NuScale Power SMR) Drops 11.5% as Fluor plans to Converts Shares

NuScale Power (SMR) shares fell sharply on Friday, closing down 11.51% to $44.43, following news that major stakeholder Fluor Corporation intends to convert up to 15 million Class B shares into publicly tradable Class A shares.

• Market Reaction: The move sparked fears of future share dilution and supply overhang, despite a 30-day lockup and volume restrictions preventing immediate large-scale sales.
• Context: Fluor’s decision comes on the heels of a steep 27% drop in its own stock after disappointing Q2 results and a lowered 2025 outlook.
• Clarification: While the conversion increases float, Fluor has not yet sold the shares and remains under trading restrictions through 2026.
• Investor Sentiment: The timing raised concern about Fluor’s long-term confidence in NuScale, especially amid broader scrutiny over the viability of small modular reactor (SMR) technology due to industry-wide cost and schedule challenges.

Despite the selloff, the share conversion may also reflect Fluor’s effort to unlock liquidity without necessarily abandoning its investment.