Fluor Corporation (FLR) Faces Starboard Value Push for Strategic Overhaul, Highlighting Undervaluation and Capital Allocation Concerns

Starboard Value’s October 2025 presentation at the Active-Passive Investor Summit highlighted Fluor Corporation (NYSE: FLR) as an undervalued turnaround story with significant hidden value tied to its 39% stake in NuScale Power (SMR). The deck credits CEO David Constable for transforming Fluor since 2021—reducing risky fixed-price contracts, resolving legacy loss projects, and refocusing on lower-risk reimbursable work in higher-growth markets such as semiconductors, life sciences, and infrastructure. Starboard emphasized that Fluor, one of the few remaining full-service EPCM players, is benefiting from a more rational and less competitive market. Despite these improvements and a cleaner backlog, Starboard argued that the market undervalues Fluor’s core operations, especially after excluding the ~$4 billion post-tax value of its NuScale stake. The firm suggested Fluor explore options to separate or monetize its NuScale stake through taxable or tax-free structures—such as a spin-off or exchange offer—to unlock shareholder value and re-rate the core EPCM business, which currently trades at roughly 3x EBITDA, far below peers.