SMR — NuScale Power Corporation

Summary of NuScale's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Liquidity: Increased to $1.3 billion as of December 31, 2025, up from $754 million in September 2025 and $442 million at the end of 2024.
• Revenue: Reported revenue of $31.5 million for the year, a decrease from $37 million in the prior year, primarily due to reduced revenue from the RoPower technology licensing agreement, partially offset by higher revenue from Fluor Phase 2 engineering services.
• Operating Expenses: Expected to remain consistent between $170 million to $200 million, with a specific adjusted figure of $193 million for 2024.

2. Strategic Updates and Business Highlights

• NRC Approval: The U.S. Nuclear Regulatory Commission approved NuScale's 77-megawatt electric standard design ahead of schedule, enhancing the company's competitive position as the only NRC-certified SMR technology.
• Partnership with ENTRA1: ENTRA1 Energy has secured a power purchase agreement with the Tennessee Valley Authority (TVA) to supply 6 gigawatts of power, involving 72 NuScale Power Modules across six plants.
• International Projects: Completed Phase 2 of the front-end engineering and design (FEED) for the RoPower Doicesti project in Romania, generating $63.1 million in licensing fees and engineering work.
• New Applications: Collaborated with Oak Ridge National Laboratory to assess the use of NuScale's SMR technology in chemical plants, showcasing its potential for producing process steam and electricity.

3. Forward Guidance and Outlook

• NuScale anticipates generating service revenues related to the ENTRA1 TVA project once the power purchase agreement is executed, which is expected to exceed revenues seen from the RoPower project due to the larger scale of the plants.
• The company remains optimistic about its liquidity position and ability to fund ongoing commercialization efforts, with no immediate concerns regarding cash burn.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: The decrease in annual revenue raises concerns about the pace of commercialization and project execution.
• PPA Delays: Although significant progress has been made, the binding power purchase agreement with TVA has not yet been finalized, which could impact revenue timelines.
• Material Weakness: While the company has resolved a previously identified material weakness in financial reporting, ongoing scrutiny of internal controls remains a focus.

5. Notable Q&A Insights

• Supply Chain Confidence: The COO expressed strong confidence in Doosan's ability to meet production commitments, with 12 modules currently in production and plans to increase capacity.
• Impact of NRC Approval: The approval of the 77-megawatt design has positively influenced customer confidence and the overall project pipeline.
• Financial Institution Engagement: A major financial institution has signed a multibillion-dollar term sheet with ENTRA1, though details remain confidential.
• Future Revenue Streams: Revenue from the ENTRA1 TVA project is expected to be significant, with potential for higher earnings compared to RoPower due to the scale of operations.

Overall, NuScale is positioned as a leader in the SMR market, with strong financial backing and strategic partnerships, but faces challenges in revenue growth and project execution timelines.