NUSCALE POWER Corp (SMR)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 revenue was $8.24M, up sharply year over year (+$7.8M), but below Wall Street consensus; GAAP diluted EPS was $(1.85), driven by the recognition of a $495.0M Partnership Milestone Agreement expense, resulting in a significant EPS miss versus consensus .
• Liquidity strengthened to $753.8M, supported by 13.2M ATM shares sold for $475.2M gross proceeds; partially offset by a $148.5M PMA cash payment in the quarter .
• Strategic momentum: ENTRA1–TVA announced a landmark agreement targeting up to 6 GW of SMR capacity using NuScale’s technology; management highlighted potential COD for the first plant as early as 2030 .
• Fluor agreed to convert and monetize its remaining stake via structured sales and reduce certain economic rights, with equity issuance limitations through Feb 2026—an overhang to monitor but designed to preserve market stability .

What Went Well and What Went Wrong

What Went Well

• TVA–ENTRA1 program: “This project marks the largest SMR deployment program in U.S. history,” positioning NuScale as “ready for commercial deployment” per CEO John Hopkins .
• Liquidity: Cash, cash equivalents, and investments ended Q3 at $753.8M, bolstered by ATM proceeds; investment income rose $3.8M YoY on a stronger cash position .
• Regulatory and commercialization progress: NRC approval for 77 MW upgrade completed earlier (Q2); focus shifted to COLA management for ENTRA1 sites; RoPower FEED Phase 2 continued and generated revenue .

What Went Wrong

• EPS miss and expense spike: G&A rose $502.2M YoY, primarily reflecting Milestone Contribution 1 ($495.0M) under the PMA with ENTRA1, driving GAAP EPS to $(1.85) in Q3 .
• Revenue below Street: Q3 revenue of $8.24M missed consensus ($11.17M*), with EBITDA more negative than consensus; the quarter’s results were overshadowed by PMA accounting .
• Structural concerns: Analysts probed ENTRA1’s operational capacity and safeguards; management emphasized developer role and safeguards (payments roll to other projects if term sheets don’t reach PPA) but uncertainty remains until PPAs finalize .

Financial Results

Quarterly Progression

Values with an asterisk are retrieved from S&P Global.

YoY Comparison (Q3)

KPIs and Balance Sheet Highlights

Segment breakdown: Not applicable; NuScale does not report revenue by segment in these releases .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “NuScale is honored that our technology was selected for ENTRA1’s historic agreement with the Tennessee Valley Authority which marks the largest SMR deployment program in U.S. history.” — John Hopkins, CEO .
• “NuScale's overall liquidity has increased to $753.8 million... driven by the sale of 13.2 million NuScale Class A shares... Partially offsetting this increase was a $148.5 million payment in relation to the PMA milestone.” — Ramsey Hamady, CFO .
• “We anticipate the first ENTRA1 energy plant to deliver power to TVA as early as 2030, with additional plants phased in as demand grows.” — John Hopkins, CEO .
• On supply chain: “Doosan has... capacity of producing 20 NuScale power modules per year and looking to expand as needed.” — John Hopkins .

Q&A Highlights

• TVA–ENTRA1 mechanics and risk protections: Payments under PMA roll into other projects if TVA term sheets don’t convert to PPAs; OEM milestone expected to be net cash positive as orders materialize .
• Financing PMA commitments: Company expects to fund via cash on hand, capital markets, and eventual revenue-producing activity; restrictions on equity issuance are aligned with budgets and shareholder support .
• Supply chain readiness: Doosan capacity (~20 modules/year) and broader supplier engagement reiterated as differentiators; long-lead materials critical to 2030 COD .
• RoPower schedule: FID now late 2026/early 2027; FEED Phase 2 continues to be revenue-positive .
• Pricing and PMA escalator: Discussion of a 5% annual escalator over long horizons; management expects production costs to decline with scale, supporting margins .

Estimates Context

Values with an asterisk are retrieved from S&P Global.

• Q3 2025: Revenue and EPS both missed consensus materially; EBITDA more negative than expected, largely reflecting PMA accounting and commercialization costs.
• Q2 2025: Revenue and EPS slightly missed; Q1 2025: revenue and EPS beat due to higher RoPower-related fees .

Key Takeaways for Investors

• The quarter’s headline EPS miss was driven by PMA accounting (Milestone Contribution 1 of $495.0M), not core operating contraction; liquidity remains robust after $475.2M ATM proceeds .
• Strategic narrative strengthened with TVA–ENTRA1 6 GW term sheet and a 2030 first-plant COD target; confirmation of PPAs is the next catalyst likely to drive stock direction .
• Watch Fluor’s structured monetization and share authorization change—designed to preserve market stability but may create technical overhang; equity issuance limitations through Feb 2026 are a constraint to monitor .
• Supply chain capacity and long-lead procurement remain differentiators; Doosan’s ~20 modules/year capability supports multi-plant rollout if orders phase in over time .
• RoPower remains a revenue-positive bridge, but FID has shifted later (late 2026/early 2027), moderating near-term international deployment expectations .
• Estimate resets likely: Street models should reflect PMA expense cadence, phased OEM milestones, and a more conservative revenue timing until PPAs are finalized; near-term EPS volatility remains likely .
• Trading implications: Near-term moves hinge on PPA progress and clarity on PMA accounting/cash timing; medium-term thesis rests on TVA program execution, COLA progress, and scaling production economics .

Citations:

• Q3 2025 press release and financial statements: .
• Q3 2025 earnings call transcript: .
• TVA/ENTRA1 press release (Sept 2025): .
• Q2 2025 press release/8-K and call: .
• Q1 2025 8-K: .

S&P Global disclaimer: Values marked with an asterisk (*) are retrieved from S&P Global.