Core Viewpoint - The U.S. government is increasing investments in nuclear power, creating new opportunities for companies like Cameco as demand for clean energy rises due to electrification and AI data centers [1][12] Company Overview - Cameco is a leading uranium producer with significant assets, including a 70% stake in the McArthur River mine, which has estimated reserves of 251 million pounds of uranium and is expected to operate until 2044 [3] - The company also holds a 55% stake in the Cigar Lake mine with reserves of 105.2 million pounds, expected to run until 2036, and a 40% interest in Joint Venture Inkai in Kazakhstan with reserves of 100.4 million pounds, projected to operate until 2045 [4] - Additionally, Cameco owns a 49% interest in Westinghouse, a key player in nuclear reactor technology and services [5] Strategic Partnerships and Investments - Cameco's partnership with Westinghouse and Brookfield Asset Management aims to accelerate nuclear power deployment in the U.S., supported by an executive order from President Trump [7] - An investment of $80 billion is planned for building new reactors in the U.S., utilizing advanced reactor technologies from Westinghouse [8] - Analysts suggest this partnership could lead to a significant nuclear new-build program not only in the U.S. but also in other Western-aligned countries [9] Market Position and Financial Outlook - Cameco's extensive assets in mining and refining, along with its stake in Westinghouse, position it favorably for the upcoming U.S. nuclear infrastructure buildout [10] - The stock is currently priced at 67 times next year's earnings, reflecting investor confidence in its long-term potential, with projected earnings per share of $2.25 by 2028, requiring a 26.5% compound annual growth rate from this year's projected EPS of $1.11 [11] - Despite being considered pricey, the outlook for Cameco remains positive, suggesting it could be a valuable long-term holding in a diversified investment portfolio [12]

Group 1: Return on Invested Capital (ROIC) - High ROIC alone is insufficient for strong long-term investment returns; companies must also reinvest capital effectively to grow revenue and earnings [3][4] - A small percentage of companies achieve very high ROICs, with only ~5.5% having >20% ROIC and ~1.5% having >40% ROIC [9] - Revenue growth that translates into earnings growth is crucial for rising stock prices, and companies must consistently earn returns on capital that exceed their cost of capital [6][11] Group 2: Labor and Capital Decoupling - Companies like Alphabet and Microsoft have significantly reduced the number of employees needed to achieve $100 billion in revenue over time, indicating a trend of decoupling labor from capital [12][13] - Walmart has maintained a stable headcount while increasing revenue, suggesting efficiency improvements in operations [14] Group 3: Mergers and Acquisitions - The acquisition of Metsera by Pfizer faced competition from a higher bid by Novo Nordisk, leading to a significant increase in Metsera's stock price [14][15] - Historical examples illustrate that boards often prefer lower offers with more deal certainty over higher bids with regulatory risks, which can lead to bidding wars [21][22] Group 4: Nuclear Power Industry - Oklo Inc., a nuclear startup, has faced regulatory challenges but has a market value of around $20 billion, indicating investor interest despite setbacks [19][20] - The NRC denied Oklo's reactor design application due to safety concerns, highlighting the regulatory hurdles in the nuclear industry [26][24] Group 5: AI and Economic Impact - AI-related stocks have accounted for 75% of S&P 500 returns since the launch of ChatGPT, indicating a significant impact on the economy [31] - The construction of AI data centers is increasingly financed by borrowing, suggesting a shift in funding dynamics compared to historical railroad projects [32][33]

Group 1 - Small cap stocks have had a mixed performance in 2025, but there is potential for improvement driven by rising global electricity demand, particularly from AI data centers, semiconductors, EVs, and buildings [1][2] - Smaller companies are positioned to innovate in areas such as supply chain management and battery technology, with nuclear power being highlighted as a sector where small cap firms could present exciting investment opportunities [2][3] - The performance of small caps may outperform large caps due to their concentrated focus on specific areas, allowing them to benefit significantly from surges in demand [3] Group 2 - The Avantis International Small Cap Value ETF (AVDV) is suggested as a strong candidate for investment, with a low fee of 36 basis points and a year-to-date return of 38%, outperforming its category average [3]

