Q1 2025 NuScale Power Corp Earnings Call
Operator: Good afternoon and welcome to NuScale's first quarter 2025 earnings results conference call. Today's call is being recorded. A replay of today's conference call will be available and accessible on NuScale's Investor Relations website. The web replay will be available for 30 days following the earnings call.
Good afternoon, and welcome to new scales first quarter 'twenty twenty-five earnings results conference call.
Today's call is being recorded.
A replay of today's conference call will be available and accessible on new skills Investor Relations website.
The web replay will be available for 30 days following the earnings call.
Rodney McMahon: At this time, for opening remarks, I would like to turn the call over to Rodney McMahon, Senior Director of Investor Relations.
Speaker Change: At this time for opening remarks, I would like to turn the call over to Rodney Mcmahan Senior director of Investor Relations. Please go ahead.
Rodney McMahon: Please go ahead. Thank you, operator.
Rodney McMahan: Thank you operator welcome to <unk> first quarter 2025 earnings results conference call with US today are John Hopkins, President and Chief Executive Officer, and Ramsey Hamady Chief Financial Officer on today's call. We will provide an update on our business and discuss our quarterly financial results. We will then open the phone lines for question.
John Hopkins: Welcome to NuScale's first quarter 2025 earnings results conference call.
John Hopkins: With us today are John Hopkins, President and Chief Executive Officer, and Ramsey Hamady, Chief Financial Officer. On today's call, we will provide an update on our business and discuss our quarterly financial results. We will then open the phone line for questions.
Speaker Change: Yes.
John Hopkins: This afternoon, we posted a set of supplemental slides on our investor relations website. As reflected in the Safe Harbor statement on slide two, the information set forth in the presentation and discussed during the course of our remarks and the subsequent Q&A session includes forward-looking statements, which reflect our current views of existing trends and are subject to a variety of risks and uncertainties. You can find a discussion of our risk factors, which could potentially contribute to such differences, in our 2024 Annual Report on Form 10-K and subsequent SEC filings.
Speaker Change: This afternoon, we posted a set of supplemental slides on our Investor Relations website as reflected in the Safe Harbor statement on slide two the information set forth in the presentation and discussed during the course of our remarks and the subsequent Q&A session includes forward looking statements, which reflect our current views of existing trends and are subject to a variety of risks.
Speaker Change: And uncertainty.
Speaker Change: Can find a discussion of our risk factors, which could potentially contribute at such differences in our 2024 annual report on Form 10-K, and subsequent SEC filings I'll now turn the call over to John Hopkins newscasts, President and Chief Executive Officer.
John Hopkins: I'll now turn the call over to John Hopkins, NuScale's President and Chief Executive Officer. Thank you, Rodney. And welcome to NuScale. Good afternoon, everyone. As 2025 progresses, I'm excited to share that NuScale continues to build momentum and strengthen its leadership position in the SMR space. We remain the only SMR company with U.S. Nuclear Regulatory Commission design approval, and we continue to advance our commercialization efforts. During the first quarter of 2025, we focused on deepening customer engagement and further enhancing our manufacturing and supply chain readiness. ensuring we remain on track to meet our 2030 delivery target.
John Hopkins: Thank you Rodney and welcome to new scale.
Good afternoon, everyone as 2025 progresses I'm excited to share the new scale continues to build momentum and strengthen its leadership position and ask some more space.
John Hopkins: We remain the only asset of our company with U S. Nuclear regulatory Commission design approval and we continue to advance our commercialization efforts.
John Hopkins: During the first quarter of 2025, we focused on deepening customer engagement and further enhancing our manufacturing and supply chain readiness, ensuring we remain on track to meet our 2030 delivery target.
John Hopkins: Today, I'll provide further insights into these initiatives and share updates on our business commercialization progress and market opportunity.
John Hopkins: Today I'll provide further insight into these initiatives and share updates on our business commercialization progress and market opportunities.
John Hopkins: Ramsey will follow with a financial update. Starting with a business update, the RowPower project in Romania, as discussed in slide three, continues to move forward with a floor-led phase two front-end engineering and design, delivering meaningful revenue and cash flow for NuScale. Notably, we are on schedule to deliver the Class 3 estimate by this fall. Furthermore, discussions are underway to extend the project into the detailed design phase, a critical step that would enable the submission of a final investment decision application to the Romanian government by late Q1 or early Q2 2026.
Ramsay: Ramsay will follow with a financial update.
Ramsay: Starting with a business update the ROE power project in Romania as discussed on slide three continues to move forward with our Florida led phase two front end engineering and design delivering meaningful revenue and cash flow for new scale.
Ramsay: Notably we are on schedule to deliver the class III estimate by this fall. Furthermore, discussions are underway to extend the project into the detailed design phase a critical step that would enable a submission of our final investment decision application to the Romanian government by late Q1 early Q2 2026.
John Hopkins: Moving on to slide four, let's shift to our commercialization progress. It's essential to reiterate that NuScale remains well ahead of its competition and continues to lead the market as the only near-term deployable SMR. As we have mentioned before, recently proposed non-light water SMR projects in the U.S. are still in what we call the demonstration phase. which means they still require a minimum of four years of operation before securing U.S. nuclear regulatory approval for commercial deployment. an important and rigorous regulatory requirement that NuScale has already achieved, which we believe sets us years ahead of the other players.
Ramsay: Moving on to slide four let's shift to our commercialization progress.
Ramsay: It's essential to reiterate that new scale remains well ahead of its competition and continues to lead the market as the only near term deployable cash tomorrow.
Ramsay: As we have mentioned before recently proposed non lightwater as smart projects in the U S are still in what we call the demonstration phase.
Ramsay: Which means they still require a minimum of four years of operation before securing U S nuclear regulatory approval for commercial deployment.
