NuScale(US:SMR)2025-05-12 22:00Financial 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 same period last 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 [6][7] - 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 petrochemical 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 February 2030 [6][10] - The company is focused on securing long-term power purchase agreements with customers, moving beyond preliminary discussions to finalize contracts [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for clean, reliable energy and the company's readiness to meet this demand, emphasizing the importance of nuclear technology in the energy mix [17] - The company is actively monitoring the potential 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, bolstered by a successful sale of shares generating $102.4 million in gross proceeds [19] - The company is committed to maintaining a strong balance sheet to support its manufacturing and supply chain efforts as it approaches commercialization [19] Q&A Session Summary Question: Definition of a firm customer order by the end of 2025 - Management clarified that a firm order means reaching a final investment decision, with ongoing negotiations and term sheet exchanges with customers [24][26] Question: Streamlining the licensing process - Management noted that while the NRC's rigor in safety cannot be compromised, there may be areas in the licensing process that could be streamlined [31][34] Question: Timeline for module delivery after booking an order - Management indicated that if an order is secured soon, modules could be delivered by 2030, with ongoing investments in long lead items to support this timeline [38][42] Question: Customer discussions and potential large tech company involvement - Management confirmed that discussions include various sectors, not limited to data centers, and that large tech companies are indeed part of the conversation [52][53] Question: Importance of light water technology in customer discussions - Management emphasized that light water technology is well understood by regulators, which enhances customer confidence in NuScale's offerings [98][102]