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    XE
    Earnings call· Jun 2026(Q2 FY26)

    X-Energy Q2 FY26 earnings call XE

    Aug 13, 2026 Source

    Executive summary

    X-Energy Q2 FY26 — Significant ARDP Funding, HALEU Supply Secured, and New 1GW Project Imminent

    X-Energy reported significant progress in Q2 FY26, securing substantial additional DOE funding for its ARDP program and de-risking its HALEU fuel supply chain through new long-term agreements. The company also highlighted the imminent announcement of a new 1GW project with an investor-owned utility, underscoring growing commercial traction. While cash burn increased due to heightened operational activity and IPO-related expenses, the company's liquidity position was significantly strengthened by $1.1 billion in net IPO proceeds.

    Highlights

    5

    • Received an additional $1 billion in DOE funding for the ARDP cooperative agreement, increasing total DOE contribution to $2.115 billion.

    • Secured long-term agreements for HALEU enrichment services with Centrus Energy Corp. and General Matter, covering initial and replacement core loads for announced projects.

    • Vertical construction for the TX-1 fuel facility is 80% complete, on track for Q3 completion of vertical construction.

    • Announced an imminent agreement for the next 1 gigawatt project with a major investor-owned utility.

    • Ended Q2 FY26 with $1.9 billion in cash and investments, doubling liquidity from the prior quarter due to $1.1 billion net IPO proceeds.

    Concerns

    3

    • Operating activities used $97.3 million in cash during Q2 FY26, up from $20 million in Q2 FY25, driven by higher ARDP activity, headcount, and prepayments.

    • Total operating expenses increased 156% YoY to $164.6 million, primarily due to increased ARDP work, more personnel, and non-cash equity-based compensation.

    • Reported a non-cash mark-to-market loss of $5.6 million on a warrant exercised in April 2026.

    Guidance & targets

    4
    CategoryTargetConfidence
    Dow Construction Permit Issuance
    Q1 2027
    high materiality
    High
    Energy Northwest Construction Permit Submission
    First half of 2027
    medium materiality
    High
    Next 1 Gigawatt Project Announcement
    in 2026
    high materiality
    High
    TX-2 Fuel Facility Online
    early 2030s
    medium materiality
    Medium

    Operational metrics

    19
    Total Revenues and Grant Income
    $54.6 millionup 154% compared to Q2 2025
    Q2 2026

    Services revenue primarily from Xe-100 design work under ARDP.

    DOE Reimbursement under ARDP
    $547 million
    As of June 30, 2026

    Reimburses roughly half of engineering work.

    Total Operating Expenses
    $164.6 millionup 156% compared to Q2 2025
    Q2 2026

    Drivers include more ARDP work, more people/contractors, and equity-based compensation.

    SG&A Equity-Based Compensation
    $33.5 million
    Q2 2026

    A little under half was a one-time charge at IPO; remainder amortizes over vesting periods.

    Interest Income
    $11 million
    Q2 2026

    Offset by other expenses.

    Other Income or Expense Net
    $4.7 million
    Q2 2026

    Warrant exercised in April 2026, so this expense will not repeat.

    Cash Used in Operating Activities
    $97.3 millionup from $20 million in Q2 2025
    Q2 2026

    Reflects increased operational scale.

    Cash Used in Investing Activities
    $73.6 million
    Q2 2026

    Includes CapEx for TX-1, partially reimbursed by ARDP.

    Capital Expenditures
    $63.3 million
    Q2 2026

    Not all CapEx is ARDP eligible; timing differences between spend and reimbursement.

    Cash and Investments
    $1.9 billionroughly double from 3 months ago
    As of June 30, 2026

    Investments are conservative (U.S. treasuries, high-grade corporates, etc.) with capital preservation as priority.

    Debt Outstanding
    $0
    As of June 30, 2026
    Fully Diluted Share Count
    414 million
    As of Q2 2026

    Recommended for calculating implied equity value due to Up-C structure.

    TRISO-X Pilot Plant Process Yield
    greater than 95%
    Consistent achievement

    Indicates mature process optimization, anticipating similar or better at commercial scale, leading to lower cost fuel.

    TX-1 Vertical Construction Completion
    80%
    As of Q2 2026

    On track to meet Q3 milestone for vertical construction completion.

    Oak Ridge Campus Footprint
    180 acresincreased from 70 acres
    As of July 2026

    Allows for continued expansion under Part 70 license, additional space for utilities, staging, storage, and long-term expansion.