Ramsay: An important and rigorous regulatory requirement a new scale and has already achieved which we believe sets a shares ahead of the other players to that end. We're pleased to report that our standard design approval application with the NRC, which aims to increase the power output per module from the previously approved 50 megawatt electric cars.
John Hopkins: To that end, we are pleased to report that our standard design approval application with the NRC, which aims to increase the power output per module from the previously approved 50-megawatt electric to 77-megawatt electric, continues to progress on schedule. We anticipate final approval by the NRC by July of this year. We are proud to be a first mover in the industry when it comes to manufacturing preparedness. A Crucial Step Towards Deployment, and we continue to gather early, valuable knowledge about the process that will only make it more streamlined and efficient. as well as enhanced scalability going forward.
Ramsay: 77 megawatt electric continues to progress on schedule.
Ramsay: We anticipate final approval by the ERC by July of this year.
Ramsay: We are proud to be a first mover in the industry when it comes to manufacturing preparedness.
Ramsay: Step towards deployment and we continue to gather early valuable knowledge about the process that will only make it more streamlined and efficient.
Ramsay: As well as enhanced scalability going forward.
John Hopkins: Turning to slide five, this was a pivotal quarter for our supplier working group. Another demonstration of our commitment to meeting our deployment plan. NuScale's team worked from on-site delivery days to identify key near-term supply chain actions that need to be completed to ensure a 2030 delivery of our first NuScale Power Module. For example, during the first quarter we conducted multiple pre-bid meetings with Doosan on an upper reactor pressure vessel fabrication proposal. Continued progress on long lead material orders issued a preliminary scheduled delivery date notification to our fuel supplier Framatone for the initial core and initial order of control rod assembly.
Ramsay: Turning to slide five this was a pivotal quarter for our supplier working group another demonstration of our commitment to meeting our deployment plans.
Ramsay: New sales team worked from onsite delivery days, two and identify key near term supply chain actions that need to be completed to ensure a 2030 delivery of our first new scale power module. For example, during the first quarter, we conducted multiple pre bid meetings with do sign on an upper reactor pressure vessel fabrication for core.
Ramsay: So continued progress on long lead material orders issued a preliminary schedule delivery day notification to our fuel supplier frame a tone for the initial core an initial order of control Rod assemblies.
John Hopkins: and executed a neutron monitoring system supply agreement with Paragon. We also held a productive meeting with our supplier working group in April, where we continue to build and invest in strong relationships with our suppliers in anticipation of a near-term customer order. With more than 30 suppliers attending the meeting, we focused on critical path production items and identify a near-term supply chain investment. A strong supply chain is essential in successful deployment. and NuScale continues to be proud of our robust relationships with our valued suppliers.
Ramsay: And executed a new trial monitoring system supply agreement with Paragon.
Ramsay: We also held a productive meeting with our supplier working group in April.
We continue to build and invest in strong relationships with our suppliers in anticipation of a near term customer order.
Ramsay: With more than 30 suppliers attending the meeting we focused on critical path production items and identify a near term supply chain investments.
Ramsay: A strong supply chain is essential and successful deployment.
Ramsay: New scale continues to be proud of our robust relationships with our valued suppliers.
John Hopkins: Now let's talk about market opportunity. Looking at slide six, we remain confident that the growing interest in our technology and its critical use cases, as well as NuScale's distinct competitive edge in module manufacturing and fuel readiness, will result in a firm customer order during 2025. In collaboration with our exclusive commercialization partner, Inter1 Energy, we are at various stages of discussions with potential customers both here in the U.S. and abroad. Domestically, this includes discussions with government officials and industries, including data centers, utilities, coal plant operators transitioning to nuclear, and petrochemical and energy companies. internationally with stakeholders around the globe in Europe, the Middle East, Africa, and Asia.
Ramsay: Now, let's talk about market opportunity looking at slide six we remain confident that the growing interest in our technology and its critical use cases as well as new scale sustained competitive edge and module manufacturing a few readiness will result in a firm customer order during 2025.
Ramsay: In collaboration with our exclusive commercialization partner <unk> energy, we are in various stages of discussions with potential customers. Both here in the U S and abroad.
Ramsay: Domestically. This includes discussions with government officials in industries, including data centers utilities coal plant operators transitioning to nuclear.
Ramsay: Petrochemical and energy companies.
Ramsay: Internationally with stakeholders around the globe in Europe, the Middle East Africa and Asia.
John Hopkins: On the data center front, EnterOne continues to lead discussions with major U.S. hyperscalers with a strong focus on powering AI operations. Potential customers continue to be attracted to IntraOne's commercial model, which is designed to provide financial flexibility while mitigating deployment risks. Of these customer discussions, I would classify upwards to 10 as advanced. many of which have progressed to the point of multiple iterations of term sheets exchanged between parties and customer site visits to Doosan's manufacturing facilities in South Korea, where NuScale power modules are being built. Across the board, we are continuously encouraged that both prospective customers in the broader market are better informed and more aware of the significance and advantages of NuScale's advanced SMR technology.
Speaker Change: On the data center fraud, Andrew one continues to lead discussions with major U S. Hyper scaler with a strong focus on powering AI operations.
Speaker Change: Potential customers continue to be attractive to extra once commercial model, which is designed to provide financial flexibility while mitigating deployment risks.
Speaker Change: These customer discussions I would classify upwards to 10 as adverse.
Speaker Change: Many of which have progressed to a point of multiple iterations of term sheets exchange between parties and customer site visits to <unk> manufacturing facilities in South Korea.
Speaker Change: We're new scale power modules are being built.
Speaker Change: Across the board we are continuously encouraged that both prospective customers in the broader market are better informed and more aware of the significance and advantages of new scaled advanced <unk> technology.
John Hopkins: in part due to our extensive outreach efforts.
Speaker Change: In part due to our extensive outreach efforts.
