NuScale Power to Report Q4 Earnings: How to Play the Stock

Core Viewpoint - NuScale Power is expected to report a significant decline in fourth-quarter revenues for 2025, with a projected loss per share, reflecting ongoing challenges in the competitive energy market [1][4][24]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $7.17 million, indicating a decline of 79.1% from $34.22 million in the same quarter last year [1]. - The estimated loss per share for the fourth quarter is 10 cents, unchanged over the past 60 days, compared to earnings of 60 cents per share in the year-ago quarter [1][2]. Market Position and Demand - NuScale Power is a leader in small modular reactor technology, with a focus on expanding its portfolio and market presence [7]. - The company is likely to benefit from increasing demand for clean energy, particularly from AI data centers and the global shift towards sustainable energy solutions [8][21]. - The partnership with ENTRA1 Energy is crucial, as it allows NuScale to provide power modules for energy production plants, enhancing scalability and reducing risks [9][21]. Strategic Developments - NuScale Power is advancing its projects, including a significant agreement with the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts of SMR technology, marking the largest small modular reactor program in the U.S. [11]. - The RoPower project in Romania is also progressing, with steady revenues expected from the completion of the front-end engineering design study [12]. Stock Valuation and Performance - NuScale Power shares have decreased by 27.2% over the past year, underperforming the Zacks Electronics - Power Generation industry, which declined by 17.7% [13]. - The stock trades at a forward price-to-sales (P/S) ratio of 23.13X, significantly higher than the industry average of 6.75X and its peers [17][20]. Competitive Landscape - Despite advancements, NuScale Power faces increasing competition from companies like Constellation Energy, BWX Technologies, and GE Vernova, which could impact its market share [22][25]. - Recent strategic partnerships by competitors, such as GE Vernova and Xcel Energy, highlight the competitive pressures in the energy sector [23].