Earnings call transcript: Nuscale Power Q2 2025 misses EPS forecast, shares fall

NuScale Power Corp reported its second-quarter 2025 earnings, revealing a miss on earnings per share (EPS) expectations and a significant revenue shortfall. The company’s EPS came in at -$0.13, below the forecasted -$0.11, marking an 18.18% negative surprise. Revenue reached $8.1 million, falling short of the anticipated $11.89 million by 31.88%. Following the announcement, NuScale’s stock dropped 2.72% to close at $44.68 and continued to decline by 0.83% in premarket trading. According to InvestingPro data, the company maintains a FAIR financial health score, with impressive gross profit margins of 78.44% and a strong liquidity position, holding more cash than debt on its balance sheet.

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Key Takeaways

• NuScale’s EPS of -$0.13 missed expectations by 18.18%.
• Revenue increased year-over-year but fell short of forecasts by 31.88%.
• Stock price decreased 2.72% post-announcement and 0.83% in premarket trading.
• The company received a second NRC approval for its SMR design.
• Operating expenses rose slightly, impacting profitability.

Company Performance

NuScale Power Corp demonstrated significant year-over-year revenue growth, increasing from $1 million to $8.1 million. Despite this improvement, the company faced challenges in meeting financial expectations, as reflected in its earnings miss and rising operating expenses. The company’s strategic initiatives, including expanding its Energy Exploration (E2) centers and securing a second NRC approval, underscore its commitment to growth and innovation in the small modular reactor (SMR) market.

Financial Highlights

• Revenue: $8.1 million, up from $1 million year-over-year
• Earnings per share: -$0.13, compared to a forecast of -$0.11
• Operating expenses: $44.9 million, a slight increase from $42 million

Earnings vs. Forecast

NuScale’s actual EPS of -$0.13 fell short of the forecasted -$0.11, marking an 18.18% negative surprise. The revenue of $8.1 million missed the forecast of $11.89 million by 31.88%, raising concerns about the company’s growth trajectory and financial health.

Market Reaction

Following the earnings announcement, NuScale’s stock fell by 2.72% to close at $44.68. The decline continued in premarket trading, with the stock dropping an additional 0.83% to $44.31. This movement suggests negative investor sentiment, potentially driven by the earnings miss and revenue shortfall. Despite recent volatility, InvestingPro data shows the stock has delivered an impressive year-to-date return of 149.19%, with particularly strong momentum over the last three months. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its estimated Fair Value.

Outlook & Guidance

NuScale is targeting US-based customer contracts by the end of 2025 and anticipates securing its first hard contract in the near term. The company continues its work on the Romania project, with a potential final investment decision expected by late 2026 or early 2027. Despite the current financial challenges, NuScale remains focused on expanding its market presence and advancing its SMR technology. With a market capitalization of $12.71 billion and a current ratio of 6.23, the company maintains a strong financial position to support its growth initiatives.

For comprehensive analysis of NuScale’s growth potential and financial outlook, check out the detailed Pro Research Report available exclusively on InvestingPro, part of our coverage of over 1,400 US stocks.

Executive Commentary

• "We’re the only company with two NRC approvals for small modular reactors," stated Ramzi Hamady, CFO, highlighting NuScale’s competitive edge in the SMR market.
• CEO John Hopkins emphasized the company’s focus on securing major customer contracts by year-end, saying, "We’re getting inundated now. We’re focused... on two or three major customers that we’re still forecasting having what I call hard contracts in place by the end of this year."

Risks and Challenges

• Rising operating expenses could impact profitability.
• The revenue shortfall raises questions about growth sustainability.
• The competitive landscape for SMR technology continues to evolve.
• Potential delays in securing commercial contracts could affect future earnings.
• Macroeconomic pressures may impact the nuclear energy sector’s growth.

Q&A

During the earnings call, analysts inquired about regulatory tailwinds from recent executive orders and sought clarification on NuScale’s business model with IntraOne as a project developer. Executives confirmed ongoing discussions with the US government, utilities, and potential customers, emphasizing a strong focus on the US market while maintaining international interest.

Full transcript - Nuscale Power Corp (SMR) Q2 2025:

Conference Operator: Good afternoon, and welcome to NuScale’s Second Quarter twenty twenty five Earnings Results Conference Call. Today’s call is being recorded. A replay of today’s conference call will be available and accessible on NuScale’s Investor Relations website. A web replay will be available for thirty days following the earnings call. At this time, for opening remarks, I would like to turn the call over to Rodney McMahon, Senior Director of Investor Relations.

Please go ahead.

Rodney McMahon, Senior Director of Investor Relations, NuScale: Thank you, operator. Welcome to NuScale’s second quarter twenty twenty five earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer and Ramzi Hamady, Chief Financial Officer. On today’s call, we will provide an update on our business and discuss our quarterly financial results. We will then open the phone lines for questions.

This afternoon, we posted a set of supplemental slides on our Investor Relations website. As reflected in the Safe Harbor statements on Slide two, the information set forth in the presentation and discussed during the course of our remarks and the subsequent Q and A session includes forward looking statements, which reflect our current views of existing trends and are subject to a variety of risks and uncertainties. You can find a discussion of our risk factors, which could potentially contribute to such differences in our 2024 annual report on Form 10 ks and subsequent SEC filings. I’ll now turn the call over to John Hopkins, NewScale’s President and Chief Executive Officer.

John Hopkins, President and Chief Executive Officer, NuScale: Thank you, Rodney, and good afternoon, everyone. To begin, I’d like to remind everyone who we are and why NuScale is a global leader in small module reactor or SMR technology as outlined on Slide three. Founded in 02/2007, NuScale is years ahead of the competition as the only SMR technology approved by the U. S. Nuclear Regulatory Commission or NRC.

