Earnings call transcript: Nuscale's Q3 2025 earnings miss sparks stock slide

NuScale Power Corp reported a significant miss in its Q3 2025 earnings, with an EPS of -1.85 compared to the forecasted -0.13, resulting in a surprise of 1323.08%. Revenue also fell short at $8.24 million against a $11.55 million forecast. In response, the company's stock fell 14.38% during regular trading and an additional 1.5% in aftermarket trading.

Key Takeaways

• NuScale's Q3 earnings and revenue significantly missed expectations.
• The company's stock saw a sharp decline following the earnings release.
• Liquidity improved with a substantial increase to $753.8 million.
• NRC approved a 77 MW upgrade for NuScale's SMR technology.
• Future earnings forecasts indicate continued challenges.

Company Performance

NuScale Power Corp's Q3 2025 performance showed significant financial challenges, evidenced by a substantial miss in both earnings and revenue compared to forecasts. Despite these setbacks, the company reported increased liquidity and continued advancements in its small modular reactor (SMR) technology, which remains the only one with U.S. Nuclear Regulatory Commission (NRC) approval.

Financial Highlights

• Revenue: $8.24 million, up from $500,000 in the same period last year.
• EPS: -1.85, significantly below the forecast of -0.13.
• Liquidity increased to $753.8 million from $489.9 million in June 2025.

Earnings vs. Forecast

NuScale's Q3 2025 earnings per share of -1.85 fell far short of the expected -0.13, marking a 1323.08% negative surprise. Revenue also missed forecasts by 28.66%, coming in at $8.24 million compared to the anticipated $11.55 million.

Market Reaction

Following the earnings announcement, NuScale's stock price dropped 14.38% in regular trading and an additional 1.5% in aftermarket trading. This decline reflects investor concerns over the company's financial performance and future earnings potential.

Outlook & Guidance

NuScale's forward guidance indicates continued challenges, with EPS forecasts for upcoming quarters remaining in negative territory. The company is targeting a commercial operation date for its first Inter One energy plant by 2030 and anticipates multiple project announcements.

Executive Commentary

"NuScale continues to be ahead of the competition as we remain the first and only small modular reactor technology provider to obtain design approval from the U.S. Nuclear Regulatory Commission," stated John Hopkins, CEO. CFO Ramsey Hamady added, "These PMA payments are all just baked into the business plans, baked into the economics."

Risks and Challenges

• Continued financial underperformance and negative earnings surprises.
• Market volatility impacting stock prices.
• Execution risks related to ongoing and future projects.
• Regulatory and competitive pressures in the nuclear energy sector.

Q&A

During the earnings call, analysts inquired about the ongoing discussions with TVA regarding a Power Purchase Agreement and sought clarity on the milestone payment structure with Inter One. Executives also addressed questions about Inter One's project development capabilities and potential expansions.

Full transcript - Nuscale Power Corp (SMR) Q3 2025:

Operator: Good afternoon and welcome to NuScale's third quarter 2025 earning 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. The web replay will be available for 30 days following the earnings call. At this time, for opening remarks, I would like to turn the call over to Rodney McMahan, Senior Director of Investor Relations. Please go ahead.

Rodney McMahan, Senior Director of Investor Relations, NuScale: Thank you, Operator. Welcome to NuScale's third quarter 2025 earnings results conference call. With us today are John Hopkins, President and Chief Executive, and Ramsey 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 this presentation and discussed during the course of our remarks in the subsequent Q&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 contribute to differences in our expectations in our annual report on Form 10-K for the year ended December 31, 2024, and our quarterly reports on Form 10-Q and our subsequent SEC filings. I'll now turn the call over to John Hopkins, NuScale's President and Chief Executive Officer.

John Hopkins, President and Chief Executive Officer, NuScale: Thank you, Rodney, and good afternoon, everyone. NuScale continues to be ahead of the competition as we remain the first and only small modular reactor technology provider to obtain design approval from the U.S. Nuclear Regulatory Commission, or NRC, making our technology ready for commercial deployment. The pipeline of potential off-takers for power generated by NuScale's technology is stronger than ever, and we believe we are nearing the realization of a commitment to deliver NuScale power modules at scale. Now, turning to slide three, we list NuScale's third quarter highlights, which we'll discuss in more detail in a moment.

They include the recent Tennessee Valley Authority, or TVA, and Inter One Energy announcement on the deployment of up to 6 gigawatts of new nuclear capacity using NuScale technology, the continued work on Florida's phase two front-end engineering design, or phase two study for the RoPower Dorchester power plant, and the critical strengthening of our cash position as we enter this vital stage of commercialization. We are excited about the significant momentum we have continued to build this quarter. Turning to slide four, in September. Our global strategic partner, Inter One, announced a landmark agreement with TVA to deploy new nuclear generation capacity powered by NuScale's SMR technology. This project marks the largest SMR deployment program in U.S. history. It contemplates a capacity of 6 gigawatts, which represents a total deployment of approximately 72 NuScale power modules and up to 6 Inter One Energy plants in the TVA territory.

Which covers all of Tennessee, portions of Alabama, Mississippi, Kentucky, Georgia, North Carolina, and Virginia. To put it in perspective, that is enough electricity to power the equivalent of the entire Dallas-Fort Worth metropolitan area. NuScale is excited to support the development of new nuclear generation capacity in the U.S. in partnership with Inter One and TVA. Additionally, just last week, the White House announced it will mobilize up to $550 billion in public and private sector investment to expand critical energy infrastructure and strengthen supply chains under the newly signed U.S.-Japan framework agreement. As part of this initiative, Inter One is positioned to receive up to $25 billion in investment capital to develop a fleet of power plants utilizing baseload energy sources, the only developer that was included in this framework.