John Hopkins: Now, I'd like to briefly discuss other applications of NuScale's technology beyond generating electricity, as shown on slide 7. One of these applications drawing a significant amount of attention is the production of carbon-free hydrogen. And we believe NuScale is uniquely positioned to lead in this space. We are proud to be the first SMR company to integrate hydrogen production systems in controls into a multi-module main control room simulator. Enabling Efficient Carbon-Free Hydrogen Production. Notably, our solution is designed to meet the needs of commercial-scale industrial applications requiring over 200 metric tons of hydrogen per day. Our presentation at the World Petrochemical Conference in March, where we were the only nuclear company to present, introduced an approach to produce a hydrogen carrier from the brine waste generated by desalinization.
Speaker Change: Now I'd like to briefly discuss other applications of new skills technology beyond generating electricity as shown on slide seven.
Speaker Change: One of these applications is drawing a significant amount of attention is the production of carbon free hydrogen and.
Speaker Change: And we believe new scale is uniquely positioned to lead in this space.
Speaker Change: We are proud to be the first SLR company to integrate hydrogen production systems and controls into a multi module main control room stimulator.
Speaker Change: Enabling efficient carbon free hydrogen production, notably.
Notably our solution is designed to meet the needs of commercial scale industrial applications, requiring over 200 metric tons of hydrogen per day.
Speaker Change: Our presentation at the World Petrochemical conference in March where we were the only nuclear company to present introduced an approach to produce a hydrogen carrier from the Bryan waste generated by desalinization.
John Hopkins: consistent with our mission to provide both clean energy and clean water. We've attracted strong interest from major industrial players, and we look forward to future collaborations to cement our leadership in this space.
Speaker Change: Consistent with our mission to provide both clean energy and clean water.
Speaker Change: We have attracted strong interest from major industrial players and we look forward to future collaborations to cement our leadership in this space as we look to the future of <unk> in the nuclear field I wanted to take a moment to note. The recent opening of three new new scale energy exploration centers at leading universities.
John Hopkins: As we look to the future of SMRs in the nuclear field, I want to take a moment to note the recent opening of three new NuScale Energy Exploration Centers at leading universities. Soon we'll be opening two additional centers, bringing the total to 11. These innovative learning environments that stimulate a NuScale SMR control rule as well as NuScale's licensed operator training program are helping to prepare the next generation of nuclear talent. and we are proud to partner in this important effort.
Speaker Change: Soon we will be opening two additional centers, bringing the total to 11.
Speaker Change: These innovative learning environments that stimulate a new scale SLR control room, as well as new skills license operator training program for helping to prepare the next generation of nuclear talent.
Speaker Change: We are proud to partner in this important effort.
John Hopkins: Lastly, I want to share that NuScale is actively assessing the potential impact of terrorists on our operations in the current market environment. At this time, we do not anticipate any material impact. However, we remain vigilant in monitoring the situation. We're also working closely with our suppliers to ensure operational continuity and are prepared to address any changes proactively to mitigate potential risk.
Speaker Change: Lastly, I wanted to share that new scale is actively assessing the potential impact of tariffs on our operations in the current market environment.
Speaker Change: At this time, we do not anticipate any material impact. However, we remain vigilant in monitoring the situation. We're also working closely with our suppliers to ensure operational continuity and are prepared to address any changes proactively to mitigate potential risk there.
John Hopkins: This is an important year for NuScale, and we remain steadfast in our commitment to delivering sustainable, carbon-free electricity to end-users worldwide. I am proud of where we are today and look forward to updating you all on our progress over the course of 2025. The demand for clean, reliable energy has never been more pronounced, and we have an exciting future ahead.
Speaker Change: This is an important year for new scale, and we remain steadfast in our commitment to delivering sustainable carbon free electricity to end users worldwide.
Speaker Change: I am proud of where we are today and look forward to updating you all on our progress over the course of 2025.
Speaker Change: The demand for clean reliable energy has never been more pronounced and we have an exciting future ahead.
Ramsey Hamady: Now, over to Ramsey for the financial update. Thank you, John, and hello, everyone. Our financial results are available in our filings, so my focus will be on explaining major line items, which can be found on slide here. NuScale's overall liquidity improved during the period, ending the first quarter of 2025 with cash and cash equivalents of $491.4 million and short-term investments of $30 million. The primary driver of this increase was our successful sale of 4.5 million shares through our ATM program during the quarter, generating $102.4 million in gross proceeds. A strong balance sheet positions us to continue bolstering our manufacturing and supply chain preparedness as we drive towards commercialization.
Now over to Ramzi for the financial update.
Ramzi: Thank you John and Hello, everyone. Our financial results are available in our filings. So my focus will be on expanding major line items, which can be found on slide eight.
Ramzi: Sales overall liquidity improved during the period and in the first quarter of 2025 with cash and cash equivalents of $491 4 million and short term investments of $30 million.
Ramzi: Primary driver of this increase was our SaaS wholesale a $4 5 million shares through our ATM program during the quarter.
Ramzi: <unk> $102 4 million in gross proceeds.
Our strong balance sheet positions us to continue bolstering our manufacturing and supply chain preparedness as we drive towards commercialization.
Ramsey Hamady: For the quarter ended March 31st, 2025, NuScale reported revenue of $13.4 million. During the same period in the prior year, the company reported revenue of $1.4 million. This increase was driven by fees received from the engineering and licensing work and other services we provide in support of the Row Power Project. Operating expenses were $42.3 million for the quarter ended March 31, 2025 compared to $44.6 million during the same period in the prior year. More notably, operating expenses since the beginning of 2024 are well below the $69.9 million per quarter average in 2020. This material reduction underscores NuScale's commitment to streamline costs and improve operational efficiency.
Ramzi: For the quarter ended March 31 2025.
Ramzi: <unk> reported revenue of $13 4 million.
Ramzi: During the same period in the prior year the company reported revenue of $1 4 million.
Ramzi: This increase was driven by fees received from the engineering licensing work and other services, we provide in support of the Repower project.
