X-Energy, Inc. Q2 FY2026 earnings call

• ARDP Program and Dow Project Updates • The U.S. Department of Energy approved an additional $1 billion in 50-50 cost-shared funding for ARDP, increasing total DOE cost share to $2.115 billion. The Dow project in Seadrift, Texas will be the first grid-scale advanced nuclear reactor for an industrial site in North America, delivering both power and high-temperature steam. • NRC construction permit for Dow is expected to have all safety questions closed by end of August 2026, with final permit issuance targeted for Q1 2027.

• Supply Chain Progress • Executed binding long-term HALU enrichment agreements with Centris Energy Corp and General Matter, adding to 7.6 metric tons of secured HALU from DOE. Combined, these agreements cover initial and replacement core loads for all announced XE-100 projects, materially reducing fuel supply risk. • Entered a milestone-based agreement with SGL Carbon to invest up to $8 million to double medium-grain nuclear-grade graphite production capacity by 2030, enough to support 8 XE-100 reactors per year. • Early supply chain investments are funded by IPO proceeds, with contractual obligations expected to transfer to customers long-term.

• TrisoX Fuel Business Updates • TX-1 fuel fabrication facility vertical construction is 80% complete, on track to finish vertical construction in Q3 2026 and move to interior buildout. TX-1 is 50-50 cost shared by DOE, and has secured $148 million in federal tax credits plus an $11 million Tennessee economic development grant for TX-2 (second fuel facility) and TXL (R&D center). • Acquired 70 adjacent acres in Oak Ridge, Tennessee, expanding the total campus footprint to 180 acres, all covered under the existing 40-year NRC Part 70 commercial fuel fabrication license (the first new such license issued by the NRC in over 50 years). TX-2 is currently in design, will have 4x the capacity of TX-1, and the full campus will eventually support enough fuel production for ~55 XE-100 reactors, with capacity to serve third-party SMR, microreactor, and space nuclear fuel customers. • Extended the cooperative R&D agreement with Oak Ridge National Laboratory, and has achieved >95% first-pass process yield for Triso fuel kernel conversion at the pilot scale, reducing fuel cost by cutting waste.

• Technology and AI Adoption • Joined the U.S. Department of Energy's Project Prometheus as a founding member, contributing $10 million in private capital and proprietary design/fuel data to develop frontier AI tools for reactor design, fuel fabrication, and semi-autonomous operation. • Has already deployed its internal multi-agentic AI platform APEX across engineering, licensing, and operations teams, delivering measurable time and cost savings.

• Other Project Milestones • The second planned project with Energy Northwest (Washington) is progressing on schedule, with construction permit submission targeted for H1 2027. X Energy expects to announce a new 1GW project with a major investor-owned utility in the near future, with no changes to the long-term project roadmap extending into the early 2030s.

X Energy reports two primary revenue segments at its current development stage: 1) XE-100 reactor design and demonstration under the Advanced Reactor Demonstration Program (ARDP): Services revenue (primarily ARDP-related work) was $50.1 million, accounting for 91.76% of total Q2 2026 revenue and grant income. 2) TrisoX fuel business: This segment includes grant income for fuel facility development and future third-party fuel sales, contributing $4.5 million of grant income, equal to 8.24% of total Q2 2026 revenue and grant income. Total Q2 2026 combined revenue and grant income was $54.6 million, a 154% increase year-over-year from Q2 2025.

Management did not revise prior long-term project timelines, and maintained all previously announced milestones: • NRC construction permit for the Dow project will be issued in Q1 2027, following final review completion in late 2026 • Energy Northwest construction permit submission is on track for H1 2027 • TX-1 vertical construction will be completed in Q3 2026, with the facility on track for commercial scale production on schedule • The long-term project roadmap extending to the early 2030s remains unchanged, and management maintained expectation of multiple new project announcements before the end of 2026

• Project development timelines and costs are subject to regulatory review timing, which could impact construction start and project completion • The 50-50 ARDP cost share depends on continued congressional appropriations and DOE commitment, though management expressed confidence in continued support • HALU fuel supply was previously a key material risk, which management has reduced but not fully eliminated as the market for HALU is still being developed • Long-term capital will be required to build out TX-2 and additional fuel capacity, which has not yet been fully secured • Forward-looking statements are subject to significant uncertainties that could cause actual results to differ materially from projections, as disclosed in X Energy's SEC filings

Q: With the increased ARDP allocation reaching $2.1 billion for the Dow project, how much additional funding is still needed to reach the 50% cost share, and is the total share finalized? / A: X Energy has not publicly disclosed the full total cost of the full ARDP scope, which covers reference plant design, TX-1 fuel facility development, and the full Dow project deployment. Management expressed confidence that the DOE and Congress remain committed to the 50-50 cost share agreement, pointing to the recent additional $1 billion allocation as evidence of this ongoing commitment. The U.S. government views the ARDP program as a strategic priority to compete internationally in advanced nuclear technology, and X Energy's growing commercial pipeline makes this a strong return on public investment.

Q: Initial XE-100 startup uses LEU fuel for the first core before switching to HALU. Is this a fuel supply constraint, or is this part of the standard design, and does manufacturing differ for LEU vs HALU? / A: Using LEU for the initial core is a permanent part of the XE-100 startup design required to manage neutronics and reactivity during initial commissioning, not a workaround for supply issues. Both LEU and HALU can be produced at the TX-1 facility; while there are minor differences related to criticality management, the core manufacturing process is the same. Management confirmed secured HALU supply for all required second and subsequent cores for announced projects, but cannot disclose specific contract details per agreement terms.

Q: The supply chain agreements for HALU are binding. Can you share what volume they cover, and what are X Energy's financial obligations for these contracts? / A: X Energy is restricted from disclosing specific quantities, timing, and pricing terms per the contracts. Management confirmed the agreements cover all HALU needs for the first HALU cores of all announced projects and beyond, which fully retires HALU supply risk for these early projects. In the long-term business model, customers are responsible for procuring their own fuel; X Energy is securing this capacity now to build out the HALU market, create a competitive advantage, and will assign these contracts to customers when projects are ready to move forward.

Q: What is the status and timing of the TX-2 fuel fabrication facility, and what capacity will it add? / A: TX-1 has sufficient capacity to support 11 XE-100 reactors, and X Energy's development pipeline already exceeds that volume, so TX-2 is expected to come online in the early 2030s. Currently, the project is in the design phase, with cost estimating and financing planning in progress. No construction start date or final financing package has been announced yet.