The program will serve fast-growing energy demand for AI data centers, advanced manufacturing, and national defense, while creating thousands of high-quality American jobs and reinforcing U.S. energy independence. We anticipate the first Inter One energy plant to deliver power to TVA as early as 2030, with additional plants phased in as demand grows. Before moving on, I want to take a moment to further highlight our relationship with Inter One. For over three years, we have been working with Inter One on the deployment of our SMR technology, and with this historic TVA announcement, as well as the U.S.-Japan framework agreement, our commercialization strategy is starting to resonate. This is a pivotal time for the nuclear sector, driven by favorable regulatory policy and increasing power demand.

As that demand for reliable, always-on, and carbon-free power grows, we believe our partnership with Inter One enables off-takers to benefit from nuclear power without taking on plant ownership or operational risk. We believe that benefit, combined with our supply chain readiness and being the only company with NRC-approved SMR designs and modules currently in production, uniquely positions NuScale to meet this important moment. In conjunction with the TVA and Inter One announcement, we entered into a partnership milestone agreement, or PMA, with Inter One to accelerate the commercialization of our SMR technology as outlined in slide five. Under this agreement, NuScale will provide milestone-based payments to Inter One as projects advance through key stages as outlined here. As it relates to the PMA, milestone one was met on September 2, 2025, when the agreement was announced.

Ramsey will discuss this milestone later in the call, but I want to take a moment to explain a little bit more about the milestone payment structure. These payments reflect project costs that NuScale would typically incur later in the process, such as development, project management, and other services. By accelerating these payments, we are helping Inter One reach key milestones more quickly, unlocking financing and speeding up construction. We believe this upfront commitment secures NuScale's technology as the foundation for the largest planned SMR program in U.S. history, with a marquee energy off-taker in the form of TVA. As we lay out slide six, establishing the PMA was a strategic decision to catalyze commercialization, motivate our supply chain to invest, facilitate multiple projects, and accelerate the deployment of NuScale's technology. Looking ahead, this model is designed to be repeatable and scalable.

We'll discuss specifics in a moment, but it's important to note that our PMA with Inter One is a template for additional projects, both in the U.S. and globally. Since the TVA and Inter One announcement, we collectively have seen a strong uptick in interest from other potential off-takers who want to deploy SMR solutions, as well as from our supply chain partners eager to support the commercialization of our technology. Turning to slide seven, with the 77 MW upgrade now successfully approved by the NRC, our regulatory license affair team has shifted its focus to the combined operating license application, or COLA, management process to ensure the effective commercial development and deployment of NuScale's SMR technology at multiple Inter One power plants. For background, the COLA builds on the NRC approval NuScale already has, but is submitted by the customer and includes site-specific information.

It is an integral step in bringing full-scale commercial nuclear power plants that will provide safe, scalable, reliable, and carbon-free power to market. We believe no company is more familiar with the licensing process for SMR technology than NuScale. Not only do we have an in-depth technical knowledge of SMR plants, but we have over 10 years' experience successfully navigating regulatory licensing processes and proven pre-application NRC engagement strategies. We believe this expertise makes NuScale uniquely qualified to lead COLA development, and we are eager to take this next step towards deployment. Moving to slide eight, NuScale continues to work with Fluor to support RoPower's goal of developing and employing the first SMR power plant in Romania at Dorchester, the site of a decommissioned coal-fired power plant.

While the coal plant itself is now entirely removed, supporting infrastructure such as roads, switch yards, and grid connection remain intact for repurposing as RoPower works towards deploying nuclear capacity. The project continues to generate revenue and positive cash flow for NuScale in connection with the Fluor-led phase two study. As this critical work on the RoPower project continues, we're also working with Fluor to obtain their input for a final investment decision expected in late 2026 or early 2027. Before I hand it over to Ramsey, I want to take a minute to comment on the market tailwinds we see for NuScale. We all know the challenges and the opportunities facing the U.S. and global energy system. Demand for reliable, always-on electricity is increasing, and the key sectors of the U.S.

Economy are driving it: industries like data centers, AI, advanced manufacturing, and critical infrastructure, along with the broader electrification trend. These sectors are expanding at a pace we have not seen before, and they require power that simply cannot go offline. NuScale is uniquely positioned to provide the power these industries seek by being the only technology approved to provide behind-the-meter power. At the same time, the U.S. is focused on strengthening its energy independence, ensuring grid stability, and supporting economic growth in regions that are attracting new investment and high-value jobs. Utilities and industry leaders are looking for solutions that deliver on reliability, scale, and long-term value. We believe NuScale's SMRs can deliver on these needs. The project involving NuScale, Inter One, and TVA demonstrates this. That is why it is so significant, not just for our company, but for the entire nuclear community.

NuScale, as the leader in this space, cannot be better positioned to meet other off-takers' needs both in the U.S. and around the world. Now over to Ramsey for the financial update.

Ramsey Hamady, Chief Financial Officer, NuScale: Thank you, John. 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 has increased to $753.8 million at September 30, 2025, versus $489.9 million at June 30, 2025. This increase was driven by the sale of 13.2 million NuScale Class A shares through an aftermarket program during the third quarter, which generated $475.2 million in gross proceeds. Partially offsetting this increase was a $148.5 million payment in relation to the PMA milestone triggered by the recent landmark agreement announced by TVA and Inter One. NuScale reported revenue of $8.2 million for the quarter ended September 30, 2025, compared to $500,000 during the same period in the prior year.

