Fluor Is Down 26%. Is It Finally Time to Buy?

Many people may know little or nothing about Fluor (NYSE: FLR). It's one of the world's leading engineering, procurement, and construction firms, with $15.5 billion in total revenue in 2025. Primarily, the team at Fluor helps bring infrastructure to life across the world and in virtually every industry.

The COVID-19 pandemic crippled the stock, erasing many years of investment gains. Since then, Fluor has been making a comeback, until recently dropping after its most recent quarter. Should investors buy into this decline, or are Fluor's best years behind it?

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Strong growth prospects and a recent windfall

Energy and data centers are arguably the two hottest infrastructure markets in the U.S. right now. Data center spending continues and could amount to trillions of dollars over the next decade and beyond. In energy, the United States is likely to remain a key oil and gas exporter for the foreseeable future. Fluor, based in Texas, is involved in projects across both market segments.

Additionally, Fluor is into nuclear energy. It was actually an investor in NuScale Power until it recently sold down its stake for roughly $2.4 billion, at a hefty profit. That cash infusion is a tremendous boon for Fluor's balance sheet, which carries a BB+ credit rating, just below investment grade.

In all, Wall Street analysts see the company growing earnings by about 15% annually over the next three to five years.

Why investors might buy this stock on the recent dip

Fluor's stock price has fallen since its Q1 2026 earnings, but there are some positives here. Monetizing its stake in NuScale Power helps solidify Fluor's financials, pushing its cash up to $3.2 billion. The company has a solid foundation for growth, given its $25.7 billion backlog and healthy analyst growth estimates.

There are risks to owning this stock. This company and stock are very prone to recessions, boom-and-bust cycles, and Fluor's balance sheet and credit aren't fantastic to begin with. That makes it a bit riskier.

The good news is that the stock's valuation seems to acknowledge that. Shares trade at a price-to-earnings ratio of about 15.5 times 2026 earnings estimates. Plus, most of Fluor's backlog is reimbursable now, which helps protect the company from heavy losses when projects go awry.

Market reactions to an earnings miss or one shaky quarter aren't necessarily a reliable indicator of whether a stock will do well or not over a longer time frame. If anything, the decline in Fluor could be a welcome buying opportunity, given the long-term opportunities in key infrastructure projects, the recent cash infusion, and a healthy growth outlook.

In other words, now could be a good time to buy Fluor stock. The key will be whether the company can execute over multiple quarters moving forward.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.