Should You Buy, Sell, or Hold NuScale Power Stock Post Q3 Earnings?

Core Insights - NuScale Power shares have dropped 20% following a disappointing Q3 2025 earnings report, with a loss per share of $1.85, wider than the previous year's loss of $0.18 and the Zacks Consensus Estimate of a loss of $0.11 [1][9] - The company reported revenues of $8.24 million for Q3 2025, a remarkable increase of 1213.5% from $0.48 million in the same quarter last year, driven by higher fees from engineering, licensing, and pre-commercial operational services for the RoPower project [2][9] - Despite the recent decline, NuScale Power shares have increased by 69.3% year-to-date, outperforming the Zacks Computer & Technology sector's return of 24.4% and the Zacks Electronics-Power Generation industry's growth of 66.7% [3] Financial Performance - The loss per share of $1.85 in Q3 2025 is a significant increase compared to the prior year's loss of $0.18 and is worse than the expected loss of $0.11 [1][9] - The revenue of $8.24 million in Q3 2025 represents a substantial year-over-year increase of 1213.5% [2][9] - The Zacks Consensus Estimate for the loss in 2025 is now pegged at $0.50 per share, revised downward by $0.04 over the past 30 days [16] Market Position and Prospects - NuScale Power is recognized as a leader in small modular reactor (SMR) technology, being the only SMR technology approved by the U.S. Nuclear Regulatory Commission (NRC) [7] - The company's partnerships, including a growing collaboration with ENTRA1 Energy, enhance its position in the clean energy market by providing scalable and reliable clean power options [8][20] - A significant agreement with the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts of SMR capacity marks a major milestone for the company [9][10] Competitive Landscape - NuScale Power faces competition from other companies in the nuclear energy sector, including Oklo, BWX Technologies, and GE Vernova [12] - Recent partnerships among competitors, such as GE Vernova and Samsung C&T, and BWX Technologies with Rolls-Royce SMR, indicate a competitive environment for SMR technology [13][14][15] Valuation - NuScale Power's current price-to-sales (P/S) ratio is 59.63X, significantly higher than the industry average of 30.7X and its peers, which have P/S multiples ranging from 3.82X to 5.16X [17][18] Conclusion - The increasing demand for energy, particularly from AI data centers, along with advancements in SMR technology and strategic partnerships, positions NuScale Power favorably in the clean energy sector [20] - However, the company must navigate challenges in a competitive market and address its high valuation concerns [21]