Market Overview - U.S. equities are experiencing a mixed start as investors are concerned about technology stock valuations, delayed economic data, and significant corporate developments from Tesla [1][2] - Major U.S. stock indexes opened cautiously after a notable downturn, with the Nasdaq Composite down 1.90%, S&P 500 down 1.12%, and Dow Jones down 0.84% [2] - The S&P 500 showed a slight recovery to 6723 points, marking a 0.04% gain, but all major indexes are on track for weekly losses [3] Economic Indicators - The ongoing government shutdown has delayed key economic data releases, including the October jobs report, which is crucial for market participants [5] - The University of Michigan Consumer Sentiment Index for November is expected to provide insights into consumer confidence amid the shutdown [6] - Private sector data indicated over 150,000 layoffs in October, the highest for that month in over two decades, raising concerns about the labor market [6] Company-Specific Developments - Tesla shares rose 1.6% after shareholders approved CEO Elon Musk's proposed $1 trillion compensation package [8] - Expedia Group saw a significant increase of 15.23% in premarket trading after reporting stronger-than-expected third-quarter results [9] - IREN Ltd. jumped 5.18% in premarket trading following a first-quarter revenue report that exceeded estimates [9] Technology Sector Challenges - The technology sector is facing valuation concerns, leading to declines in major AI and tech stocks, including Nvidia, AMD, Palantir, and Microsoft [10] - Nvidia was down 1.5% in early trading, impacted by reports of the Trump administration blocking its sale of a scaled-down AI chip to China [10] - Other tech giants like Alphabet, Amazon, and Meta Platforms saw declines of approximately 1% in early trading [11] Market Sentiment and Future Outlook - Investors are closely monitoring developments regarding the government shutdown and consumer sentiment data, as the market navigates elevated valuations and policy uncertainty [12]

Financial Data and Key Metrics Changes - NuScale's overall liquidity increased to $753.8 million as of September 30, 2025, compared to $489.9 million at June 30, 2025, driven by the sale of 13.2 million Class A shares generating $475.2 million in gross proceeds [16] - Revenue for the quarter ended September 30, 2025, was $8.2 million, a significant increase from $500,000 during the same period in the prior year, primarily due to fees received for services related to the RoPower project in Florida [16] Business Line Data and Key Metrics Changes - The partnership with Inter One and TVA aims to deploy up to 6 gigawatts of new nuclear capacity using NuScale technology, marking the largest SMR deployment program in U.S. history [5][6] - The PMA with Inter One includes milestone-based payments to accelerate commercialization, with the first milestone payment of $148.5 million triggered by the TVA agreement [10][16] Market Data and Key Metrics Changes - The demand for reliable, always-on electricity is increasing, particularly in sectors like data centers, AI, advanced manufacturing, and national defense, which NuScale aims to serve with its SMR technology [14][15] - The U.S. government announced a mobilization of up to $550 billion in investments to expand energy infrastructure, with Inter One positioned to receive up to $25 billion for developing a fleet of power plants [6][7] Company Strategy and Development Direction - NuScale is focused on accelerating the commercialization of its SMR technology through strategic partnerships, particularly with Inter One, which is seen as a key player in the energy transition [8][9] - The company aims to leverage its unique position as the only NRC-approved SMR technology provider to meet growing energy demands while supporting U.S. energy independence [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline of potential off-takers for NuScale's technology and the favorable regulatory environment for nuclear energy [4][8] - The company anticipates the first Inter One energy plant to deliver power to TVA as early as 2030, with additional plants phased in as demand grows [7][15] Other Important Information - NuScale is working with Fluor on the RoPower project in Romania, which is expected to generate revenue and positive cash flow as it progresses towards a final investment decision in late 2026 or early 2027 [12][13] - The PMA with Inter One is designed to be a repeatable and scalable model for future projects, both in the U.S. and globally [10][11] Q&A Session Summary Question: Impact of Doosan's agreement on supply chain - Management confirmed that Doosan has the capacity to produce 20 NuScale power modules per year and is focused on NuScale modules [20][21] Question: Details on the U.S.-Japan agreement - The agreement highlights NuScale's strategic importance and support from Japan, positioning the company favorably in the energy sector [22][24] Question: Clarification on TVA agreement - Management clarified that the TVA agreement is a critical step towards a firm agreement, with ongoing efforts to finalize PPAs [28][29] Question: Fluor's commitment and monetization agreement - Management explained that the monetization agreement with Fluor reflects a natural maturation of their investment and does not indicate a loss of support [34][36] Question: Gating factors for Inter One site evaluation - Management noted that TVA has several sites with prior approvals, which aligns with their strategy to focus on tier one sites [41][42] Question: Confidence in binding agreement with TVA - Management expressed confidence in moving forward with TVA and indicated that other agreements may also be forthcoming [58][59] Question: Operational capabilities of Inter One - Management emphasized that Inter One has extensive experience in large-scale energy projects and will hire experienced EPC companies for construction [47][49] Question: Safeguards for substantial payments to Inter One - Management assured that payments made will roll into other projects if the TVA deal does not materialize, protecting their interests [112][113]

