NuScale Power Corporation Class A

Good afternoon and welcome to NuScale's 4th Quarter and Full Year 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. With us today are John Hopkins, Newskill President and Chief Executive Officer, Ramsey Homedy, Chief Financial Officer, and Clayton Scott, Chief Commercial Officer. We will begin by providing an update on our business, followed by a discussion of our financial results. We will then open the phone lines for questions. This afternoon, We posted supplemental slides on our investor relations website. As reflected in the safe harbor statements 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. 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 ended December 31st, 2025, and our subsequent SEC filings. I'll now turn the call over to John Hopkins.

Thank you, Rodney, and good afternoon, everyone. I'll start with some key highlights from 2025. a year marked by significant progress for NuScale. The U.S. Nuclear Regulatory Commission, or NRC, approved our 77 megawatt electric standard design ahead of schedule, allowing us to support a wider range of off-takers and consumers seeking clean baseload energy. NuScale remains the only SMR technology to achieve NRC design certification. And with 12 modules introduction, we retain our position as the industry's first mover. Furthermore, our exclusive global commercialization partner, InterOne Energy, reached an agreement with the Tennessee Valley Authority, or TVA, to supply six gigawatts of power by deploying the largest nuclear power program in U.S. history. And InfraOne will use NuScale SMR technology inside its power plants. Both are incredibly important milestones in our commercialization journey and gives us strong momentum going into 2026 to pioneer the SMR space as the only NRC-certified SMR under 10 CFR Part 52 versus other technologies pursuing 10 CFR Part 50. We believe this approach provides new-scale SMR power plants with a much different risk profile. Now, turning to slide three, we list new skills, fourth quarter, and recent highlights, which we will discuss in more detail in a moment. They include significant progress made by InterOne in TVA on a power purchase agreement, or PPA, as well as the completion of our work on floor space two, front end engineering and design, or FEEQ study. for the proposed willpower door chest power plant in Romania. In the continued strengthening of our task position to ensure NuScale is well-funded to pursue its activities. Turning to slide four, in September of last year, TVA announced an agreement in connection with the purchase of power from InterOne for six gigawatts. which would represent a total deployment of 72 new-scale power modules, or NPMs, and six InterOne energy plants, providing power to support TVA's seven-state service region. In the five to six months since the program was announced, we understand that InterOne and TVA have advanced discussions. maintaining strong momentum in collaboration in their efforts. Our understanding is that the following recent steps have been taken to move the program forward. First, InterOne is assembling an infrastructure experience team that includes design engineers, a construction contractor, owner's engineers, investors, legal advisors. Second, on project financing, several major financial institutions are working with IntraOne and discussions are underway. And one major institution has already signed a multi-billion dollar term sheet with IntraOne. Third, on the project execution side, site visits have been conducted in and site evaluations are underway by teams of qualified professional engineers and heavy infrastructure experienced individuals. Four sites identified that could each support InterOne plants powered by new scale SMR technology with respect to the six gigawatt program. The prospective site for the first plant deployed has been identified. Fifth, drafting of a definitive PPA is underway with robust engagement from legal teams and progress is being made on transaction documentation in structure. Finally, please note that TVA announced the deal last September and the new TVA Board was confirmed just this January. Considering all of this, we believe that significant progress has been made relative to time. Separately, we'd like to touch on the U.S.-Japan Investment Initiative, which was discussed in our last earnings call. As noted in recent government announcements, Under the U.S.-Japan Framework Agreement, several American and Japanese companies were named as potential recipients of financing for Japan's groundbreaking commitment of $550 billion towards investments in the United States. Two points here. First, we understand, and as publicly known, InterOne Energy was one of the several companies named on the fact sheet chosen by the Japanese government. It is the only American SMR power plant developer on the list. Others included engineering and construction firms, OEM companies, investment holding groups, and industrial players. Second, Japan has been NuScale's second largest investor since 2022, and their selection of IntraOne would validate their continued interest to support NuScale and our SMR deployment via IntraOne energy power plants. While we are still on the subject of IntraOne energy, and in the spirit of being helpful to our listeners, I'd like to reiterate a few key points with respect to our IntraOne partnership. One, Intraline is an American-owned, in-control development and investment platform that is focused on supporting the commercialization of next-generation baseload energy technologies, which includes the NuScale SMR technology. Two, their mission is to support American and global energy security and economic growth by deploying baseload power infrastructure to generate power. Three, the company is led by an American energy and technology investor and brings together experienced professionals with backgrounds in energy and infrastructure project management, finance, development, and asset management. Four, In our partnership, IntraOne, as the project developer, is responsible for financing project development and deal execution management. To build the infrastructure, IntraOne works with seasoned engineering and construction firms. Five, IntraOne was established to address a need for a strategic developer and investor in a first-of-a-kind industry and to be the first mover to bridge the gap between financing and execution of such first-of-a-kind technologies. Sixth, over the course of several years, Interwine conducted due diligence and analysis on the various nuclear technologies that have been under research and development. And