X-Energy (XE) Q2 FY26 earnings call: guidance and Q&A

How much more funding is needed for the Dow project's 50% cost share, and is the total amount finalized?

Clay Sell stated that the full cost of the program has not been disclosed, but the recent $1 billion increase to $2.115 billion demonstrates strong DOE and Congressional commitment. He expressed confidence that any further required funds would be provided, emphasizing the strategic importance of the program for U.S. competitiveness in advanced nuclear technology.

“I'm confident to the extent more dollars can be required, they will be provided by our partners at the Department of Energy and the commerce because fundamentally, I mean you'll recall, the foundation of the ARDP program was created effectively in response to the technology peer competition that is currently underway with China.”

asked by Unknown Analyst · answered by J. Sell

Is X-Energy actively pursuing the Janus program, given their advantage with high-temperature gas reactors?

Clay Sell stated that X-Energy's primary focus is on the commercial deployment of Xe-100 and TRISO-X fuel, targeting the $2.3 trillion total addressable market. He did not provide specific details on Janus program pursuit, indicating it's not their current focus.

“I'll tell you, we have an extraordinary business opportunity in the deployment of Xe-100 in the manufacture of TRISO-X fuel. And that is what we are focused on. That is what our Board has directed us to do.”

asked by Unknown Analyst · answered by J. Sell

Clarify if initial Dow core loads will use LEU or HALEU, and if the LEU use is due to supply constraints or standard procedure.

Clay Sell confirmed that initial core loads for Xe-100 plants, including Dow, will start with LEU pebbles due to standard neutronic and reactivity management requirements, not HALEU supply constraints. Subsequent cores will use HALEU. He reiterated that sufficient HALEU for announced projects and beyond has been secured.

“The only reason we start with LEU on the Dow project is because that's the way we will start up every Xe-100 forever because that's what's required to manage the initial start-up, Nutronics and reactivity.”

asked by Joseph Osha · answered by J. Sell

Are there manufacturing differences between LEU and HALEU pebbles at the TX-1 facility?

Clay Sell explained that while the same TX-1 facility will be used, there are different considerations, largely due to criticality factors, between LEU and HALEU.

“Well, we'll use the same facility, Joe, but there are different considerations based largely on criticality factors between LEU and HALEU, but we will be able to produce both of those cores in our TX-1 facility.”

asked by Joseph Osha · answered by J. Sell

Will the investor-owned utility for the new 1GW project have a hyperscaler lined up, or is it for their rate base?

Clay Sell declined to provide further details on the structure or partners for the imminent 1GW project announcement, stating that full clarity on 'when, where, who' and other details will be provided in the near future, prioritizing community engagement.

“Michael, I would love to give you additional details, but you're going to have to wait. And we will provide clarity on the when, the where, the who and other details in the near future.”

asked by Michael Sullivan · answered by J. Sell

Are there any additional DOE funding opportunities for SMR technology, similar to recent loans for AP1000s?

Clay Sell confirmed ongoing dialogues with various U.S. government financing entities (Energy Diamonds Financing Group, Strategic Capital Office, Accent Bank, DFC) for debt financing for their projects. He expressed confidence in SMRs over AP1000s due to functionality, safety, siting, and financial risk.

“We are -- we have ongoing dialogues with the full suite of financing entities inside of the U.S. government, everything from the Energy Diamonds Financing Group at the Department of Energy, the Strategic Capital Office at the Department of War, Accent Bank, DFC [indiscernible].”

asked by Michael Sullivan · answered by J. Sell

Quantify the HALEU supply agreements (kilograms/GW), confirm if they are binding, and detail X-Energy's financial commitments and liquidity impact.

Clay Sell confirmed the agreements are binding but declined to disclose specific timing, quantities, or pricing due to contractual obligations. He stated the agreements retire HALEU risk for initial core loads of announced projects and beyond. He explained X-Energy is securing capacity and accelerating investment in the HALEU market, with the intention to transfer these obligations to customers later.

“Julien, the agreements are minding these are real agreements. We have contractually agreed with our counterparties, not to disclose further details about timing quantity and price.”

asked by Julien Dumoulin-Smith · answered by J. Sell

Details on the new 70 acres for fuel fab and the timing for TX-2.

Clay Sell stated that TX-1 provides capacity for 11 Xe-100s, and TX-2 is estimated to be needed online in the early 2030s. X-Energy is currently completing design, cost estimates, and financing business plans for TX-2, with no construction initiation announcements yet.

“TX-1 basically provides enough throughput capacity for 11 Xe-100s. And we have an active development far more than that. And so we estimate at some point in the early 2030s, we will need to bring TX-2 online.”

asked by Julien Dumoulin-Smith · answered by J. Sell