For more than a decade, our team has worked alongside the NRC to achieve the successful approval of our designs, including a second approval for our 77 megawatt electric design in the 2025, a crucial step in moving NuScale and our exclusive commercialization partner IntraOne closer to meeting demands of energy users in need of clean baseload power. Our design approvals combined with an established manufacturing ecosystem, a life to date investment of approximately $2,000,000,000 to derisk plant licensing and operation and unmatched safety capabilities make NuScale the only near term deployable SMR technology with 12 NuScale power modules currently in production. Through eighteen years, NuScale has capitalized on the maturity and strong foundation of light water reactor technology and has moved forward with confidence to develop unmatched capabilities with unprecedented continuity and consistency of vision. Our SMR technology offers a wide range of carbon free energy intensive application possibilities as outlined on slide four. Working with the industry and national laboratories, NuScale has assessed the integration of these applications into facilities powered by NuScale power modules and published results in peer reviewed journals or presented them at national conference proceedings.

These applications include providing power to mission critical facilities, water desalinization needs and hydrogen production and process heat to meet the needs of commercial scale industrial applications. However, the application currently garnering the most attention and representing the biggest opportunity for NuScale’s technology is a generation of uninterruptible carbon free baseload power to meet the energy demands of advanced data centers and sophisticated artificial intelligence systems. While there are other SMR technologies in development, NuScale’s module architecture is the only one with NRC approval. It’s the only one in the manufacturing stage and the only one that offers the flexibility to serve multiple energy applications within a single plant, as our design allows for different modules in the same power plant to be designated for a variety of applications. Turning to Slide five, we summarize the NuScale and InterOne global commercialization partnership.

Under this partnership, NuScale serving as a technology provider sells its NuScale power modules directly to InterOne for installation in the reactor buildings of InterOne energy plants. InterOne in turn develops, finances and depending on the business model may own and operate the energy production plants powered by NuScale’s SMR technology. By providing customized plant development, ownership and operating structures, InterOne is able to derisk projects and meet each customer’s unique needs. We continue to be optimistic that the growing interest in our technology and its critical use cases, as well as NuScale’s distinctive competitive edge in the module manufacturing and conventional fuel readiness will result in an order in 2025 for our NuScale power modules. Since our last earnings call, we have seen strengthening of the regulatory tailwinds supporting the nuclear power industry, driven by the President’s executive orders to deploy advanced nuclear reactor technologies in support of national security.

These executive orders, which we summarize on slide six, were issued in addition to ongoing bipartisan support for the advancement of carbon free advanced nuclear projects through the Inflation Reduction Act, a $900,000,000 appropriation for SMR specific cost sharing funding. In the Advance Act designed to streamline NRC approvals for faster deployment, NuScale supports these efforts to transform and modernize the NRC while maintaining the NRC safety standards. While not all regulatory actions will directly benefit NuScale, as we have progressed beyond research and development to commercialization, we expect to benefit from shortened regulatory timelines for new deployments, a bolstered domestic nuclear supply chain and the overall commitment of the U. S. Government to prioritize the deployment of advanced nuclear reactor technologies.

Importantly, interest in NuScale’s SMR technology extends domestically and abroad. As discussed on Slide seven, NuScale continues to support Row Power’s goal of developing and deploying the first SMR power plant in Romania at Dorchester, the site of a decommissioned coal fired plant that is now entirely removed. To further advance the project, in June, an International Atomic Energy Agency site and external events design advisory mission visited Dorchester to advise on the finalization of the site license application. The project continues to generate revenue and positive cash flow for NuScale from engineering and licensing fees, as well as pre commercial operation date services, primarily in connection with the Florida led Phase II front engineering and design study. As this critical work on the Row Power project continues, we’re also working with floor towards their input to a final investment decision.

In the second quarter, we also continued our efforts to prepare the next generation of nuclear talent by opening two more energy exploration or E2 centers at South Carolina State University and George Mason University, bringing a total number of NuScale E2 centers to 11 with locations in The U. S, Europe, Asia and Africa. As discussed on Slide eight, these centers use state of the art computer modeling paired with a fully integrated SMR control room simulator, supporting users to step into the role of control room operators and navigate a wide range of simulated plant scenarios. These workstations provide real time visibility into the status of any unit across the plant model, enabling effective oversight of operations. It is worth noting that unlike traditional nuclear energy facilities, our NuScale power modules are designed with advanced safety systems that operate independently of human intervention, offering a new standard for passive safety.

We are proud of the progress we continue to make at NuScale as a leader in our space and excited to continue to build on this momentum through the remainder of the year. Now over to Ramsey for the financial update.

Ramzi Hamady, Chief Financial Officer, NuScale: Thank you, John, and hello, everyone. Our financial results are available in our filings. So my focus will be on explaining major line items, which can be found on Slide nine. NuScale’s overall liquidity and capital resources, which includes cash and cash equivalents, short term investments and long term investments, remained a robust $489,900,000 in total at 06/30/2025. This represents a $31,500,000 decline from the prior quarter, but an increase of $359,000,000 from the same quarter in the prior year.

NuScale reported revenue of $8,100,000 for the quarter ended 06/30/2025, compared to $1,000,000 during the same period in the prior year. This increase was primarily driven by fees received from the engineering and licensing work as well as other pre commercial operational based services we provide in support of the Row Power project. Operating expenses were $44,900,000 for the quarter ended 06/30/2025, compared to $42,000,000 during the same period in the prior year. While operating expenses increased slightly in the second quarter, our quarterly spend remains consistent with prior periods and reflects management’s disciplined approach to cash management. Looking ahead, we expect operating expenses to increase beginning in the 2025 as purchases of long lead materials increase to further enhance our manufacturing and supply chain readiness.

