Nano Nuclear Energy Inc (NNE) Earnings

Management highlights

- Company Positioning and Core Technology Advantages * NANO Nuclear is a leading Generation 4 microreactor developer focused on vertical integration across key parts of the nuclear fuel cycle. * The flagship KRONOS MMR is a high Technology Readiness Level (TRL), high-temperature gas-cooled reactor design, built on decades of existing industry operating experience and nearly 10 years of company development with over $120 million in historical investment. * Key design advantages include: TRISO fuel that retains fission products at extreme temperatures, inert helium coolant, passive heat removal with no credible meltdown pathway, modular factory-fabricable design, high utilization of commercially off-the-shelf components, flexibility to scale output without redesign, and minimal proliferation risk ideal for international export. - Key Q2 2026 Milestones * A formal Construction Permit Application (CPA) for the first full-scale KRONOS MMR prototype at the University of Illinois Urbana-Champaign (UIUC) was submitted to the U.S. Nuclear Regulatory Commission (NRC) under Part 50, making NANO Nuclear the first commercially ready microreactor developer to reach this stage. * Completed a feasibility study for a 1 gigawatt KRONOS MMR deployment to power BaRupOn's AI data center and manufacturing campus in Texas, confirming the solution can meet the 1 gigawatt requirement in incremental stages, and is now moving to site licensing preparation. * Advanced M&A and partnership discussions focused on vertical integration across the nuclear fuel cycle, including fuel transportation and supply chain facilities, with one opportunity in late-stage discussions for a near-term announcement. * Announced new strategic partnerships: an MOU with Supermicro to explore co-development and go-to-market for KRONOS powering AI data center infrastructure; an MOU with Abu Dhabi-based EHC Investment to explore a Gulf region joint venture for KRONOS deployment; and a collaboration with DS Dansuk to support KRONOS localization and deployment in South Korea including potential local manufacturing capabilities. - Financial Position * Liquidity remains robust with $569 million in cash, cash equivalents and short-term investments at quarter end, sufficient to fund the UIUC prototype through construction and commissioning. * A $900 million shelf registration including a $400 million at-the-market facility was declared effective by the SEC, providing future financial flexibility for opportunistic capital raising and value-accretive transactions without immediate near-term need.

Guidance

- The 12-month NRC review period for the UIUC CPA is expected to start after formal application acceptance, which is expected imminently. Initial construction activities at UIUC are targeted to begin in mid- to late 2027, with commercial readiness by 2030. * The current $300 million to $350 million first-of-a-kind cost estimate for the full-scale UIUC prototype remains accurate, with no material upward shifts identified during early supply chain negotiations to date. * Expenses are expected to trend higher in coming quarters as the team scales up and procurement of long-lead items and testing equipment begins for engineering and demonstration activities. * Management expects additional commercial deployment announcements to come in the near future as the company's opportunity pipeline grows, with a late-stage M&A transaction for a fuel supply chain/transportation asset expected to be announced shortly. * No material changes to prior long-term strategic guidance were provided.

Segment performance

NANO Nuclear is a pre-revenue microreactor developer with only one core business segment focused on the development and commercialization of the KRONOS MMR platform and related vertical integration across the nuclear fuel cycle. There are no separate product segments with distinct financial performance. For the second quarter of 2026: Q2 net loss totaled $9.2 million, an increase of $3 million from the prior quarter and a decrease of $12 million from the year-ago quarter. End-of-quarter cash, cash equivalents and short-term investments totaled $569 million. Year-to-date net cash used in operating activities was $9.3 million, an increase of $4 million from the prior year period. Year-to-date net cash used in investing activities increased by $368 million to $381 million, driven largely by an increase in short-term investments.

Risks & headwinds

- All forward-looking statements regarding development timelines, licensing outcomes, commercial deployment, and cost estimates are subject to material risk, and actual results may differ materially from projections. Key risk factors are detailed in the company's SEC filings, including the December 2025 Form 10-K. * The existing nuclear fuel transportation market is already capacity-constrained, which could create bottlenecks for mass deployment of KRONOS MMR reactors if the company does not successfully address this gap through in-house development or acquisition. * Licensing timelines and regulatory approval outcomes are uncertain, and delays in NRC review of the UIUC CPA or future site licensing would push back construction and commercialization targets.

Analyst Q&A

• Q: Can you share additional detail on the timing and next steps for the 1 gigawatt BaRupOn AI data center project after completing the feasibility study? /

  A: The feasibility study is complete and approved, so the project has moved to preparation for site-specific licensing. The company will first conduct geotechnical surveys at the site before submitting a site-specific construction permit application to the NRC. Once the UIUC prototype is licensed, future site approvals are expected to be expedited due to fleet standardization, and all pre-construction work can be completed ahead of full commercial readiness.

• Q: Will the new NRC Parts 53 and 57 regulatory pathways expedite the UIUC CPA review process, or are they primarily for future commercial deployment? /

  A: The UIUC project is too far along in the existing Part 50 process to benefit from switching pathways, and the current timeline is already the fastest available. The new frameworks, particularly Part 57 tailored for standardized microreactors, are critical for future commercial fleet deployment: they streamline combined construction and operating licensing, enable fleet-wide standardization, and cut review timelines to enable mass annual deployment starting after 2030, when the company expects to be commercially ready.

• Q: When do you expect the UIUC CPA to be accepted by the NRC, and when does the 12-month review timeline start? /

  A: Formal acceptance is expected imminently, any time from the call date through early the following week per NRC's standard acceptance window. The 12-month review timeline only starts after formal acceptance, with a construction approval expected 12 months post-acceptance.

• Q: Are you specifically pursuing M&A targets for nuclear fuel transportation capabilities, and why is this a priority? /

  A: The company has identified nuclear fuel transportation as an underaddressed, already capacity-constrained bottleneck that could slow mass commercial deployment of KRONOS reactors. It is in late-stage discussions for an acquisition in this space and expects to make a public announcement in the near term, after getting ahead of the potential bottleneck to support reliable operations.