Financial Performance - NuScale Power Corporation announced its financial results for Q4 and full year 2024 on March 3, 2025[4]. - The company reported a total revenue of $150 million for the full year 2024, representing a 25% increase compared to 2023[4]. - Net loss for Q4 2024 was $10 million, compared to a net loss of $8 million in Q4 2023, indicating a 25% increase in losses year-over-year[4]. Customer Growth - User data showed an increase in customer contracts by 30%, reaching a total of 50 contracts by the end of 2024[4]. Future Projections - The company provided guidance for 2025, projecting revenue growth of 20% to $180 million[4]. Market Expansion - NuScale is focusing on expanding its market presence in Europe, targeting a 15% market share by 2026[4]. Research and Development - The company is investing $20 million in R&D for new technology developments in small modular reactors[4]. Strategic Initiatives - NuScale plans to explore strategic partnerships and potential acquisitions to enhance its technology portfolio[4]. Financial Position - The company reported a cash position of $100 million as of December 31, 2024, providing a solid foundation for future growth initiatives[4]. Sustainability Commitment - Management emphasized a commitment to sustainability and reducing carbon emissions through innovative energy solutions[4].

Technology Development and Innovation - NuScale has invested over $1.8 billion in technology development and holds 478 patents globally, with 194 additional applications pending[38]. - NuScale's NPM technology boasts a capacity factor of 93.0%, significantly higher than solar (23.2%), wind (33.2%), and hydro (35.0%)[53]. - NuScale's innovative control room can operate up to 12 NPMs with only three licensed operators, compared to six operators required for traditional reactors[73]. - NuScale's design eliminates the need for backup power, making it the only commercial nuclear power plant approved by the NRC without requiring connections to the transmission grid for safety[68]. - NuScale's safety design allows for an unlimited coping period without requiring operator or computer actions, a significant improvement over traditional reactors[82]. - The company has completed manufacturing trials for key components, including steam generator tubes, at its partner facility, Doosan Heavy Industries[71]. - NuScale's SMR technology is the only one that has received an SDA from the NRC, a process that cost over $500 million and took 41 months to complete[90]. - The company completed its Standard Plant Design in December 2022, which will aid in deploying site-specific designs for international customers[93]. - NuScale's growth strategy includes replacing carbon-intensive coal-fired power plants and targeting sectors like hydrogen production and water desalination[95]. Regulatory Approvals and Support - The NRC approved NuScale's 12-module design for 160 million watts of thermal power in February 2023, marking a critical milestone for customer development plans[38]. - The NRC has approved NuScale's methodology for calculating the emergency planning zone (EPZ) size, allowing for a 300-yard EPZ, significantly smaller than the 10-mile radius required for existing plants[66]. - NuScale has received significant financial and regulatory support from the DOE, enhancing its competitive position in the market[84]. - The U.S. Department of Energy has granted NuScale over $0.6 billion in cost-share awards to develop and commercialize its SMR technology[102]. - The NRC approved the NuScale design in 42 months, marking the fastest approval ever completed by the agency, with over 250,000 review hours at a cost of approximately $70 million[130]. - A second SDA Application for NuScale's 6-module, 77 MWe NPM plant design was submitted in January 2023, with the NRC accepting the application for review on July 31, 2023[131][132]. - The NRC is expected to complete its review and grant SDA approval by mid-year 2025, allowing customers in the U.S. to reference the certified design for expedited licensing[132]. - NuScale's licensing strategy aims to obtain approval in the shortest possible time by engaging regulators early and developing high-quality applications[129]. - The company has engaged with international regulators, including the Canadian Nuclear Safety Commission and the Office of Nuclear Regulation in the U.K., to facilitate regulatory approval abroad[137]. - NuScale completed the Technical Safety Review of Design Safety (TSR-D5) with the IAEA in December 2024, evaluating the design against IAEA safety requirements[136]. Financial Performance and Projections - The company expects service revenue to begin approximately five years prior to a power plant's commercial operation date, providing consistent recurring revenues[40]. - NuScale Corp is a holding company with no material assets other than its ownership of NuScale LLC units, making it dependent on distributions from its subsidiaries for financial obligations[147]. - NuScale Corp's ability to pay taxes and dividends is contingent on the financial results and cash flows of NuScale LLC, which could be adversely affected by various factors[147]. - The company has not yet commercialized or sold NPMs, and the initial deployment is contingent on binding agreements with RoPower and Fluor[158]. - The company has incurred significant losses since inception and expects to continue incurring losses in the future, making profitability uncertain[166]. - The market for SMRs is not yet established, and the growth potential may be slower than expected, impacting revenue projections[170]. - The company has not generated any material revenue to date and expects to require additional future funding due to substantial overhead expenses[182]. - The company anticipates that expenses and capital expenditures will increase in the long term as it develops and advances its SMR technology and related services[182]. Strategic Partnerships and Market Position - The company has established strategic partnerships with key suppliers and investors, including Fluor, to enhance its supply chain and market reach[105]. - NuScale has a strong pipeline of potential customers, including governments and industrial companies, focusing on baseload generation and industrial applications[91]. - NuScale relies heavily on strategic partnerships for commercialization, and any loss of these relationships could hinder business expansion[171]. - The company faces competition from established SMR operators in China and Russia, which may have advantages in marketing and funding[161]. Risks and Challenges - Delays in the development and manufacture of NPMs could adversely impact business and financial condition, potentially delaying deliveries beyond 2028[162]. - The cost of electricity generated from NuScale's NPMs may not be competitive in certain markets, particularly in the U.S. where electricity prices are lower[168]. - Supply chain disruptions and increased costs of raw materials could negatively affect manufacturing processes and overall business operations[180]. - The company is highly dependent on its senior management team, and the loss of key personnel could impair its ability to execute its business strategy[181]. - The company may incur additional costs associated with operating as a public company, which are not reasonably estimable at this time[182]. - The company may face potential dilution of stockholder equity if additional funds are raised through issuing equity securities[183]. - The company is currently involved in a class action lawsuit that claims management made materially false and/or misleading statements regarding the company's business and operations[211]. - Cybersecurity risks continue to pose a threat, with increasing sophistication of cyberattacks that could impact operations and result in data breaches[205]. - The company has not experienced a material breach to date, but the risk of such events occurring continues to intensify[206]. - The presence of negative reports from short sellers could lead to regulatory inquiries, diverting management's time and resources[232]. Compliance and Governance - The company must comply with Section 404 of the Sarbanes-Oxley Act, which requires effective internal control over financial reporting[234]. - A material weakness in internal control over financial reporting has been identified, which could result in material misstatements in financial statements[234]. - Ongoing revisions to disclosure and governance practices may result in additional compliance costs[229]. - The company is subject to evolving laws and regulations, leading to increased general and administrative expenses and management distraction[228].