I will conclude my remarks with a brief overview of our capitalization summary as shown on Slide 10. Additional information may be found in our 10 Q and earnings release, both of which are filed with the SEC. With that, I’d like to thank you again for joining today and for your continued support of NuScale. We’ll now take questions. Operator?

Conference Operator: Thank you. Our first question for today comes from the line of Marc Bianchi with TD Cowen. Your line is live.

Marc Bianchi, Analyst, TD Cowen: Thanks guys. Ramsey, I guess just a follow-up on that. You talked about the operating expense increase in the second half. Curious if you could quantify that. And is this related to the earlier plan to increase the long lead item procurement?

Or are you actually increasing that again? So there’s I think it was 12 modules. Are you going up to more than that? Or is this just part of original plan and the phasing of that that spend?

Ramzi Hamady, Chief Financial Officer, NuScale: Yeah. Mark, I you know, I appreciate you asking that because, you know, we did wanna indicate to to our analysts and to the markets that we do plan an increase in the in OpEx for q three, an additional increase for q four. That’s really, Mark, while, you know, I think you’re aware, we don’t provide specific guidance on numbers, but that is in line with our, you know, our efforts to continue to develop 12 modules and and develop our supply chain and invest in the commercialization of of these scale. So it’s not there’s there’s an intent to build more than 12 modules right now. You know, we don’t build speculatively, but we are investing our supply chain in anticipation of commercial contracts and and design finalization.

That’s your supply chain just takes additional money. So we’ve maintained this plan over I think it’s been six quarters where we’ve held OpEx to plus or minus 5% or so. And now, you know, we’re we’re engaging a very kind of you know, very focused and very methodical increase in OpEx in order to engage the supply chain and just get ready for, you know, for the for the for the the commercial contracts which we’re anticipating.

Marc Bianchi, Analyst, TD Cowen: Yep. Okay. Great. Thanks. Another question on so Flora, when they had their quarter the other day, also had an announcement about converting p shares to a shares and said they’re looking at a stock market facing solution rather than the strategic that they’ve been talking about for several quarters.

And I guess I’m curious, I know you guys don’t have anything to say probably about their plans for selling stock, but my question is more about the strategic transaction. You know, some presume, you know, partner of new scales or would be partner of new scales that could have an equity stake now no longer potentially having that equity stake. Does it change sort of the business outlook or the go to market strategy that that you guys would have if, you know, that that strategic work to be an equity holder? Yeah.

Ramzi Hamady, Chief Financial Officer, NuScale: I I think maybe a few comments there. And may one is a clarification item, Mark. Fleur owns class b units, and so they’re a class b unit holder. Class b units may be exchangeable to class a shares. And, periodically, we offer the unitholders an opportunity to engage in exchange.

And, you know, at the last time we approached the class b unitholders, floor floor their hands up and said, hey. We’d like to do an exchange, And we permitted conversion of 15,000,000 shares subject subject to some bumpers because we just wanna ensure that we maintain orderly markets. I’ll you know, Mark, I I can’t read into whether or not floor is will even sell those, you class a shares. I have no idea. I don’t know if their strategy has changed vis a vis a treat to shareholder, but I’ll tell you that our go to market strategy has not changed.

And, you know, Flur’s actions in relation to their shares are those those are their own decisions. And we, you know, we we don’t have insight, and we don’t provide commentary. But our go to market strategy hasn’t changed at all. It’s, it’s well defined. It’s been consistent.

I think it’s a winning strategy, and we maintain that regardless of what Ford does with their ownership stake.

Marc Bianchi, Analyst, TD Cowen: Okay. Thanks very much. I’ll turn

Ramzi Hamady, Chief Financial Officer, NuScale: it back. Okay. Thank you, Mark.

Conference Operator: Our next question comes from the line of Sharif L. Maghrabi with BTIG. Your line is live.

Ramzi Hamady, Chief Financial Officer, NuScale: Hi. Thanks for taking my questions. Can you remind us how many modules Doosan can make in a year? And you talked about maintaining discipline. What would it take for you to order long lead items for another six modules this year?

John Hopkins, President and Chief Executive Officer, NuScale: This is John Hopkins. I’m sorry. Go ahead.

Ramzi Hamady, Chief Financial Officer, NuScale: No. No, John. You go ahead, please.

John Hopkins, President and Chief Executive Officer, NuScale: No. This this time, just that they can make up to 20 modules per year with the existing and also their their they continue to, interestingly, last month, we actually took a customer with us and a state government official to visit Doosan to actually see production ongoing. And they’re quite surprised at how advanced Doosan was in the in the manufacture of our modules, not only the modules, but the helical coil steam generators. So going out and actually see an end production and touching steel, so to speak, that’s a major marketing tool for us that I believe anybody else currently could do that within the market.

Conference Operator: Thank you for your questions. Our next question is from the line of Eric Stine with Craig Hallum. Your line is live.

Ramzi Hamady, Chief Financial Officer, NuScale: Hi, everyone. Thanks for taking the questions. Hey. How are doing?

Eric Stine, Analyst, Craig Hallum: Hey. Doing well. Thanks. So obviously, in Q2, I mean, the up rate approval, that was a very nice event to have that occur early. I’m curious, has that set off maybe a higher number of discussions, maybe taken those discussions to an elevated level of engagement?

I mean, obviously, that was a needed step to reach your goal of a firm commitment by the 2025. So just curious the response or the impact of that.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. This is John Hopkins. I would say that the response people were in a waiting mode to see, in fact, we could go from the 50 to 77. It was accomplished. We’re there.

