Fluor: Building the Future (and Avoiding a Meltdown)

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Alright, settle in, folks! We’re talking power, literally and figuratively. See, this whole AI thing isn’t just about robots taking over (though, let’s be honest, it’s a distinct possibility). It’s about electricity. Mountains of it! These AI data centers? They’re not sipping tea, they’re Hoovering up power like a politician at a fundraiser. Deloitte says demand could jump thirty times by 2035. Thirty! That’s enough to make even Thomas Edison do a double-take. And what happens when you need that much juice? You build. And when you build, you need a company that knows what it’s doing. Enter Fluor (FLR 0.07%). They’re not just laying bricks, they’re building the infrastructure for the future… or at least, trying to keep the lights on.

Now, these hyperscalers – those are the big tech companies, the ones with more money than sense – they’re getting smart. Bypassing the grid? Investing in their own natural gas turbines? It’s like building a fortress against… well, against a potential energy apocalypse! A bit dramatic? Maybe. But it’s good business. And good business for Fluor. They’re the guys who can navigate the permitting process – a bureaucratic nightmare, believe me – and actually get things built. They were even named a top data center constructor by Data Centre magazine in 2025. A magazine! The accolades just keep coming!

Fluor: More Than Just a Pretty Hard Hat

Fluor isn’t just a construction company; it’s an engineering, procurement, and construction (EPC) juggernaut. They don’t just build it, they design it, manage it, and then, if everything goes right, finish it. Oil refineries, data centers, mining complexes – you name it, they’ve probably built it. Or are planning to. Or at least, submitted a bid. It’s a competitive world out there, you know.

Their biggest gig right now is urban solutions – building the stuff cities need. AI data centers, semiconductor plants, mining infrastructure. They’re also in the energy game – LNG terminals, chemicals, nuclear power. And, naturally, they do a little work for Uncle Sam. Because everyone loves a government contract. It’s like free money… almost. They make money two ways: fixed-price contracts (where they promise to deliver for a set amount) and reimbursable contracts (where they get paid for their costs plus a fee). Eighty-two percent of their backlog is reimbursable, which is good. It means they’re less likely to get stuck with cost overruns. Inflation is a beast, folks. A real beast.

Multiple Engines of Growth (And Hopefully No Explosions)

Fluor’s been around for 114 years. That’s a lot of hard hats. They’ve got 27,000 employees in 40 countries. They’ve built nuclear reactors, mined in remote regions… They can handle pretty much anything you throw at them. Megaprojects are their specialty. It’s like they’re saying, “Bring on the impossible!” They’re positioning themselves for these massive data center campuses the hyperscalers are demanding. Logistical challenges? Supply chain issues? Modularization? They’ve seen it all before. They’ve built data centers in Asia and Europe, and now they’re bringing that expertise to North America. It’s a global operation, folks. A truly global operation.

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But it’s not just data centers. Mining is a big opportunity too. Everyone’s focused on AI software, but somebody has to dig up the raw materials – copper, batteries, aluminum. It’s all connected! Fluor is securing front-end engineering and design (FEED) work, which usually leads to full construction contracts. Copper, lithium, rare-earth minerals, green steel… they’re in it all. They’re also investors in NuScale Power and the lead EPC partner for their power plants. They’re selling their stake in NuScale, but they’ll still be involved in the buildout. It’s a complicated web, folks. A very complicated web.

A Construction Stock Worth Building Your Portfolio Around

Fluor’s backlog stands at $28.2 billion as of September 30th, and 82% of it is reimbursable. That’s a good sign. They’re seeing the most growth from demand for copper, lithium, aluminum, and steel, with projects all over the world. They’re also using the proceeds from selling their stake in NuScale for stock repurchases and other growth investments. Smart move.

Management expects growth to accelerate after a couple of years of muted growth. They’re expecting larger project awards in late 2026 and early 2027. So, if you’re looking to capitalize on the AI data center, energy, and mining buildouts, Fluor is an intriguing pick-and-shovel stock. It’s a reasonable valuation to buy today. And who knows? Maybe we’ll all be living in a data center someday. Wouldn’t that be something?

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2026-01-15 19:03