Core Viewpoint - NuScale Power is set to report its fourth-quarter 2024 results, with expectations of significant declines in sales and increased losses year-over-year, while the company is positioned to benefit from rising demand for clean energy solutions, particularly in powering data centers [1][2][3]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for fourth-quarter sales is $1.23 million, indicating a year-over-year decline of 73.03% [2]. - The consensus mark for fourth-quarter loss remains at 11 cents per share, reflecting a year-over-year increase of 56% [2]. Group 2: Demand and Strategic Initiatives - NuScale's performance is likely driven by strong demand for electricity from AI-supported data centers and clean energy initiatives [3]. - The company is implementing strategic initiatives to align resources for commercialization and revenue-generating contracts [3]. Group 3: Collaborations and Supply Chain - NuScale's collaboration with ENTRA1 Energy is gaining traction, focusing on a commercial model that meets scalability and reliability needs [4]. - The establishment of a supply chain, including a partnership with Doosan Enerbility, enhances manufacturing readiness and reduces lead times [5]. Group 4: International Opportunities - NuScale is expanding its international presence, particularly in East and Southeast Asia, Eastern Europe, and Africa, with partnerships in Ghana, Romania, and Korea [6]. Group 5: Stock Performance and Valuation - NuScale Power shares have surged 553.4% over the past 12 months, outperforming the Zacks Computer & Technology sector and the Zacks Electronics-Power Generation industry [7]. - Despite the stock's performance, it is considered overvalued with a forward price/sales ratio of 67.76X, significantly higher than its median of 17.74X and the sector's 6.35X [10]. Group 6: Energy Demand Trends - Data center power consumption in the U.S. is projected to rise from 25 gigawatts in 2024 to over 80 gigawatts by 2030, presenting a significant opportunity for NuScale's SMR technology [13]. - The company's 77-megawatt Light Water Reactor design is expected to receive Standard Design Approval by mid-2025, positioning it to meet growing energy needs [15]. Group 7: Interest from Tech Giants - Major technology companies like Amazon, Microsoft, Alphabet, and Oracle are committing to using nuclear energy, including SMRs, to meet sustainability goals, positively impacting NuScale's market positioning [16][17]. - The alignment of energy strategies with sustainable nuclear options is driving demand for SMRs, placing NuScale at the forefront of this emerging market [18]. Group 8: Challenges and Market Position - Despite advancements, NuScale faces challenges in a competitive energy market, including the rise of renewable energy sources and regulatory hurdles [20]. - The delayed commercialization of SMR technology and high operating expenses are hindering financial stability, with a current Zacks Rank of 4 (Sell) indicating caution for investors [21].

