Core Viewpoint - NuScale Power Corp. is experiencing significant stock price decline due to concerns over its plan to nearly double its authorized capital stock, which has led to investor sell-off [1][3]. Group 1: Stock Performance - NuScale Power's stock dropped 8.12% to close at $15.73, marking the fourth consecutive day of losses [1]. - The decline is attributed to investor concerns regarding the impact of new share issuance on existing shareholders [3]. Group 2: Capital Stock Increase - NuScale Power has filed for approval to raise its authorized capital stock from 332 million shares to 662 million shares, with a par value of $0.0001 each [2]. - The plan has already received approval from the Board of Directors [3]. Group 3: Financial Performance - In Q3, NuScale Power reported a net loss attributable to shareholders of $273 million, a 1,470% increase from $17 million in the same period last year [4]. - Revenue surged by 1,635% to $8.2 million, up from $475,000 year-on-year [4].

Core Insights - Wall Street is increasingly optimistic about nuclear power as a renewable energy source, particularly in light of the growing electricity demands driven by artificial intelligence (AI) [1][2] Group 1: Market Dynamics - The demand for electricity generation in the United States is expected to exceed $1 trillion in capital investments from now until 2029, largely due to AI [3] - Nuclear energy stocks, particularly Oklo and NuScale Power, have seen significant stock price increases, with Oklo rising 733% and NuScale Power increasing 65.6% over the last three years [8] Group 2: Company Profiles - Oklo is developing a small nuclear reactor that utilizes recycled nuclear waste and aims to serve direct-generation needs, such as military applications and data centers [4] - NuScale Power is constructing a small modular reactor (SMR) that has received design approval from the Nuclear Regulatory Commission (NRC) [5] - The standard SMR from NuScale Power is designed to generate 77 megawatts of electricity, contributing to the estimated need for 50 gigawatts of new electricity generation by 2030 [6] Group 3: Financial Performance - Oklo has never generated revenue and lacks an approved reactor design, while NuScale Power generates $64 million in revenue primarily from construction contracts [10] - Both companies are unprofitable, with Oklo reporting negative $68 million in free cash flow and NuScale Power showing negative $283 million [10] Group 4: Investment Considerations - The current investment interest in nuclear energy stocks is largely speculative, with both companies showing minimal revenue and significant cash burn [12] - As of December 15, 2025, both stocks have declined by 50% from their highs, indicating a potential downturn in the nuclear energy trade [13]

Core Insights - NuScale Power's shares have declined over 60% from recent highs, raising questions about the timing for potential investment [1] - The nuclear energy sector is experiencing a resurgence, driven by its potential to meet climate goals and provide reliable power for AI data centers [1] Company Overview - NuScale Power is focused on developing small modular reactors (SMRs) and is currently the only U.S. company with an SMR design approved by the Nuclear Regulatory Commission (NRC) [4] - The company has a market capitalization of $4.8 billion, with shares currently priced at $15.70, down 8.29% on the day [5] Financial Performance - NuScale's gross margin stands at 64.95%, indicating a strong potential for profitability once commercial operations scale [6] - The company has not yet secured a major deal with a paying customer but has received numerous inquiries, suggesting strong interest in its technology [6] Project Developments - NuScale is involved in two significant projects: an SMR power plant in Romania and a project with the Tennessee Valley Authority (TVA), both of which are in the planning stages [7] - These projects represent potential pathways for NuScale to secure its first commercial deal [7] Market Position and Risks - While NuScale holds a competitive advantage with its regulatory approval, it faces challenges such as cash burn and uncertainty regarding the commercial viability and cost of SMRs [8] - The company is considered a speculative investment in the future of energy, appealing to aggressive investors willing to take on high risk for potential high rewards [10]