we believe they recognize the value creation opportunity that they could capture around the need of a strategic partner and investor to support nuclear SMR commercialization. Seven, NuScale was selected among several of the reactor technologies analyzed by Interline along with their financial institutional partners. A inter one has professionals with backgrounds in project finance, investment management, engineering, construction management, legal, and infrastructure development. And they work with specialized technical partners, contractors, engineering firms, financial institutions, and legal advisors for each project phase. It is important to note that TVA and NuScale have had a relationship for almost a decade. And Japan has been an investor in NuScale since 2022. We view these as longstanding follow-on relationships now supporting our commercialization along with our strategic partner, InterOne. NuScale has chosen to be a technology provider with our NRC-approved small-module reactors. We chose to pursue an asset-light business model, relying on outsourcing responsibilities outside our scope to reliable third parties. Currently, Doosan Interability is our primary manufacturing arm. We chose not to be a manufacturer of the reactors, nor are we the developer of power plant infrastructure that houses the reactor equipment. EnterOne is the development arm that helps NuScale commercialize its reactor technology by installing our SMR technology and equipment into their new power plant infrastructure assets. I'd like to remind everyone that the SMR space is a first-of-a-kind within the U.S. nuclear industry, and there are no commercially operating SMR power plants in the United States. All stakeholders and participants in the SMR space are pursuing a first-of-a-kind activity. EnterOne and NuScale work closely together to advance the deployment of the new skills SMRs in the United States and in global markets. Both teams work in an integrated fashion and in close collaboration while maintaining a common professional work environment. In summary, we are very excited about the TVA InterOne opportunity, which we hope will empower the local economy across TDA's seven-state region, support the fast-growing energy demand for AI data centers, advanced manufacturing, and national defense, all while creating thousands of high-quality American jobs, reinforcing America's energy independence, and strengthening our country's energy security. Moving to slide five. Regarding Romania, by the end of 2025, NuScale completed the C2 work for Flora Corporation to further Row Power's goal of developing and deploying their six-module SMR power plant in Romania. In total, NuScale recognized 63.1 million in revenue from licensing fees and engineering work from the FEED-2 study over an 18-month period ending in December 2025. Earlier this month, shareholders of Romania's SM Ecoelectrica overwhelmingly voted in favor of progressing the road power project. We understand that this vote allows the project to seek secured financing to further feasibility studies and site-specific design work, and to advance the licensing and geotechnical work, finalize a pre-engineering procurement and construction or EPC contract, and begin negotiating contracts for long lead items. Therefore, we anticipate that they will have pre-EPC activities begin in the second quarter of this year and have an estimated duration of up to 15 months and will include, among other things, the development of a Class 2 cost estimate. We look forward to continuing supporting FLOR on their DOCHEST project. Turning to slide six, you'll find a list of our plant services broken out by pre and post commercial operations date. While the sale of NPMs to IntraOne will make up the largest percentage of these skills' future revenues, those revenues will be complemented by the many different plant services we offer. These plant-related services cover licensing, installation, Commissioning in post-COD services. We have already seen services generate revenue for NuScale from the Row Power project. And we expect that once the PPA between Intra-1 and PPA is executed, we will begin generating service revenues related to those projects as well. Specifically, from the combined operating license application or COLA process, plus services related to feed work for HL1 power plants. Now on slide seven, we would like to provide an update with respect to an exciting use case for NuScale's SMR technology, producing processed steam and electricity for chemical plants. Just last month, in collaboration with Oak Ridge National Laboratory in Tennessee, NuScale released the results of a techno-economic assessment examining the performance and profitability of coupling NuScale power modules with a U.S. chemical facility to provide nuclear generated steam and electric power. The findings showcase that nuclear power Specifically, nuclear power generated by NuScale's SMR technology can help industries that use processed steam and electricity in a reliable and profitable manner. A recent second study conducted by Idaho National Labs demonstrated that NuScale's high temperature processed steam is on par with high temperature gas reactors. To further validate this use case, NuScale and Ibarra Elliott Energy, a major Japanese industrial player, established a collaborative program to fabricate and field test a high temperature steam compression system at their plant in Pennsylvania. It is further intended that the compressor will be later deployed at a domestic industrial petrochemical site. Newscale and Ibarra-Elliot are actively in discussions seeking a petrochemical industrial player for this effort. The results of the Oak Ridge Lab study and plans for high temperature steam compression demonstrator will be presented to the World Petrochemical Conference next month in Houston. In other news, NuScale has also launched a project at the Oak Ridge National Laboratory in Tennessee to use AI to enhance fuel efficiencies for multi-module nuclear plants beyond what is achievable in nuclear plants with a single reactor, be it small or large. Next month, NuScale will be speaking at the National Academy of Engineering Sponsored Conference on Closing Strategy Gaps for the Future of AI, hosted by the University of Maryland in College Park. NuScale SMRs are the only nuclear technology, large or small, that has been certified by the NRC for off-grid behind-the-meter application. At that event in Maryland, Newscale will be discussing the advantages of off-grid behind the meter, small mod reactors to power data centers. Now over to Ramsey for the financial update.