This increase was primarily driven by fees received for services we provided to Florida during the quarter in support of the RoPower project. I'll conclude my remarks with a brief overview of our capitalization summary as shown on slide 10 and an overview of the recent agreement between Fluor and NuScale, which allows a structured early monetization of Fluor's investment in NuScale via open market transactions and subject to certain agreed-upon restrictions. Under the terms of the agreement, Fluor may convert all its NuScale Class B units into Class A common stock through a controlled program intended to preserve the fair value of NuScale's equity during the process. In exchange, Fluor has agreed to support NuScale's planned increase of its authorized share count, significantly reduce Fluor's economic rights under the tax receivables agreement, and waive certain claims asserted under its commercial agreements with NuScale.

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.

Operator: Thank you. We will now begin the question-and-answer session. If you'd like to ask a question, please press star then the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, simply press star one again. Thank you. Your first question comes from Derek Soderbergh with Cantor Fitzgerald. Your line is open.

Clayton, Chief Commercial Officer, NuScale: Hi, this is Drew Norquist calling for Derek. Thank you guys for taking questions. I have two questions. First is regarding your supply chain. I saw that Doosan signed an agreement to deliver four Westinghouse AP100s for a different company. I'm just wondering how that's going to impact your ability to secure supply.

John Hopkins, President and Chief Executive Officer, NuScale: No, we've got a relationship with Doosan. We communicate almost every other day. Doosan has come out and publicly stated they have the current capacity of producing 20 NuScale power modules per year and looking to expand that as needed. They have a huge facility, so it's not just limited to NuScale, but the focus that they have on the NuScale modules is dedicated to NuScale.

Clayton, Chief Commercial Officer, NuScale: All right. Thank you. You briefly mentioned the U.S. and Japan agreement. Can you just go into a little bit further detail on that and how it affects you guys?

Ramsey Hamady, Chief Financial Officer, NuScale: Sure. I think what we can surmise from that, which is an absolutely incredible achievement with Inter One, is that we were named. We were the sole group that was named. NuScale and Twin Energy was the sole group named under power development for AI. This is really a historic time. The agreement between Japan and the U.S. is extraordinary. It certainly shows support from a longstanding strategic partner of NuScale. As you'll recall, we have great support from JBIC, JGC, and IHI. To be named specifically and solely in this one area really shows that I think it's really a testament to the connectivity and importance of our technology, both to Japan as a manufacturing partner as well as potentially a customer, and to America and our stakes for clean power to drive AI. This was a tremendous accomplishment, really.

I think it's a tremendous accomplishment, if I can say, to the Inter One group. Look at the other names that were named here. Gulf Bank, GE, Hewitt, Bechtel, Westinghouse. Name it. Toshiba, Hitachi. These are Mitsubishi even. These are the biggest names in technology. These are big names in power. For us and Inter One to be named inclusive in that group, it's really an extraordinary achievement. I'm glad you brought that up.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah, I'd like to just add and reiterate. I'd like to add and reiterate what was stated. I mean, Inter One was the only developer mentioned. And Inter One, they're looking to develop a fleet of power plants utilizing baseload energy sources. The program will serve for fast-growing demand for AI data centers, as Ramsey alluded to, but also national defense and manufacturing. We were quite excited about being mentioned in that group of companies.

Clayton, Chief Commercial Officer, NuScale: I'm going to further add one other point. I think as people, a lot of people would ask early on who's Inter One, where are the capacities, what is their connectivity. I think this past quarter, both with this agreement with Japan, as well as the announcement in relation to TVA that I'm sure we'll be asked about, we'll speak about later in this call, I think we've shown the markets, we've shown everyone just how far this combination of Inter One and NuScale can take us. This is, again, I think the details are still emerging of this, but really it's a tremendous accomplishment. We're super proud and we're grateful to be included in this. Thank you, guys.

Operator: Your next question comes on the line of Eric Stine with Craig-Hallum. Your line is open.

Clayton, Chief Commercial Officer, NuScale: Hi, everyone. Thanks for taking the questions. Can we just start—hey, can we just start with the TVA setup you've got? I mean, just to be clear, because I've taken some questions and it's clear that some people are a bit confused by it, but we should view this as this is a very critical step towards getting to your goal, which is a firm agreement by the end of 2025. This isn't necessarily that step, but it is a great indicator that you've kind of got all of the pieces in place and now it's about getting that PPA signed. Is that right?

John Hopkins, President and Chief Executive Officer, NuScale: Yeah, that's correct. I mean, I'm sorry. Go ahead, Ramsey.

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

John Hopkins, President and Chief Executive Officer, NuScale: No, no. I mean, this just did not happen overnight. It was a long term, almost a year between TVA and Inter One coming to terms and the term sheet. To your point, what we are excited about for NuScale, this represents 72 potential modules on multiple sites with Inter One. We are excited about it. TVA also being a government entity, although they operate like a public company. Having the government stature behind it, I think it is going to be a good thing. Inter One is already in the process right now of hopefully finalizing these PPAs, and then this thing, it becomes very real. I do not know if Clayton is on the phone. Clayton is our Chief Commercial Officer who has been intimate in working through this process. Are you on, Clayton?

Clayton, Chief Commercial Officer, NuScale: Yeah, John. I'm on. Thanks. Yeah, this is something that, as John stated, we've been working for quite some time, and it's an exciting opportunity. Inter One is getting ready to move this forward, and we'll be prepared to support the path and bring this to fruition.

