NuScale Showcases SMR Technology in Q2 2024 Financial Results

NuScale Power (NYSE: SMR) provided updates concerning its financial performance and business developments for the second quarter of 2024, underscoring the potential of its small modular reactor (SMR) technology to address the increasing demand for decarbonized energy. The company reported a net loss of $74.4 million for the quarter, mainly due to a non-cash charge related to fair value warrants.

Despite this loss, NuScale showcased a robust cash position of $136 million and highlighted its progress with the RoPower project as well as a new revenue-generating agreement in Romania. Notably, NuScale’s technology is the only SMR that has received design certification from the Nuclear Regulatory Commission (NRC), cementing its leadership role in the nuclear energy sector.

Key Takeaways:

• NuScale has received authorization to move forward to Phase 2 of the RoPower project’s front-end engineering design.
• The company observed rising interest in SMRs for reliable and decarbonized baseload energy.
• NuScale celebrated its 17th anniversary, reaffirming its commitment to advancing SMR nuclear technology.
• Financially, NuScale reported a net loss of $74.4 million for Q2 2024, with a cash position of $136 million and no outstanding debt.
• The company has secured a revenue-generating agreement for the Doicesti Project in Romania and continues to collaborate with ENTRA1 Energy for project completion.
• NuScale successfully reduced operational expenses from $55 million to an average of $43 million over the past two quarters.

Company Outlook:

• NuScale is optimistic about its competitive benefits in technology, safety, manufacturing readiness, siting, and regulatory factors.
• The company perceives significant demand for SMR technology, particularly within Central Eastern Europe.

Challenges:

• NuScale’s substantial net loss of $74.4 million for the quarter raises some concerns.

Strengths:

• Being the only SMR technology with NRC design certification highlights NuScale’s readiness for deployment.
• There is bipartisan support for advanced SMR and nuclear energy, along with new funding opportunities.

Shortcomings:

• Specific details on GAAP revenue recognition for the revenue-generating contract were not revealed.

Q&A Highlights:

• NuScale addressed concerns about competition, noting the absence of another developer with a similar build-operate-transfer or build-own-operate model.
• Discussion included power upgrades and the completion of the design certification application for the NRC.

NuScale Power continues to navigate the complex landscape of the nuclear energy market with a focus on small modular reactor technology. As the company advances the RoPower project and other initiatives, it remains committed to commercializing its SMR technology while practicing financial prudence amid a challenging economic climate. With strategic partnerships and a unique market position, NuScale is positioned to significantly contribute to the future of clean energy.

NuScale Power’s financial results for Q2 2024 illustrate both the challenges and opportunities ahead as the company leads in the small modular reactor sector. Despite reporting a net loss, investor confidence appears solid, with a market capitalization of around $2.09 billion. The company’s revenue growth over the past year was noted at 25.7%, emphasizing progress in operational income generation.

Analysts expect sales growth this fiscal year, aligning with NuScale’s projects and agreements, including the deal for the Doicesti Project in Romania. Investors should be aware of the stock’s high price volatility when evaluating risk associated with NuScale’s shares.

In summary, NuScale Power remains focused on advancing its technology and partnerships, aiming for a significant role in the global transition to clean energy.