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News  ›  The Motley Fool

Could Buying Fluor Today Set You Up for Life?

The Motley Fool Logo The Motley Fool By Reuben Gregg Brewer
Could Buying Fluor Today Set You Up for Life?

Fluor, an engineering and construction company, has shifted 82% of its backlog to reimbursable contracts to improve cash flow consistency. However, the inherent cyclicality of the construction industry limits long-term reliability. While Fluor's stake in nuclear startup NuScale Power presents an interesting opportunity, the volatile NuScale stock and one-time nature of the stake sale make Fluor unsuitable for most long-term investors seeking stability.

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While Fluor has made positive operational changes by shifting to reimbursable contracts, the inherent cyclicality of the construction industry and lack of consistent cash flow make it unsuitable for most long-term investors. The company is well-respected but volatile.