NuScale outlines OpEx increase and targets first U.S. SMR contract by end of 2025 as regulatory and supply chain tailwinds grow

Earnings Call Insights: NuScale Power Corporation (SMR) Q2 2025

Management View

• John Lawrence Hopkins, CEO, highlighted NuScale’s position as the only SMR technology with U.S. Nuclear Regulatory Commission approval, noting the second approval for its 77-megawatt electric design in Q2 2025 as “a crucial step in moving NuScale and our exclusive commercialization partner, ENTRA1, closer to meeting demands of energy users in need of clean baseload power.” Hopkins indicated anticipation of an order for NuScale power modules in 2025, driven by growing interest from advanced data centers and AI systems. He referenced strengthening regulatory tailwinds, including the President’s executive orders supporting advanced nuclear technologies: “We expect to benefit from shortened regulatory timelines for new deployments, a bolstered domestic nuclear supply chain and the overall commitment of the U.S. government to prioritize the deployment of advanced nuclear reactor technologies.” He also noted international progress, particularly on the RoPower project in Romania, and expansion of NuScale’s E2 centers to 11 locations globally.
• Ramsey Hamady, CFO, stated: “NuScale’s overall liquidity and capital resources…remained a robust $489.9 million in total at June 30, 2025. This represents a $31.5 million decline from the prior quarter but an increase of $359 million from the same quarter in the prior year.” Hamady reported quarterly revenue of $8.1 million, driven primarily by fees from the RoPower project, and operating expenses of $44.9 million, with expectations for operating expenses to increase in the second half of 2025 due to purchases of long-lead materials to enhance manufacturing and supply chain readiness.

Outlook

• Management reiterated expectations for increased operating expenses in the second half of 2025, with Hamady explaining: “We do plan an increase in OpEx for Q3 and additional increase for Q4. That’s really…in line with our efforts to continue to develop 12 modules and develop our supply chain and invest in the commercialization of NuScale.”
• Hopkins confirmed the company is “anticipating commercial contracts” and expects an order for NuScale power modules in 2025. He added, “We’re still forecasting having what I call hard contracts in place by the end of this year 2025. And those are all U.S.-based customers.”

Financial Results

• NuScale reported revenue of $8.1 million for Q2 2025, compared to $1 million for the same period in the prior year, primarily from engineering and licensing fees related to the RoPower project.
• Operating expenses for the quarter were $44.9 million, compared to $42 million in the prior year period. Liquidity stood at $489.9 million as of June 30, 2025, a decrease from the prior quarter but a significant increase year-over-year.
• Hamady noted that while operating expenses increased slightly, “our quarterly spend remains consistent with prior periods and reflects management’s disciplined approach to cash management.”

Q&A

• Marc Bianchi, TD Cowen, asked about the OpEx increase and its relation to supply chain investments. Hamady responded that the increase is “in line with our efforts to continue to develop 12 modules and develop our supply chain…not…an intent to build more than 12 modules right now.”
• Bianchi inquired about strategic changes following Fluor’s conversion of shares. Hamady clarified: “Our go-to-market strategy has not changed. It’s well defined. It’s been consistent.”
• Sherif Elmaghrabi, BTIG, asked about Doosan’s manufacturing capacity and triggers for further module orders. Hopkins stated, “Doosan has commented…they can make up to 20 modules per year…production ongoing.”
• Eric Stine, Craig-Hallum, queried about post-uprate customer engagement. Hopkins replied, “Now that we’re 77, has prompted…additional conversations with us going forward.”
• Stine also asked about regulatory differentiation. Hopkins emphasized, “We are using conventional fuel that’s readily available…We don’t need high-assay HALEU fuel, which…is going to be an issue, I think, going forward.”
• Soundarya Iyer, Riley Securities, questioned the impact of executive orders. Hamady explained, “Licensing that we see and the execs as that benefits us specifically is more site-specific licensing.”
• Hopkins and Hamady detailed NuScale’s business model, reiterating ENTRA1 is the customer and developer, while NuScale supplies the modules.
• Craig Shere, Tuohy Brothers, asked about supply chain flexibility and order scale. Hopkins stated, “We manufacture our models in a factory. They’re fungible assets with the intent to have multiple projects going at any given time.”
• Leanne Hayden, Canaccord Genuity, explored trends in project financing. Hamady said, “We’ve seen remarkably pretty significant interest from large-scale U.S. and even…commonwealth funds or others…in financing…for ENTRA1 using NuScale technology.”
• Brian Lee, Goldman Sachs, requested updates on the RoPower project and U.S. customer contracts. Hopkins responded that the final investment decision for RoPower is now expected in late 2026, and “we’re still forecasting having…hard contracts in place by the end of this year 2025.”

Sentiment Analysis

• Analysts were cautious, focusing on supply chain readiness, OpEx increases, and the timing of key contracts, with a neutral to slightly positive tone. Questions often emphasized the need for clarity on timelines and strategic impacts.
• Management maintained a confident, measured stance during prepared remarks and Q&A, repeatedly emphasizing discipline, readiness, and the uniqueness of NuScale’s regulatory status. Hopkins stated, “We are near-term deployable. We have modules in production. We’re ready to go.”
• Compared to the previous quarter, both analysts and management maintained steady tones, with management slightly more assertive about regulatory and supply chain advantages following the second NRC approval.

Quarter-over-Quarter Comparison

• Guidance language shifted toward more explicit anticipation of increased operating expenses in the second half of 2025, while the previous quarter highlighted steady OpEx and a conservative cash approach.
• Strategic focus sharpened to emphasize readiness for commercial contracts and supply chain scaling, compared to last quarter’s emphasis on supply chain investment and manufacturing preparedness.
• Analysts continued to probe on contract timing and supply chain bandwidth, with increasing attention to the scale of potential orders and project financing.
• Key metric changes include a decrease in liquidity from the prior quarter and a decline in quarterly revenue, while OpEx rose slightly. Management expressed greater confidence in achieving contracts by year-end 2025, with a more pronounced focus on regulatory and supply chain differentiation.

Risks and Concerns

• Management highlighted the need to balance investments in supply chain and long-lead materials with careful cash stewardship, avoiding speculative inventory build without firm customer orders.
• The timing of customer contract closures and project milestones, such as RoPower’s final investment decision now pushed to late 2026, remains an ongoing risk.
• Analyst concerns centered on the impact of increased OpEx and the potential for cash burn if contracts are delayed.
• Management’s mitigation strategy focuses on measured OpEx growth aligned with anticipated contracts and ongoing disciplined cash management.

Final Takeaway

NuScale emphasized its unique regulatory position and supply chain readiness as key differentiators, highlighting the second NRC approval for its 77-megawatt design and ongoing global and domestic interest. Management projected increased operating expenses to support manufacturing and commercialization efforts, with expectations for a firm U.S. contract by year-end 2025. While revenue and liquidity reflected timing of project milestones and investments, NuScale maintained a disciplined financial approach, aiming to convert regulatory and market momentum into near-term commercial success.

Read the full Earnings Call Transcript