SMR — NuScale Power Corporation

Summary of NuScale's Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Liquidity: NuScale reported a strong liquidity position of approximately $1 billion as of March 31, 2026, which increased to over $1.2 billion by early May 2026.
• Revenue: The company generated $0.6 million in revenue for Q1 2026, a significant decline from $13.4 million in the same period last year. This drop was attributed to the completion of prior technology licensing agreements and engineering services related to the RoPower project.
• Share Count: The total share count increased due to the sale of 3.2 million Class A shares, raising $37.9 million in gross proceeds.

2. Strategic Updates and Business Highlights:

• Regulatory Leadership: NuScale is the only small modular reactor (SMR) company with U.S. Nuclear Regulatory Commission (NRC) standard design approvals for both 50-megawatt and 77-megawatt modules, providing a competitive advantage.
• Supply Chain Partnerships: The company is strengthening its supply chain, particularly with fuel supplier Framatome and manufacturing partner Doosan Enerbility, to enhance readiness for large-scale deployments.
• Project Developments: Progress is being made on the ENTRA1 and TVA power purchase agreement discussions, which could lead to the largest nuclear deployment program in U.S. history. Additionally, the RoPower project in Romania is advancing, with financing discussions ongoing.
• New Operations Center: NuScale opened a new operations center in Houston, enhancing its presence in the energy sector and improving customer engagement.

3. Forward Guidance and Outlook:

• NuScale remains optimistic about securing the TVA agreement and anticipates that a definitive power purchase agreement (PPA) could be finalized later this year. This is expected to lead to site-specific services and pre-FEED revenues, similar to past projects.
• The company aims to achieve operational cash flow positivity by the end of 2026, supported by anticipated revenues from ongoing projects and agreements.

4. Bad News, Challenges, or Points of Concern:

• Revenue Decline: The sharp drop in revenue year-over-year raises concerns about the company's near-term financial health and ability to sustain operations without significant project advancements.
• Project Financing Risks: The advancement of projects like RoPower is contingent on securing financing, which remains uncertain and could delay timelines.
• Supply Chain Bottlenecks: While NuScale has a solid fuel supply strategy, there are broader concerns regarding the nuclear fuel supply chain in the U.S., particularly related to high-assay low-enriched uranium (HALEU) availability.
• Competitive Pressures: The advanced reactor space is becoming increasingly competitive, and while NuScale has regulatory advantages, other technologies are being developed that could impact market dynamics.

5. Notable Q&A Insights:

• Customer Adoption: CEO John Hopkins noted that the adoption of additional contracts is slow due to the complexities of customer decision-making processes, but he remains optimistic about ongoing discussions with potential clients.
• Nuclear Fuel Supply: COO Carl Fisher emphasized that the long-term outlook for low enriched uranium is stable, contrasting with the uncertainties surrounding HALEU, which is primarily sourced from outside the U.S.
• Regulatory Developments: The introduction of NRC's Part 53 licensing framework could potentially streamline regulatory processes, but NuScale is currently focused on leveraging its established Part 52 approvals.
• Revenue Streams: CFO Ramsey Hamady discussed the potential for revenue generation from site-specific services and technology licensing once the TVA PPA is finalized, indicating a structured approach to cash flow management.

Overall, while NuScale is positioned well in the nuclear energy sector with strong regulatory backing and strategic partnerships, it faces challenges related to revenue generation, project financing, and competitive pressures in the evolving energy landscape.