Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $90 million and an adjusted free cash flow use of $78 million, impacted by an extended outage at Susquehanna [5][18] - The incremental maintenance investment during the outage was approximately $30 million, with an expected payback period of less than two years [18] - The earnings now include higher 2025-2026 PJM capacity pricing of approximately $270 per megawatt day [18] Business Line Data and Key Metrics Changes - The company expanded its agreement with Amazon to a front of the meter arrangement for a total of 1.9 gigawatts, doubling the size of the original contract [6][7] - The acquisition of Freedom Energy Center and Guernsey power plant is expected to add over 40% free cash flow per share accretion in 2026 and more than 50% for the following two years [7][11] Market Data and Key Metrics Changes - The PJM market continues to show strong energy fundamentals, with peak summer heat and demand driving increases in forward summer spark spreads [14][15] - The company noted that average electricity demand remained flat despite cooler weather compared to the same period in 2024, indicating potential demand growth [15] Company Strategy and Development Direction - The company is focused on creating value in the IPP space, leveraging AI-driven data center growth and increasing CapEx plans from hyperscalers [4][5] - The strategy includes maintaining a disciplined balance sheet while targeting $500 million in annual share repurchases during the post-acquisition deleveraging period [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the IPP space, indicating that the current environment is conducive to value creation [4][23] - The company reaffirmed its 2025 guidance and plans to provide updates on 2026 and 2027-2028 outlooks at the upcoming Investor Update [8][19] Other Important Information - The company was added to two Russell equity indices in June, which is expected to drive passive fund demand for its stock [9] - The company has approximately $861 million in liquidity, with over $161 million in cash on the balance sheet [20] Q&A Session Summary Question: Thoughts on Susquehanna work and capacity - Management clarified that the 75 megawatts increase at Unit 2 is not an upgrade but a recovery of previously lost capacity due to maintenance [28][30] Question: Share repurchase plans - Management confirmed that they are committed to returning capital to shareholders, with approximately $100 million repurchased year-to-date, and are still targeting $500 million by year-end [33][36] Question: Insights on PJM auction and supply-demand trends - Management noted that the recent auction showed a significant supply response, indicating constructive trends in the market [42][45] Question: Competition with new supply initiatives - Management believes existing assets can compete effectively against new builds, especially given the ability to acquire assets at a discount to new build costs [51][52] Question: Gas plant contracting discussions - Management indicated that they are focused on structuring long-term contracts and managing risks associated with gas supply [64][66] Question: Nuclear fuel procurement strategy - Management stated that they are actively hedging nuclear fuel and will provide further updates at the Investor Day [100][101] Question: Data center clustering in Pennsylvania - Management expressed optimism about data center clustering in Pennsylvania, particularly around the Susquehanna site and the recent acquisition of Freedom [109][110]

Investment Rating - The report suggests a positive investment outlook for the nuclear power sector, driven by recent administrative orders from the Trump administration, which are expected to enhance the investment logic for nuclear power as a significant energy source for AI consumption [6]. Core Insights - The report highlights a significant push in the U.S. for $90 billion in technology and energy investments, particularly in AI and energy infrastructure, with a focus on simplifying the permitting process for AI data centers [17]. - The energy construction sector is seeing legislative advancements, such as Oregon's first microgrid framework and Georgia Power's integrated resource plan to maintain coal plants for data center support [21][22]. - The global energy market is experiencing fluctuations, with U.S. retail electricity prices averaging $0.13/kWh and oil prices showing slight declines [4]. - The report notes a robust demand for industrial robots, with a projected installation of 541,302 units in 2023, despite a slight decrease from the previous year [41]. Summary by Sections Global Infrastructure and Construction Equipment - The U.S. is witnessing a surge in AI and energy investments, with significant projects planned in Pennsylvania, including a $14.25 billion data center [19]. - Legislative measures in Oregon aim to enhance community resilience through microgrid frameworks, addressing growing electricity demands and extreme weather events [21]. Global Electrical and Intelligent Equipment - The U.S. electricity demand forecast has been revised upwards, with expectations of a 15.8% increase by 2029, indicating a strong need for electrical infrastructure [25]. - The report indicates a stable price index for electrical transformers, with a projected compound annual growth rate of 8.27% from 2024 to 2030 [29]. Global Energy Industry - The average retail electricity price in the U.S. is reported at $0.13/kWh, with fluctuations in natural gas and oil prices noted [4]. - The report emphasizes the need for increased investment in transmission infrastructure, with over $50 billion approved for new transmission expansions in the U.S. [28]. Global Defense and Aerospace - The aerospace sector is recovering steadily, with increased defense spending and modernization demands, highlighting opportunities in high-performance structural components and aerospace parts manufacturing [7].

