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    NUSCALE POWER (SMR)

    Q1 2024 Earnings Summary

    Reported on Apr 4, 2025 (After Market Close)
    Pre-Earnings Price$5.86Last close (May 9, 2024)
    Post-Earnings Price$5.91Open (May 10, 2024)
    Price Change
    $0.05(+0.85%)
    • Strong government backing potential: Discussions on securing up to $800 million in government-related projects along with an additional $100 million award for manufacturing and supply chain set a promising stage for future revenue increases.
    • Accelerating market demand from data centers and AI: Executives noted intense and immediate interest from Tier 1 hyperscalers and data center customers—with commercial operation targets set before the end of the decade—indicating strong demand momentum for SMR technology.
    • Improving cost efficiency and manufacturing readiness: The company is realizing annualized savings of $50-60 million and expects a lower ongoing cash burn, while concurrent advancements at manufacturing facilities (e.g., Doosan scaling up module production) enhance its ability to meet said demand.
    • Delayed government awards: The SMR preparations programs remain uncertain as the company is still waiting for the request to come out, which might delay securing a critical $100 million government award.
    • Project execution delays: The RoPower project’s Phase II FEED work is facing postponements in shareholder voting due to political uncertainty, which may delay commercial execution.
    • High current cash burn: Despite planned annualized savings, the company reported a significantly high cash burn (approximately -$33.5 million in Q1), raising concerns about liquidity and near-term operational efficiency.
    1. Cash Burn
      Q: Should Q2 cash use be around low-$20M?
      A: Management noted that Q1 had a $33.5M cash use due to one-off charges, but with annualized savings underway, ongoing cash burn is expected to be below $10M per quarter.

    2. Data Orders
      Q: When will data center orders materialize?
      A: Management outlined robust and immediate demand from Tier 1 data center and AI customers, suggesting that accelerated ordering could materialize soon thanks to market urgency.

    3. SMR Prep Programs
      Q: Any update on the SMR preparation programs?
      A: Management is still waiting on a government request, with discussions around a potential $100M award within broader $800M talks, though outcomes remain uncertain due to political timing.

    4. Module Capacity
      Q: How many modules might be ordered?
      A: The focus is on execution capacity; with 6 modules currently offline and the capacity to fabricate 20 modules annually, management will scale cautiously to avoid overextension.

    5. Sales Agreement
      Q: What’s happening with the $20M sales agreement?
      A: Management explained that the agreement is designed for development funds and is part of financing discussions to support bankable projects, not an upfront award.

    6. RoPower FEED
      Q: What are the final steps for RoPower FEED Phase II?
      A: The process is delayed due to election-year timing, with a shareholders vote now expected in June/July, which will trigger the next 1-year FEED phase with NuScale as a subcontractor.

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