John Hopkins, President and Chief Executive Officer, NuScale: Got it. Very exciting, no doubt. We'll stay tuned on that. Maybe just on the agreement that you announced today with Fluor, just on the monetization. In there, you talk about waiving certain—I am trying to look—waiving certain claims related to commitments. Can you just talk—I mean, does that change at all or signal something on Fluor's commitment? Is it unchanged, or is that maybe opening it up that you can work with Fluor and you can work with others?

Ramsey Hamady, Chief Financial Officer, NuScale: Eric, I'm going to take your question and use it as kind of a stepfire to talk more broadly about the agreement. Because I think it just came out, and I think it requires some clarity here. Think of two ideas. The first is there's a natural maturation of NuScale. Essentially, we're a technology company. We don't develop projects. Inter One is a project developer. They're an exclusive commercial partner. They're a strategic partner. Fluor is an EPC company. I think strategically, for an EPC company to have such a heavy investment, a pure tech company. It may not align fully with the EPC company shareholders. There's a natural maturation for Fluor's investment. They've been investing for a very long time. NuScale has grown significantly at some point. I think we're north of 80% or 90% of their market cap, I believe.

Look, we're all market savvy here. We understand that different investors have different objectives. NuScale investors have seen a 15x return since our lows over the past two years. Amazing. An EPC investor doesn't necessarily look for that sort of risk-return profile. I think it's natural for Fluor just to see a maturity of their investment. It's not a loss of support. It's not breaking the relationship. We made connectivity with Fluor. We still provide engineering work to Fluor. Fluor still sits on the board. Inter One still has had decades of experience with Fluor. We designed a framework where Fluor will exchange and monetize in a very deliberate, very early manner. We're working together. The program's structured to have minimal impact. Even Fluor is a shareholder, so we expect Fluor has designed it as well as we have to have minimal impact on the market.

The idea of the reduction of economic rights is value delivered to our shareholders because there are economic rights under the B units. Fluor has agreed to give some of those up. That is a win for us. Certain rights related to commercial agreements with NuScale, I think it just is a release of certain obligations of NuScale in relation to some EPC work. Again, as we have evolved, we are not really developing projects. It is just the logical outcome of this.

Clayton, Chief Commercial Officer, NuScale: No, that's great. I mean, that's kind of how it read, but just wanted to confirm. So I appreciate it. Thank you.

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah, thank you.

Operator: Your next question comes from Leanne Hayden with Canaccord Genuity. Your line is open.

Leanne Hayden/Dimple Ghasive, Analyst, Canaccord Genuity/Bank of America: Good afternoon, everyone. Thanks so much for taking my questions. Just want to follow up on the Inter One TVA agreement discussed prior. What do you view as the gating factors to Inter One site evaluation or construction permit NRC application?

Clayton, Chief Commercial Officer, NuScale: I think one of the—yeah, John, I think one of the benefits of working with Inter One and TVA is they clearly have a number of sites that have gone through previous preparation approvals and early site permits. That falls in well with the strategy of focusing on tier one sites to move forward. I think the evaluations that I've seen and participated with Inter One and TVA, that we have a clear view on which sites make sense to progress. The benefit is that TVA is well suited to support that.

Leanne Hayden/Dimple Ghasive, Analyst, Canaccord Genuity/Bank of America: Okay. Thank you. To the extent that there are any limitations on your ability to raise incremental equity given the monetization agreement with Fluor, how do you anticipate meeting Inter One milestone payments?

Ramsey Hamady, Chief Financial Officer, NuScale: Leanne, hi. This is Ramsey. How are you?

Leanne Hayden/Dimple Ghasive, Analyst, Canaccord Genuity/Bank of America: I'm good, Ramsey. How are you?

Ramsey Hamady, Chief Financial Officer, NuScale: Good, good. Look, I think as we've demonstrated. Even during the quarter, we were able to raise a fair amount of cash from the markets. A sensible amount of cash, I should say. At the end of the quarter, it's over $750 million worth of cash. The restrictions that we've put in terms of our ability to raise funds are in line with our budgeting. They're in line with our objectives to support shareholders and ensure that there's not selling pressure in the market that is excessive or that sparks in historic market pricing. We've taken a very careful consideration of what the milestone payments are, when we anticipate to receive them or to pay them, pardon me, and their funding liquidity needs. There's been a lot of work that goes in behind that.

Leanne Hayden/Dimple Ghasive, Analyst, Canaccord Genuity/Bank of America: Understood. Thanks, everyone.

Ramsey Hamady, Chief Financial Officer, NuScale: Thank you.

Operator: Your next question comes from Joseph Osha with Guggenheim Partners. Your line is open.

John Hopkins, President and Chief Executive Officer, NuScale: Hi, there, guys. Thank you for taking my question. I was wondering if we could return to Inter One a little bit. Obviously, Wadi Haboush and Robert Fardy are very well-connected guys and spent some digging there. I'm trying to understand, has Inter One ever built or owned or operated anything? If they haven't, I guess, where are the boots on the ground going to come from? It looks, all respect due to these guys, they're very well connected. There are pictures of them with Trump and so forth. I'm trying to understand where the actual operational capabilities and history of Inter One are. Thank you.

Yeah, I can start. They're an independent global energy company. They have, to your point, over 45 years as a Haboush Group. Years of experience delivering large-scale energy and infrastructure projects worldwide. In fact, part of the due diligence we went into the program was looking at their extensive knowledge of building coal-fired plants, combined cycle plants. They've had a lot of—it's a family name, but it's not well-known in the industry, but they've had significant experience in building these plants globally. You've been working pretty closely with them, Clayton, and you're part of that due diligence process. Do you have anything else to add?

