Executive Summary / Key Takeaways

• NuScale Power is uniquely positioned as the only U.S. Nuclear Regulatory Commission (NRC) certified Small Modular Reactor (SMR) technology, setting it years ahead of competitors and enabling near-term deployment for critical energy needs.
• The company is actively engaged in advanced commercial discussions, particularly targeting the rapidly growing data center and industrial sectors, and is confident in securing a firm customer order during 2025, leveraging its exclusive global partnership with ENTRA1 Energy.
• Significant progress is being made in manufacturing readiness, with 12 NuScale Power Modules (NPMs) in production, supported by a robust supply chain and strategic investments aimed at meeting a 2030 delivery target.
• NuScale has substantially improved its liquidity position, ending Q1 2025 with over $521 million in cash and short-term investments, providing approximately two years of operating runway while maintaining financial discipline and a conservative cash burn rate.
• Key catalysts and factors to watch include the expected NRC approval of the 77 MWe design uprate by July 2025, progress on advanced customer negotiations, execution of supply chain investments, and the potential impact of favorable government policies and funding opportunities.

A New Dawn for Nuclear: NuScale's Journey to Commercial Readiness

In a world grappling with escalating energy demand and the urgent need for decarbonization, NuScale Power Corporation stands at a pivotal juncture. Born from an effort that began around 2007 to commercialize a novel modular Light Water Reactor (LWR) design from Oregon State University, NuScale Power, LLC was formally organized in 2011 with a singular focus: to redefine nuclear energy through safety, scalability, and affordability. This journey has been marked by a rigorous and ultimately successful pursuit of regulatory approval, culminating in the U.S. Nuclear Regulatory Commission's (NRC) Design Certification of its 50 megawatt gross NuScale Power Module (NPM) design. This landmark achievement, solidified by the NRC's Final Safety Evaluation Report in August 2020 and subsequent certification rule in January 2023, positioned NuScale as the sole SMR technology with this critical regulatory clearance, a distinction that remains a cornerstone of its investment thesis.

The company's evolution accelerated with the "Transaction" in 2022, transitioning NuScale into a publicly traded entity (NuScale Power Corporation) and sharpening its strategic focus from research and development to commercialization. This shift is not merely administrative; it reflects a fundamental reorientation towards delivering its technology to market, supported by strategic partnerships and a targeted approach to high-demand sectors.

At the heart of NuScale's offering is its differentiated technology. The NuScale Power Module is a pressurized water reactor, but its design incorporates unique passive safety features. Notably, the NPM can safely shut down and self-cool indefinitely without the need for AC or DC power, operator interaction, or additional water, enabling what the company terms an "unlimited coping period." This inherent safety allows for a significantly smaller emergency planning zone (EPZ) limited to the site boundary, a stark contrast to the 10-mile EPZs typically required for traditional large nuclear plants. This smaller footprint reduces operating costs and critically enables flexible siting, allowing plants to be located closer to end-users, such as at retired coal plant sites or adjacent to industrial facilities. Furthermore, the NPMs do not require grid power for safety functions, adding another layer of operational resilience.

This technological foundation provides NuScale with tangible competitive advantages. While precise, directly comparable efficiency or cost metrics against all niche competitors are not publicly detailed, the company asserts its scalable design provides carbon-free energy at a reduced cost compared with gigawatt-sized facilities. The modular nature allows for phased deployment, potentially aligning capital expenditure more closely with demand growth. The ongoing pursuit of the 77 megawatt gross NPM design uprate, submitted for NRC Standard Design Approval (SDA) in January 2023 and expected to conclude by July 2025, aims to enhance the economic efficiency and appeal of the technology to a broader customer base.

Competitive Positioning in a Growing Market

The market for clean, reliable energy is experiencing unprecedented growth, driven by factors like the reshoring of manufacturing, electrification of industry, and the explosive demand from artificial intelligence (AI) data centers. A December 2024 DOE report projected data centers could triple energy use in three years, potentially reaching 12% of U.S. consumption by 2028. This creates a massive opportunity for baseload, carbon-free power sources like nuclear, as intermittent renewables alone cannot meet the 24/7, high-capacity demands of these facilities.

In this landscape, NuScale faces competition from other SMR developers and established players in the broader energy sector. While direct quantitative comparisons with all private competitors are challenging to ascertain, publicly traded peers like BWX Technologies (BWXT) and General Electric (GE), along with nuclear fuel supplier Cameco Corporation (CCJ), offer relevant points of comparison.

NuScale's primary competitive advantage lies in its regulatory lead. As the only SMR with NRC design certification, it is positioned for near-term deployment, years ahead of other proposed SMR technologies, particularly non-light water or Generation IV designs that require High-Assay Low-Enriched Uranium (HALEU) fuel. HALEU currently lacks a commercial supply chain and faces significant hurdles, potentially delaying these technologies for a decade or more. NuScale's reliance on conventional, readily available fuel avoids this critical bottleneck.

Operationally, NuScale is also leading in manufacturing readiness. Through its strategic partnership with Doosan Enerbility, 12 NPMs are currently in production, a testament to the company's confidence in its customer pipeline and commitment to a 2030 delivery target. This manufacturing head start and robust supply chain relationships differentiate NuScale from competitors who are still in earlier development phases. While established players like GE have broader scale and R&D capabilities, and BWXT has strong government ties, NuScale's focused approach and certified modular technology offer a unique value proposition, particularly for customers prioritizing safety, flexibility, and near-term deployability.