Thank you, John. And hello, everyone. Our financial results are available in our filings. So, my focus will be on explaining major line items which can be found on slide eight. New scales overall liquidity increased to 1.3 billion at December 31st, 2025 versus 754 million at September 30th, 2025 and 442 million at the end of 2024. This liquidity allows NuScale to further enhance supply chain and manufacturing readiness, fund obligations in connection with the advancement of commercialization, and further strengthen our balance sheet. As projects progress forward, NuScale expects revenues from products and services to support positive cash flow from operations. Moving on to revenue, USCO reported revenue of $31.5 million for the year ending December 31, 2025, compared to $37 million during the same period in the prior year. This decrease was due to a reduction in revenue recognized from the row power Technology Licensing Agreement, which was partially offset by higher FLIR B Phase II engineering and services revenue. I will conclude my remarks with a brief overview of our capitalization summary as shown on slide nine. As you can see on this slide, the number of Class B shares was greatly reduced in the fourth quarter due to Fleur's conversion of their NuScale B shares into Class A common stock. We understand that Fleur continues to monetize their investments in NuScale via open market transactions subject to certain agreed upon restrictions. With that, I'd like to thank you again for joining today and for your continued support of Newskill. We'll now take questions. Operator?

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw a question, simply press star 1 again. If you are called upon to ask your question and are listening via speakerphone or device, Please pick up your handset to ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue. Our first question comes from the line of Eric Stein with Craig Halem. Your line is open.

Hi, everyone. Thanks for taking the questions. Hey, can you hear me?

Yeah, sorry.

Good. Oh, that's okay. So maybe if we could just start on the supply chain and specifically Doosan. You did talk about that a little bit, but I know that it's committed to 20 modules a year, committed to being able to take that higher. So just maybe some commentary on confidence in that, but also curious about you know, it's a pretty differentiated position to actually, you know, those are actually being built. And so curious, you know, how is that playing into the process with EntraOne and TVA and also, you know, just some of the other opportunities as they progress in your pipeline?