Investment Rating - The report suggests a positive outlook for the aerospace and defense sectors, highlighting potential growth opportunities in high-performance structural components and aerospace parts manufacturing [5]. Core Insights - The U.S. data center industry is transitioning from a "domestic-led" model to a "global standard output" model, with significant investments in AI data centers [2][17]. - The aerospace sector is experiencing robust growth, with increased demand for aircraft engines and components, as well as advancements in satellite technology [23][25]. - The energy sector is facing challenges with regulatory decisions impacting generation interconnection plans, while natural gas prices show mixed trends [4][20]. - The industrial robotics market is expected to see continued growth, driven by demand from the aerospace and automotive industries [39][45]. Summary by Sections Data Centers - The U.S. AI data center supply chain is moving towards global standardization, with a notable project in Abu Dhabi involving a 5GW AI super data center [17]. - Major U.S. tech companies are participating in this project, indicating a strong push for global expansion in AI infrastructure [17]. Energy Construction - The FERC has denied MISO's plan to accelerate generation interconnection, citing concerns over project management [20]. - The NERC's summer reliability assessment predicts a peak electricity demand of 123GW, significantly higher than previous years [20]. - Texas is projected to see a dramatic increase in peak demand by 2031, highlighting the need for enhanced energy infrastructure [21]. Aerospace - The aerospace industry is witnessing a surge in activity, with SpaceX maintaining a high launch frequency and Airbus expanding its market presence in Southeast Asia [23][24]. - The price index for aircraft engines and components remains stable, reflecting steady demand in the sector [25][27]. Defense - The U.S. defense sector is focusing on modernizing capabilities in response to geopolitical challenges, with significant investments in missile defense systems [35][36]. - The government defense spending price index shows a stable increase, indicating ongoing investment in defense capabilities [36]. Robotics - The industrial robotics market is projected to grow, with the automotive sector regaining its position as the largest customer for industrial robots [39]. - The U.S. mechanical manufacturing price index shows a slight increase, reflecting stable demand in the machinery sector [43].

Financial Data and Key Metrics Changes - NuScale reported revenue of $13.4 million for Q1 2025, a significant increase from $1.4 million in the same period last year, driven by fees from engineering and licensing work related to the Row Power project [20] - Operating expenses decreased to $42.3 million in Q1 2025 from $44.6 million in the prior year, and are significantly lower than the average of $69.9 million per quarter in 2023, indicating improved operational efficiency [20] Business Line Data and Key Metrics Changes - The Row Power project in Romania is progressing well, with a Class three estimate expected to be delivered by fall 2025, which will facilitate the submission of a final investment decision application to the Romanian government by early Q2 2026 [7][9] - NuScale is the only near-term deployable Small Modular Reactor (SMR) company, having achieved U.S. Nuclear Regulatory Commission (NRC) design approval, which positions it ahead of competitors still in the demonstration phase [8][9] Market Data and Key Metrics Changes - NuScale is engaged in discussions with potential customers in the U.S. and internationally, including data centers, utilities, and energy companies, with approximately 10 advanced customer discussions ongoing [12][14] - The company is also exploring applications for carbon-free hydrogen production, which has garnered significant interest from major industrial players [15] Company Strategy and Development Direction - NuScale aims to solidify its leadership in the SMR market by enhancing manufacturing and supply chain readiness, with a target delivery date for its first power module set for 2030 [6][11] - The company is focused on securing long-term power purchase agreements with customers, moving beyond preliminary discussions to finalize contracts [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for clean, reliable energy and the company's ability to meet this demand through its advanced SMR technology [17] - The management is closely monitoring the impact of tariffs on operations but does not anticipate any material effects at this time [16] Other Important Information - NuScale's liquidity improved, with cash and cash equivalents totaling $491.4 million and short-term investments of $30 million, primarily due to the successful sale of shares [19] - The company is actively investing in its supply chain and manufacturing readiness to support anticipated customer orders [19][40] Q&A Session Summary Question: Definition of a firm customer order by the end of 2025 - Management clarified that a firm customer order refers to customers reaching a final investment decision and that they are currently negotiating term sheets with several customers [24][26] Question: Streamlining the licensing process - Management acknowledged ongoing discussions with the NRC and expressed optimism about potential streamlining, while emphasizing the importance of maintaining safety standards [30][32] Question: Timeline for module delivery after booking an order - Management indicated that once a contract is signed, they expect to receive cash flow immediately and anticipate that 25% of module costs would be received in the first year [40] Question: Customer discussions and market segments - Management confirmed that customer discussions include coal plant replacements, process companies, and AI-related projects, indicating a diverse market approach [84] Question: Class three estimate details for Row Power - Management explained that the Class three estimate will help Row Power understand the costs to complete the project and is crucial for moving towards a final investment decision [86]