And now we are, in fact, seeing more line of sight of of potential customers. In fact, last week, we were with a new customer that I would say new. We’ve been in discussions with quite some time. There was kind of in a holding mode. But now that we’re 77, it’s prompted him to have additional conversations with us going forward.

Ramzi Hamady, Chief Financial Officer, NuScale: And if I can add, let’s let’s let’s call it what it It it wasn’t just like a nice thing to have. We’re the only company with with two NRC approvals for small modular reactors. There’s no other company with even one, and we got through with two. And there’s a lot of people out there doubting saying, hey. You’re not gonna get through.

It’s gonna take too long. It’s gonna overrun this and that and the other. And we came out very quietly just like we always do. We got the work done. We gotta cross line early.

I mean, our, you know, our our our team’s working on that. They did an absolutely excellent job. They smashed it. Was a grand slam to get that done early, get over the line, and just further differentiates us from the competition.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. That’s a good point, Ramsey. We we were scheduled, yeah, we were scheduled for a July completion, and and we made it two months earlier. And I gotta give credit to the nuclear regulatory commission and our licensing team for staying on top of it and and get it accomplished because to Ramsey’s point, it has opened the aperture for other customers because we are near term deployable. We got modules in production.

We’re ready to go. We have under Part 52, we have both operating license and a construction license. You’ve seen a lot of construction permits that you cannot you can build a plant, but you can’t operate it without an operating license.

Eric Stine, Analyst, Craig Hallum: Yes, absolutely. No, I mean, a clear differentiator, maybe a good segue. I mean, obviously, this took you I mean, the up rate, clearly a shorter period of time given that you’d already had the first up rate and that that was an add on. But, you know, as you think about the regulatory process and the differentiator that that is in the market, you know, maybe some high level thoughts on on the regulatory, environment and a lot of the talk about, whether it’s streamlined process, potentially the DOD or the DOE having some say in the regulatory side of it. Just maybe what you think that means for some of your competitors or just others in the market?

That would be very helpful.

John Hopkins, President and Chief Executive Officer, NuScale: Yes. I think, one, I I think a big distinctive we have is we are using conventional fuel that’s readily available in the marketplace. You know, there’s 400 plus light water reactors around the world. We don’t need high assay halo fuel, which has been a it’s going to be an issue, I think, going forward. It’s going to be costly.

But as it relates to NRC, having been through the process, what we’re hoping for is more of the streamlining of getting to the construction operation license agreement. And it’s going into the build stage of our plants having again, we’re not having to worry about going to the NRC licensing per se. But we are hopeful that it is to be seen. Are other technologies gonna be able to move quicker? I hope so.

We don’t necessarily wanna be a monopoly or the only US based customer. And the market is and you could just read the headlines every day. The market potential on a global scale is phenomenal.

Brian Lee, Analyst, Goldman Sachs: Thanks, Eric.

Ramzi Hamady, Chief Financial Officer, NuScale: I I would add to that. The other the other major differentiator is is our progress with our supply chain. There’s there’s no one else that’s that’s engaged manufacturing supply chain like we have. You know, even with a group like Tucson, we’ve been working for seven years. They’ve they’ve invested, you know, even not not just in us in an equity perspective, but in their facility, the new technologies, and and building our LM.

I the the supply chain differentiation is massive. And so, you know, there’s there’s a there’s a two part dance here, regulatory licensing, but also you gotta get the darn things built, And that takes a herculean effort, and we’ve been engaged in that for years now.

John Hopkins, President and Chief Executive Officer, NuScale: Yep. Yeah. Actually, I had I had dinner last I’m sorry. I had dinner last week with the with the CEO of one of our suppliers out of Japan, IHI. And, again, we we sat down and looked through the pipeline of what the potential opportunities are and, you know, for them to gear up.

But if you if you look at some of these organizations like Doosan as example, they have many sub contractors that here in The United States were engaged with too. And many of the many of the suppliers we had a phenomenal over a 100 people. I think it was 32 suppliers in North Carolina kicking the tires and ready to get tooled up to take advantage of the opportunities they see coming down the pike.

Conference Operator: Very good. Thank you for your questions. Our next question is from the line of Sandaria Iyer with Riley Securities. Your line is live.

Sandaria Iyer, Analyst, Riley Securities: Hi, everyone. This is Sandra on behalf of Ryan Singh from B Riley Securities. Thanks for taking my question. Yeah. I just wanted to touch on the macro part, like, looking at the recent executive orders.

Like, what do you guys think are the mandates or directions in the executive orders which are, like, most beneficial for new skills specifically?

John Hopkins, President and Chief Executive Officer, NuScale: Ramsey?

Ramzi Hamady, Chief Financial Officer, NuScale: Pardon me. Sorry, John. Look. I I I when we look at the executive orders, you know, I think I think there’s there’s more of a macro idea that promotes the whole industry. Mean, you know, there’s there’s a lot that supports new scale.

There’s a lot around licensing, but but the licensing that we see in the exact words that that that benefits us specifically is more site specific licensing. And I think when you’re dealing with projects and for us, remember, Enter one does the project. They execute on projects. That type of licensing is more beneficial to us simply by the fact that we’re so far ahead of the competition. So, you know, I I think there’s some tailwinds for licensing in relation to technology, and that’s great.

And that’s good for the whole industry, and we support that. But but in terms of the most recent executive orders, looking at how they would seek to expedite site specific licensing benefits NewScale more than anyone else. And I think that just further pushed us ahead.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. And and part of that answer, we we spend a lot of time on the hill with with both both sides of the aisle. And the bipartisan support for advanced nuclear for a variety of reasons, either national security or reliability or climate disruption, I think it’s stronger now than I’ve seen historically. And that bodes well for the industry. And it’s just a matter of time that we’re going to see a big move, and I believe within this country.