Clayton, Chief Commercial Officer, NuScale: No, I mean, they've built a lot of plants. They've also done a lot of large-scale infrastructure projects globally. They have the ability to ramp up and bring in significant partners. Their relationships are far and wide, not just from a political perspective, nor on the financial side. They're certainly tied in the infrastructure companies. They had Cogentrix at one time prior to them divesting it. So they have a lot of experience, in my opinion, as far as building infrastructure and ramping. They've done a lot of diligence on the technical side and on the construction side. We're quite confident that they will be ready to promote these plants and move them forward.

Ramsey Hamady, Chief Financial Officer, NuScale: Good, Clayton.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah, you made a good point.

Can I follow up here? It sounds to me like you're talking about Haboush Group, which is fine. There's no information about any projects on Inter One that Inter One has done at all. If it's Haboush Group, that's fine. That's a big company, and they've done a lot, and that's great. Are you telling me that Inter One has built and operated projects? I guess if so, what? Because there's no information about any of them on their website.

Ramsey Hamady, Chief Financial Officer, NuScale: Sorry, let me—if I may. Yes, we are talking about the principals of Inter One that have developed projects.

John Hopkins, President and Chief Executive Officer, NuScale: All right. Inter One is really set up. Inter One was set up for the purpose of Entra, energy transition. That was the focus of the company. I would shy away from the idea that Inter One hasn't developed, for example, an SMR project, because nobody has. I'd shy away from the idea that Inter One may not be able to build power plants because Inter One doesn't pour concrete, and they're not operating yellow trucks. Right? Inter One is hiring the biggest EPC companies and construction companies with experience in energy and infrastructure to do this work. They're a developer. It's not like they're not out there building the power plants. I think we need to pause for a second and separate what's the value of Inter One and their ability to.

Coordinate projects, to bring in partners, to get deals, and the partners that they bring in that can execute and have executed on power plants in the U.S. and elsewhere. That is really what we are talking about, guys. All right. We will take this up further. Thank you. I appreciate the additional color.

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah, no worries.

Operator: Your next question comes from Ilana Sondaria Iyer with B. Riley Securities. Your line is open.

Speaker 9: Hi, team. Thank you for taking my questions. I'm asking on behalf of Ryan Pfingst. My first part would be, what's your confidence level that we see a binding agreement with TVA in the near term, and what has to be done for that to happen in the near term? Secondly, is TVA agreement the main one we are looking for as a firm order, or is there a possibility that we could see another agreement jumping in line?

Ramsey Hamady, Chief Financial Officer, NuScale: Clay, I don't know if you handle this one.

Clayton, Chief Commercial Officer, NuScale: I think there's limited information we can provide on the details of where they are contractually. However, we're very confident that things will move forward in a timely manner, and we're excited about it. In addition to what they've announced with TVA, their pipeline is fairly robust, and we anticipate to see some other things coming in the near-term future. Some of that is probably aligned with some of the reasons mentioned earlier around the Japan deal. We are confident that Inter One will be moving forward with some other announcements. Regarding TVA, all we can really say is that they're trying to finalize their documents and agreements at this point.

John Hopkins, President and Chief Executive Officer, NuScale: There was a few weeks ago, we had a— It was at the Combined Nuclear Energy Institute, American Nuclear Society. There was about, I don't know, 1,600 people there. We were on stage with the CEO of TVA, Don Mall, myself, and the CEO of Inter One. We kind of walked through the process of TVA. The CEO of TVA was very bullish on wanting to get nuclear. They are working with other companies, as you know, as well. Bottom line, we are still the nearest term, the company that's near-term deployable. We can, in fact, we are the only company that can do behind the meter. We have gone through the NRC process. If you want to expedite, and if this administration wants to move quickly, it's with NuScale.

Speaker 9: Got it. No. Thank you. Thank you for the color. Just to follow up on the financing question asked earlier. Once you hit the milestone two, could you give some color on your avenues to finance these payments, especially as they become greater in size? I think it is 35%.

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah. We have a number of avenues to finance the payments. We have cash on hand. We have capital markets activity. It is our expectation that soon we'll have revenue-producing activity. I do not think we're very concerned about the ability to finance this. I think for us, it's more the idea—look, the overall idea isn't how we finance the partnership milestone agreement. That I think we can see a way to. People who follow us, who understand our movements in the market, who see our pathway to raise funds understand that. I think the important part of the partnership milestone agreement is that this is a catalyst. The money that we're investing here is a catalyst to commercialization. This is pushing projects forward. How do we fund the PMA payments? It depends how many SMRs are in a PMA.

If it is 12 or it is 24, the maximum within that bucket before that moves to OEM is 24. Can we fund the 24? Yeah, we can absolutely fund it. We can fund it off our balance sheet today if we want to.

Speaker 9: Yeah, that makes sense. Thank you, guys. I wish you luck. I'll turn it over.

John Hopkins, President and Chief Executive Officer, NuScale: Thank you.

Ramsey Hamady, Chief Financial Officer, NuScale: Thank you.

Operator: Your next question comes from Dimple Ghasive with Bank of America. Your line is open.

Leanne Hayden/Dimple Ghasive, Analyst, Canaccord Genuity/Bank of America: Thank you. Good evening, team. Could you please help provide some clarity on how many of those 6 gigawatts under TVA are likely to reach a binding milestone under your partnership agreement? What are the expected timing and economics for NuScale? The second part to that is, have any payments been made to date to recognize? How do you envision recognizing revenue and cash from Inter One milestones across 2026 to 2028? Thank you.

Ramsey Hamady, Chief Financial Officer, NuScale: Clay, do you want to take the first part of that? I'll take the second.

Clayton, Chief Commercial Officer, NuScale: I didn't understand. I didn't catch the very first part, so.