Yeah, this is Carl Fisher, Chief Operating Officer As you know, we've progressed significantly well with Doosan. We have 12 modules under production right now. So, no matter what the project is, it gives us a significant timing advantage because we have ordered long-lead materials and the modules are under production.

Okay, gotcha. In terms of just feeling confident in, you know, that Doosan is, you know, committed and able, I know that they've got a big facility and they're, you know, they're committed to this space, but that they are, in fact, you know, in a position that should TVA, you know, should that move forward that they could, you know, I know it's a ways out, but that they could execute on that and help you get to, you know, potentially some big numbers.

Yeah, we have extreme confidence with DUSON. The other thing that you should know is that they're increasing their capacity so they can move up to 20 modules per year and then eventually doubling that capacity. I just recently was at DUSON and seen the works that are being done. These 12 modules will set the stage for the next set of 12 modules that could be used with the InterOne projects. And having these already in production, it really gives us a significant timing advantage because we do have the long-lead materials already ordered and the modules ready to be fabricated.

Got it. And maybe just turn into, you know, the upgrade approval. I know that, you know, six-plus months ago I asked this on the call. Were there customers that were waiting for that upgrade from 50 megawatts to 77? What that potentially kind of set in motion? So I guess now that it's six plus months later, looking back, what has that impact been on your pipeline, whether it's overall growth of the pipeline or movement within that pipeline?

Yeah, I think, first of all, the, you know, the upgrade that was approved last year was approved ahead of schedule. And we've got, there's a lot of confidence we have with the fact that we have that approval because a lot of questions and any concerns that may have had by the regulator were put, were approved and put aside. In that case, after that and having that SDA approval, our customers, the ones that we've been speaking with, and also basically just the general industry, puts a lot of confidence in the fact that the NRC has made that approval. I'll let Clayton Scott discuss the pipeline aspect of it, but I will say even for our international projects, having that NRC approval is significant because of the respect that the international community and the international nuclear regulators have for the NRC.

Yeah, this is John. We do regular quarterly generally drop-ins with the commissioners of the NRC. We're just there two weeks. And, you know, it was a pleasant surprise to speak with the commissioners in relation to expediting processes and et cetera. They ask a lot of questions because, as you know, we are the only one who's ever submitted a design certification application from the SMR space and have been approved. So we've been through the rigor. And so we're ready to go. And we're just sitting here, you know, as a company wanting to get these things before. And the bottom line still is, I keep saying this, We are the only game in town that has an NRC certified not only to construct, but also to operate.

But I think in addition to the 77 megawatt approval, it's really given EntraOne the opportunity to really push their pipeline. And it's given confidence from the industry to understand that that regulatory hurdle has been completed. And now that we can reach capacity levels that I think are a little bit more satisfactory when EntraOne looks at their overall facilities.

Got it. Helpful. Last one for me, just you mentioned it in your commentary here, but the term sheet with EntraOne, you mentioned the one financial institution who has entered that. Can you just unpack that a little bit? Is that something that's firm that gets triggered on the signing of a PPA? or is that something where there would be some additional steps upon that signing to lock that in?

Thanks for the question. It's Bill Cooper, General Counsel at NuScale, and we're under NDA with Inter1, so we can't say any more about that.

Okay. Worth a try. Thank you.

Our next question comes from the line of Brian Finks with B Riley. Your line is open.

Hey, guys. Thanks for taking my question. Maybe just to follow up on that last one to the extent that you can say, John, you mentioned the major institution that signed a multi-billion dollar term sheet with Entremont. Is there anything you can share there around who the players might be? What exactly was signed for? Yeah, anything there I think would be super helpful.

Nothing we can share. I'm sorry.

Got it. I'll turn to Romain then. Could you talk about the next phase of the row power project? What will it entail for new scale in terms of services rendered or maybe, you know, the potential revenue opportunity there?