Ramzi: Operating expenses were $42 3 million for the quarter ended March 31, 2025, compared to $44 6 million during the same period in the prior year more notably operating expenses since the beginning of 2024 are well below the $69 9 million per quarter average in 2023.
Ramzi: As material reduction underscores <unk> commitment to streamline costs and improve operational efficiency.
Ramsey Hamady: Looking ahead, we're excited about the next phase of growth. As John highlighted, this is a pivotal year for NuScale, and the solid start we had in the first quarter positions us well to maintain and build upon the momentum. I will conclude my remarks with a brief view of our capitalization summary on slide 9. Additional information may be found in our 10-Q and earnings release, both filed with SEC.
Ramzi: Looking ahead, we are excited about the next phase of growth as John highlighted this is a pivotal year for new scale and the solid start we had in the first quarter positions us well to maintain and build upon the momentum our <unk>.
Ramzi: Including my remarks, with a brief view of our capitalization summary on slide nine additional.
Ramzi: Additional information may be found in our 10-Q and earnings release, both filed with the SEC.
Ramsey Hamady: With that, I'd like to thank you again for joining today and for your continued support of...
Ramzi: With that I'd like to thank you again for joining today and for your continued support of new scale will now take questions operator.
Operator: will now take questions. Operator. Thank you.
Ramzi: Thank you.
Operator: and we will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, press star 1 a second time. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, it is star one if you would like to join the queue.
Speaker Change: And we will now begin the question and answer session.
Speaker Change: If you have dialed in and then we'd like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.
Speaker Change: If you would like to withdraw your question Press Star one a second time.
Speaker Change: If you are called upon to ask your question and our listening BS speaker phone on your device. Please pickup your handset and ensure that your phone is not on mute when asking your question.
Speaker Change: Again, it is star one if you would like to join the queue.
Mark Bianchi: And our first question comes from the line of Mark Bianchi with TD Cowan. Your line is open. Thanks. Hi, guys. I was pleased to see the kind of outlook to have a firm customer order by the end of 2025. Can you talk about what that means? How do you define that? Is that the customer reaching a final investment decision? Is it some other intermediate threshold that needs to be crossed to sort of fall into that category?
Speaker Change: And our first question comes from the line of Marc Bianchi with TD Cowen Your line is open.
Marc Bianchi: Hi, Thanks, Hi, guys.
Marc Bianchi: I was pleased to see the high I was pleased to see the.
Marc Bianchi: Outlets have a firm customer order by the end of 2025.
Marc Bianchi: Can you talk about what that means.
Marc Bianchi: How do you define.
Marc Bianchi: Define that is that the customer reaching a final investment decision is.
Marc Bianchi: Is it some other intermediate threshold that that needs to be cross to sort of fall into that category and then what are the.
Mark Bianchi: And then what are the events that need to unfold to get to that?
Marc Bianchi: Sydney to unfold to get to that.
John Hopkins: Hey, Mark. This is John Hopkins. How are you doing?
John Hopkins: Hey, Mark This is John Hopkins How're you doing.
John Hopkins: Let me just start by saying, you know, we're, I think we mentioned the last earning calls. Our focus right now is to get closure on near-term contracts. We are no longer chasing or announcing MOUs. Where we are with our current customers and then we're in discussions with right now, as I commented earlier, we're actually in the process of submittal and negotiating term sheets. We've got customers that are wanting to go to Doosan to actually go touch steel and see our modules online and in production. In fact, I'm going to be in Korea with an executive team of a prospective customer this June.
John Hopkins: Next let me just let me just start by saying I think we mentioned in our last earning calls our focus right now is to get closure on near term contracts, we are no longer chasing or announcing mou's.
John Hopkins: Where we are with our current customers and then we are in discussions with right now as I commented earlier, we're actually in the process of <unk>.
John Hopkins: The middle and negotiate and term sheets.
John Hopkins: We've got customers that are.
John Hopkins: Wanting to go to do signed actually go touch deal and see our modules online and production in fact.
John Hopkins: Going to be in Korea, with the executive team.
John Hopkins: Of a prospective customer this June.
John Hopkins: So, you know, the groundswell continues to build.
John Hopkins: So the groundswell continues to build I spoke with.
John Hopkins: I spoke with the CEO of Nuclo Electra today on Romania. We're keeping a close thumb on the pulse there. They're having presidential elections coming up this coming Sunday. But so far, they're, you know, paying their bills and the team is working well together and Florida is still leading as a prime for the front-end engineering design.
Speaker Change: The CEO of nuclear electric today on Romania, we're keeping a close.
Speaker Change: Tom on the pulse there there is there havent presidential elections coming up this coming Sunday.
Speaker Change: So far they're paying their bills and the team is working well together and Florida is still leading as the prime.
Speaker Change: <unk> engineering design so.
John Hopkins: So, you know, I feel pretty comfortable that, you know, this is going to be a pivotal year. I'm appreciative of this administration and things that I'm hearing coming out of both Secretary Wright and Secretary Bergam in terms of advanced new nuclear and it needs to be quickly put into the energy mix. So, you know, we're not in discussions about LCOE or – we're beyond that with these customers. Now it's, you know, discussions of getting long-term power purchase agreements negotiated in place. So, we're working diligently on getting that done. So, I'm pretty excited where we are right now in our space.
Speaker Change: So I feel pretty comfortable that this was going to be a pivotal year.
Speaker Change: Im appreciative of this administration are things that I'm hearing coming out of both secretary write a secretary of Ergo in terms of advanced new nuclear than it needs to be quickly put into the energy mix.
Speaker Change: So.
Speaker Change: We're not in discussions about <unk>.
Speaker Change: We're beyond that where these customers now.
Speaker Change: Discussions of getting long term power purchase agreements negotiated in place. So we're.
Speaker Change: We are working.
Speaker Change: Gently on getting that done so I'm pretty excited where we are right now in our space.
