IMSRW — Terrestrial Energy Inc.

Summary of Terrestrial Energy's Q4 and Full Year 2025 Earnings Call

1. Key Financial Results and Metrics

• Net Loss: $28 million for 2025, up from a $17 million loss in the previous year, primarily due to increased expenses related to engineering, regulatory activities, and organizational expansion.
• R&D Expenses: Increased to $10 million, reflecting expanded materials testing and graphite qualification.
• G&A Expenses: Rose to $14 million, largely due to personnel expansion and professional services for public company readiness.
• Cash Position: Approximately $298 million in cash and short-term investments at year-end, bolstered by a business combination with HCM II and PIPE investment, providing a strong financial foundation for growth.

2. Strategic Updates and Business Highlights

• Regulatory Progress: Successful completion of the NRC's acceptance of the Topical Report on IMSR Principal Design Criteria, a crucial step toward licensing.
• Federal Support: Received two OTA awards from the Department of Energy to accelerate advanced reactor development, supporting the TETRA and TEFLA projects.
• Supply Chain Development: Strengthened relationships with key suppliers like Westinghouse and Siemens Energy, enhancing readiness for commercial operations.
• Project Developments: Selected by Texas A&M University to site a full-scale IMSR plant, positioning the project in a rapidly growing electricity market.

3. Forward Guidance and Outlook

• 2026 Expectations: Anticipate announcing 1 to 3 additional commercial IMSR projects, further agreements with Texas A&M, and submission of at least 3 additional Topical Reports to the NRC.
• Long-term Vision: Aiming for a fleet of IMSR plants in the 2030s, establishing a scalable platform for deployment across various markets.

4. Bad News, Challenges, or Points of Concern

• Increased Losses: The rise in net loss and expenses raises concerns about the sustainability of current spending levels without immediate revenue generation.
• Regulatory Complexity: While progress has been made, the regulatory landscape remains complex and could pose challenges to timely project execution.
• Market Competition: The nuclear energy sector is competitive, and while Terrestrial Energy's technology is differentiated, it faces pressure from other advanced reactor technologies and market entrants.

5. Notable Q&A Insights

• Project Maturity: When asked about future project announcements, CEO Simon Irish indicated that specifics would be reserved for formal disclosures but emphasized the importance of defined locations and processes for IMSR projects.
• Licensing Pathways: Irish acknowledged the NRC's recent announcement regarding Part 53 licensing as a potential pathway for commercialization but confirmed that the current strategy remains focused on a Part 50 approach for the first plants.

This earnings call marks a significant milestone for Terrestrial Energy as it transitions into a publicly traded company, highlighting both the opportunities and challenges ahead in the evolving nuclear energy landscape.