NANO Nuclear Energy (NNE) Q3 FY26 earnings call: guidance and Q&A

Are there any long-lead items that need to be ordered now to start construction in H2 2027 for the UIUC project?

Initial construction focuses on subterranean concrete structures, not reactor components, so no long-lead reactor components are immediately needed. Non-nuclear components for the thermal energy storage system are standard and can be constructed without NRC approval. Sourcing for reactor components has begun, aiming to have everything known by approval next year.

“So the initial construction fortunately focuses more on things like the installation of the citadel. So if you think about a big subterranean concrete structure for which the reactor will sit in. For instance, technically right at the start of the construction period, we don't need any reactor related components.”

asked by Samir Joshi · answered by James Walker

Has a specific budget been allocated for M&A in 2026, or is the approach more opportunistic and strategic?

The company's M&A strategy is opportunistic and strategic, focusing on smaller acquisitions that provide in-house capabilities, similar to the STS acquisition (initial payment ~$7M). They are not looking for large, hundreds-of-millions-dollar acquisitions. Any larger outlays would be spread over multiple years and potentially involve other funding mechanisms.

“So it's not that there's a ceiling on the limit to which we're about to spend on on acquisitions, but we are very capital conscious. And I think that's important because we don't want to go off to big acquisitions that are in the order of like hundreds of millions of dollars, even if it was to acquire a big revenue generating businesses for nano internally.”

asked by Samir Joshi · answered by James Walker

Can you expand on the relationship with Amoresco, particularly regarding potential expedited DOE/DOD licensing pathways for their projects?

NANO is in active talks with Amoresco, recognizing synergies in clean energy and nuclear. However, even for DOD projects, conventional NRC licensing frameworks are necessary, and expediting the process is minimal due to the newness of these endeavors for the DOD. The UIUC project helps build reassurance for the military by demonstrating the construction and NRC process.

“I wouldn't say that MRSCO's projects could expedite us hugely. just given, say, our existing experience of what we're having to go through at the moment in terms of providing the necessary information for the military to get comfortable with the installation of reactors at their sites.”

asked by Craig Irwin · answered by James Walker

What are the hiring plans for the next year, and will employee growth continue at a similar rate to meet future capabilities?

The technical team requires significant further expansion to build in-house infrastructure for reactor projects. This will lead to a big upscaling in technical staff over the next few months and years. Additional recruitment is also occurring in other departments like transportation and fuel supply chain. The company aims to scale quickly but carefully to ensure proper personnel allocation.

“The technical team does still need further expansion and we need to create, we need to do that essentially to help have that in-house infrastructure to carry a reactor project forward from advanced all the way through to an actual physical operating reactor system.”

asked by Craig Irwin · answered by James Walker

What would the structure of the multi-gigawatt data center framework look like, what could it unlock, and what attracted the customer to NANO?

The framework involves the partner financing campuses and power infrastructure, while NANO provides reactors, fuel, licensing, and operations. It's structured to avoid PPA deficiencies, with the partner potentially investing tens to hundreds of millions into NANO tied to development milestones, and NANO potentially gaining equity in the data center projects. The partner, a global infrastructure firm, is attracted by NANO's first-mover status in microreactors and design maturity.

“So the way we are structuring this is that the partner in this question will have an ability to receive equity grants and warrants in Nano, but also give them the ability to invest. tens of millions, if not $100 million into nano as part of like a development and reactive purchase, as development and reactive purchase milestones are achieved.”

asked by Nathaniel Pendleton · answered by James Walker

How are conversations progressing with commercial enrichment providers and Triso fabricators, and what does availability look like for UIUC and beyond?

NANO benefits from using LEU Plus, which is commercially available today from companies like Urenco. HALU will be used without reactor modification once available. The market for Triso fabricators is emerging with multiple players (B2XT, Standard Nuclear, Framatome, TrisoX), creating competitive pricing. Fuel for the first-of-a-kind reactor is secured. Long-term strategy involves locking down contracts and potentially establishing joint ventures for certain fuel elements to de-risk mass rollout.

“The big advantage we have over most of our competitors is the fact that we can use low enriched uranium. So fuel that can actually be manufactured today, um, Companies like Urenco, we've already started conversations with them about them being able to provide us the enrichment that we would need for the mass rollout of systems.”

asked by Nathaniel Pendleton · answered by James Walker

When can we expect more clarity on the advanced discussions with the project developer and AI infrastructure company, and how will these evolve in the near term?

In the near term, investors should look for a framework agreement outlining the potential relationship and milestone investment opportunities. This would precede more definitive agreements like joint development agreements for specific sites, site securing, and initiating NRC licensing. Separately, an LOI might be expected for joint opportunities with the AI infrastructure company and nuclear project developer.

“I'd say a near term, you know, potential framework agreement that outlines the potential relationship that we discussed. And then obviously including potential things like milestone investment opportunities tied to key value creating commercial milestones.”

asked by Christopher Selder · answered by Matthew Barry