NuScale(US:SMR)2025-08-07 22:00Financial Data and Key Metrics Changes - NuScale reported revenue of $8.1 million for Q2 2025, a significant increase from $1 million in the same period last year, primarily driven by engineering and licensing fees related to the Row Power project [14] - Total liquidity and capital resources stood at $489.9 million as of June 30, 2025, reflecting a decline of $31.5 million from the previous quarter but an increase of $359 million year-over-year [13] Business Line Data and Key Metrics Changes - The increase in revenue was mainly attributed to fees from engineering and licensing work, as well as pre-commercial operational services for the Row Power project [14] - Operating expenses for Q2 2025 were $44.9 million, slightly up from $42 million in the same quarter last year, indicating a disciplined approach to cash management [14] Market Data and Key Metrics Changes - NuScale's SMR technology is gaining traction both domestically and internationally, with ongoing projects in Romania and interest from various sectors including advanced data centers and hydrogen production [10][54] - The company is positioned as the only SMR technology approved by the U.S. Nuclear Regulatory Commission, which enhances its competitive edge in the market [5][9] Company Strategy and Development Direction - NuScale aims to capitalize on the growing demand for clean baseload power, particularly for advanced data centers and industrial applications [7] - The partnership with IntraOne is crucial for project development, financing, and operation, allowing NuScale to focus on technology provision while IntraOne handles project execution [8][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding regulatory support for nuclear power, driven by recent executive orders aimed at deploying advanced nuclear technologies [9][48] - The company anticipates increased operating expenses in the latter half of 2025 as it prepares for long lead material purchases to enhance manufacturing readiness [14][16] Other Important Information - NuScale has opened two additional energy exploration centers, bringing the total to 11, aimed at preparing the next generation of nuclear talent [11] - The company is actively engaged in discussions with various potential customers, including the U.S. Government and hyperscalers, to secure contracts for its power modules [63][64] Q&A Session Summary Question: Follow-up on operating expense increase - Management confirmed an expected increase in operating expenses for Q3 and Q4, aligning with efforts to develop 12 modules and enhance supply chain readiness [16][17] Question: Impact of Fleur's stock conversion on business outlook - Management clarified that Fleur's actions regarding stock conversion do not alter NuScale's go-to-market strategy, which remains well-defined and consistent [20][22] Question: Production capacity of Doosan - Doosan can manufacture up to 20 modules per year, and management emphasized the importance of ongoing engagement with suppliers to meet production needs [28] Question: Response to NRC approval and customer engagement - Management noted an increase in customer discussions following the NRC approval, which has opened new opportunities for potential contracts [30][32] Question: Update on Row Power project timeline - The final investment decision for the Row Power project is now expected in mid to late 2026, with ongoing engineering support from NuScale [114][115]