Summary of Key Points from the Nuclear Industry Conference Call Industry Overview - The conference call focuses on the nuclear industry, particularly the outlook for 2026 and beyond, including supply and demand forecasts, pricing, and investor positioning in nuclear equities [1][2]. Core Themes and Insights 1. **US Government Investment in Nuclear** - The US government has partnered with Cameco (CCJ), Westinghouse, and Brookfield, committing over $80 billion to support new large-scale nuclear projects [2][3]. - This investment aims to jumpstart supply chains and mitigate costs for initial projects, addressing concerns from utilities about previous project overruns, such as the Vogtle project, which exceeded its budget by approximately $17 billion [3]. 2. **Future Nuclear Projects and Technology** - The announcement of new nuclear Final Investment Decisions (FIDs) is expected to correlate with available capital and the risk profile of developers. Larger projects, particularly AP1000 technology, are favored over Small Modular Reactors (SMRs) due to established data and government backing [4][6]. - The first large nuclear reactor FID in the US could be announced as early as the first half of 2026 [6]. 3. **Uranium Pricing Outlook** - Uranium prices are projected to rise, with long-term prices increasing from $80/lb to $86/lb since August 2025, driven by renewed nuclear power demand and contracting activity [9][41]. - Spot prices are expected to reach approximately $91/lb by the end of 2026, up from around $76/lb currently [9]. 4. **Nuclear Fuel Supply Chain Developments** - Urenco plans to add 700,000 SWU/year capacity at its New Mexico facility by 2025, and Orano is investing $1.8 billion to increase enrichment capacity by 2.5 million SWU by 2028 [10]. - Updates on uranium refining and conversion capacity expansions are anticipated in 2026 [10]. 5. **Policy and Regulatory Issues** - A final ruling on a Section 232 investigation into uranium imports is pending, which could impact uranium pricing depending on the outcome [11]. - Historical context includes a previous investigation in 2019 that did not result in restrictions but highlighted national security concerns regarding the nuclear fuel supply chain [13]. 6. **Catalysts for SMR Companies** - 2026 is expected to see an acceleration of catalysts for SMR companies, including customer contracts and progress on the DOE's reactor pilot programs targeting criticality for at least three SMR projects by July 2026 [14]. - The European Commission's Strategic Action Plan for SMRs is also anticipated in early 2026 [14]. 7. **Uranium Supply Updates** - Key updates include a public hearing on NexGen's Rook 1 project, which could significantly impact uranium supply in the 2030s [15]. - Kazatomprom has revised its 2026 production guidance down by approximately 10% [16]. Additional Insights - The cumulative uranium deficit is projected to reach 1,914 million lbs between 2025-2045, indicating a structural supply-demand imbalance [24]. - The nuclear sector has seen significant equity performance, with Goldman Sachs' nuclear coverage outperforming the S&P 500 by 124% year-to-date [45]. - Investor interest has shifted towards upstream uranium producers like CCJ and UEC, with expectations of continued upward pressure on uranium prices due to increasing demand from new reactor builds [52]. Conclusion - The nuclear industry is poised for significant growth driven by government investments, rising uranium prices, and a focus on large-scale reactor construction. The landscape for SMRs and uranium supply chains will be critical to monitor as developments unfold in 2026 and beyond [1][50].

Core Insights - Oklo and NuScale Power are both involved in the small modular reactor sector, but their recent quarterly results indicate they are at significantly different stages of development [1] Company Summaries - Oklo operates in the small modular reactor space and has recently reported quarterly results that suggest it is at an earlier stage compared to its competitor [1] - NuScale Power, also in the small modular reactor market, has released quarterly results that reflect a more advanced stage of development relative to Oklo [1]

Core Viewpoint - NuScale Power's stock continues to decline, with a pre-market drop of 2.26% to $19.86, following a 4.69% drop the previous day. Citigroup has reiterated a "Sell/High Risk" rating and significantly lowered the target price from $37.5 to $18.5, citing ongoing revenue pressures despite potential short-term stock price boosts [1][1]. Group 1: Stock Performance - The closing price of NuScale Power on December 10 was $20.32, reflecting a decrease of 4.69% [1]. - The pre-market price on December 11 is $19.86, down by 2.26% [1]. - The stock has a 52-week high of $57.42 and a low of $11.08, indicating significant volatility [1]. Group 2: Financial Metrics - The total market capitalization of NuScale Power is $5.747 billion [1]. - The average price of the stock is $20.306, with a trading volume of 22.479 million shares [1]. - The company has a total share count of 283 million, with a circulating value of $3.321 billion [1]. Group 3: Analyst Insights - Citigroup highlights that while there may be short-term factors that could drive the stock price higher, long-term revenue pressures are expected to persist [1]. - Existing contract-related revenues are declining, and partner Fluor is continuously reducing its stake, which may impact NuScale's financial stability [1]. - NuScale may need to issue additional equity to meet payment obligations, further complicating its financial outlook [1].

Core Viewpoint - Citigroup has reiterated a "Sell/High Risk" rating for NuScale Power, significantly lowering its target price from $37.50 to $18.50 due to contract uncertainties and revenue pressures [1] Group 1: Company Analysis - NuScale Power is the only small modular reactor company with approval from the U.S. Nuclear Regulatory Commission, providing it with a significant regulatory and time advantage [1] - The company has gained a first-mover advantage in the context of increasing electricity demand driven by data centers and artificial intelligence [1] - Despite its advantages, NuScale faces substantial project execution risks, and its stock price appears to have already factored in a large portion of the expected installations before 2040, which does not align with the projected increase in global nuclear capacity [1] Group 2: Financial Outlook - Short-term factors may drive the company's stock price higher, but long-term revenue pressures are expected to persist [1] - Existing contract-related revenues are declining, and partner Fluor (FLR.US) is continuously reducing its stake, leading to potential liquidity issues for NuScale [1] - NuScale may need to issue additional equity to meet payment commitments, and the expected sales timeline for its first nuclear module has been pushed back by two years [1] - The likelihood of securing definitive contracts with the Tennessee Valley Authority in the near to medium term is considered low [1]

