its Business Model to Combat Inflation

Understanding Fluor’s competitive advantage requires examining its contract evolution. Historically, construction firms absorb significant risk on fixed-price contracts, where any cost overruns from material inflation or project delays directly reduce profits. This cyclical vulnerability has long plagued the sector.

Fluor has systematically restructured its portfolio toward reimbursable contracts, where clients pay actual expenses plus a management fee. This model inverts the risk dynamic—inflation and cost fluctuations become client expenses rather than company liabilities. The transformation has been dramatic: as of September 30, 2025, reimbursable contracts comprised 82% of Fluor’s total backlog.

For nuclear stocks investors specifically, this matters tremendously. Nuclear projects are inherently capital-intensive, multi-year endeavors prone to supply chain disruptions and material cost volatility. By shifting to a reimbursable model, Fluor has essentially hedged against the very risks that plague nuclear construction. It gets paid for performing the work without bearing the downside of a changing cost environment.

The Real Risks to Consider

Despite the compelling setup, meaningful headwinds exist. Fluor’s business depends heavily on cyclical industries like energy and mining. An economic slowdown could delay construction projects, pressuring near-term earnings. Additionally, legacy fixed-price contracts still represent meaningful exposure, even if they’ve declined to 18% of the backlog.

Beyond cyclicality, geopolitical risks deserve attention. Nuclear projects often involve government relationships and regulatory scrutiny; any shift in energy policy could impact project timelines and contract renewals.

The Nuclear Stocks Opportunity Right Now

Fluor occupies a uniquely advantageous position in the emerging nuclear energy buildout. It combines three powerful tailwinds: a massive, recurring government contract; hands-on involvement in breakthrough small modular reactor deployment; and a restructured cost model that protects against inflation.

Most investors fixated on pure-play nuclear stocks miss this reality. Fluor isn’t betting on uranium prices or betting the company on speculative reactor designs. Instead, it’s positioned to profit from the infrastructure and operational expertise side of the nuclear renaissance—a less volatile, more defensible business model.

For investors bullish on nuclear energy but hesitant about the volatility of mining or small-cap reactor firms, Fluor offers a substantive way to gain exposure while maintaining portfolio stability. As 2026 unfolds and these nuclear projects accelerate, Fluor could finally receive the market recognition this overlooked nuclear stocks play deserves.