This current administration is pressed to get success stories quickly. They have a limited period of time to make that happen. I think with the executive orders, with the possible streamlining of the NRC, And as I stated, that were benefits us as to move quicker on the construction and the operation side of the ledger. I think the tailwinds bode well for the industry and NuScale, particularly.

Sandaria Iyer, Analyst, Riley Securities: That that’s helpful. Thank you. And if I may add in just one more. Like, on your expectation on sort of, like, what what would be the first project or how it would look like in terms of potential partners or the power users, like

John Hopkins, President and Chief Executive Officer, NuScale: Well, you know, as we stated in we’re we’re working with our developer strategic partner, IntraOne. And IntraOne has been out in conversations with our government and and with prospective clients to do, you know, it’s the hyperscalers, it’s utilities, it’s even process oriented companies. Because what we’re still seeing, many of these entities don’t necessarily wanna own the nuclear asset. They just want twenty four seven clean energy. And so what we’re seeing is, if I look historically what the market has been, coal plant refurbishment, that’s not gone away.

We still see a pretty big spike of coal plant closures coming up. Process oriented heat, we are the only company that has a legitimate emergency planning zone licensed by the NRC at site boundary. That is bode well for process oriented companies that would like to see something outside the fence line where any disruption wouldn’t have a material impact on their ongoing business operations. And then the big gorilla in the room is still the hyperscalers, data centers and their thirst for energy going forward. And a plus that they see in NuScale is the scalability of our units.

With 12 modules online, that’s nine twenty four megawatts. You’re pushing a gigawatt size. But the beauty of that, any refueling cycle is only a ten day cycle. So you could take one down, and you have 11 modules continue to run 20 fourseven. It’s not like a single screw plan, as we state, that once that plant comes offline, you have to look elsewhere for energy.

So that’s a big selling point for us.

Ramzi Hamady, Chief Financial Officer, NuScale: Thanks. And and and if you wanna take a look at terms of the business model, think also our our presentation, I think on the third slide has a good has a good explanation of the business model with Typeform one and how we intend to work together and then how they intend to work with power users and utilities. And and so there’s there’s a, you know, there’s a good good explanation there of of how it’s going to build and develops plants. And and also just just since since we’re on the presentation, put the page from there, and there’s the next slide talks about the regulatory tailwinds. It goes in specific executive orders.

Yeah. Most most of, like, the the 05/23/2025 executive orders and then the output of, you know, what we see from a macro basis.

John Hopkins, President and Chief Executive Officer, NuScale: You know, when

Ramzi Hamady, Chief Financial Officer, NuScale: I talked about kind of site specific ideas, it was a response to the question of, hey. What benefits Musco specifically? I think site specific ideas benefit us the most since we are licensed and we are near term deployable. But if you want a full rundown, there’s a good, yeah, there there’s a good comp summary there within our our investor presentation.

Sandaria Iyer, Analyst, Riley Securities: Sure. I’ll I’ll check that out. Thank you. Thank you for clarifying.

Conference Operator: Thank you. Next question is from the line of Vikram Bakri with Citigroup. Your line is live.

Vignesh, Analyst, Citigroup: Hey, guys. Thanks for taking my question. This is Vignesh in place of Vikram. Just touching back on the customer agreements, I know you guys talked about it. Just curious on any updates on the like the active customer negotiations.

I believe you guys mentioned there’s about 10 advanced discussions last quarter or so. And what categories kind of these are focused on? I know you guys are focused on maybe type of scalars utilities, but anything outside of that? Any color on that would be great.

John Hopkins, President and Chief Executive Officer, NuScale: Yes. We’re in discussions with the U. S. Government. Somebody commented earlier about Department of Defense.

They have an interest in doing the utilities. We’re on some of the utilities. They’d like to see their license site. They’d like to see the hyperscalers come on to their facility. So again, as I stated in earlier calls, it’s a complex financial transaction.

You’re dealing with the utility owner or the owner in general. And our case, the owner is IntraOne, who’s in negotiations with these entities to bring hyperscalers, to bring Department of Defense. And so we’re kind of across the board. Thing we’re finding is that we do have ongoing Romania. There’s a lot of interest in outside this country right now, but we’re finding within The United States, we have limited resources.

So we’re really laser focused in on closure on maybe one or two sites or one or two customers.

Ramzi Hamady, Chief Financial Officer, NuScale: Hey. And, you now now maybe a good time to to maybe define this a little bit more clearly. I know we have some some newer analysts on the line, and we have so long to, like, Mark Bianchi. Mark, you’ve you’ve been with us since day one. I think, you know, you you you you’ve seen the development of our business model.

But it’s important to remember, when we say when we when we talk about our customers, EntrA1 is our customer. EntrA1 is a developer of power plants. They’re EntralOne power plants with new scale inside. It’s like buying a computer with, like, an Intel chip. We’re the Intel chip inside, in this case, in the power plants.

So we’re hand in glove with EntralOne. Like, I don’t sell know, we talk about discussions with utilities, the hyperscaler, and, yeah, the military, the US government. Those are all end users, but we don’t sell electrons. Right? So so, like, let’s I just wanna kind of reset and and and and kind of level the idea that we sell NPMs, new scale power modules.

Those power modules go into the plant. Enter one develops the plant. They may own and operate the plant. There’s different business models, but it’s an EntrOne plan. EntrOne sells the energy to the customer, whether it be, you know, utility or or government or military, whomever it is.

EntrOne has been out there trying the PPAs and selling the power. So it’s just just so we kind of craft this correctly. I, you know, I want the market to understand what the story is and what the business model is because that business model, the fact that we have EntrOne as our developer is a differentiator. Right? We’re not out here trying to develop technology, develop power plants, get PPAs.