Mark Bianchi: Okay, thanks for that, John.
Speaker Change: Okay. Thanks for that John I guess you mentioned.
Mark Bianchi: I guess you mentioned, you know, the administration and their support for nuclear. There was some news last week about some draft executive orders from the White House to sort of help streamline the, I guess, the licensing process. Can you talk about sort of what, you know, could potentially be done that would streamline permitting?
Speaker Change: The administration.
Speaker Change: And their support for nuclear there was some news last week about some draft executive orders.
Speaker Change: From the White house to sort of help streamline the I guess the licensing process.
Can you talk about sort of what you do.
Speaker Change: <unk> could potentially be done that would streamline.
Speaker Change: Permitting because my understanding is it and are supposed to be kind of like the fed and sort of you can't be white house can't be telling them what to do but just kind of curious what might be some low hanging fruit to streamline the process.
John Hopkins: Because my understanding is that NRC is supposed to be kind of like the Fed and sort of, you know, you can't be, White House can't be telling them what to do, but just kind of curious what might be some low-hanging fruit to streamline the process. Yeah, actually, I'm at a SMR conference this week. In fact, right now, I'm meeting with customers and our suppliers here. And that's kind of the talk of what's going on. I think everybody's trying to ferret out what it means. It's too early, really, to ascertain. But, you know, thankfully, you know, I'm in the process right now.
Speaker Change: Yes, actually I'm at <unk> conference.
Speaker Change: This week in fact, right now meeting with customers and our suppliers here and that's kind of the talk of what's going on and I think everybody is trying to ferret out what it means it's too early really to ascertain but thankfully.
Speaker Change: I'm in the process right now we've had ongoing meetings with with the nuclear regulatory Commission and ACR Hess.
John Hopkins: We've had ongoing meetings with the Nuclear Regulatory Commission and ACRS. I feel very comfortable in our discussions that we're on track to get, you know, closure on our 77 megawatt this July. So, we're still on track of the NRC schedule. Hopefully, we can beat it. But I feel pretty comfortable.
Speaker Change: I feel very comfortable in our discussions that we are on track.
Speaker Change: Oh sure.
Speaker Change: <unk> are 77 megawatt. This July so we're still on track of the NRC schedule and hopefully we can beat it.
Speaker Change: I feel pretty comfortable in terms of streamlining I just can't envision that.
John Hopkins: In terms of streamlining, I just can't envision that we're going to take the rigor of safety away. Are there areas in license that can be streamlined in a few other areas? Absolutely. But I'm just thankful we are in a good place right now as a company, having gone through the licensing with 50 megawatts, having got the methodology approved for emergency planning zone and site bounty. By the way, it took us seven years to get that done. And then, you know, now once, you know, I'm kind of staying low key, I want to get to 77 megawatt approved in July and really hit the ground running.
Speaker Change: Yes, we're going to take the rigor of safety are there areas in license that can be streamlined and a few other areas absolutely, but I'm just thankful we are in a good place right now as a company having gone through the licensing with 50 megawatts, having got the methodology approved for emergency planes on insight.
Speaker Change: By the way took us seven years to get that done.
Speaker Change: Yes.
Speaker Change: Now now.
Speaker Change: Im just kind of staying low key I wanted to get to 77 megawatts approved in July and really hit the ground running.
Rodney McMahan: Yeah, great. Thanks, John I'll turn it back.
Mark Bianchi: Yep, great, thanks John, I'll turn it back.
Sharif Ihab Elmagrabi: And our next question comes from Sharif Ihab Elmagrabi with BTIG. Your line is open. Hey, thanks for taking my question. You have long lead items in the works for a dozen or half a dozen unclaimed modules depending on how you want to slice it. So how quickly, and you know you talked about order by the end of the year, how quickly after booking an order could NuScale turn around and deliver modules if it was a US power plant? Well, you know, I made the comment previously, if you haven't ordered long lead items, we started this process a few years ago.
Speaker Change: And our next question comes from Sherif <unk>.
Speaker Change: <unk> with BTG Your line is open.
Sherif: Hey, Thanks for taking my question.
Sherif: Yes, you have long lead items in the works for a dozen or a half a dozen unclaimed modules, depending on how you want to slice it.
Speaker Change: So how quickly and you know you talked about order by the end of the year how quickly after booking an order could new scale turnaround and deliver.
Sherif: Module as if it was the U S power plant.
Sherif: Well I made the comments comment previously if you have an order long lead items. We we started this process a few years ago. So <unk> was originally slated to do six of the modules of the reactor vessel.
John Hopkins: So Doosan was originally slated to do, you know, six of the modules of the upper reactor vessel. We just put a placement in recently for six more. So, you know, if we're going to adhere to a 2020, or the end of this decade, let's say, COD, that's what we've been working with our supply chain to get, ensure we can make that, if in fact. Now, I got to tell you, you know, as the window keeps pushing out, you know, can we do 2030? Yes, if we get closure on a deal here soon. If we don't, then it gets pushed out to 2031.
Sherif: We just put a placement and recently for six more.
Sherif: So if were going to adhere to a 2020 and at the end of this decade, let's say.
Sherif: <unk>.
Sherif: That's what we've been working with our supply chain to ensure we can make that if in fact now I got to tell you.
Sherif: As the window keeps pushing out.
Sherif: Can we do 2030, yes, if we get closure on a deal here soon.
Sherif: If we don't then again pushed out to 2031.
John Hopkins: But our suppliers, and I got to tell you, Doosan has spent a lot of their own capital betting on to come with NuScale. We, you know, they're doing our helical coil steam generators right now. They went out and acquired tube bending equipment. And that's why we're excited now that we're in a place to bring. customers to do some manufacturing and see and actually see where we are in the process. And they're very far along.
Speaker Change: Our suppliers and I got to tell you do sign.
Speaker Change: Spent a lot of their own capital.
<unk>.
Speaker Change: With new scale.