NuScale's commercial strategy is significantly bolstered by its exclusive global partnership with ENTRA1 Energy. ENTRA1 acts as a developer, offering flexible business models like Build-Own-Transfer (BOT) or Build-Own-Operate (BOO). This is particularly attractive to potential customers, such as hyperscalers or industrial companies, who need reliable energy but may not wish to capitalize, own, or operate a nuclear asset themselves. This model provides financial flexibility and helps mitigate deployment risks for the end-user. NuScale is currently in advanced discussions with upwards of 10 potential customers across various sectors, including data centers, utilities, coal plant operators, and industrial companies, both domestically and internationally. These discussions have progressed to term sheet exchanges and customer site visits to manufacturing facilities, indicating tangible movement towards securing a firm order in 2025.

Financial Performance and Liquidity

NuScale's financial profile reflects its transition from an R&D-intensive phase to commercialization. While the company has incurred significant operating losses since inception, resulting in an accumulated deficit of $391.1 million as of March 31, 2025, recent periods show progress in managing expenses and building liquidity.

Revenue in Q1 2025 saw a substantial increase to $13.4 million, compared to $1.4 million in Q1 2024. This growth was primarily driven by engineering and licensing fees and services related to advancing the RoPower project in Romania, where NuScale is supporting Fluor (FLR) as a subcontractor on the Phase 2 Front-End Engineering Design (FEED). This demonstrates the company's ability to generate meaningful pre-COD (Commercial Operation Date) revenue from services and technology licensing. Management anticipates revenue to remain relatively steady throughout 2025 at levels similar to Q1, until a major project contract is secured.

Operating expenses in Q1 2025 were $42.3 million, a decrease from $44.6 million in Q1 2024. This reflects management's continued efforts to control costs and improve operational efficiency, building on significant reductions achieved in 2024, where average quarterly operating expenses decreased to $42.7 million from $69.9 million in 2023. While R&D expenses decreased due to cost optimization and the transition focus, general and administrative expenses saw an increase, partly due to strategic business development and costs associated with transitioning to a large accelerated filer.

Liquidity has significantly improved. NuScale ended Q1 2025 with $491.4 million in cash and cash equivalents and $30 million in short-term investments, totaling over $521 million. This strong cash position was primarily bolstered by proceeds from the company's At-The-Market (ATM) program, which generated $99.8 million in net proceeds from the sale of 4.55 million shares in Q1 2025. The company also benefited from the redemption of outstanding warrants in Q4 2024, eliminating associated non-cash liabilities.

Management maintains a conservative approach to cash management, aiming to keep approximately two years of operating runway. Based on the current operating expense run rate, this suggests a comfortable liquidity position for the near term. Cash used in operating activities decreased to $22.8 million in Q1 2025 from $33.5 million in Q1 2024, reflecting cost control efforts. While management expects the quarterly OpEx cash burn to remain in the $40-$45 million range, it may increase slightly due to planned investments in supply chain and manufacturing readiness, including a $69.3 million purchase commitment for long-lead materials entered into in December 2024. Securing a firm customer contract is anticipated to be a significant positive catalyst for cash flow, with approximately 25% of module costs expected to be received in the first year after signing.

Outlook and Key Considerations

NuScale's outlook for 2025 is centered on achieving key commercial and regulatory milestones. The most significant is the expectation of securing a firm customer order during the year, which management is actively pursuing through advanced negotiations. The anticipated NRC approval of the 77 MWE SDA by July 2025 is another critical catalyst, expected to enhance the economic viability and market appeal of the technology.

Progress on the RoPower project in Romania continues, with the Class 3 cost estimate expected by fall 2025 and discussions underway to extend the FEED phase into detailed design, targeting a Final Investment Decision application by late Q1 or early Q2 2026. These milestones, along with ongoing international engagement and evaluation of potential participation in U.S. government funding opportunities (like the $800 million DOE light water reactor program), underscore the breadth of potential avenues for commercial success.

However, investors must consider the inherent risks. The timing of securing the first firm order remains uncertain, and delays could impact the path to profitability and long-term operational funding, which requires additional customer commitments beyond current resources. Reliance on strategic partners like ENTRA1 and Fluor, and manufacturing partners like Doosan, presents risks if their interests diverge or relationships terminate. Changes in U.S. trade policy, including tariffs, could increase costs for imported components. Litigation, including pending shareholder class action lawsuits, while not currently deemed probable of loss by management, represents ongoing uncertainty. Furthermore, the identified material weakness in internal controls over financial reporting requires significant investment and time to remediate, adding operational risk.

Despite these challenges, NuScale's unique position as the only NRC-certified SMR technology, its manufacturing readiness, strategic partnerships, and focused pursuit of high-demand markets like AI data centers provide a compelling investment narrative. The company's improved liquidity offers a buffer to execute its strategy. The successful conversion of advanced discussions into firm orders and the timely approval of the 77 MWe design uprate are critical factors that will shape NuScale's trajectory and its ability to capitalize on the burgeoning demand for clean, reliable power.

Conclusion

NuScale Power stands at the forefront of the SMR industry, uniquely positioned by its NRC-certified technology and advanced manufacturing readiness. The company's strategic pivot towards commercialization, amplified by the partnership with ENTRA1 Energy and a sharp focus on high-growth sectors like AI data centers, aligns with the urgent global need for scalable, carbon-free energy. While the path to commercial success involves inherent risks, particularly regarding the timing of securing firm orders and the complexities of project execution, NuScale's technological differentiators, regulatory lead, and strengthened financial position provide a solid foundation. The coming year is pivotal, with key milestones like the 77 MWe design approval and potential first customer contract offering significant catalysts. For investors with a long-term perspective on the future of nuclear energy, NuScale represents a compelling opportunity to participate in the commercialization of a technology poised to play a critical role in the clean energy transition.