NuScale Power Corporation Q2 FY2025 earnings call

• NuScale is a global leader in small modular reactor (SMR) technology, with two NRC approvals, including a 77-megawatt electric design approval in Q2 2025.
• Partnership with ENTRA1 for global commercialization, where NuScale provides technology and ENTRA1 develops, finances, and operates plants.
• Regulatory tailwinds support nuclear deployment, including executive orders and bipartisan support, aiding NuScale's commercialization.
• Progress on RoPower project in Romania, with an International Atomic Energy Agency mission advising on site license application, generating revenue from engineering/licensing fees.
• Opened 2 more E2 centers, using state-of-the-art modeling and simulators to train nuclear talent.
• NuScale's modules have advanced passive safety systems independent of human intervention.

NuScale reported revenue of $8.1 million for the quarter ended June 30, 2025, compared to $1 million in the same period prior year, driven by fees from engineering/licensing work and pre-commercial operational services for the RoPower project. Operating expenses were $44.9 million for Q2 2025, up from $42 million prior year. Operating expenses are expected to increase in the second half of 2025 due to increased long-lead material purchases to enhance manufacturing and supply chain readiness.

• Expect operating expenses to increase in Q3 and Q4 2025 in line with efforts to develop supply chain and prepare for commercial contracts.
• Anticipate having hard contracts in place for U.S.-based customers by the end of 2025.
• Focus on gaining cross-line of sight with potential customers, with recent interactions prompting additional conversations.

Q: Could you quantify the operating expense increase in the second half and is it related to long-lead item procurement?

A: Yes, OpEx is expected to increase in Q3 and Q4 in line with efforts to develop 12 modules and invest in supply chain for commercialization. It's in line with investment in supply chain anticipation of commercial contracts.

Q: Any updates on active customer negotiations and categories?

A: In discussions with U.S. government, utilities, hyperscalers; ENTRA1 is the developer facing the market, NuScale sells power modules to ENTRA1 which develops and sells power.

Q: Progress on Phase II FEED study for RoPower?

A: Fluor is prime, final investment decision is phased, likely in late 2026; NuScale continues to support with engineering deliverables.

Q: Importance of executive orders to NuScale?

A: Executive orders support licensing and site-specific benefits, further differentiating NuScale as near-term deployable with NRC approvals.

Q: Carpe diem time for customer commitment in second half?

A: Second half is critical to get signed contracts for U.S.-based customers to shoulder CapEx, balancing supply chain investment and shareholder funds.