NUSCALE POWER Corp Q1 FY2025 earnings call

• RoPower project in Romania continues to move forward with Fluor-led Phase 2 Front-End Engineering and Design, on track to deliver Class 3 estimate by fall 2025 and discussions to extend into detailed design phase for FID submission by late Q1 2026 or early Q2 2026.
• Commercialization progress: NuScale remains ahead in SMR space, standard design approval application for 77-megawatt electric expected to be approved by NRC by July 2025; strong manufacturing preparedness and supplier working group efforts.
• Market opportunity: Confident of firm customer order in 2025, in discussions with domestic and international customers including data centers, utilities, and industrial companies; hydrogen production application highlighted as a key area with interest from major industrial players.
• Energy exploration centers: 3 new centers opened, with 2 more to open, pairing next generation nuclear talent.
• Tariff assessment: Actively monitoring tariffs, no material impact anticipated currently.

NuScale reported revenue of $13.4 million for the quarter ended March 31, 2025, compared to $1.4 million in the same period prior year. The increase was driven by fees received from engineering and licensing work and other services supporting the RoPower project.

• Expect to secure a firm customer order by 2025.
• Anticipate final NRC approval for 77-megawatt electric standard design application by July 2025.
• Focused on deepening customer engagement and enhancing manufacturing/supply chain readiness to meet 2030 delivery target.

• Potential impact of tariffs on operations, though no material impact anticipated currently; remain vigilant in monitoring.

Q: What does defining a firm customer order entail and what events need to unfold to get there?

A: John Hopkins stated they're beyond LCOE discussions, working on long-term power purchase agreements, with customers in term sheet negotiations and site visits to Doosan's manufacturing facilities. Discussions with Romanian authorities and Fluor continue for RoPower project.

Q: How could executive orders help streamline licensing?

A: John Hopkins mentioned ongoing NRC discussions, confident in NRC schedule for 77-megawatt approval, but streamlining may involve areas within license that can be optimized without compromising safety.

Q: How quickly could NuScale turn around and deliver modules if an order is booked?

A: Robert Hamady said they're producing long lead materials, expecting positive cash flow once a contract is signed, with 25% of module cost expected in first year and cash flow positive from module sales.

Q: What does extension of Phase 2 for RoPower entail?

A: Robert Hamady explained RoPower is scoping FEED Phase 2 for second step of FID, aiming for greater assurance and completing engineering studies for FID submission.

Q: Likelihood of customer being a large tech company?

A: John Hopkins said there are discussions with Tier 1 AI data centers, as they need energy and NuScale is near-term deployable with 77-megawatt approval.

Q: Rationale for continuing to use ATM and if it may slow?

A: Robert Hamady said they manage cash conservatively, maintain 2 years' cash runway, and will take advantage of market conditions but no forward-looking statements on ATM.

Q: Details on Class III estimate for RoPower and next steps?

A: John Hopkins said Class 3 estimate helps RoPower understand cost to complete, with ongoing discussions with Nuclearelectrica and Romania's regulator working with NRC.

Q: Importance of light water technology in customer discussions?

A: John Hopkins stated NRC has 70 years of experience with light water, NuScale's fuel is conventional and less enriched, giving a distinct advantage in regulatory and commercialization processes.