Core Viewpoint - NuScale Power Corp. reported disappointing third-quarter earnings, missing analyst expectations for both losses per share and revenue, leading to a decline in stock price [1][2]. Financial Performance - The company reported quarterly losses of $1.85 per share, which was significantly worse than the Street estimate of a loss of 15 cents, indicating a larger-than-expected financial setback [2]. - Quarterly revenue was reported at $8.24 million, falling short of the consensus estimate of $11.06 million by 25%, highlighting challenges in revenue generation [2]. Strategic Developments - NuScale's technology was selected for ENTRA1's agreement with the Tennessee Valley Authority, marking a significant milestone as the largest Small Modular Reactor (SMR) deployment program in U.S. history, which could provide future growth opportunities [3]. Stock Performance - Following the earnings report, NuScale's stock price decreased by 1.66%, trading at $31.92 in extended trading, reflecting investor reaction to the disappointing financial results [3].

Core Insights - The investment case for nuclear energy is gaining traction due to several distinct tailwinds, including technological advancements and the fundamental benefits of nuclear power [1] Growth Potential of Small Modular Reactors - 35% of financial advisors highlighted the growth potential of small modular reactors (SMRs) as the most interesting aspect of the nuclear sector, indicating a shift towards modular construction and flexible deployment in various applications [2] AI Demand Drivers - 22% of advisors noted nuclear's potential benefits as an AI adjacency, emphasizing that reliable electricity is crucial for the growth of AI, with power demand expected to increase significantly [3] Support from Technology Companies - Major technology companies are increasingly supporting nuclear development, recognizing their reliance on stable power sources [4] Traditional Strengths of Nuclear Power - 18% of respondents cited carbon-free power generation as a key strength, while 13% pointed to reliability and long operational lifespans, and 11% emphasized energy and national security benefits [4] Comprehensive Investment Narrative - The investment case for nuclear energy is multifaceted, combining new growth drivers like SMRs and AI with the established benefits of clean, reliable, and secure baseload power [5]

Core Viewpoint - Centrus Energy Corp. has announced an at-the-market equity offering sales agreement to sell up to $1,000,000,000 of its Class A common stock, which will be used for general working capital and corporate purposes [1][2]. Group 1: Offering Details - The equity offering will be conducted at prevailing market prices, with parameters set by Centrus regarding the number of shares, sale dates, and pricing limits [2]. - Centrus is not obligated to sell any shares under this program, but any proceeds will potentially be used for technology development, debt repayment, capital expenditures, and acquisitions [2]. - The sales agents for this offering include Barclays, Citi, UBS Investment Bank, and Evercore ISI, among others [3]. Group 2: Regulatory and Compliance - The shares will be issued under Centrus' Registration Statement on Form S-3ASR, which became effective upon filing with the SEC [6]. - The offering will comply with the Securities Act of 1933, and sales will be made through NYSE American LLC or other trading markets [4]. Group 3: Company Background - Centrus Energy Corp. is a supplier of nuclear fuel components, providing over 1,850 reactor years of fuel since 1998, equivalent to more than 7 billion tons of coal [8]. - The company is focused on producing High-Assay, Low-Enriched Uranium and aims to restore uranium enrichment capabilities in the U.S. to meet clean energy and national security needs [8].