Ramsey Hamady, Chief Financial Officer, NuScale: How many of the six projects do we hope to achieve with TVA, and what timeframe? I think the answer would be all six.

Clayton, Chief Commercial Officer, NuScale: Yeah. Correct.

Ramsey Hamady, Chief Financial Officer, NuScale: Sometimes timeframe maybe can provide some insight into what you think of the development timeline.

Clayton, Chief Commercial Officer, NuScale: I think, as we mentioned earlier in the call, that we're looking at a timeline as soon as 2030 for COD on the first plant and then a follow-up thereafter. Yes, the intention is to fulfill the full 6 gigawatts.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. Do not forget, we have already got 12 modules under production for the first plant, which is hopeful by the end of the decade will be COD, as Clayton said. Each of these plants are 12-module plants, which ultimately represents 72 modules for our suppliers and us to bring to these sites. Right now, our focus is to get the first one in the ground and running.

Clayton, Chief Commercial Officer, NuScale: Inter One's working on what that model layout is. They'll reveal that to us at the appropriate time.

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah. In terms of our accounting treatment. I think. A precise explanation of how we have accounted for the first set of payments. So stage one of the PMA agreement, it's included in our 10Q under our accounting policy. And there's more details about the PMA. I think that's better for you to refer there. I will say that's an expense as it shows up as an expense in our income statement. PMA payment two, TBD. I think our preference, obviously, is to capitalize rather than to expense. That's TBD. We'll figure it out when we get to the PPA. We'll determine what it looks like. We'll determine what the appropriate accounting treatment is. I think on the third stage of the milestone payments, the OEM agreement.

I think we're fairly certain there of our ability to capitalize those expenses, which will then be deducted from future revenues. Again, I would refer you to the Q2 to just take a look at our accounting policies and how we've analyzed the first PMA payments.

Leanne Hayden/Dimple Ghasive, Analyst, Canaccord Genuity/Bank of America: Terrific. Thank you.

Operator: Your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open.

Brian Lee, Analyst, Goldman Sachs: Hey, guys. Good afternoon. Thanks for taking the questions.

Ramsey Hamady, Chief Financial Officer, NuScale: Hey, Brian.

Brian Lee, Analyst, Goldman Sachs: Hey, how's it going? I know a lot of questions around this. Inter One TVA. So apologies in advance because I have a few more. The agreement here is targeting 6 gigawatts. And it looks like based on the first milestone payment you made this quarter, you're targeting the full 6 gigawatts. As you mentioned during part of the call, TVA is looking at other options across the nuclear technology spectrum. I won't name the names, but it's been in the press. If TVA decided, rather than doing 6 gigawatts, they want to do—I’ll just throw a number out there—1.5 gigawatts. 1 gigawatt with NuScale MPMs. Do you get that money back from Inter One, or does it roll over to another development? You're paying basically for 6 gigawatts on a non-binding basis. What happens if they never take that to fruition and get to.

PPA on the full 6 gigawatts?

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah, Brian, it's a great question. The payments would roll into the next project if those term sheets do not materialize into a PPA agreement. It's not like it's money out the door, it's money gone. That money kind of stays in the system. I think another important concept here is that once we start the machine and once you have continued movement from term sheet to PPA to OEM, as we expect, as we commercialize, as we scale up, you'll start to see those payments kind of rolling through. They'll almost become self-funding through projects. Because that's really what it is, Brian. It's like we develop a technology, we manufacture an SMR, Inter One is a wholesale distribution partner, and they place those SMRs into projects. These PMA payments, these are all just baked into the business plans, baked into the economics.

Really, this is a question of timing for us rather than a question of absolute financial impact. By forwarding the timing of some of those payments, by forwarding that to Inter One, it allows them to commercialize faster, allows us to catalyze this kind of progress, this great momentum that we have. Ultimately, we say this firmly, we think this is in the best interest of shareholders to push this forward.

Brian Lee, Analyst, Goldman Sachs: Yep. Understood. That makes sense. Second question I had was just. Ramsey and Clayton, I think you guys have spent a lot of time on this call. Sort of talking about Inter One and. Articulating why that's the right partner, the right approach to go to market. Also on the financial terms, lots of. Commentary around how the payments work and having the funding in place to be able to satisfy the milestone payments all the way through PPA. I guess the big question that we all have on our mind is, when does NuScale get paid from Inter One? I would presume it's at PPA.

If you get to PPA on the 6 gigawatts, based on, again, you said it's in the queue, there's over $3 billion of payments you will have paid to Inter One over the course of all these milestone payments to get to PPA. My simple question would be, when you get to PPA and you get into an equipment agreement with them, do you anticipate you'll get $3 billion on day one to pay that money back? Or is that a ratable sort of revenue rec over multiple years where you still don't accrue $3 billion plus that you spent with Inter One until year, pick your number, T plus, I don't know. Just can you give us a sense? I understand the milestone payments. That's specified in very clear detail. How are you guys going to monetize this? What's the timeline for that?

At least recapturing the $3 billion plus you would have paid to Inter One by that point in time?

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah, Brian, I'll give you a partial answer that maybe Clayton can hop in as well. I think that the example of getting 6 gigawatts worth of SMR orders immediately or within a very short period of time, aspirational, incredible, probably not a likely outcome, even just given supply chain and capacity constraint, our ability to deliver SMRs. It's not to say that we don't expect to get every single one of those, but we hope to. It's not going to happen all at once. When we talk about the PMA payments, I think that we can discern between some of the early-stage PMA payments, like the term sheet and PPA, versus the OEM payment. I think on the OEM payment, that will be a net cash positive for NuScale.