Speaker Change: Theyre doing our helical Carl steam generators right now they went out and acquired two bending equipment and Thats why were excited now that we're in a place to bring.
Speaker Change: Customers two to do some manufacturing and see and actually seen where we are in the process and they are very far along.
Ramsey Hamady: Sure, maybe I can add a little bit to your comment. We call them, or you call them, I think, unclaimed modules. I think of those really as long-lead materials, which we're producing for our first contract. And we anticipate that once we sign a contract with our business model, we'll see cash flow immediately in relation to the module. We believe that once we sign a contract with a major customer that we'll receive payments in relation to the modules, we'll receive positive cash flow. Remember, NuScale has a few different revenue streams. we have pre-engineering services, we have the sale of the modules, and we have some post-delivery services.
Speaker Change: Sure, maybe I can add a little bit to your comment.
Speaker Change: We call them or you call them I think on client modules.
Speaker Change: I think of those really as long lead materials, which we're producing for our first contract and we anticipate that once we sign a contract with our business model, we will see cash flow immediately in relation to the modules. We believe that once you sign a contract with the <unk>.
Speaker Change: If you're a customer that we will receive payments in relation to the modules, we see positive cash flow Robert New scale has a few different revenue sources.
Speaker Change: We have pre engineering services.
Speaker Change: Sales of modules and we have some post delivery services.
Ramsey Hamady: But in relation to the sale of the modules, we expect somewhere around 25% of the cost of the modules to come in the first year and for NuScale to be cash flow positive from that perspective. So I think that that contract will be important for us. It'll be pivotal in terms of pushing our balance sheet and our cash flow towards a cash flow positive position. And that's why we're producing today because we anticipate that sale to be a near-term event. Poirier-Ramsey.
Speaker Change: Relation to the sale of modules, we expect somewhere around 25% of the cost of modules to come in the first year and for me, it's got to be cash flow positive from that perspective.
So I think that that contract will be important for us will be pivotal in terms of pushing our balance sheet and our cash flow towards the cash flow Plaza possession.
Speaker Change: And.
Speaker Change: And that's why we're we're producing we're producing today, because we anticipate that sales to be in near term event.
Good point Ramsey.
Sharif Ihab Elmagrabi: got it that's really helpful color actually and then maybe just You know, you've answered a couple of my questions, so just kind of a simple one, but on slide three when we talk about extension of phase two for row power for the first quarter of next year, what does that entail? Sure. You know, I think real power has, um... taken a very sensible, measured approach to the development of the project, the SMR project in Votest. And currently, the scope of Feed Phase 2 envisages a two-step FID. And I think what Row Power Now is looking at is we went and they scoped the first step and they're pushing forward very deliberately and very steady on that pathway.
Ramsey Hamady: Got it that's.
Ramsey Hamady: Really helpful color actually.
Ramsey Hamady: And then maybe just.
Ramsey Hamady: You've answered a couple of my questions.
Ramsey Hamady: A simple one but on slide three let me talk about extension of phase two for ROE power for the first quarter of next year, what does that entail.
Ramsey Hamady: Ramzi.
Ramsey Hamady: Sure.
Ramsey Hamady: Power has.
Speaker Change: Taking them very sensible and measured approach the development of the project.
Speaker Change: Some of our project in protest and currently the scope of feed phase two.
Speaker Change: It is a two step.
Speaker Change: And I think what power now is looking at is we went and a scope the first step and they're pushing forward.
Speaker Change: Very deliberately and very steady on that pathway.
John Hopkins: And I believe Row Power Now is looking to fund the Feed Phase 2 for the second step of FID. So, really, it's just greater assurance, I think, on our side, and greater assurance to the market that ultimately, at the end of Feed Phase 2, Row Power will have completed sufficient engineering studies to get to an FID, which is final investment decision, and be able to take a view of moving forward with the project. So, we see it as a very positive idea. We're thrilled that Row Power is doing that, and we're here to support them at every step of the way.
Speaker Change: And I believe Rob power now is looking to fund the feed phase II for the second step of FIA.
Speaker Change: So really it's just greater assurance I think on our side and great assurance to the market that ultimately at the end the feed phase II raw power will have completed sufficient engineering studies to get to an FID.
Speaker Change: Which is final investment decision and they will take a view on moving forward with the project. So we see it as a very positive idea. We're thrilled that drove power is doing that and we're here to support them at every step of the way.
John Hopkins: Yeah, I, we, Ramsey and I actually met with the CEO of Nucleoelectrica last week in Washington, DC. So their FID or final investment decision is still looking to be latter part of 25 or early 2026 as of target. Got it. That's great, Collar.
Ramsey Hamady: Yes, Ramsey and I actually met with the CEO of nuclear electrical last week in Washington D. C. So.
Ramsey Hamady: Friday or final investment decision is still looking to be latter part of 'twenty five early 2026 as a target.
Speaker Change: Got it that's great color, thanks, and I'll turn it over.
Sharif Ihab Elmagrabi: Thanks, and I'll turn it over. Thank you.
Ramsey Hamady: Okay.
Ramsey Hamady: Thank you.
George Gianarikas: And our next question comes from the line of George Gianarikas with Canaccord Genuity. Your line is open. Thank you for taking my questions. I'm curious, you know, in terms of this forum, what do you expect? By the end of the year, you sort of articulated. series of customer conversations that you're having. multiple shots on goal. How likely is it that one of these customers could be a large tech company versus some of the other descriptions that you made during the call? I think it could very well be. We have non-disclosure agreements with the Tier 1s on the EAI side, and Googles and the Amazons have made some announcements.
Speaker Change: And our next question comes from the line of George <unk> with Canaccord Genuity. Your line is open.
George: Thank you for taking my question.
George: I'm curious in terms of this firm order you expect.
George: By the end of the year.
George: Sort of articulated.
George: Series of customer conversations that Youre, having.
