Financial Data and Key Metrics Changes - The company generated $302 million of Funds From Operations (FFO) during Q3 2025, or $0.46 per unit, representing a 10% year-over-year increase [4][20] - The hydroelectric segment delivered FFO of $119 million, up over 20% from the prior year, driven by solid generation and higher pricing [20] - The wind and solar segments generated a combined FFO of $177 million, supported by acquisitions, although offset by the sale of wind assets in various regions [21] Business Line Data and Key Metrics Changes - The hydroelectric segment's strong performance reflects growing demand for scale base load power and improved pricing [20] - The distributed energy, storage, and sustainable solutions segments generated FFO of $127 million, up from the prior year, supported by growth from acquisitions [21] - The company signed contracts to deliver approximately 4,000 GWh per year, including a significant 20-year contract with Microsoft [23] Market Data and Key Metrics Changes - The company is seeing accelerating demand for power across nearly all markets, driven by electrification, reindustrialization, and demand from hyperscalers [5][6] - The demand for hydro capacity is increasing as hyperscalers seek reliable and sustainable energy sources [8][9] - The company is well-positioned to capture increasing demand for hydro generation, with approximately 5 TWh of generation coming up for recontracting [9] Company Strategy and Development Direction - The company is focusing on strategic investments in critical technologies to support energy demand and grid reliability [4] - A strategic partnership with the U.S. government aims to reinvigorate the nuclear power industrial base, with an investment value of at least $80 billion [6][13] - The company is committed to maintaining high levels of liquidity and access to capital to deploy scale capital when opportunities arise [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects of the business, driven by the increasing demand for clean, dispatchable baseload power [12][81] - The company anticipates that the partnership with the U.S. government will catalyze growth in nuclear power generation both domestically and globally [61] - Management noted that while there is intent to accelerate permitting processes, progress has been limited but is expected to improve [28][29] Other Important Information - The company closed an incremental investment into Isagen, increasing its stake in a hydro business with a strong growth outlook [10] - The company executed $7.7 billion in financings during the quarter, bringing total financings over the last 12 months to $38 billion [22] - The company is actively pursuing capital recycling opportunities, having closed sales and signed agreements expected to generate $2.8 billion [24] Q&A Session Summary Question: Improvements in permitting pace in the U.S. - Management noted that while there is intent to accelerate permitting, progress has been limited but is expected to improve [28][29] Question: Data center power discussions outside the U.S. - Management indicated that discussions about adding power for data centers are occurring globally, with significant activity in Western Europe, Australia, India, and South America [30][31] Question: Timeline for U.S. buildout associated with the Westinghouse agreement - Management expects the first projects to begin development in the next quarter or two, with revenues starting relatively quickly [35][38] Question: Capital investment in the Santee Cooper project - Management stated that any investment would require appropriate protections around cost overruns and key risks [40][41] Question: Potential for Brookfield to be a source of capital for nuclear projects - Management expressed confidence in Brookfield's position to play a significant role in nuclear power growth, contingent on obtaining necessary protections [44][46] Question: Contracting existing hydro assets versus building new wind and solar - Management confirmed that the Microsoft Framework Agreement included hydro and indicated potential for more hydro deals in the future [48] Question: Engagement with stakeholders regarding the U.S. government partnership - Management reported positive reception from construction and technology providers regarding participation in new nuclear projects [52][54] Question: Expected margins during different stages of reactor development - Management indicated that Westinghouse's Energy Systems Division typically operates at a 20% margin during the development and construction period [64] Question: Changes in project eligibility for federal tax credits - Management confirmed clarity around safe harboring for the U.S. development pipeline and is monitoring FEOC definitions [66][67] Question: Valuations in private markets versus public markets - Management noted that valuations for high-quality operating cash-generative renewables assets are significantly higher in private markets [68][70] Question: Nuclear deployment strategy and potential growth - Management indicated that nuclear currently represents about 5% of FFO but is expected to grow over time as demand for clean energy increases [74][75]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **nuclear power equipment industry** in China, particularly the companies **Dongfang Electric (DFE)** and **Shanghai Electric (SHE)**, which dominate the market for nuclear equipment [1][2][4]. Core Insights and Arguments - **Profit Contribution**: DFE is expected to benefit from higher nuclear equipment prices from 2023 to 2025, alongside a surge in new orders due to China's rapid nuclear power expansion. The approval of 41 new nuclear units from 2022 to 2025 is anticipated to drive a **17.6% CAGR** in nuclear installation volume from 2025 to 2030 [1][17]. - **Market Share**: DFE and SHE each hold a **1/3 market share** in nuclear equipment biddings, with each nuclear power unit potentially generating **Rmb1.3 billion** in new orders for these companies [1][16]. - **Earnings Growth**: DFE's revenue and gross profit from power equipment sales are projected to grow at **16.3%** and **22.9% CAGRs**, respectively, from 2025 to 2027, with a potential boost from a mega hydropower project in Tibet starting in 2030, estimated at **Rmb10.6 billion** annually [3][27]. - **Valuation**: DFE's target price has been raised by **10%** to **HK$22**, reflecting a favorable valuation compared to global players, with Chinese suppliers' average **2026E P/E** and **P/B** at **26.2x** and **1.3x**, significantly lower than global averages of **65.5x** and **5-164x** [4][38]. Key Suppliers and Equipment - The main suppliers of nuclear equipment in China include **DFE**, **SHE**, and **Harbin Electric**, which together account for approximately **60%** of the nuclear island's construction costs [2][25]. - Key products include steam generators, pressure vessels, and turbine generators, with DFE noted for having the most comprehensive range of nuclear products [2][21]. Additional Important Insights - **Nuclear Equipment Pricing**: Prices for nuclear equipment have risen due to the cancellation of reference prices in recent bids, which may enhance gross profit margins for DFE and SHE [18][19]. - **Production Capacity**: DFE, SHE, and Harbin Electric each have the capacity to produce six units of **1GW** nuclear equipment per year, with shared production lines for conventional island equipment [22][21]. - **Market Dynamics**: The nuclear equipment market is characterized by limited competition due to the dominance of state-owned enterprises and a cautious approach to capacity expansion following past overcapacity issues [23][25]. - **Export Opportunities**: Chinese manufacturers are leveraging the Belt-and-Road Initiative to secure overseas orders, with notable contracts signed for projects in Pakistan and Saudi Arabia [36]. Financial Performance - DFE's revenue from nuclear equipment is expected to increase from **10%** of total revenue in 2024 to **17%** by 2030, with gross profit contributions rising from **15%** to **26%** in the same period [31][27]. - SHE's revenue from nuclear equipment showed a modest increase of **8.2%** year-over-year, but gross profit margins declined [43]. This summary encapsulates the critical insights and projections regarding the nuclear power equipment industry in China, focusing on the performance and outlook for key players like DFE and SHE.

Group 1: Nuclear Power Projections - The International Atomic Energy Agency (IAEA) has revised upward its nuclear power projections for the fifth consecutive time since 2021, indicating a significant shift in momentum for the sector [1] - The IAEA's high-case scenario predicts global nuclear capacity could reach nearly 1,000 gigawatts electric (GW(e)) by 2050, with a quarter of this capacity expected to come from small modular reactors [3] Group 2: Global Consensus and Energy Security - There is a growing global consensus that nuclear power is essential for achieving clean, reliable, and sustainable energy, as highlighted by IAEA Director General Rafael Mariano Grossi [2] - Governments are increasingly viewing nuclear power as a low-carbon baseload option and a hedge against energy insecurity, prompting financial institutions like the World Bank to lift funding bans on nuclear projects in emerging markets [4] Group 3: U.S. Nuclear Landscape - The United States operates 94 reactors that generate about one-fifth of the nation's electricity, with electricity demand projected to double by 2050 due to factors like artificial intelligence and electrification of transport [5] - U.S. Energy Secretary Chris Wright emphasized the need for larger domestic uranium inventories and indicated a shift away from reliance on Russian enriched uranium [6] Group 4: Uranium Supply and Domestic Operations - U.S. utilities currently hold only around 14 months' worth of uranium supply, significantly less than the 2.5 years held by the European Union and over a decade's worth in China, which poses a risk to U.S. nuclear operators [9] - Domestic uranium suppliers like Energy Fuels and Peninsula Energy have secured contracts with the Department of Energy, while other firms such as Ur-Energy, enCore Energy, and Centrus Energy are also notable players in the uranium market [8] Group 5: Future Investments and Projects - Building secure uranium reserves will be critical as the IAEA anticipates a multi-decade nuclear expansion, requiring a mix of public and private capital [10] - New enrichment projects in Ohio and investments from notable figures like Peter Thiel are seen as signs of momentum in the sector [10]

Core Insights - The demand for GPUs is surging, leading to increased power consumption and a forecasted 100x growth in compute needs for next-generation AI models, indicating a sustained demand for nuclear energy as a sustainable power source [2] Group 1: Nuclear Industry Developments - Major tech companies like Amazon, Meta, and Alphabet have pledged to support the expansion of nuclear power, aiming to triple global nuclear capacity by 2050, despite the current limited project pipeline [3][4] - There are currently 60 atomic projects under construction globally, primarily in Asia, representing only a 13% increase from the 440 operational reactors [4] Group 2: Company-Specific Insights - NuScale Power is a leader in small modular reactors (SMRs), with plans to bring the first reactors online within 3-5 years and currently has 12 modules in production [5][6] - Analysts predict that NuScale Power will not generate significant revenue until 2030, with revenue expected to exceed $1 billion only after that [7] - Oklo focuses on liquid-metal-cooled fast reactors, which can operate at lower temperatures and reuse spent fuel, with initial projects set to commence operation in the coming years [9][11] - Cameco is a leading supplier of uranium fuel and reactor components, currently profitable and paying dividends, with revenue growth tracking higher over time [13][14]