Core Viewpoint - The recent decline in nuclear energy stocks, particularly those related to small modular reactors (SMRs), presents a potential buying opportunity for investors who believe in the future of nuclear energy [1][3]. Industry Overview - The energy sector is experiencing a nuclear resurgence, with significant increases in stock values for companies involved in microreactor designs prior to mid-October [1]. - Companies like Oklo and Centrus Energy saw stock increases of approximately 700% and 440% respectively over the year [1]. Company Performance - NuScale Power, a company with an approved design for SMRs, has seen its stock decline by nearly 10% year over year, despite being up about 22% for the year [3]. - The current market capitalization of NuScale Power is $6 billion, with a gross margin of 64.95% [3]. Future Prospects - For NuScale to achieve significant returns for early investors, it needs to secure firm orders for construction based on its approved designs [5]. - The collaboration with RoPower for deploying SMRs in Romania is a positive development, contributing to a significant increase in third-quarter revenue, although the company reported a larger-than-expected loss [6]. - Analysts anticipate revenue growth for NuScale over the next couple of years, but the company must demonstrate that SMRs can compete on price with natural gas and renewable energy sources [8].

Core Viewpoint - Nuscale Power Corp (NYSE:SMR) is viewed as a promising industrial stock by Wall Street analysts, despite recent price target adjustments and near-term challenges [1][2]. Group 1: Analyst Ratings and Price Target - UBS analysts have maintained a Neutral rating on Nuscale Power Corp and reduced the price target from $38 to $20, indicating a significant upside potential despite the cut [1][2]. - Craig Hallum analyst Eric Stine has reiterated a Buy rating on the stock, suggesting confidence in its long-term prospects [3]. Group 2: Company Challenges and Outlook - The company is facing near-term headwinds, including the monetization of Fluor's stake and the need for new equity to fund milestone payments [2]. - Despite these challenges, analysts expect the solid business model and potential future revenue to enhance the long-term outlook for Nuscale Power [3]. Group 3: Governance and Management Updates - On November 17, Nuscale Power announced governance updates, including the appointment of David Tonnel as chief accounting officer, succeeding Jacqueline F. Engel [4]. - The board has also made amendments to bylaws, designating the chief accounting officer as a company officer and adopting a deferred compensation plan for non-employee directors [4]. Group 4: Company Overview - Nuscale Power develops and commercializes advanced Small Modular Reactor (SMR) technology aimed at providing safe, scalable, and carbon-free nuclear energy for various applications, contributing to the global energy transition [5].

Core Insights - NuScale Power's shares have declined by 20.3% over the past month, underperforming the Zacks Electronics-Power Generation industry's decline of 18.4% [1] - The company reported a wider-than-expected loss per share of $1.85 for Q3 2025, compared to a loss of $0.18 in the same quarter last year and a consensus estimate of a loss of $0.11 [4] - Fluor's plan to sell its entire stake in NuScale Power by Q2 2026 has raised investor concerns about the company's financial backing [5] - NuScale Power's revenues remain low at $8.2 million for Q3 2025, with significant milestone payments and non-binding agreements posing risks to future revenue generation [6][7] - The Zacks Consensus Estimate for loss in 2025 has widened to $1.64 per share from a previous estimate of $0.50 [12] Financial Performance - The stock has underperformed compared to competitors, with GE Vernova gaining 8.5% in the past month while BWX Technologies and Oklo lost 7.5% and 0.3%, respectively [1] - The company paid $128.5 million to ENTRA1 in Q3 2025 as part of a milestone agreement, indicating high upfront costs before revenue generation [6] - The current price-to-sales (P/S) ratio for NuScale Power is 124.47X, significantly higher than the industry average of 31.27X and its peers [13][14] Competitive Landscape - NuScale Power faces stiff competition from companies like Oklo, BWX Technologies, and GE Vernova, which are advancing their own small modular reactor technologies [9][10][11] - GE Vernova and Samsung C&T have partnered to enhance the rollout of their BWRX-300 SMR, while BWX Technologies has expanded its capabilities through new agreements with Rolls-Royce SMR [9][10] Future Outlook - The company is entering a critical phase with plans for up to 6 gigawatts of small modular reactor capacity in collaboration with ENTRA1 and Tennessee Valley Authority (TVA) [6] - The TVA agreement is not yet a binding Power Purchase Agreement (PPA), which could delay orders and revenue [7] - The first plant is expected around 2030, indicating that significant revenues are still years away [7] Conclusion - Despite having technology advantages, NuScale Power's growth prospects are questioned due to project timelines, high upfront investments, and a competitive energy market [15][16]