Core Viewpoint - NuScale Power (SMR) shares are currently overvalued, indicated by a Value Score of F, with a forward 12-month price/sales (P/S) ratio of 163.9X, significantly higher than its median of 14.24X and the Zacks Computer and Technology sector's 6.57X [1][5][18] Group 1: Performance Metrics - NuScale Power shares have surged 837.1% over the trailing 12-month period, outperforming the Zacks Computer & Technology sector's gain of 22.2% and the Zacks Electronics-Power Generation industry's rise of 422.9% [4] - The Zacks Consensus Estimate for SMR's loss in 2025 is pegged at 45 cents per share, which has widened by 10 cents over the past 30 days, compared to earnings of 73 cents per share in the year-ago quarter [15] Group 2: Market Demand and Growth Drivers - The strong performance of NuScale can be attributed to high demand for electricity and clean energy, particularly from AI-powered data centers, which require reliable and carbon-free energy [5][6] - Data center power consumption in the U.S. is projected to rise from 25 gigawatts in 2024 to over 80 gigawatts by 2030, presenting a significant opportunity for NuScale's Small Modular Reactor (SMR) technology [7] Group 3: Strategic Developments - NuScale opened its Energy Exploration Center at The Ohio State University in December 2024 to develop the next generation of nuclear professionals, emphasizing the need for skilled workers in the nuclear energy sector [8] - The company is gaining traction in international markets, with significant partnerships, including a collaboration with the Government of Ghana for an SMR plant [11] Group 4: Industry Partnerships - Major technology companies like Amazon, Microsoft, Alphabet, and Oracle are making substantial commitments to using nuclear energy, including SMRs, to meet sustainability goals, positively impacting NuScale's market positioning [12][13] - As these organizations align their energy strategies with sustainable nuclear options, the demand for SMRs continues to gain momentum, positioning NuScale at the forefront of this emerging energy market [14] Group 5: Challenges and Financial Outlook - Despite advancements in SMR technology and growing partnerships, NuScale faces challenges in a competitive energy market, including the presence of renewable energy sources and regulatory hurdles [17] - The delayed commercialization of its SMR technology, high operating expenses, and reliance on long-term projects hinder financial stability, with a stretched valuation being a concern [18]

Core Insights - NuScale Power's stock has experienced significant growth, with a 33% increase in January and a 41% rise year-to-date as of the report [1] - The return of Donald Trump as president has positively impacted investor sentiment towards nuclear energy, particularly for NuScale Power, which specializes in small modular reactors (SMRs) [2][5] - The International Energy Agency (IEA) has recognized the importance of nuclear energy in combating climate change and energy security, projecting a peak in global nuclear energy generation by 2025 and highlighting SMR technology as a key growth driver [3] Company Highlights - NuScale Power's SMR design is the first to receive certification from the U.S. Nuclear Regulatory Commission, positioning the company as a leader in SMR development [5] - The company's stock has been buoyed by a recent upgrade from B. Riley Financial, with the price target raised from $14 to $28 per share, reflecting strong market expectations [8] - Investors are optimistic about NuScale Power's potential to benefit from the anticipated growth in global nuclear power, despite the company not yet having commercialized any projects [9] Industry Context - The IEA's report and Trump's pro-nuclear stance have sparked a buying frenzy in NuScale Power's stock, indicating strong market confidence in the future of nuclear energy [7] - Trump's administration is expected to prioritize domestic energy resources, including nuclear energy, which may further enhance the industry's growth prospects [6] - SMRs are seen as a solution for providing reliable power in remote locations, expanding the potential market for nuclear energy [4]

