Financial Data and Key Metrics Changes - The company ended fiscal 2025 with cash and cash equivalents of $203.3 million, an increase of approximately $175 million from the end of fiscal 2024, primarily driven by successful equity capital raises [25] - Fiscal 2025 loss from operations was $46.2 million, an increase from the previous year due to higher general and administrative expenses and R&D expenses [26] - The net cash used in operating activities increased to $19.6 million, while net cash used in investing activities rose to $17.5 million, reflecting increased R&D and facility acquisitions [27] Business Line Data and Key Metrics Changes - The company made significant progress in advancing the KRONOS MMR Energy System, including securing strategic collaborations and achieving important NRC milestones [10] - The acquisition of Global First Power, rebranded as True North Nuclear, marked progress in resuming licensing activities in Canada [11] Market Data and Key Metrics Changes - The demand for reliable baseload power is projected to increase significantly, with electricity usage expected to grow by 5%-6% annually over the next five years, driven largely by AI data centers [5][6] - There is a growing global commitment to triple nuclear capacity by 2050, indicating a long-term trend in nuclear energy growth [8] Company Strategy and Development Direction - The company aims to position itself at the center of a global nuclear renaissance, focusing on the development of micro-reactors to meet the increasing demand for clean energy [4] - The strategy includes vertical integration to de-risk the nuclear fuel supply chain, with a focus on enrichment and conversion capabilities [23][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the bipartisan policy support for nuclear energy in the U.S. and the favorable regulatory environment as key drivers for future growth [9] - The company expects to submit a construction permit application for the U of I project in Q1 2026, with a turnaround time from the NRC anticipated to be less than 12 months [32] Other Important Information - The company raised over $600 million since its May 2024 IPO, indicating strong institutional support and financial health [11] - The KRONOS MMR is designed to provide off-grid or behind-the-meter power, addressing the constraints faced by large energy users [15][20] Q&A Session Summary Question: Update on the U of I site and NRC permit application timeline - Management confirmed that the drilling was completed on schedule and the construction permit application is on track for Q1 next year, with an expected turnaround time from the NRC of less than 12 months [31][32] Question: Vertical integration strategy objectives for 2026 - The company aims to centralize reactor core manufacturing while recognizing the need for specialized components that may require external partnerships [35][36] Question: Progress on the Canadian project and licensing - The company is focused on site selection and expects to announce the site in the first half of next year, with plans to expedite the licensing process by leveraging previous work done at the site [45][46] Question: Scope of the AFWERX direct-to-phase two project - The AFWERX program aims to provide self-sufficient power solutions for military bases, with potential for mass production of reactor systems once the program advances [48][50] Question: State-level licensing opportunities - Management discussed the potential for states to take over licensing for certain facilities, which could expedite the process and reduce the NRC's workload [54][57] Question: Differences between the test reactor at UIUC and commercial reactors - The UIUC reactor will be a full-scale system, closely matching the commercial reactor design, with minor optimizations expected for commercial units [58][59]

Financial Data and Key Metrics Changes - The company ended fiscal 2025 with cash and cash equivalents of $203.3 million, an increase of approximately $175 million from the end of fiscal 2024, primarily driven by successful equity capital raises [25][26] - Fiscal 2025 loss from operations was $46.2 million, an increase from the previous year due to higher general and administrative expenses and R&D expenses [26][27] - Net cash used in operating activities increased by approximately $11 million to $19.6 million, while net cash used in investing activities rose by approximately $14 million to $17.5 million [27] Business Line Data and Key Metrics Changes - The company made significant progress in advancing the Kronos MMR energy system, including securing strategic collaborations and achieving important NRC milestones [10][11] - The acquisition of Global First Power, rebranded as True North Nuclear, strengthened the company's position in Canada [10] - The company executed a feasibility study agreement with BitRupon to evaluate up to one gigawatt of power with the Kronos MMR [11] Market Data and Key Metrics Changes - The demand for reliable baseload power is expected to surge, driven by AI data centers, with electricity usage projected to increase by 5%-6% annually over the next five years [5][6] - There is a growing global commitment to triple nuclear capacity by 2050, indicating a long-term trend in nuclear energy growth [8] Company Strategy and Development Direction - The company aims to position itself at the center of a global nuclear renaissance, focusing on micro-reactors to meet the increasing demand for clean, reliable energy [4][8] - The strategy includes vertical integration to de-risk the nuclear fuel supply chain, with a focus on enrichment and conversion capabilities [23][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the unprecedented bipartisan policy support for nuclear energy in the U.S. and the growing global support, which is expected to accelerate the development of advanced reactors [9][10] - The company remains optimistic about its progress and the strong interest from potential customers in various sectors, including data centers and military applications [12][23] Other Important Information - The company raised over $600 million since its May 2024 IPO, indicating strong capital support from institutional investors [11] - The company is on track to submit a construction permit application for the U of I project in Q1 of 2026, with expectations for a quicker turnaround from the NRC compared to similar applications [32][33] Q&A Session Summary Question: Can you walk us through the timeline for the U of I site permit application? - The company is on track to submit the construction permit application in Q1 next year, with expectations for a turnaround substantially below 15 months due to the well-known technology being used [31][32] Question: What are the main objectives for vertical integration in 2026? - The company aims to centralize reactor core manufacturing while recognizing that certain specialized components will need to be sourced externally [35][36] Question: Can you provide more details on the Canadian project and its licensing process? - The company expects to finalize the site announcement in the first half of next year and will inherit previous licensing progress, allowing it to bypass initial phases [45][46] Question: What is the scope of the AFWERX direct-to-phase two project? - The AFWERX program aims to provide self-sufficient power solutions for military bases, with potential for mass production of reactor systems for various bases in the future [48][50] Question: Can you elaborate on the potential for state-level licensing of nuclear activities? - The company is exploring opportunities for states to take back control of licensing certain facilities, which could expedite the process and reduce the NRC's workload [54][57]

Financial Data and Key Metrics Changes - Third quarter revenue was $866 million, up 29% year-over-year, with organic revenue growth of 12% excluding acquisitions [12][14] - Adjusted EBITDA increased by 19% year-over-year to $151 million, driven by strong performance in commercial operations [12][14] - Adjusted earnings per share rose by 20% to $1, supported by robust operating performance [12] - Free cash flow for the quarter was $95 million, with an anticipated full-year free cash flow of approximately $285 million [13][16] Business Line Data and Key Metrics Changes - Government operations revenue increased by 10%, with adjusted EBITDA up 1%, driven by naval propulsion and special materials [14] - Commercial operations revenue grew by 122%, with organic revenue growth of 38%, primarily due to the Kinectrics acquisition and strong performance in commercial nuclear power and medical isotopes [14][15] - Adjusted EBITDA in commercial operations was $36 million, up 163%, resulting in an adjusted EBITDA margin of 14.2% [15] Market Data and Key Metrics Changes - The total backlog reached $7.4 billion, up 23% from the previous quarter and 119% year-over-year, driven by large multi-year national security contracts [3][4] - The company is experiencing unprecedented demand in nuclear solutions across government and commercial sectors, particularly in defense fuels and medical isotopes [3][19] Company Strategy and Development Direction - The company is focused on operational excellence and leveraging artificial intelligence and advanced manufacturing to improve productivity and margins [4][20] - Strategic investments are being made in special materials and advanced nuclear technologies, with significant contracts awarded for uranium enrichment and high purity depleted uranium [8][9] - The company aims to exceed medium-term financial targets and anticipates record financial results in 2026 [4][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of financial strength, with a robust backlog and good visibility into future demand [4][18] - The company highlighted the importance of decarbonization and electrification trends as tailwinds for growth in nuclear solutions [19] - Management acknowledged potential risks, including government shutdowns and timing of commercial nuclear opportunities, but remains optimistic about future growth [66] Other Important Information - The company is transitioning to manage the Strategic Petroleum Reserve contract and is in the preferred bidder period for Canadian Nuclear Laboratories [5] - The Kinectrics acquisition is performing well, with significant growth opportunities identified in transmission and distribution, offshore wind cable testing, and nuclear utility support [32][33] Q&A Session Summary Question: Did the company book any revenue on the two new contracts in the quarter? - The contribution from the new contracts was very modest, with seasonality affecting the fourth quarter revenue expectations [24] Question: What is the approach for the Janus program? - The company intends to compete for the Janus program, typically not owning and operating reactors but finding the right partners [27] Question: What are the key takeaways from the Kinectrics acquisition? - Kinectrics is outperforming expectations, particularly in transmission and distribution, and is well-suited for life extension programs [32][33] Question: What are the main risks to achieving the 2026 outlook? - Risks include potential delays in commercial nuclear opportunities and the impact of an extended government shutdown [66]