NuScale Power Corporation 2026 Q2 Earnings Call

Joining me today is John Hopkins, President and Chief Executive Officer of NuScale. We will begin by providing an update on our business, followed by a discussion of our financial results. We will open the phone lines for questions. This afternoon, we posted supplemental slides to our investor relations website. As reflected in the safe harbor statement from Slide 2, the information set forth in the presentation, discussed during the course of our remarks in the subsequent Q&A session, includes forward-looking statements which reflect our current views of existing trends and are subject to a variety of risks and uncertainties. For a detailed discussion of our risk factors that could contribute to differences in our expectations, please refer to our Form 10-K for the year ending December 31st, 2025, to our subsequent SEC filings. I will now turn the call over to John Hopkins.

Thank you, Ramsey. I want to start with a simple observation about where the market stands now. Demand for reliable carbon-free power is not building slowly. It is accelerating. Every major hyperscaler, every large industrial off-taker, every utility with an eye on the next decade is now engaged in some version of the same conversation. We need power now, we need it to be clean, we need it on a timeline that actually maps to our business. That urgency is real, it is growing. What I want to address today is what separates a company that can meet that urgency from one that cannot. The answer to that question is not branding or ambition, it is readiness.

Readiness in this industry is a function of years of deliberate work that does not generate headlines, determines more than anything else whether a nuclear project gets built on time and on budget or does not get built at all. That distinction is what I want to focus on today. Let me start with context, I think the history here explains why engineering and design maturity matters more than most investors currently appreciate. The Vogtle AP1000 expansion, the most recent large nuclear construction project in the United States, is the clearest example of what happens when a project goes to construction before the engineering is substantially complete. When that project started, the detailed design was not in an advanced state of completion. Significant engineering decisions were still being made on active construction sites. That result contributed to years of delays and billions in cost overruns.

This is not a story about nuclear being hard to build. It is a story about what happens when you start construction without a mature, detailed design. NuScale has spent years deliberately applying the hard lessons of past large-scale nuclear projects. We've made significant, sustained investment so that when we go to market, the engineering is as complete as possible. That investment is the foundation of everything I'm going to share with you today. A brief word first on two pillars of our readiness position: regulatory approval and fuel readiness. NuScale remains the only SMR company to have received design certification from the U.S. Nuclear Regulatory Commission, including Standard Design Approvals for two of our designs. The NRC's design certification is the global gold standard for nuclear safety. Certification takes years. There are no shortcuts.

We'll operate using standard low-enriched uranium, a proven fuel source which is available today from established suppliers from around the world. Several other designs being marketed today require High-Assay Low-Enriched Uranium or HALEU, which is not available on a commercial scale. That dependency is a fundamental supply risk embedded in their programs that does not exist in NuScale. The combination of NRC approval, conventional fuel, and a mature supply chain that are about to describe, that combination along with engineering is what commercial readiness actually means. No other company in this space has all four. NuScale's role in an ENTRA1 Energy plant is that of technology systems integrator and engineer of record. We are responsible for NuScale Power Modules and services. Supporting delivery of the NuScale Power Module, we have assembled a network of more than 60 specialized suppliers.

Each supplier brings deep domain expertise in a specific system: fuel, safety and instrumentation and controls, valves, cranes, and modular handling. Each holds detailed design responsibility for their own scope, with NuScale providing the overall integration. Here's where we stand. The detailed design for the critical path components of our modules, the systems that govern schedule and cost, is mature. We've already negotiated supplier agreements with more than half of our 60-plus supplier relationships. Many whom we believe to be best in class. This means when we execute an OEM, many of our suppliers will already have designed, scaled, tested, and in some cases, began production of components. Taken together, this shortens the path to actual power generation, not by months, but by years, and supports certainty of execution. Let me highlight a few of our suppliers. Doosan Enerbility is one of the world's foremost manufacturers of heavy nuclear components.

They are our strategic partner on the major components of our modules, the heavy forgings at the heart of every NuScale Power Module. What you see on this slide are photographs taken at Doosan's facilities in South Korea, actual components in active production for NuScale Power Modules. Framatome is one of the world's leading nuclear fuel companies. Fuel design has a long lead time, years, not months. Rather than wait for a signed customer contract before beginning that work, we entered into a dedicated agreement with Framatome to complete the fuel design. Our fuel supply will be ready as customers come online. This quarter, we announced that Paragon has been awarded a contract to complete the final design development of the safety instruments and control systems for our NuScale Power Modules. These three partners are an example of the depth of our supply chain ecosystem.

Doosan Enerbility on major portions of the modules, Framatome on fuel, Paragon Energy Solutions on safety control systems. We have comparable relationships across cranes, module handling, valves, and more, with additional announcements expected. I'll briefly discuss key commercial updates from the quarter. ENTRA1 Energy, our strategic partner, continues to advance discussions with the Tennessee Valley Authority toward a definitive power purchase agreement for potentially the largest nuclear power deployment program in the U.S. history, utilizing NuScale SMR technology. Our understanding is that these discussions are active and progressing. We look forward to providing a further update as milestones are achieved. Next is RoPower. NuScale is working with Nuclearelectrica and RoPower to satisfy conditions attached to Nuclearelectrica shareholders vote to advance the RoPower project in Doicești, Romania, which will deploy six NuScale Power Modules at a former coal plant site and represents the most advanced SMR effort in Europe.

Let me now turn to another area where NuScale is building lasting advantage, our Energy Exploration Centers. This quarter, we opened our 12th E2 Center at the University of Virginia's College at Wise, supported by a grant from the Virginia Clean Energy Innovation Bank. These centers deliver immersive, hands-on nuclear training in high-fidelity simulation environments designed specifically for the next generation of plant operators, technicians, and engineers. Another highlight is our liquidity position. NuScale closed the second quarter with approximately $1.9 billion in cash equivalents, and investments. Our cash position reflects a conservative approach to liquidity as we anticipate near-term commercial deployment. I'll turn the call over to Ramsey.

Thank you, John. Good afternoon. Our financial results are available in our filings, my focus will be on explaining major line items, which can be found on slide seven. NuScale reported revenue of $0.1 million for the three months ended June 30th, 2026, compared to $8.1 million in the same period last year. The year-on-year decrease reflects the completion in late 2025 of the Fluor front-end engineering design phase two work in support of the RoPower project. That scope had no comparable activity in the current quarter. As project activity advances, we expect both our product and services revenue to grow. We closed Q2 with approximately $1.9 billion in cash equivalents, and investments, an increase of $900 million since March 31st, 2026.

As John said, this increase in liquidity reflects a proactive approach to conservatively positioning the business as we continue to deploy capital for commercial readiness. When we invest in supply chain agreements, we reduce the time to deployment and de-risk the cost structure of our first projects. When we invest in Framatome's fuel design, as a example, we remove a bottleneck in the critical path. On slide eight, you'll find a capitalization summary. With that, thank you again for joining us today. We will now take your questions.