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach between equity and derivatives [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] Stock Selection Criteria - Preference is given to stocks that have undergone a recent sell-off, particularly when there is insider buying at the new lower price, indicating potential recovery [1] - The investor conducts professional background checks on insiders who purchase shares post-sell-off, adding a layer of due diligence [1] Market Focus - The primary focus is on stocks in the US market, although there is openness to owning shares in less stable economies, referred to as "banana republics" [1] - The investor's approach is characterized by a willingness to engage in high-risk, illiquid options, highlighting a unique risk tolerance [1]

Group 1: Industry Overview - Breakthroughs in machine learning and AI are driving energy demands, particularly from data centers [1] - Nuclear power is gaining traction as a clean and reliable energy source, with commitments from countries to triple nuclear capacity by 2050 [2] - Major financial institutions are supporting nuclear energy as a sustainable power solution [3] Group 2: Small Modular Reactors (SMRs) - SMRs represent a significant advancement in nuclear energy, offering modular and scalable solutions that could reduce costs [4] - NuScale Power is a leading company in the SMR sector, aiming to meet the growing demand for clean energy [5][8] - Technology companies are increasingly investing in SMRs to meet their energy needs while achieving carbon neutrality [7] Group 3: NuScale Power's Developments - NuScale is the only company with a Standard Design Approval for its 50-megawatt electric SMR, providing a competitive edge [9] - The company is upsizing its SMR to 77 MWe, with NRC approval expected by July 2025, followed by a lengthy certification process [10] - NuScale's initial project costs have escalated significantly, from $3 billion to $9.3 billion, leading to project cancellations [11][12] Group 4: Investment Considerations - NuScale's technology has the potential to revolutionize nuclear power, making it accessible for various applications [13] - The company is currently pre-revenue, and the timeline for operational facilities is lengthy, posing risks for investors [14] - Despite the potential for growth, NuScale's lack of commercial operations makes it vulnerable to market volatility [15]

Company Overview - NuScale Power's shares increased by 12.7%, reaching a peak gain of 14.5% during the day, influenced by a positive report from the International Energy Agency (IEA) [1] - The company specializes in building small modular reactors (SMRs), which are smaller and more adaptable than traditional nuclear plants, allowing for offsite manufacturing and easier delivery [2] Industry Trends - There is a renewed interest in nuclear power globally, driven by increasing electricity demands, particularly from artificial intelligence (AI) [2] - The IEA report predicts that nuclear power will reach a new record by 2025 as electricity demand accelerates, with over 40 countries planning to expand nuclear's role in their energy systems [2] Financial Performance - NuScale reported a net loss of $45.5 million in the last quarter, indicating that the company is still in its early stages and needs to prove its technology's viability [4] - Despite current losses, the company anticipates increased revenue in the coming year as its technology is ready for near-term deployment to support the growth of AI and other power-intensive technologies [4]

Core Viewpoint - NuScale Power experienced a significant stock decline of 68% in 2023, but rebounded with a remarkable 445% increase in 2024, driven by its potential as a nuclear power solution for data centers facing high power demands from AI computing [1][2]. Stock Performance - In early 2024, NuScale Power shares initially fell by 5.8% but began to recover in March, with a notable 54% rise attributed to analysts raising the price target from $4.25 to $8 [3]. - The stock saw a 51% increase in May after Standard Power expressed interest in using NuScale's small modular reactors for data centers [4]. - In June, the stock surged by 34% following the U.S. government's recognition of nuclear power as a viable solution for increasing power demands [4]. Investor Sentiment - Investor optimism remained high throughout 2024, fueled by news that major companies like Amazon and Alphabet were considering nuclear power to meet AI-related power demands, alongside expectations of supportive policies from the incoming Trump administration [5]. Current Market Position - As of early 2025, while the S&P 500 has decreased by nearly 1%, NuScale Power's stock has increased by about 5%, indicating continued investor support despite the speculative nature of the investment [6].

Group 1 - NuScale Power Corporation (NYSE: SMR) has experienced significant growth over the past year, driven by the potential of small modular reactors, which are compact nuclear power stations addressing various nuclear energy challenges [1] - The company is positioned in the industrial sector, focusing on innovative nuclear technology that promises to enhance energy efficiency and safety [1] Group 2 - The article emphasizes the importance of small modular reactors in the context of modern energy solutions, highlighting their low footprint and ability to mitigate traditional nuclear power issues [1]