NuScale Power Corporation Class A

Good afternoon and welcome to NuScale's first quarter 2025 earnings results conference call. Today's call is being recorded. A replay of today's conference call will be available and accessible on NuScale's investor relations website. The web replay will be available for 30 days following the earnings call. At this time for opening remarks, I would like to turn the call over to Rodney McMahon, Senior Director of Investor Relations. Please go ahead.

Thank you, Operator. Welcome to NuScale's first quarter 2025 Earnings Results Conference Call. With us today are John Hopkins, President and Chief Executive Officer, and Ransi Hammadi, Chief Financial Officer. On today's call, we will provide an update on our business and discuss our quarterly financial results. We will then open the phone line for questions. This afternoon, we posted a set of supplemental slides on our investor relations website. As reflected in the safe harbor statement on slide two, The information set forth in the presentation and discussed during the course of our remarks and 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. You can find a discussion of our risk factors, which could potentially contribute to such differences, in our 2024 annual report on Form 10-K and subsequent SEC filings. I'll now turn the call over to John Hopkins, New Scales President and Chief Executive Officer.

Thank you, Rodney, and welcome to NuScale. Good afternoon, everyone. As 2025 progresses, I'm excited to share that NuScale continues to build momentum and strengthen its leadership position in the SMR space. We remain the only SMR company with U.S. Nuclear Regulatory Commission design approval, and we continue to advance our commercialization efforts. During the first quarter of 2025, we focused on deepening customer engagement and further enhancing our manufacturing and supply chain readiness, ensuring we remain on track to meet our 2030 delivery target. Today, I'll provide further insights into these initiatives and share updates on our business commercialization progress and market opportunities. Ramsey will follow with a financial update. Starting with a business update, The road power project in Romania, as discussed on slide three, continues to move forward with a floor-led phase two front-end engineering and design, delivering meaningful revenue and cash flow for NuScale. Notably, we are on schedule to deliver the class three estimate by this fall. Furthermore, discussions are underway to extend the project into the detailed design phase, a critical step that would enable the submission of a final investment decision application to the Romanian government by late Q1 or early Q2, 2026. Moving on to slide four, let's shift to our commercialization progress. It's essential to reiterate that NuScale remains well ahead of its competition and continues to lead the market as the only near-term deployable SMR. As we have mentioned before, recently proposed non-lightwater SMR projects in the US are still in what we call the demonstration phase. which means they still require a minimum of four years of operation before securing U.S. nuclear regulatory approval for commercial deployment, an important and rigorous regulatory requirement that NuScale has already achieved, which we believe sets us years ahead of the other players. To that end, we are pleased to report that our standard design approval application with the NRC, which aims to increase the power output per module from the previously approved 50 megawatt electric to 77 megawatt electric continues to progress on schedule. We anticipate final approval by the NRC by July of this year. We are proud to be a first mover in the industry when it comes to manufacturing preparedness, a crucial step towards deployment, and we continue to gather early valuable knowledge about the process that will only make it more streamlined and efficient, as well as enhance scalability going forward. Turning to slide five, This was a pivotal quarter for our supplier working group, another demonstration of our commitment to meeting our deployment plans. NuScale's team worked from onsite delivery days to identify key near-term supply chain actions that need to be completed to ensure a 2030 delivery of our first NuScale power module. For example, during the first quarter, we conducted multiple pre-bid meetings with Doosan on an upper reactor pressure vessel fabrication proposal. continued progress on long-lead material orders, issued a preliminary scheduled delivery date notification to our fuel supplier Framatone for the initial core and initial order of control rod assemblies, and executed a Neutron monitoring system supply agreement with Paragon. We also held a productive meeting with our supplier working group in April, where we continue to build and invest in strong relationships with our suppliers in anticipation of a near-term customer order. With more than 30 suppliers attending the meeting, we focused on critical path production items and identifying near-term supply chain investments. A strong supply chain is essential in successful deployment. And NuScale continues to be proud of our robust relationship with our valued suppliers. Now let's talk about market opportunity. Looking at slide six, we remain confident that the growing interest in our technology and its critical use cases as well as NuScale's distinct competitive edge in module manufacturing and fuel readiness, will result in a firm customer order during 2025. In collaboration with our exclusive commercialization partner, IntraOne Energy, we are at various stages of discussions with potential customers, both here in the U.S. and abroad. Domestically, this includes discussions with government officials and industries, including data centers, utilities, coal plant operators transitioning to nuclear, and petrochemical and energy companies. Internationally, with stakeholders around the globe in Europe, the Middle East, Africa, and Asia. On the data center front, InterOne continues to lead discussions with major U.S. hyperscalers with a strong focus on powering AI operations. Potential customers continue to be attracted to InterOne's commercial model. which is designed to provide financial flexibility while mitigating deployment risks. Of these customer discussions, I would classify upwards to 10 as advanced, many of which have progressed to the point of multiple iterations of term sheets exchanged between parties and customer site visits to Doosan's manufacturing facilities in South Korea, where new scale power modules are being built. Across the board, we are continuously encouraged that both prospective customers in the broader market are better informed and more aware of the significance and advantages of NuScale's advanced SMR technology, in part due to our extensive outreach efforts. Now, I'd like to briefly discuss other applications of NuScale's technology beyond generating electricity, as shown on slide 7. One of these applications drawing a significant amount of attention is the production of carbon-free hydrogen. And we believe NuScale is uniquely positioned to lead in this space. We are proud to be the first SMR company to integrate hydrogen production systems in controls into a multi-module main control room simulator, enabling efficient carbon-free hydrogen production. Notably, our solution is designed to meet the needs of commercial-scale industrial applications requiring over 200 metric tons of hydrogen per day. Our presentation at the World Petrochemical Conference in March, where we were the only nuclear company to present, introduced an approach to produce a hydrogen carrier from the brine waste generated by desalinization, consistent with our mission to provide both clean energy and clean water. We've attracted strong interest from major industrial players, and we look forward to future collaborations to cement our leadership in this space. As we look to the future of SMRs in the nuclear field, I want to take a moment to note the recent opening of three new NuScale energy exploration centers at leading universities. Soon, we'll be opening two additional centers, bringing the total to 11. These innovative learning environments that stimulate a NuScale SMR control room as well as NuScale's Licensed Operator Training Program for helping prepare the next generation of nuclear talent. And we are proud to partner in this important effort. Lastly, I want to share that NuScale is actively assessing the potential impact of terrorists on our operations in the current market environment. At this time, we did not anticipate any material impact. However, we remain vigilant in monitoring the situation. We're also working closely with our suppliers to ensure operational continuity and are prepared to address any changes proactively to mitigate potential risk. This is an important year for NuScale, and we remain steadfast in our commitment to delivering sustainable, carbon-free electricity to end users worldwide. I am proud of where we are today and look forward to updating you all on our progress over the course of 2025. The demand for clean, reliable energy has never been more pronounced and we have an exciting future ahead. Now, over to Ramsey for the financial update.