George: Multiple shots on goal how likely is it that in one of these customers could be a large tech company versus some of the other.
George: Script.
George: That you made during the call. Thank you.
George: I think it could very well be.
Non disclosure agreements with two tier ones on AI.
Syed: Hi, Syed.
Syed: The googles and the Amazons of made some announcements, but trust me they.
John Hopkins: But trust me, I was speaking with one of the Tier 1s today here at this conference. They need a lot of energy. And in terms of near-term deployable, and you've got to remember, as far as I know, no other technology has even submitted a design certification application to the NRC as yet. So when we get that 77 megawatt power up rate, we're fully licensed under Part 52 not only to construct, but to operate. So if they really truly need power now, we are near-term deployable, George. George, I may add that when we look at projects...
Syed: I was speaking with one of the tier ones today here at this conference.
Syed: You need a lot of energy and in terms of near term deployable and you got to remember.
Syed: As far as I know no. Other technology is even submitted the design certification application to the NRC as yet.
Syed: So when we get that 77 megawatt power up rate, we're fully license under part 52, not only to construct but to operate.
Syed: So if they really truly need power now.
Syed: We are near term deployable George.
Syed: Sure.
Syed: Add that when we look at projects.
Ramsey Hamady: We talked about who the customer is and the possibility that one of our customers is a hyperscaler Tier 1 data center AI developer. I think it's important to understand that our projects are complex. and really the customer in many cases will be the developer who's developing the plant and purchasing the SMRs from NuScale. Supporting that idea will be a power purchase agreement and a buyer and a power user, which we anticipate would be a tier one data center or AI developer. But there's many others within that ecosystem of us developing a first deal. And that includes having a site, includes a site operator, most likely in the form of utility, our exclusive development partner and for one, and capital to support the deal.
Syed: We talk about who the customer is.
Syed: And the possibility that one of our customers.
Syed: Yes, hyper scaler.
Syed: Tier one data center AI developer.
Syed: And I think it's important to understand that our projects are complex.
And really the customer in many cases will be the developer is developing the plant and purchasing <unk> from these scale.
Syed: Porting that idea will be a power purchase agreement buyer power user, which we anticipate will be a tier one data center, our AI developer, but there's many others within that ecosystem of us developing our first deal.
Syed: And that includes having a site include the site operator, most likely in the form of utility.
Syed: Our exclusive development partner in Taiwan, and capital to support the deal so.
Ramsey Hamady: So I hate to mince words for the sake of precision, but I think it's meaningful.
Syed: I hate to mince words for the sake of precision, but I think it's meaningful theres a number of entities that will be involved in announcing the first project.
George Gianarikas: There's a number of entities that will be involved in announcing the first project and the tier one AI data center, which we hope will be involved in the first project will really be the power user versus the direct customer to NuScale who's buying SMR. Thanks, and maybe for a second question, you did a nice job this quarter with cash management. cash increased sequentially. Can you just help us, again, maybe articulate again how much, what we should expect for a quarterly cash flow in the pursuit? Sure. I mean, I think we've, you know, George, I think we've done a good job.
Syed: The tier one AI data center, which we hope will be involved in the first project, where really the power user versus the direct customer to new scale.
Syed: Following his remarks.
Speaker Change: Thanks, and maybe a second question you did a nice job this.
Syed: This quarter with cash management.
Speaker Change: Cash increased sequentially.
Speaker Change: Can you just help US again, maybe articulate again, how much what we should expect quarterly.
Speaker Change: Quarterly cash burn for the foreseeable future.
Speaker Change: Sure I think we've.
George: Yes, George I think we've done a good job new scale.
Ramsey Hamady: NuScale has done a good job of, you know, showing steady OPEX over the last, you know, probably the last five quarters. through 2024 and into Q1 2025. We kept OpEx between 41 or so, 41 to 44 million. If we look at cash flow from operations, it fluctuates a little bit. For example, in Q4, we had a bit of a boost from some one-time type payments in relation to technology licensing agreement with Rope Hour, but we continue to derive revenue from that project. So, if I look at just like an OPEX cash burn, it's still in that range, let's say $40 to $45 million a quarter.
Speaker Change: <unk> has done a good job of.
Speaker Change: Yes, showing steady opex over the last probably the last five.
Speaker Change: Five quarters or so.
Speaker Change: Slide 24 and into Q1 2025 recapped opex between.
Speaker Change: 41, or so $41 million to $44 million.
Speaker Change: <unk>.
Speaker Change: If we look at cash flow from operations. It fluctuates a little bit for example in Q4, we had to have a boost from some one time type payments in relation to technology license agreement with raw power, but we continue to derive revenue from that project. So if I look at just just like an opex cash burn.
Speaker Change: It's still in that range lets say $40 million to $45 million a quarter, we will probably push it up a little bit as we invest in our supply chain.
Ramsey Hamady: We'll probably push it up a little bit as we invest in our supply chain. That's something that we're actively doing now because we anticipate a near-term project and we're focused on supply chain manufacturing and delivery dates. And revenue, I think, will stay fairly steady throughout this year. So, more reflective of our Q1 25 revenue versus our Q4 2024 revenue. but steady state gravity to offset some of the OPEX. And I think you'll see that pretty consistent, George, until the time that we get to the announcement of a project and we think a near-term cash inflow in relation to the modules.
Speaker Change: That we're actively doing now because we anticipate a near term project and we're focused on supply chain manufacturing and delivery dates.
Speaker Change: And revenue I think will stay fairly steady throughout this year, so more reflective of our Q1 'twenty five revenue versus our Q4 2020 for revenue.
Speaker Change: But steady state revenue to offset some of the opex.
Speaker Change: I think youll see that pretty consistent George until the time that we get to.
Speaker Change: Yes, the announcement of a project and we think near term cash inflow in relation to the modules.