Yeah, this is John. You know, we met with the Romanian government last night, actually, so it's a timely question. We, as we stated, feed phase two hasn't been completed as of the last quarter. February, they did have a shareholders meeting that they voted in favor of moving the project forward. Row Power is now authorized to advance the licensing and geotechnical moving towards a pre-EPC. And we anticipate new scale will be generating revenues as soon as no understand we are a subcontractor to floor corporation and flora's in negotiations right now with the real power government our contract is with floor it's not with the romanian government and we explained this last night to the romanian government and they understood we view this as a very important project that you know right now we're waiting for the next steps the uh floor and road power to do their deal and then we move on. But it was a good, it was an interesting conversation last night. They appreciated it.

Appreciate that. And then just one more. Could you give an update on the status of the material weakness in your financial reporting that you identified last year and where that stands today?

This is Ramzi Hamidi. In our 2024 annual report, we disclosed the material weakness on internal controls over financial reporting. ICFR is what we term it. And specifically, we focused on something called ITGC, which is Information Technology General Controls. We stated a plan to remediate it. We worked very hard. I would give credit to David Tuttle, Chief Accounting Officer and his team. And we've come through with a clean bill of health from EY. I think it's a remarkable feat. And so we no longer have that. We addressed it as we said we would.

Thanks, Rebsi. I'll turn it back.

Next question comes from the line of Sheriff L. Magrabi with BTIG. Your line is open.

Hi, thanks for sharing my questions. First on floor, once they monetize their remaining stake, will they still have right of first refusal as your EPC provider for future projects? Hi, can you hear me?

Please hold for a second.

Hi, this is Bill Cooper again, general counsel. I'm not familiar with any right of first refusal, but the agreement is otherwise confidential.

Okay, got it. And then the study you completed with the Oak Ridge National Lab, that study gives us a sense of power module pricing that is significantly lower than large scale nuclear. Of course, that's part of the value proposition of SMRs, but is that sort of the pricing you're aiming for in Romania and with the TVA, or is it kind of for later stage projects?

Yeah, I'm sorry. Could you repeat the question?

The study that you guys did with the Oak Ridge National Lab, it talks about roughly – I think about 5,500 bucks per kilowatt pricing for your modules. And I'm wondering if that's the sort of pricing that applies for Romania and the TVA.

Yeah, I'll have to look into that. I apologize. I'm not familiar with that number. I think what's important here, if you remember over the years, we said we see three significant markets. One was coal plant refurbishment. One was working with process companies for need of process heat. It could be for electricity. And the other one, obviously, the elephant in the room is hyperscalers. And these studies, the prevailing notion was that high temperature gas could only produce the steam requirements needed for high pressure steam. We went into an analysis that Oak Ridge or actually INL did for us to show that NuScale's light water reactor could provide the economics and efficiencies necessary to provide the steam requirements for these plants. And why this is getting specific interest, remember our emergency planning zone is that site boundary. So when I look at process plants in an area like Baytown, Texas, we have multiple companies that share a fence line, Interwine could build that plant outside that fence line, close to the end user, and provide if it's process heat, if it's electricity, if they want to do hydrogen production, and it's not inside the evacuation zone typical of a large-scale nuclear reactor.

The other thing is too, John, I think it's really important is we're also the only George Munro, Nuclear Technology Company period that is certified by the NRC for behind the meter off the grid applications and that's a significant benefit.

Okay, thank you very much for taking my question.

Next question comes from the line of Derek Soderbergh with Cantor Fitzgerald. Your line is open.

Yeah. Hey, guys, thanks for taking the questions. Just on cash, 1.3 billion. What's sort of the expected cash burn range for 26? And then can you talk about any sort of swing factors potentially in that as well?

This is Ramsey Hamity, Chief Financial Officer. As you pointed out, we ended 2025 with approximately 1.3 billion in cash. It's a tremendous achievement, shows a very defensive position in terms of our liquidity. Post-closed disclosure, I believe Note 9 in financial statements, we know the payment of about $250 million out. Arithmetically, we can assume about a billion of cash on balance sheet today. If I look at my OpEx, apart from what I would call one-time type items, My OPEX stays fairly consistent between 170 to call it $200 million, closer to 193 actually in 2024 on an adjusted basis. The billion dollars in cash, I think our investors can rest assured that we have taken a very conservative, very strong quitty position, and burn rate or runway is not a problematic item for us. Newskill has the legs to run this race.

