NuScale Power Plunges 20% in a Month: Time to Hold Tight or Exit?

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]