NUSCALE POWER Corp (SMR)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $8.1M, up $7.1M year over year but down sequentially from Q1, and below Wall Street consensus; diluted EPS was approximately -$0.13, slightly below consensus .*
• Received NRC Standard Design Approval (SDA) for the uprated 77 MWe module ahead of schedule (May 29), reinforcing NuScale’s regulatory lead and serving as the key catalyst for elevated customer engagement .
• Operating expenses will increase in H2 2025 to accelerate long-lead procurement and supply chain readiness for commercialization; liquidity remains strong with $489.9M in cash and investments at quarter-end .
• RoPower FEED Phase 2 progressed, but final notice to proceed/FID has shifted to late 2026/early 2027; management still targets “hard contracts” with U.S. customers by year-end 2025 .

What Went Well and What Went Wrong

What Went Well

• NRC SDA for 77 MWe approved ahead of schedule; CEO: “We got the work done… early… It was a grand slam” .
• Strengthened pipeline; engagement improved post-77 MWe approval: “Now that we’re 77, it’s prompted [customers] to have additional conversations” .
• Supply chain readiness and capacity: Doosan can produce up to 20 modules per year; 12 modules already in production, supporting near-term deployability .

What Went Wrong

• Results vs estimates: Q2 revenue missed consensus ($8.054M actual vs $11.657M estimate), and EPS modestly missed (-$0.13 actual vs -$0.112 estimate). Gross margin compressed to ~22% as cost of sales scaled with project work .*
• Sequential revenue decline (Q1 $13.4M → Q2 $8.1M), reflecting timing of FEED/technology license work; operating loss remained as commercialization investments continue .
• RoPower timeline pushed: final notice to proceed/FID now late 2026/early 2027, delaying schedule visibility vs earlier expectations .

Financial Results

Headline metrics vs prior quarters

Values with asterisk retrieved from S&P Global.

Notes:

• Q4 2024 net loss included a $170.0M non-cash warrant fair value expense, which materially impacted EPS .

Q2 2025 actuals vs Wall Street consensus (S&P Global)

Values retrieved from S&P Global.

Liquidity

KPIs (Q2 2025)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We’re the only company with two NRC approvals for small modular reactors… We got it done early… a grand slam.” — Ramsey Hamady (CFO) .
• “We are near-term deployable. We got modules in production… under Part 52, we have both operating license and a construction license.” — John Hopkins (CEO) .
• “We do plan an increase in OpEx for Q3… an additional increase for Q4… to engage the supply chain and… commercialization.” — Ramsey Hamady (CFO) .
• “Doosan can make up to 20 modules per year… seeing production ongoing… a major marketing tool… touching steel.” — John Hopkins (CEO) .
• “Final notice to proceed [Romania]… probably mid to late ’26, early ’27… we continue to support Fluor.” — John Hopkins (CEO) .

Q&A Highlights

• OpEx trajectory: H2 2025 OpEx will rise methodically to secure long-lead materials and engage suppliers; management reiterated disciplined cash management and non-speculative module inventories .
• Capacity & deliverability: Doosan capacity up to 20 modules/year; supply chain investments and early long-lead orders intended to meet 2030 COD for the first plant, subject to contract timing .
• Business model clarity: ENTRA1 is the customer and plant developer; NuScale sells modules (the “Intel inside”), while ENTRA1 secures PPAs and the ecosystem (utilities, site, capital) .
• RoPower timing: FID/NTP shifting later; ongoing FEED Phase 2 work continues with Fluor as prime; phased approach to FID expected .
• Regulatory/macro tailwinds: Executive orders and NRC process modernization expected to benefit site-specific licensing timelines; light water technology and conventional fuel seen as financing and regulatory advantages .

Estimates Context

• Q2 2025: Revenue $8.054M vs $11.657M consensus (miss); EPS -$0.13 vs -$0.112 consensus (miss). Drivers include timing of engineering/licensing and cost of sales scaling with project work; gross margin compressed to ~22% .*
• Q1 2025: Revenue $13.375M vs $3.441M consensus (beat); EPS -$0.11 vs -$0.115 consensus (beat), aided by FEED and Technology License Agreement revenue .*
• Q4 2024: Revenue $34.224M vs $3.081M consensus (beat); EPS -$0.77 vs -$0.13 consensus (miss) due to $170.0M non-cash warrant fair value charge .*

Values retrieved from S&P Global.

Key Takeaways for Investors

• Near-term deployability strengthened: NRC’s early SDA for 77 MWe and 12 modules already in production materially differentiate NuScale from peers; expect heightened buyer engagement, especially U.S. hyperscalers/utilities .
• H2 OpEx ramp is strategic: Elevated OpEx in Q3/Q4 should be viewed as commercialization spend to secure long-leads/supply chain capacity; watch for contract timing to validate ROI on readiness .
• Revenue/EPS volatility persists pre-contracts: Project-driven revenue timing produced Q2 misses vs consensus and margin compression; stability should improve once “hard contracts” commence with milestone cash inflows .*
• RoPower timeline slippage modestly lowers near-term visibility: FID/NTP shift to late 2026/early 2027; however, revenue from FEED/licensing/services continues; monitor milestones and Class III estimate delivery .
• Capacity in place to scale: Doosan’s ~20 modules/year capacity and broader supplier ecosystem enable multiple projects over time; initial contracts are the gating factor .
• Policy tailwinds: Executive orders and NRC modernization may shorten site-specific licensing; light water technology and conventional fuel bolster bankability vs alternatives .
• Trading implication: Expect the stock to be sensitive to announcements of U.S. contracts, supply-chain commitments, and regulatory progress; near-term beats/misses likely driven by timing of FEED/licensing revenue and OpEx cadence .*

Values with asterisk retrieved from S&P Global.