    SGL Carbon Graphite Manufacturing Capacity
    double
    By 2030

    Supported by X-Energy investment of up to $8 million.

    Global Electricity Demand Growth
    >75%
    By 2050

    About 1/3 of growth expected in US, UK, Canada.

    SMR Market Revenue Potential
    $2.3 trillion
    By 2050

    Estimated market size for SMRs.

    Project Prometheus Private Capital Contribution
    $10 million
    null

    Part of collaboration leveraging DOE test reactors and supercomputing for AI integration.

    Industry KPIs

    7
    MetricValueDetails
    Book to bill ratio—
    Orders bookings growth—
    Gigawatts under contract—
    M a acquisition contribution—
    Backlog by segment end market—
    Data center exposure pipeline—
    Incremental flow through margin—

    Deals & partnerships

    9
    DowFirst commercial power plant deployment

    Part of the ARDP program, expected to be the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America.

    AmazonPower projects

    Partnership for new power projects, with Energy Northwest project being the second Xe-100 project online.

    Energy NorthwestXe-100 project development

    Work progressing towards construction permit submission in H1 2027.

    CentricaU.K. utility customer

    First announced customer in the U.K.

    Centrus Energy Corp.HALEU enrichment serviceslong-term

    Secures HALEU fuel needs for initial and replacement core loads of announced projects and beyond.

    General MatterHALEU enrichment serviceslong-term

    Secures HALEU fuel needs for initial and replacement core loads of announced projects and beyond.

    SGL CarbonNuclear-grade graphite production expansionup to $8 million

    X-Energy invests in SGL's facility in Chedde, France, to expand capacity.

    U.S. Department of Energy's Oak Ridge National LabCooperative research and development agreement extension

    Enabled TRISO-X to prepare for commercial scale manufacturing and achieve significant process improvements to reduce fuel cost.

    Idaho National Laboratory, NVIDIA, Amazon Web ServicesProject Prometheus collaboration (AI for nuclear development)$10 million3-year research campaign

    X-Energy provides reactor design and fuel fabrication data as technical basis.

    Capital programs

    5
    ARDP Cooperative Agreement (Dow Project)underway$2.115 billion
    Spent to date: $547 million
    Funding: 50-50 public-private partnership with U.S. Department of Energy
    Start: 2021

    Benefit: First commercial power plant with Dow (Xe-100s providing electricity and high-temperature industrial steam), Xe-100 reference plant design, TX-1 fuel plant design/construction/licensing.

    Original award was $1.1 billion, with an additional $1 billion recently allocated. DOE reimbursed $547M as of June 30, 2026.

    TX-1 Fuel Fabrication Plantunderway
    Period spend: $63.3 million
    Funding: 50-50 cost share with U.S. Department of Energy; federal tax credits up to $148 million.

    Benefit: Initial fuel fabrication plant, capacity for 11 Xe-100 reactors.

    Vertical construction is 80% complete. $63.3M CapEx in Q2 2026, partially reimbursed by ARDP ($23.5M).

    TX-2 Fuel Facility and TXL R&D Centerdesign phase (TX-2), development (TXL)
    Funding: $11 million economic development grant from State of Tennessee

    Benefit: TX-2 anticipated to produce 4x the capacity of TX-1; TXL for dedicated research and development.

    Located on Oak Ridge campus, which expanded to 180 acres. TX-2 is currently in the design phase.

    SGL Carbon Graphite Capacity Expansionunderwayup to $8 million
    Funding: X-Energy investment (milestone-based payments)

    Benefit: Double SGL's manufacturing capacity for medium green graphite, enabling production for up to 8 new Xe-100 reactors per year.

    Part of X-Energy's strategy to secure supply chain capacity and reduce schedule risk. Investment in SGL's facility in Chedde, France.

    Project Prometheus (AI Collaboration)underway$10 million
    Funding: Private capital from X-Energy

    Benefit: Integrate frontier-class AI models for reactor design, autonomous operation, and fuel fabrication, leveraging DOE test reactors and supercomputing.

    Collaboration with Idaho National Laboratory, NVIDIA, and Amazon Web Services. X-Energy provides reactor design and fuel fabrication data.

    Risks & headwinds

    4
    Increased cash usage from operating activitiesQ2 2026

    $97.3 million used in Q2 2026, up from $20 million in Q2 2025.