That’s that that’s that’s that’s a huge pull. We’re a tech company. We develop technology. Technology is for a new scale power module. New scale power module is built as in you know, we’re we’re kind of an OEM reseller.

I’m sorry. Not reseller, but we’re OEM seller of a of a piece of equipment. We outsource that equipment. We outsource the production. We deliver it to an internal power plant.

Entrone just puts in the power plant and then sells the power. And so so, you know, again, we talk about customers. Let’s be clear. Again, I I do this for some of our newer analysts. I think it’s important.

We have one customer that comes through Entrone. Central One faces the market. They develop the power plants. They sell the power. We just sell the new scale power module.

We’re the internal side to the laptop. If you use that analogy or whatever analogy you wanna use, but but we’re we’re the tech inside the power plant. We’re not the power plant developer.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. That that coincides what I said earlier that many of these entities not they don’t necessarily want an you know, the asset. They don’t wanna own nuclear. They just want 20 fourseven. So with our developer and their banking relationships and source of funding, they’re able to offer a build own transfer, build own operate or be flexible enough to work out scenarios that’s providing solutions to these entities that Ramsey just mentioned.

Vignesh, Analyst, Citigroup: Got it. That’s super helpful. Thanks for the breakdown. Just one more question if may. Would you be able to quantify kind of the progress on the Phase II FEED study for OPPOWER and how the next steps kind of might look like in terms of timeline or any other developments around that?

Thanks.

John Hopkins, President and Chief Executive Officer, NuScale: Yes. As you know, a Floor Corporation is a prime. We’re a subcontractor of Floor. Row Power and the Romanian government, they continue to pay their bills and we’re keeping our finger on a pulse and watching it very closely. We have ongoing almost weekly conversations on progress.

They’re looking at their final notice to proceed. Now it looks to be probably in in the time frame of mid to late twenty six, early twenty seven. So we continue to support floor as the prime, providing the engineering requirements for the modules. And so far, so good.

Conference Operator: Thank you for your questions. Our next question is from the line of Craig Sher with Towheat Brothers. Your line is live.

Craig Sher, Analyst, Towheat Brothers: Hi, good afternoon and thanks for taking the questions. Charisse’s question and the answer about the supply chain having the ability to make up 20 modules annually, Does that mean you have the ability to shoulder two orders somewhat concurrently of a 12 module and a six module order, but you couldn’t shoulder, say, two two dozen orders simultaneously. And and to the degree there’s any, you know, kind of competition in terms of getting into the customer on time by 2030, 2031, What kind of negotiation, discussion, coordination do you have with EntrOne if maybe you have a six module order ready to go, but that might slow down a 12 module order?

John Hopkins, President and Chief Executive Officer, NuScale: No. Our model has always been predicated on the fact we manufacture in we manufacture our models in a factory. They’re fungible assets with the intent to have multiple projects going at any given time. However, we’re also very cognizant of our fact of what our capacity to execute is, so we don’t wanna get out over ski tips. But quite frankly, I just want one right now.

I wanna get a hard contract near term, and we continue to build out our supply chain, which is critical for us. We have ongoing meetings. Because many of the suppliers, as you know, once you get the order booked, they’ll they’ll start gearing up. And as for Doosan, we’ve got 12 modules coming online right now. That’s a gigawatt size plant.

And in our discussions with them, they’re willing to tool up and even do more, IHI and the other suppliers. But we’re limited to our supply chain and to get those modules. And that’s why long lead items are so critical. Anybody says they can get to 2,030 COD without these long lead items, I don’t see it as a possibility. We’re still focused on getting modules in the ground by 2030 time frame.

Craig Sher, Analyst, Towheat Brothers: That’s helpful. So you had mentioned, I believe, that, you know, you’re on the hook if you don’t get a customer, you know, covering it, for over a couple $100,000,000 of CapEx the next couple of years on what you’ve already ordered. And then you just said you’re going to be ramping OpEx and presumably having a wider cash burn. So is it fair to say that this is carpe diem time, that the second half of this year is a critical time to get signed, sealed and delivered customer commitment or two that can start shouldering some of this so you don’t have to do it all on balance sheet?

Ramzi Hamady, Chief Financial Officer, NuScale: Yeah. I’ll take that question. Look, there’s there’s a fine line to walk here as as we’re pushing forward. You know, I I often state that I don’t wish to, and I don’t think my my shareholders wish for me to use their money to build an inventory of NPMs. That’s not the way this goes.

And when I enter contracts, I enter contracts that have you know, they have pathways out. They have pathways to slow down. They have pathways to speed up. And, you know, we do this and we we enter it and we wanna build these, you know, at least the long lead materials in relation to 12 MPMs so so that so that we can expedite delivery of the first plant to a customer. So it’s not yeah.

I was like, I’m not I’m not out there with this idea that I’m gonna invest, you know, billion dollars into, you know, building new scale power modules just on my own time absent in order. I I think we’re you know, we we have to we we refine the the dialogue a a little more eloquently than that, but we do invest into into our LMs. We do wanna speed up the process by which we can deliver. We wanna invest in the supply chain. The suppliers don’t don’t they’re not they’re not sitting around quivering their thumbs.

They they wanna see orders. And the you know, as as I mentioned before in earlier question, you know, having a regulatory approval is one thing. That’s great. And having two, amazing. Excellent.

The best of the best. But supply chain is also another tough nut to crack. You know, there’s not there’s not a ton of of of of nuclear suppliers worldwide. Right? In America, especially, you know, the the nuclear industry has been has been stagnant for a long time.

