NuScale Power (SMR) Q3 2024 earnings summary

Executive summary

• Demand for carbon-free, reliable energy is accelerating, driven by data centers, AI, and onshoring trends, positioning SMRs as a key solution.

• NuScale is transitioning from R&D to commercialization, with the only NRC-approved SMR in production and ongoing regulatory review for a 77 MW module upgrade expected by mid-2025.

• Major tech companies are making significant commitments to nuclear energy, with SMRs seen as the preferred technology for near-term deployment.

• International interest is strong, with progress on projects in Romania (RoPower) and Ghana, and growing support from global financial institutions.

• NuScale currently has one "Class 1" customer, RoPower Nuclear S.A., after terminating its agreement with CFPP LLC in late 2023.

Financial highlights

• Ended Q3 2024 with $161.7 million in cash, cash equivalents, and short-term investments, including $5.1 million restricted, and no debt.

• Q3 2024 revenue was $0.5 million, down from $7.0 million in Q3 2023, with a net loss of $45.5 million, including a $7.2 million non-cash warrant expense.

• Operating expenses fell to $41.2 million from $93.9 million year-over-year, reflecting $52.7 million in cost reductions.

• Operating loss for Q3 2024 was $41 million, down from $92.9 million in Q3 2023.

• Raised $103.8 million from common stock issuance and $14.6 million from warrant and option exercises in the nine months ended September 30, 2024.

Outlook and guidance

• Continued focus on financial discipline, liquidity management, and cost optimization, with current funds and contracts expected to cover needs for the next twelve months.

• Expectation to achieve near-term sales goals as commercial agreements progress, with revenue recognition from a new fixed price contract expected in Q4 2024.

• Anticipate completion of NRC approval for the 77 MW module upgrade by mid-2025.

• Ongoing FEED work for RoPower, with a Class 3 estimate expected by June 2025 and a final investment decision about a year from now.

• The company is focusing on securing additional customer commitments to support long-term operations.