Earnings Call Insights: NuScale Power Corporation (SMR) Q4 2025
Management View
- John Hopkins, President and CEO, reported “a year marked by significant progress for NuScale,” citing the U.S. Nuclear Regulatory Commission’s early approval of the 77-megawatt standard design and reaffirming NuScale’s status as “the only SMR technology to achieve NRC design certification.” He highlighted ENTRA1 Energy’s agreement with Tennessee Valley Authority (TVA) to supply 6 gigawatts of power by deploying 72 NuScale Power Modules through 6 ENTRA1 Energy plants, calling it “the largest nuclear power program in U.S. history.”
- Hopkins emphasized, “NuScale remains the only NRC certified SMR under 10 CFR Part 52 versus other technologies pursuing 10 CFR Part 50. We believe this approach provides NuScale’s SMR power plants with a much different risk profile.”
- Key strategic developments included ENTRA1’s infrastructure buildup, site selection progress, and a major financial institution signing a multibillion-dollar term sheet with ENTRA1 for the TVA project. Hopkins detailed, “ENTRA1 is assembling an infrastructure experienced team … several major financial institutions are working with ENTRA1 and discussions are underway.”
- Hopkins discussed advancement on the RoPower project in Romania: “NuScale recognized $63.1 million in revenue from licensing fees and engineering work from the FEED 2 study over an 18-month period ending in December 2025.” He added, “shareholders of Romania’s SN Nuclearelectrica overwhelmingly voted in favor of progressing the RoPower project.”
- Hopkins underlined a new use case for NuScale’s SMR technology in the chemical sector, referencing collaborations with Oak Ridge National Laboratory and Idaho National Labs, and a partnership with Ebara Elliott Energy for high-temperature steam compression system field testing.
- CFO Robert Hamady stated, “NuScale’s overall liquidity increased to $1.3 billion at December 31, 2025, versus $754 million at September 30, 2025 and $442 million at the end of 2024. This liquidity allows NuScale to further enhance supply chain and manufacturing revenues, fund obligation in connection with the advancement of commercialization and further strengthen our balance sheet.”
- Hamady noted, “NuScale reported revenue of $31.5 million for the year ending December 31, 2025 compared to $37 million during the same period in the prior year. This decrease was due to a reduction in revenue recognized in the RoPower technology licensing agreement, which was partially offset by higher Fluor Phase 2 engineering and services revenue.”
Outlook
- Management reiterated that they do not provide formal financial guidance. Hamady explained, “As we stated earlier and as you pointed out in your question, we do not give guidance at this point. However, I think looking at our balance sheet, we look at our liquidity position, the company is conservatively positioned and prudently raised capital towards the end of last year.”
- Hopkins projected that service revenues will begin after the PPA between ENTRA1 and TVA is executed, stating, “We expect that once the PPA between ENTRA1 and TVA is executed, we will begin generating service revenues related to those projects as well.”
Financial Results
- NuScale reported liquidity of $1.3 billion as of December 31, 2025. Revenue for the full year was $31.5 million, down from $37 million in the prior year, attributed to lower RoPower licensing revenue, partially offset by engineering and services revenue from Fluor Phase 2 work.
- Hamady disclosed a significant cash payment post-year-end: “We noted a payment of about $250 million out. Arithmetically, we can assume about $1 billion of cash on balance sheet today.”
- Operating expenses, excluding one-time items, were reported to be “fairly consistent between $170 million to, call it, $200 million, closer to $193 million actually in 2024 on an adjusted basis.”
- Class B shares were reduced in Q4 due to Fluor’s conversion to Class A common stock.
Q&A
- Eric Stine, Craig-Hallum: Asked about supply chain capacity and Doosan’s ability to deliver modules for TVA. Carl Fisher, COO, responded, “We have extreme confidence with Doosan. … they’re increasing their capacity so they can move up to 20 modules per year and then eventually doubling that capacity.”
- Stine: Inquired about the impact of the 77MW design approval on the project pipeline. Fisher replied, “the upgrade that was approved last year was approved ahead of schedule … our customers … have a lot of confidence … after that FDA approval.”
- Ryan Pfingst, B. Riley: Questioned details of the financial institution’s term sheet with ENTRA1. William Cooper, Chief Legal Officer, said, “we’re under NDA with ENTRA1, so we can’t say any more about that.”
- Pfingst: Asked about RoPower revenue opportunities. Hopkins clarified, “RoPower is now authorized to advance the licensing … we anticipate NuScale will be generating revenues as soon as — now understand, we are a subcontractor to Fluor Corporation.”
- Dimple Gosai, BofA Securities: Requested guidance on revenue and liquidity outlook. Hamady said, “we do not give guidance at this point … the company is conservatively positioned and prudently raised capital.”
Sentiment Analysis
- Analysts pressed management for specifics on project timelines, revenue potential, and the details of financial agreements, with a neutral to slightly skeptical tone, especially around ENTRA1’s progress and project monetization.
- Management maintained a confident and occasionally defensive tone, frequently citing NDAs and regulatory limitations, using phrases like “we have extreme confidence” and “we do not give guidance at this point.”
- Compared to the previous quarter, the tone remained upbeat in prepared remarks but more cautious and guarded during the Q&A.
Quarter-over-Quarter Comparison
- The current quarter highlighted the formal progress on the TVA-ENTRA1 6 GW deployment and tangible manufacturing milestones, while the previous quarter focused more on strategic agreements and pipeline expansion.
- Guidance language remained conservative, with no explicit projections or outlook figures provided in either quarter.
- Analysts in the current quarter continued to focus on project execution risk, monetization, and financial transparency, similar to the previous quarter.
- Key metrics shifted from cash accumulation in Q3 to ongoing liquidity management and project milestone payments in Q4.
- Management’s confidence in supply chain execution and ENTRA1’s capabilities grew more pronounced, while analysts maintained a questioning approach about project specifics.
Risks and Concerns
- Management acknowledged the “first-of-a-kind” nature of the SMR industry, noting, “there are no commercially operating SMR power plants in the United States.”
- Analysts raised concerns about the timing and certainty of PPAs, the magnitude and recurrence of milestone payments, and the details of financial agreements with ENTRA1.
- Hamady addressed a previously reported material weakness in internal controls, stating, “we’ve come through with a clean bill of health from EY.”
- Management cited robust cash reserves and a conservative liquidity position as mitigation against execution and funding risks.
Final Takeaway
NuScale emphasized its continued leadership as the only NRC-certified SMR provider, advancing toward a 6 GW U.S. deployment in partnership with ENTRA1 and TVA, backed by strong liquidity of $1.3 billion. Management highlighted manufacturing progress, expanding commercial partnerships, and new sector opportunities, while reiterating a conservative approach to guidance and financial disclosure. The company signaled confidence in its asset-light business model and strategic alliances, positioning itself to capitalize on growing demand for clean baseload power in both U.S. and international markets.