    Mitigation: Company has significantly increased liquidity to $1.9 billion from IPO proceeds; increased spend is tied to scaling ARDP activity and strategic prepayments for long-lead materials.

    High operating expensesQ2 2026

    Total operating expenses of $164.6 million in Q2 2026, up 156% YoY.

    Mitigation: Driven by increased ARDP work, more personnel, and non-cash equity-based compensation ($33.5 million), with the latter being partially a one-time IPO charge.

    Non-cash mark-to-market loss on warrantQ2 2026

    $5.6 million non-cash loss.

    Mitigation: This was a one-time event as the warrant has been exercised and the liability is gone, so it will not repeat.

    HALEU fuel availability (historical/current commercial constraint)Current

    The availability of HALEU fuel is a current commercial constraint.

    Mitigation: X-Energy has secured existing material (7.6 metric tons) from DOE and executed long-term enrichment service agreements with Centrus and General Matter, covering initial and replacement core loads for announced projects. DOE and UK government are financially supporting new HALEU production facilities.

    What to watch in Q3 FY26

    4

    TX-1 Vertical Construction Completion

    Q3 FY26
    Current80% complete
    TargetVertical construction completion and commencement of interior build-out

    Why it matters

    This is a key milestone for the company's vertically integrated fuel fabrication business, crucial for future fuel supply and recurring revenue.

    Moving on down the line, the vertical construction for the shell of our TX-1 fuel facility is progressing on schedule and is approximately 80% complete today. We are on track to meet our third quarter near-term milestone for vertical construction completion and the commencement of the next scope of work for the interior build-out

    Q&A highlights

    8

    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

    2 min read6 chapters

    Detailed Narrative

    01

    ARDP Funding Expansion

    The U.S. Department of Energy formally notified X-Energy of an additional $1 billion in funding for the Advanced Reactor Demonstration Program (ARDP), increasing the total DOE cost share contribution to $2.115 billion. This 50-50 public-private partnership supports the development of the first commercial power plant with Dow in Seadrift, Texas, the design of the Xe-100 reference plant, and the design, construction, and licensing of the TX-1 fuel plant.

    02

    Strategic Supply Chain De-risking

    X-Energy executed long-term agreements for HALEU enrichment services with Centrus Energy Corp. and General Matter, securing firm delivery commitments for initial and replacement core loads of announced Xe-100 projects. Additionally, an agreement with SGL Carbon involves an investment of up to $8 million to expand graphite production capacity, aiming to double SGL's manufacturing capacity for medium-grade graphite by 2030 to support up to 8 new Xe-100 reactors annually.

    03

    TRISO-X Fuel Business Development

    The TRISO-X fuel fabrication business continues to advance, with the TX-1 facility's vertical construction 80% complete and on track for Q3 completion. The company received an $11 million economic development grant from the State of Tennessee for the potential TX-2 facility (anticipated to produce 4x TX-1's capacity) and a dedicated R&D center (TXL). X-Energy also acquired 70 adjacent acres, expanding its Oak Ridge campus to 180 acres for future growth.

    04

    AI Integration for Nuclear Development

    X-Energy joined the DOE's Project Prometheus as a founding member, committing $10 million in private capital and leveraging its reactor design and fuel fabrication data. This collaboration with Idaho National Laboratory, NVIDIA, and Amazon Web Services aims to integrate frontier-class AI models for reactor design, autonomous operations, and fuel fabrication, building on X-Energy's internal multi-agent AI platform, APEX.

    05

    Project Milestones and Commercial Pipeline

    The NRC construction permit for the Dow project is expected to complete its final review in late 2026, with issuance by Q1 2027. The Energy Northwest project, slated as the second online and first for Amazon, is progressing towards a construction permit submission in H1 2027. X-Energy also announced that an agreement for its next 1 gigawatt project with a major investor-owned utility is in its final stages, with a full announcement expected soon.

    06

    Financial Performance and Liquidity

    Total revenues and grant income for Q2 FY26 increased 154% year-over-year to $54.6 million, primarily driven by Xe-100 design work under ARDP. The company ended the quarter with $1.9 billion in cash and investments, a significant increase from $940 million in Q1 FY26, following $1.1 billion in net IPO proceeds. Operating activities used $97.3 million in cash, reflecting increased ARDP activity and strategic prepayments.

    AI-generated summary of the company’s earnings call. Not investment advice.