NuScale Power (SMR) Q2 FY26 earnings call: the analyst Q&A

John Hopkins highlighted the accelerating demand for reliable, carbon-free power from hyperscalers, industrial offtakers, and utilities, emphasizing the urgency for clean energy solutions on a business-aligned timeline. He noted that readiness, built through years of deliberate work, is key to successful project execution, contrasting NuScale's approach with past large-scale nuclear projects like Vogtle that faced delays due to incomplete engineering.

NuScale is the only SMR company with design certification from the U.S. NRC, including standard design approvals for two designs, which is considered the global gold standard for nuclear safety. The company also uses standard low-enriched uranium, a proven fuel source available from established suppliers, avoiding the supply risks associated with high-assay, low-enriched uranium (HALEU) required by other designs.

NuScale acts as a technology systems integrator and engineer of record, supported by a network of over 60 specialized suppliers. The detailed design for critical path components is mature, and supplier agreements have been negotiated with more than half of these partners. Key examples include Doosan Enerbility for heavy forgings, Framatome for fuel design, and Paragon for safety instrumentation and control systems, ensuring readiness for component production and fuel supply.

Discussions are active and progressing between ENTRA1 Energy and the Tennessee Valley Authority (TVA) for a definitive power purchase agreement, potentially for the largest nuclear power deployment in U.S. history. The RoPower project in Romania, deploying 6 NuScale power modules, is the most advanced SMR effort in Europe, with NuScale awaiting the green light to finalize contract agreements following a change in government.

NuScale closed Q2 FY26 with approximately $1.9 billion in cash, cash equivalents, and investments, an increase of $900 million from Q1 FY26. This strong liquidity position reflects a conservative and proactive approach to positioning the business for near-term commercial deployment, enabling investments in supply chain agreements, design finalization, and fuel systems to reduce deployment time and derisk costs.

The company sees significant opportunity in process heat applications, leveraging its reactor's ability to produce high-temperature steam for industries like petrochemicals, ammonia, and hydrogen production. NuScale's emergency planning zone approval allows for co-location with end-users, and its dry-cooling capabilities address water scarcity concerns, particularly relevant in regions like Texas.

Management emphasized its deliberate and disciplined approach to operational expenditures, noting that OpEx has historically been kept within a tight band. While there was a slight bump due to engineers moving from cost of goods sold to OpEx after project completion, the company remains focused on controlling OpEx and preventing 'creep' to protect its liquidity.