Core Insights - The partnership between Westinghouse and the US government aims to invest at least $80 billion in new nuclear reactors, positioning nuclear energy as a key component of the US strategy for energy security and technological leadership [4][15][21] - There is a significant and accelerating demand for power driven by electrification, reindustrialization, and the needs of hyperscalers, necessitating diverse energy solutions including nuclear, solar, wind, and hydro [2][3][12] - The company reported strong financial results with $302 million in funds from operations (FFO), a 10% increase year-over-year, and is on track to meet its growth targets [3][26] Nuclear Energy Opportunities - The strategic partnership with the US government will support the construction of 10 large-scale reactors by 2030, enhancing Westinghouse's market position and expected earnings growth [15][19][21] - Westinghouse is positioned to benefit from the growing global nuclear market, with its technology being used in over two-thirds of operating reactors worldwide [16][19] - The partnership is expected to create long-term recurring cash flows through fuel and maintenance services once the reactors are operational [21][20] Financial Performance - The company generated $302 million in FFO during the quarter, with a strong performance in the hydroelectric segment, which saw a 20% increase in FFO year-over-year [26][27] - The wind and solar segments contributed $107 million in FFO, supported by recent acquisitions and organic growth [27][28] - The company maintains a strong liquidity position of $4.7 billion and executed $7.7 billion in financings during the quarter, reflecting robust investor demand [29][30] Growth Strategies - The company is actively pursuing opportunities in battery storage, with costs decreasing by over 50% in the past year, and has advanced its global battery development strategy [11] - There is a growing trend of hyperscalers seeking hydro capacity for its reliability and clean characteristics, leading to new contracts with major tech companies [7][9] - The company is focused on capital recycling, having sold assets worth $1.1 billion since acquiring Nayeon, and plans to continue this strategy to capitalize on high demand for renewable assets [32][70] Market Dynamics - The demand for energy solutions is expected to grow significantly, with the company well-positioned to meet this demand through its diverse energy portfolio [2][12] - The partnership with the US government is seen as a catalyst for further investment in the nuclear supply chain, potentially lowering costs and increasing the pace of new reactor builds [21][22] - The company anticipates that nuclear energy could grow as a percentage of its business, although it currently represents about 5% of FFO [72]

Core Insights - Centrus Energy Corp. reported a net income of $3.9 million for Q3 2025, compared to a net loss of $5.0 million in Q3 2024, indicating a significant turnaround in financial performance [13] - The company generated total revenue of $74.9 million in Q3 2025, a 30% increase from $57.7 million in Q3 2024, driven by growth in both the LEU and Technical Solutions segments [4][6] - Centrus is making substantial progress in its enrichment build-out and has secured U.S. government import waivers for committed deliveries in 2026 and 2027 [2][3] Financial Performance - Total revenue for Q3 2025 was $74.9 million, up $17.2 million (30%) from $57.7 million in Q3 2024 [4] - Revenue from the LEU segment increased to $44.8 million, a rise of $10.0 million (29%) compared to $34.8 million in Q3 2024 [5] - The Technical Solutions segment revenue grew to $30.1 million, reflecting a $7.2 million (31%) increase from $22.9 million in Q3 2024 [6] Cost and Profitability - Cost of sales for the LEU segment rose to $52.6 million, an increase of $23.0 million (78%) from $29.6 million in Q3 2024, primarily due to higher uranium sales volume [7] - The company reported a gross loss of $4.3 million in Q3 2025, compared to a gross profit of $8.9 million in Q3 2024, marking a change of $13.2 million (148%) [8] - Gross profit for the LEU segment was a loss of $7.8 million, a decline of $13.0 million (250%) from a profit of $5.2 million in Q3 2024 [9] Backlog and Future Prospects - Centrus has a backlog of $3.9 billion as of September 30, 2025, with the LEU segment backlog approximately $3.0 billion, indicating strong future revenue potential [12] - The Technical Solutions segment backlog stands at about $0.9 billion, which includes both funded and unfunded amounts [12] - The company plans to expand its operations and has begun hiring in anticipation of this growth [3][13] Capital Structure and Financing - On August 18, 2025, Centrus issued $805 million of 0% convertible senior notes, with net proceeds of approximately $782.4 million intended for general working capital and corporate purposes [11] - The unrestricted cash balance increased to $1.6 billion following the successful convertible senior notes offering [13] - The company has strengthened its leadership team, including the appointment of a new Chief Financial Officer [13]