Because as money is owed in relation to an OEM contract that we receive, the final stage of that PMA in relation to an SMR, we also receive money for production. I would not cut in half what we anticipate the actual cash out. Because we can really net, we anticipate netting a third milestone payment. Just to say, yeah, when you look at an overall scale, do we pay out $3 billion if we are going to be in order for 72? Probably not. We do think that there is going to be an effect on the third payment. We think that the orders will come in stages, Brian. As I said, once that engine starts running, once we start moving projects through the pipeline, SMRs through the pipeline, those PMA payments will become self-funding.

Brian Lee, Analyst, Goldman Sachs: Okay. Understood. We'll follow up on that.

Ramsey Hamady, Chief Financial Officer, NuScale: Was that clear for you?

Brian Lee, Analyst, Goldman Sachs: Yeah. No. I mean, we're all searching for more details, but we'll take some of this offline. Thank you, Ramsey.

Ramsey Hamady, Chief Financial Officer, NuScale: Sure. Of course.

Operator: Your next question comes from the line of Marc Bianchi with TD Cowen. Your line is open.

Marc Bianchi, Analyst, TD Cowen: Hey, thanks. I guess. You kind of talked about this earlier and then mentioned it in the conversation just now with Brian. The first projects that move towards this next milestone of a PPA would not be the full 72, but maybe it is 12 or 24 modules. The first part is maybe just correct me if I am understanding that incorrectly. The real question is, how do you or how does Inter One anticipate entering into a firm PPA agreement with TVA if the cost might be a bit of a moving target? How do they—that is kind of a classic challenge with all of these first-of-a-kind projects. I am just kind of curious how that is being addressed.

Ramsey Hamady, Chief Financial Officer, NuScale: Clay, I'll let you or John take that one.

Clayton, Chief Commercial Officer, NuScale: I have to be—I think we have to be cautious. I mean, I can say that. I think the discussions around the PPA and the cost structure or the pricing structure, I think, is somewhat established. I do not think they are going to get into a firm PPA unless that resonates to allow them to move the project forward positively. I do not think we can really go into details. That is really not a part that would be of concern to me.

Marc Bianchi, Analyst, TD Cowen: Clayton, does that mean that there needs to be a long series of front-end engineering work to kind of clearly identify that cost to give certainty and comfort to TVA as an off-taker? And to Inter One, who would be presumably taking the risk if there is a cost overrun?

Clayton, Chief Commercial Officer, NuScale: I think all of that is kind of factored into the final net number. On the cents per kilowatt. I think, yes, they're all contributory. I think they've all been kind of identified from what I can understand.

Marc Bianchi, Analyst, TD Cowen: Gotcha. Okay. The other one I have was just on RoPower. Still looking for end of 2026, early 2027 for an FID. Are there going to be any interim updates on that project as the FEED study progresses? Is there anything that we can look out for on the horizon that would be an intermediate update?

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. We talk to RoPower, Mark, almost once a week. In fact, I was just talking with the CEO of Nuclearelectrica, who RoPower comes under. As you remember, we're a subcontractor to Fluor. We're doing the FEED phase two right now. They're paying us. We got our licensing payment. They're looking at FID, final notice to proceed towards end of 2026, 2027. We will definitely keep you updated as this project goes along quarter by quarter.

Marc Bianchi, Analyst, TD Cowen: Right. Right. Okay. What about.

John Hopkins, President and Chief Executive Officer, NuScale: Right now, to your point, I mean, we've not, as I stated before, we're getting paid, and it's been a good project. Romania is very aggressively trying to establish their own Central Eastern European manufacturing hub, SMR. So we're hopeful they're successful. They have their own regulator. They are into the nuclear with Chernobyl, with CANDU reactors, so it's not that they're unfamiliar. We're hoping they can get the funding necessary to carry it on to the final phases of projects.

Marc Bianchi, Analyst, TD Cowen: Yep. Yep. Okay. Thanks for that, John. Just one more real quick to go back to the Inter One arrangement and TVA. So the $500 million or $495 million that's going for this first milestone, you guys talked a little bit about it in the prepared remarks, I think, about sort of giving supply chain certainty and stuff. But that's a lot of dollars. Could you maybe go through a little bit more about what Inter One's going to use that money for and kind of how it helps move the project forward?

Ramsey Hamady, Chief Financial Officer, NuScale: Sure. I can answer that. I think the short answer is that Inter One pushes that money into project development. I do not have a source that uses to share. But we know that Inter One has pushed forward with this term sheet. There are six projects to develop. There are sites that have been named. There is early work to be done. A lot of that just goes into catalyzing the commercialization of our technology. I mean, it is not. We are not saying there. We are not saying there and kind of taking, like, a fine-toothed comb to the spend, except that the spend is towards projects. It is towards the development of our projects. I think this is the most critical thing for NuScale. It is to forward these, right? We know that Inter One has done a lot of work here. They put a lot of effort into these projects.

They continue to put a lot of effort. First dollars in are very difficult and very challenging to get. This is supporting up the commercialization. I think that's—and, Clay, you've developed more nuclear plants than I have. You probably can articulate how what early development looks like better than I can on this one.

Clayton, Chief Commercial Officer, NuScale: I think you stated it well. I mean, there are six projects, up to six projects. And there is a lot of front-end work that needs to be done. It is all to catalyze and move this forward.

Marc Bianchi, Analyst, TD Cowen: Yep. Yep. Okay, guys. Thanks so much. I'll turn it back.

Ramsey Hamady, Chief Financial Officer, NuScale: Great. Thank you.

Operator: Your next question comes from Vikram Bagri with Citi. The line is open.