So, you know, for us, I think there’s there’s a fine line there where we’re activating our suppliers, working with them. We’re investing in them, and we’re investing in our inventory. But, you know, as as as a as a management team, you know, we also are very careful about shareholder funds, and we’re not, you know, we’re not going to, like, expect it sounds like, you know, I’m not going for a broken h two and just gonna build as many as I can. That’s not the way we operate a company. Right?

We we take a more measured approach.

Craig Sher, Analyst, Towheat Brothers: Fair enough. I appreciate the time.

Ramzi Hamady, Chief Financial Officer, NuScale: Yeah. Yeah. Thank you.

Conference Operator: Our next question is from the line of Leanne Haddon with Canaccord Genuity. Your line is live.

Rodney McMahon, Senior Director of Investor Relations, NuScale0: Good evening, everyone. Thanks so much for taking my questions, and congrats on the NRC upgrade approval.

Ramzi Hamady, Chief Financial Officer, NuScale: Thank you. Thank you. Of

Rodney McMahon, Senior Director of Investor Relations, NuScale0: course. Of course. Just to start, I was curious if you’ve noticed any industry trends in terms of project financing. Just curious broadly if you’ve noticed any sort of third party ecosystem or anything of that nature taking shape.

Ramzi Hamady, Chief Financial Officer, NuScale: Yeah. John, do you wanna go, or should I go with

John Hopkins, President and Chief Executive Officer, NuScale: No. Go ahead. I’m thinking on the question.

Ramzi Hamady, Chief Financial Officer, NuScale: Yeah. Look. So so so we work again, like, I’ll, you know, I’ll take the opportunity to to continue this kind of this this distinction of of the roles between Musko and InterOne and this kind of, you know, hand in glove sort of relationship that we have. We don’t finance projects at Usco because we don’t build projects. You know, we build we build a piece of equipment for a customer, and the customer finances that through through orders and through payments.

And we finance by you know, there there may be something that’s through working capital, but it’s not project finance. But to get to your question, doesn’t mean we don’t have visibility into into some of the discussions and the dialogue. And we’ve seen remarkably, you know, pretty significant interest from large scale US and, you know, even if, like, you know, go go out, look at look at, like, large pools of capital outside the country, Commonwealth funds or others, we’ve seen significant interest from those groups in financing as as kind of, like, scale scale capital outlay, scale investment team, and financing projects for EntrOne using NuScale technology. And I think part of that comes down to the fact that we use, a, we’re the only, like you know, we’re the only licensed technology, and we got two of them. We use conventional fuel.

It’s light wire reactor technology. It’s everything that’s commonly understood within the nuclear world. It’s everything that financing wants. Plus, it’s built off-site in control environments without doing complex nuclear nuclear fabrication in the field. So so we see a ton of interest, and we see it through it.

Like and we talk about project finance interest. We see it through EntriteOne. You know, I see a ton of interest through the equity markets. Right? I I see people wanting to own NuScale.

I I see I see money coming into the into the company. I also see when we go out and we talk to potential customers of VentureOne in coordination with VentureOne, we see these third parties supporting those dialogues. And that’s you know, I think that’s something where, you know, this this is what it takes to kinda reinvigorate nuclear America. These are big projects. They cost a lot of money.

This is scale infrastructure investment from very large sources of capital, and we’re seeing them piling. That’s very interesting.

Rodney McMahon, Senior Director of Investor Relations, NuScale0: Thanks for that.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. And just to add to that, you know, we as we stated in here, we have over $2,000,000,000 invested in this asset. A lot of that went to scaling up all the components within this model to where when you say first of a kind, the first of a kind really is you need to put one together and get it operational. The components themselves are typically, as Randy said, conventional fuel, Our skid mount our turbine generators are skid mount units that are used in oil patch. I mean, there’s not really the helical coil steam generators have been scaled and tested in Viva Cenza, Italy and Doosan’s building them currently.

So I don’t see where we are right now. I don’t I don’t from a supply chain, it’s just that we got to be careful that we don’t exceed expectations. We do what we say we can do, and we treat our suppliers fairly. We continue to build out our supply chain, which is what we’re doing right now.

Rodney McMahon, Senior Director of Investor Relations, NuScale0: Certainly. Yes. Completely agree. Just one more from me. Of course, there’s been a lot of exciting momentum domestically in the nuclear space.

Just curious if you’re seeing any sort of similar trends internationally in terms of customer interest specifically?

John Hopkins, President and Chief Executive Officer, NuScale: Yes, we do. I commented earlier, we’re getting a lot of Finland, Sweden, you know, the you’re even seeing Germany is now talking about possibly reenergizing reactors because of, you know, energy requirements. But it gets back to where I’m saying right now. I I I would like to stay focused right on The US base, building out our US supply chain. Romania is a great project that we have currently right now that we’re working on, and Romania has aspirations of being a a provider of Bessemer’s in Central Eastern Europe where we hope we’re part of that.

But the whole groundswell, you know, desalinization, hydrogen production, none of that’s gone away. In fact, it it’s ramping up. And, you know, we we’re we’ve been working on hydrogen for quite some time with some process companies about and for hydrogen, it’s really about your ability to get down to about a dollar 50 per kilogram, and we’re making progress. But, our focus right now is with US based customers aside from Romania to get closure in near term deals.

Ramzi Hamady, Chief Financial Officer, NuScale: Got it. That’s very that we we we we just I I I just received, and and we received, you know, great information all the time. But, you know, a study of kinda US and their allies and the drivers for nuclear and kind of expectations, primary gigawatts they expect to see. And, you know, like and I’m looking at this now. You know, people expect about demand for a 100 gigawatts of nuclear by 2040, at least in among America and our allies.