Got it. That's helpful. And then, Ramsey, you mentioned just the one-time payment. I'm wondering if you can talk about how many more of these sort of one-time payments or milestone payments you guys expect to make associated with the project, and will those payments sort of be a similar magnitude, or can you help us maybe quantify the potential there? Thanks.

Sure. I think on this one, we have been very transparent in our disclosures and our filings. There is a partnership model center agreement filing, which describes all the payments in great detail. This is more of a developer-led model, which I would refer you to.

Got it. Thanks, guys.

Next question comes from the line of Nate Pendleton with Texas Capital Securities. Your line is open.

Good afternoon. So after intro one signs a binding PPA with TVA, can you talk about what that means from a near term revenue perspective? And would that revenue be comparable to what we've seen at real power thus far?

That's good. Hi, this is Clayton Scott, Chief Commercial Officer. So what we expect after the PPA is signed is that we would enter into COLA and feed activities to generate revenue, which will allow us to move forward. But this is something that I would expect to be more than what we see in rural power, just because the size of the plants are much larger. And we anticipate a little bit more revenue stream in that respect.

Got it. Thank you. And as my follow-up, perhaps staying with you, Clayton, referencing slide seven in the chemical plant study, has that study opened any new doors for the commercial team with that extra layer of validation there? And are there any other applications that you feel are underappreciated as well?

Yes, there's other discussions that are happening, and we're in concert with EntraOne to have those. But at this point in time, we're under NDA, and we can't really disclose anything.

Understood. Thanks for taking my questions.

Next question comes from the line of Liam, Leanne, Hayden with Canaccord Genentee. Your line is open.

Good evening, everyone. Thanks so much for taking my questions. Just wanted to start by digging into progress with Entra1 and TVA. Can you please help us try to understand any sort of gating factors to securing a binding PPA? Understand that there's been some pretty strong progress since January and that you're in the process of drafting a PPA. I do believe you previously guided for binding PPA execution by the end of 2025, so any color around what may have caused that delay would be much appreciated. Thank you.

We've said all that we can say. It's Bill Cooper again, General Counsel. We've said all that we can say about the PPA in the prepared remarks.

We can't say anything more. To the extent that you're able to comment, when can we expect any sort of site permitting or early site submissions associated with the four identified sites? Hello, can you hear me?

I'm sorry, go ahead. Hi, this is Rodney. Yeah, no, we went through that in the script to kind of lay that out with the four sites. So I would just reference that, or if not, we can circle up after the call.

Got it, thank you. And our last question comes from the line of Dimple Gozai with Bank of America. Your line is open.

Good evening, gents. Thank you for taking my question. I understand that you don't give guidance, but there's just many different pieces here with the feed to coming to an end and row power advancement. Now, while you also kind of pre funding intro one and or and or Romania, can you help us or give us a sense of how to think of, you know, the revenue and liquidity outlook or quality profile over the next 12 to 24 months, please?

Temple, this is Ramsey Hamidi. Thank you for your question. As we. as you pointed out in your question, we do not give guidance at this point. However, I think looking at our balance sheet, we look at our liquidity position. The company is conservatively positioned and prudently raised capital towards the end of last year. Or to give us a balance sheet that has lasting power and as I said, run rate and pardon me, runway. It's not an issue for us.

And we have another question comes from the line of Brian Lee with Goldman Sachs. Your line is open.

At the tone, please record your message. When you have finished recording, you may hang up or press 1 for more options. because of a bad connection to disconnect.

All right. That concludes the question and answer session. I would like to turn the call back over to John Hopkins for closing remarks.

Thank you, operator. Thank you, operator. And thank you to everyone for joining us today. As we close this period for NuScale, we are excited about the path ahead in 2026. We look forward to continuing to take meaningful strides toward deployment of the ONI NRC certified SMR technology to support American and global energy security. Thank you very much.

Ladies and gentlemen, that concludes today's call. Thank you all for joining in. You may now disconnect.