NuScale Power's 6GW Push Advances: Is the 2030 Target Achievable?

Core Insights - NuScale Power is advancing its plan to support up to 6 gigawatts (GW) of new nuclear capacity through partnerships with ENTRA1 and the Tennessee Valley Authority (TVA), marking the largest planned small modular reactor deployment in the U.S. [1][10] - The first plant, utilizing 12 modules, is expected to begin power delivery around 2030, contingent on site selection and a binding power purchase agreement (PPA) [1][10]. Project Development - TVA and ENTRA1 need to finalize site selection, complete engineering work, and convert the current term sheet into a binding PPA, with ongoing discussions but no firm contracts signed yet [2]. - NuScale Power is actively supporting early project work through milestone payments, having paid $128.5 million toward the first milestone in Q3 2025, and ended the period with $753.8 million in cash [3][10]. Timeline and Challenges - The timeline for the project is dependent on coordinated progress across engineering, licensing, supply chain planning, and customer decisions, with potential delays in PPA negotiations or site work that could push the 2030 target [4]. Competitive Landscape - NuScale Power faces significant competition in the nuclear energy sector from companies like BWX Technologies and GE Vernova, which are also advancing their small modular reactor technologies [5]. - GE Vernova and Samsung C&T have partnered to expedite the rollout of GE Vernova's BWRX-300 SMR outside North America, while BWX Technologies has signed agreements with Rolls-Royce SMR to enhance its position in the SMR supply chain [6][7]. Financial Performance - NuScale Power's shares have decreased by 55.6% over the past six months, contrasting with a 23.3% growth in the Zacks Computer and Technology Sector [8]. - The company trades at a forward price-to-sales ratio of 105.38X, significantly higher than the sector average of 6.62X [12]. - The Zacks Consensus Estimate for 2025 indicates a projected loss of $1.64 per share, which has widened from a previous estimate of a loss of 46 cents [15].