NuScale Power Corporation (SMR) Earnings

Management highlights

- Balance Sheet and Liquidity: Liquidity increased by 900 million since March 31st, 2026, reaching a total of $1.9 billion. The company adopted a conservative, proactive liquidity strategy to position for commercial readiness, diverging from traditional startup burn rate metrics and shifting to long-term capital allocation planning that provides operational optionality. Increased balance sheet investments to $800 million reflect a reallocation to high-grade longer-term treasury instruments, with all holdings remaining cash or cash-like. - Supply Chain Progress: Over 60 total suppliers are engaged, with half of these already secured via binding long-term service agreements. The 12 long-lead module components that have been pre-ordered are already in production, with major long-lead items (including forgings, fuel from Framatome, and safety instrument & control from Paragon) either in production or ahead of schedule, leaving no critical unaddressed long-lead gaps. The company proactively retained engineering staff after RoPower project work wrapped up to support upcoming near-term projects. - Regulatory and Technology Position: NuScale holds the only existing NRC approval for small modular reactor (SMR) technology, giving it a multi-year head start over competitors. Approximately 60% of the completed Combined Operating License Application (COLA) work from the prior CFPP project can be reused for future U.S. projects, reducing regulatory timelines and costs. The company's technology offers unique differentiators including a pre-approved small emergency planning zone that allows siting directly next to end users, dry cooling capabilities that work well in water-constrained regions like drought-affected Texas, and ability to deliver both electricity and high-quality process heat for industrial applications. - Pipeline and Commercial Engagement: The company is in active discussions with multiple customer segments, including utility provider TVA, hyperscaler and data center operators, industrial process heat customers, and international government entities including the Romanian government. The company continues to focus first on closing the TVA project as its near-term top priority, while being open to discussions with other customers that need near-term deployment.

Guidance

- Management did not provide formal full-year or medium-term financial guidance, including no specific margin guidance or OPEX range guidance at this time, and will only issue formal guidance after definitive commercial and supplier contracts are in place to ensure visibility. - Management confirmed that OPEX has been tightly controlled over the past 10 quarters, with the small recent bump in OPEX driven by retaining engineering staff after RoPower project work wrapped up, not uncontrolled OPEX creep. Management emphasized its commitment to disciplined OPEX management to protect liquidity. - If the RoPower (Romania) project contract is finalized in the near term, the company expects it could generate revenue as early as 2026. - The company projects that construction from first safety-related concrete pour to mechanical completion will take less than 40 months, and expects the NRC licensing timeline may be significantly shortened from the typical two-year window due to recent regulatory process improvements. - No upward or downward revisions to prior long-term production or financial targets were shared in the transcript.

Segment performance

The only segment-specific detail disclosed is that the Power Plant segment recorded negative revenue and a negative margin in the reported quarter, driven by a one-time adjustment related to a price negotiation with Thor. This negative result is described as non-recurring, not indicative of an ongoing operational trend, and reflects a relatively small financial base for the segment, with no ongoing negative performance implied. No other segment absolute financial results or revenue contribution percentages were shared in the transcript.

Risks & headwinds

- First-of-a-kind commercial projects carry inherent margin uncertainty, with management acknowledging that the first project will likely be more challenging to execute at target margins than future standardized projects. - The TVA definitive Power Purchase Agreement (PPA) and final contract remain uncompleted, with commercialization dependent on the successful finalization of this agreement, which is the primary near-term catalyst for capital deployment. - Progress on the Romania RoPower project is entirely dependent on the customer (RoPower and the new Romanian government) to finalize its internal approvals and contract structure, and the project is currently in a waiting period with no guaranteed timeline. - New commercial SMR deployment faces market competition from other power generation technologies with shorter deployment timelines, and other SMR developers are expected to pursue regulatory approval and market share in coming years.

Analyst Q&A

• Q: Do the large financial and trade commitments from Japan and South Korea impact the timeline for finalizing the TVA PPA, and is the PPA dependent on this capital? /

  A: Management noted these commitments are promising, but they are not built into the TVA plant's current capital structure, and the PPA is not dependent on this outside capital. A portion of these international investments is earmarked for U.S. SMR projects, which would benefit the company but is not required to move forward. NuScale builds the reactors, while commercial partner InterOne develops and builds the full plant, and both have strong existing relationships with Japanese and South Korean stakeholders.

• Q: Beyond your existing NRC approval head start, what makes your Gen 3 Plus Lightwater SMR technology advantage durable over the next several years, and is this advantage tied to design, commercial structure, or supply chains? /

  A: Management emphasized that after 10 years of preparation, NuScale is near-term deployable today, while most competitors are still years away from commercialization. Half of the company's 60+ suppliers are already locked into service agreements, and long-lead modules have been in production for two years. Management also noted the company will continue to improve design efficiency and reduce costs over time, and believes its current first-mover position is very strong in the current market.

• Q: What is the current status of the TVA project, and what gating items remain before a definitive contract is signed? /

  A: Management stated that bilateral discussions between InterOne and TVA are progressing well, and the company is encouraged by TVA's public comments affirming active engagement on their nuclear roadmap. When the definitive agreement is signed, NuScale is fully prepared to immediately begin implementation. No specific remaining gating items were disclosed publicly.

• Q: What is the update on the Romania RoPower project, and when can we expect further progress? /

  A: NuScale completed the Front End Engineering Design phase successfully as a subcontractor to prime contractor Fluor Corporation. The project is currently waiting on the newly seated Romanian government to issue the green light to move to the pre-EPC phase, which will lead to a final notice to proceed approximately one year later. NuScale's CEO and COO plan to meet with the new Romanian government later this month to align on next steps.

• Q: How much of the existing completed COLA work can be reused for future U.S. projects, and how much time and cost does that save? /

  A: Management confirmed that approximately 60% of the COLA work completed for the prior CFPP project can be standardized and reused for the next U.S. project. Once a PPA is finalized, initiating the updated COLA will be one of the company's first priorities, with the reusable content cutting regulatory time and costs significantly.