NUSCALE POWER Corp Q4 FY2024 earnings call

• RoPower Progress: Making good progress on the 6-module SMR power plant in Doicești, Romania, with ongoing FEED Phase 2 providing revenue and cash flow.
• SMR Leadership: NuScale is the sole near-term deployable SMR; other proposed SMRs face longer timelines for regulatory approval. Working on up-rated SDA application to increase power output per module to 77 MW electric, with review set to conclude mid-2025.
• Manufacturing: Advancing with supply chain partners like Doosan and Alleima; 12 modules in production, with long lead material items ordered for additional 6 modules in anticipation of customer demand.
• Energy Demand: Significant growth in electricity demand, especially from data centers, driving need for baseload clean energy; NuScale sees opportunity to provide this with its SMR technology.
• Interest from Off-Takers: Increased interest from data centers and utilities; ENTRA1 Energy's model offers financial flexibility and mitigates deployment risk for customers.
• Innovation: Exploration of hydrogen technologies leveraging NuScale plants for clean hydrogen production, benefiting from Treasury tax credits.

In Q4 2024, NuScale reported revenue of $34.2 million and a net loss of $180.3 million. The net loss included a non-cash expense of $170 million related to the increase in fair value of warrants. For the full year 2024, revenue was $37 million and net loss was $348.4 million, with $223 million of the loss related to warrant fair value accounting. Q4 2024 operating expenses were $43 million, a decrease from $71.8 million in the prior year, reflecting cost reduction efforts as the company transitions to commercialization.

• Accelerate growth in 2025 with module production and commercialization with ENTRA1 Energy.
• Utilize cash resources ($446.7 million at year-end 2024) for supply chain development, manufacturing preparedness, and research efforts.
• Continue to nurture customer discussions and advance commercial initiatives, including with data centers and utilities.

• Regulatory risks: Uncertainties around NRC approval processes for up-rated SDA and other regulatory requirements.
• Market risks: Competition from other SMR technologies and potential delays in commercial adoption.
• Supply chain risks: Dependencies on key partners like Doosan and Alleima, and potential bottlenecks in long lead material procurement.

Q: George Gianarikas asked about potential bottlenecks in signing agreements with large U.S. data center companies.

A: John Hopkins responded that it's a matter of deal complexity, not bottlenecks, and NuScale has ordered additional long lead materials for 6 modules, showing confidence in closing deals.

Q: Esteban Albarracin asked about Doosan forging of 12 reactors and RoPower revenue.

A: John Hopkins explained they're in discussions with prospective customers, using long lead materials to compress timelines; Ramsey Hamady detailed revenue recognition from two contract components related to service delivery and technology licensing.

Q: Ryan Pfingst asked about data center negotiations and RoPower milestones.

A: John Hopkins stated negotiations focus on long-term power purchase agreements; RoPower project progresses with support from Fluor Corporation, with a final investment decision expected in Q4 2025.

Q: Eric Stine asked about SMR upgrade timeline and traditional nuclear plants.

A: John Hopkins said the 77 MW upgrade is progressing well, with NRC meetings this week; Clayton Scott added that long lead material orders help expedite first projects; John Hopkins noted limited potential for restarting traditional large nuclear plants, emphasizing SMRs as the future.