And the Euro Area, probably about 40 gigs. And UK and Scandi, probably about 16 gigs. And and just for the reasons that John mentioned, you know, like reducing vulnerability, creating alternative energy supply, making liquid fuels and hydrogen, you know, from for, like, for example, for the EU from EU sources, higher liability for power, all these ideas that that that just makes sense. And, you know, if we go if we go to China and other parts of the world, you know, you know, you have very significant numbers there as well, but we tend to focus on The US and and and our allies here.

John Hopkins, President and Chief Executive Officer, NuScale: You know, we used to for those yeah. For those who have been following us, you know, it was only three, four years ago. We had customers asking for four module plants, six module plants. What we’re hearing today, the more the better. It’s 12 module plus.

So it’s an interest. And again, a lot of it is because of hyperscalers, data centers, and the energy requirements that even outside this country, we’re seeing requests for a minimum of 12 module plants, which has been a shift over the last, I’d say, two to three years.

Rodney McMahon, Senior Director of Investor Relations, NuScale0: Got it. That’s very helpful color. Thank you both.

Conference Operator: Thank you. We have a final follow-up question for today from the line of Mark Bianchi with TD Cowen. Please go ahead. Mark, are you there? Give you another another line here.

One sec here. Mark, are you there?

Marc Bianchi, Analyst, TD Cowen: I I am. Can you hear me?

Conference Operator: There you go. Go ahead, sir. Yes.

Marc Bianchi, Analyst, TD Cowen: Okay. Thanks. Thanks for squeezing me back in, guys. John, I heard you comment on in reference to the Row Power project that they would be I think you said looking at FID later in ’26 or early twenty seven. If I recall, that that’s a little bit later than we’d previously talked about.

Can you talk about what’s going on there and and when we should be kind of expecting the the cost estimate and phase two feed to wrap up?

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. We’re we’re in about a cost class four estimate right now with floor. So, you know, we recently been informed that they’re pushing it out a little bit, you know, when they’re gonna have a phased approach for a final investment decision. But we’ve been told their their final notice to proceed is probably looking towards the latter part of ’26. But we continue to move forward under the direction of floor, providing the engineering deliverables that they and the customer are requesting.

So that that’s not all I know right now, Mark, in terms of what we’ve been told by the customer themselves. Okay. Still very bullish on they’re still very bullish on the project. It’s just timing.

Marc Bianchi, Analyst, TD Cowen: Got it. Got it. Okay. Thanks so much.

Ramzi Hamady, Chief Financial Officer, NuScale: Thank you, Mark.

John Hopkins, President and Chief Executive Officer, NuScale: Operator, are we complete?

Ramzi Hamady, Chief Financial Officer, NuScale: God, I can’t hear anything either. I hope it’s not just you or me on the line.

Conference Operator: My apologies. We’re here. We do have a final call a final question from Brian Lee with Goldman Sachs. Go ahead, Brian. Your line is live.

Brian Lee, Analyst, Goldman Sachs: Hey, guys. Good afternoon. Thanks for squeezing me in. Apologies. I jumped on late, so some of this may be redundant.

But I caught the last tail of the question right before me. Were you could you provide us an update kind of on on rope power timing and kind of what the milestones are? I I thought that was one where originally you guys are maybe targeting as as early as of calendar twenty five to to see something kind of FID there. But can you give us the latest on where Row Power stands? And then I had a follow-up.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. Yeah, certainly. Yeah. We just commented earlier that we are a subcontracted floor corporation is the prime. The customer, we’ve been working with them on a regular steady state basis, and we’ve been told that their final investment decision is a phased approach.

However, final determination to proceed with the project is probably looking to be ’26, later part of ’26 is what we’ve been informed right now. That could change, but that’s that’s what we’re working towards.

Brian Lee, Analyst, Goldman Sachs: Okay. Fair enough. And so, presumably and, you know, I think you guys have been public about targeting maybe a US based customer being your first to move forward sometime by the end of this year. Is that still kind of the target? And what are the latest discussions you’re having with some of your key constituents on The U.

S. Customer side of things? And then maybe if I could just squeeze one last one in. The Trump executive orders, obviously, we’ve all gone through those. It seems like there’s some action happening behind the scenes, things kind of moving forward, solicitations, etcetera.

Could you kind of give us a bit of an update as to where your visibility stands around some of the executive orders and maybe where NuScale is best positioned to potentially see benefits from those moving forward? Thank you.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. For us on executive orders, from an NRC perspective, as we commented earlier, we did get our 77 power upgrade license. So much of what we’re working with the NRC today is the construction operations license agreement. And we’re hopeful that through the executive orders that process will streamline. And we can get we can obviously construct earlier, but from an operating perspective, we can hopefully streamline that and get in the ground quicker.

As it relates to customers, we’re getting inundated now. We’re focused, as I said, with our resources working with our developer partner, InterOne, on two or three major customers that we’re still forecasting having what I call hard contracts in place by the end of this year twenty twenty five. And those are all U. S.-based customers.

Brian Lee, Analyst, Goldman Sachs: Super helpful. Thank you, guys. I’ll pass it on.

Conference Operator: Thank you for your questions. And ladies and gentlemen, that will conclude our Q and A session here for today. I would like to turn it back to Mr. Hopkins for any closing comments.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. Thank you, operator. Again, NuScale continues to make strides towards deploying our technology. And as I commented earlier, with strong tailwinds at our back, we believe we are well positioned to meet increasing global energy demands with safe, reliable and sustainable energy. And right now, as I stated again, those tailwinds appear to be pretty strong moving forward.

So I’d like to thank all of you for your interest in NuScale and for joining us on this call today. Until next time. Thanks.

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