Vikram Bagri, Analyst, Citi: Good evening, everyone. I wanted to follow up on a few questions asked previously, obviously aware of the principals at Inter One and their standing in the industry. The entity itself is new and appears that the entity does not have much in terms of assets as of yet. As you're aware, nuclear deals are complex. If for any reason this deal does not go forward or, to say, this devil's advocate, this corporate marriage ends up in divorce, how do you protect your interest? The payment you're making is quite substantial, $500 million. Are there any safeguards in place to protect your interest if things do not go as planned? Is there anything in place to sort of safeguard or protect that payment?

Ramsey Hamady, Chief Financial Officer, NuScale: Yeah. I'll tell you, yes. Are there safeguards? Absolutely. The money that we put out now for the term sheets in relation to TVA will roll into other term sheets for other projects if TVA somehow disappears, right? I still struggle—and I guess the market continues to struggle—with this idea of who Inter One is and what they've done, right? There was so much questioning about the Inter One team, about the principals of Inter One, the backing of Inter One. Now they come out and they signed a term sheet for 6 gigawatts, 5.5 gigawatts of power with TVA, with the U.S. government. We're still getting these same questions. Then they go and they secure with the Japanese, they secure a place in this tremendous, this landmark Japanese investment into the U.S. We were the sole group. TVA—sorry, Inter One and NuScale.

We're the sole group that was named under this, right? There's one. Number two, if you look at this joint fact sheet, number two, power development for AI, NuScale, Inter One Energy. At what point—and I'm asking our analyst group collectively—at what point do you stop doubting this partner? When. TVA, 6 gigawatts, a term sheet signed. A place with the Japanese government. Named for investment. Let's come back to reality, guys. We picked a partner. We picked an amazing partner. The partner has delivered and is delivering. Yet we're still questioning, "What if, what if?" We're committed to the partner. The partner has done a great job. I think we need to recognize that.

Vikram Bagri, Analyst, Citi: Sure, Ramsey. I mean, I'm asking because it's just good corporate practice to protect your interests and put safeguards in place. I get the point. The second question I have is, I was wondering, you were targeting a deal by Iran. Does this deal with TVA meet that commitment to sort of deliver a deal by Iran? Or should we look out for something else? Thank you.

Ramsey Hamady, Chief Financial Officer, NuScale: John, Clay, I'll let you guys answer that.

Clayton, Chief Commercial Officer, NuScale: I didn't hear the part of the question. It was muffled.

Vikram Bagri, Analyst, Citi: I was asking, you were targeting a deal by year-end. If the deal or announcement with TVA meets that commitment, or should we look out for another deal by year-end? Thank you.

Clayton, Chief Commercial Officer, NuScale: Okay. I think we're still looking at the construct of the deal when it gets signed and how that contributes to our classification of a deal by the end of the year. We're kind of working through that right now.

Operator: Your last question comes from the line of Moses Sutton with BNP Paribas. Your line is open.

Moses Sutton, Analyst, BNP Paribas: This is Jonas Bahman for Moses. Thanks for taking my question. Within the PMA agreement, we see a 5% annual escalator on new milestone payments. In our math, that increases the all-in payment per project from $600 a kilowatt to up to $1,200 a kilowatt by 2040. While it may be premature to think that far out, can you confirm this escalator point? How do you weigh it against pricing your modules? Will you keep pricing stable near-term to maybe incentivize module orders? Or should we assume you increase ASPs in tandem with milestone payments? Thank you.

Ramsey Hamady, Chief Financial Officer, NuScale: I'll weigh in, Clay, if you can as well. Yeah. I think projecting out to 2040 is probably a bit of a long projection. In relation to where we're selling modules for, I think the escalation is an inflationary plus is the escalation. Where we see the cost of production of our modules, I think would be the right question because as we're looking at margins, for us, we believe that the cost of production is going to go down as we go from first of a kind to producing, in the case of TVA, potentially up to 72 modules, but really much more. We view this as kind of a very positive idea where we break down our costs while we have an escalator to our pricing. Yeah, we're always going to keep pricing in line with what is necessary to be commercially competitive in the market.

This is a great deal for NuScale, right? We all know when we go from first of a kind to end of a kind, we break down production costs. The manufacturing gets better. It gets more efficient. We optimize the supply chain. I think that was a big win for us.

Moses Sutton, Analyst, BNP Paribas: Great. Thank you. Very helpful.

Ramsey Hamady, Chief Financial Officer, NuScale: Thank you.

Operator: Thank you. With no further questions in queue, I would like to turn the conference back over to John Hopkins for closing remarks.

John Hopkins, President and Chief Executive Officer, NuScale: Yeah. Thank you. I apologize. I'm losing my voice here. A lot of good questions today. A lot of speculation of how this is going to get done. I think Ramsey made a good point. It just was not arbitrary that TVA picked Inter One, NuScale. In the 6 gigawatt potential. It was not just hit or miss that in the Japanese framework, $25 billion is allocated for a developer that we are working with and our exclusive partner, Inter One. Again, we are excited about this. Not only for us. We are excited about the whole industry in general in terms of you see the market signals and what is happening. Demand pull is there. We are excited about it. This next quarter, hopefully, we will have a lot more to report. I am a proofs in the pudding guy.

I can tell you there's a lot of effort and work that's gone into where we are today. We are excited about the future. We believe we have the right partners, the right model, and the collective expertise. My team and I certainly believe that we're ready to deliver and continue to lead in this market. I really would like to thank you all for participating today. Until next time. Thank you very much.

Operator: This concludes today's conference call. You may now disconnect. Thank you.

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