George Gianarikas: So no surprises, nothing wavering, very steady, very deliberate on behalf of management. Probably try and keep our cash position about the same. We think we have two years or so of operating runway just based on where we are today, just based on what cash we have and what we bring in, what we spend. And that will change only when we get a project. And I think it'll change in a positive way for the company and for our liquidity position. Thank you. Thank you, George.
Speaker Change: No no.
Speaker Change: Rises.
Speaker Change: I think wave remain very steady deliberate on behalf of management, while we try and keep our cash position of about the same we think we have 10 years or so of operating runway.
Speaker Change: Just based on just based on where we are today just based on what.
Speaker Change: What cash we have and what we're paying and what we spend.
Speaker Change: <unk> will change all Meanwhile, we got project and I think it will change.
Speaker Change: In a positive way for the company and for our liquidity position.
Speaker Change: Thank you.
Georges: Thank you Georges.
Craig Share: And our next question comes from Craig. Share with TUI brothers. Your line is open. Hi, thanks for taking the questions. So let's talk about possibly hitting the trifecta. I mean, do you have bandwidth in your supply chain and with Entra 1 capacity to support a couple initial projects that could be deployed in the early? Very early 2030s, either two 12-modules or a 12 and a 6. Could you swing to kind of back-to-back? Yeah, Doosan. has the capacity to put out about 20 modules a year. We're also in discussions with other of our key suppliers, such as IHI Manufacturing in Japan.
Speaker Change: And our next question comes from Craig Shere with Tuohy Brothers. Your line is open.
Craig Shere: Hi, Thanks for taking the questions.
Speaker Change: So.
Speaker Change: Okay.
Speaker Change: Let's talk about.
Speaker Change: Possibly hitting the Tri factor I mean.
Speaker Change: Do you have bandwidth and your supply chain and with <unk> capacity.
Speaker Change: To support a couple of initial projects that could be deployed in the early <unk>.
Speaker Change: Very early 2000, thirty's, either to 12 modules or 12% or six could you swing too.
Speaker Change: Back to back.
Speaker Change: Yes.
Speaker Change: Is the capacity to put out about 20 modules per year.
Speaker Change: We're also in discussions with other of our key suppliers such as IHI manufacturing in Japan.
John Hopkins: So And we had the supplier day in April. We had 30 U.S. suppliers and internationals show up in Charlotte. So. What we're keeping very close eye on is, to your point, we don't want to overextend our capacity to execute. So in our model, it's just what you said. It's always been, you know, these are fungible assets that are going to be built in a factory and shipped to multiple locations. So you know, we don't want a one-off project at a time. We want multiple projects.
Speaker Change: So.
Speaker Change: And we had the supplier day in April we added 30 U S suppliers and international show up in Charlotte So well.
Speaker Change: But we're keeping very close eye on is to your point, we don't want to over extend our capacity to execute so in our model as to what you said, it's always been.
Speaker Change: These are fungible assets that are going to be built in a factory and shipped to multiple locations.
Speaker Change: So we don't want a one off project at a time, we want multiple projects. So we're looking right now to say to your question once youre going to take if we had two projects simultaneously show up do we in fact have the capacity to commit and Thats what were looking at right now.
John Hopkins: So we're looking right now to see, to your question, what's it going to take if we had two projects simultaneously show up, do in fact have the capacity to commit, and that's what we're looking at right now. For me, honestly, I just want to get one hard contract right now, one, to showcase the world. And we're very careful. We're not a mile wide, an inch deep. We're staying focused and staying in our swim lane. And as I said, progress is being made. Gotcha. And to the degree you could swing to relatively concurrent projects, and I suppose at least from your own financial standpoint, to the degree you're getting upfront payments, that that is doable from your perspective, maybe even with some more proactive customer support for the equipment, upfront equipment.
Speaker Change: Okay.
Speaker Change: Gotcha.
Speaker Change: I just wanted to get one hard contract right now one to showcase the world.
Speaker Change: And we're we're very careful were not a mile wide and deep.
Speaker Change: We're staying focused on staying in our swim lane.
Speaker Change: As I said progress is being made.
Speaker Change: Gotcha.
Speaker Change: So.
To the degree you could swing to relatively concurrent projects and I suppose at least from your own financial standpoint to the degree you're getting upfront payments that that is doable front from your perspective.
Speaker Change: Maybe even with with some.
Speaker Change: More proactive.
Speaker Change: Customer support.
Speaker Change: For the equipment.
Speaker Change: Prompt equipment.
John Hopkins: Is it plausible to do 212 modules within COD within a year-ish? My answer is yes. Again, Ramsey said, this is a complicated process. What NuScale is, and I keep using this analogy, we're the Intel inside a Dell computer. We put modules, which I said are fungible assets, into an owner's power plant. So a lot of it has to do commensurate with the owner and their capacity to put together who the contractors are. So it's complex. that, you know, again, that is our model. Continue to build out a robust supply chain. And what do these suppliers like about NuScale?
Speaker Change: Right.
Speaker Change: Is it plausible to do 212 modules within kind of within a year ish.
Speaker Change: My answer is yes again.
Speaker Change: Ramsey you said this is a complicated process, what new scale is and I keep using this analogy where the Intel inside of Dell computer.
Speaker Change: Larry.
Speaker Change: Modules, which I've said are fungible assets into an owner's power plant. So a lot of it has to do commensurate with the owner and their capacity to put together who the contractors are so.
Speaker Change: It's complex.
Speaker Change: Again that is our model continue to build out a robust <unk> supply chain and what are the suppliers like about new scale basically sustainable opportunity. This is not just one off plans one at a time this is going to be hopefully.
Ramsey Hamady: They see sustainable opportunity. This is not just one-off plants, one at a time. This is going to be, hopefully, our objective is to do, to your point, multiple plants at any given time. Ramsey interrupted, I'm sorry. No, I was going to make the comment that we tend to be pretty conservative when we look at how we ramp up. I think today there's expectations our supply chain could take up to 20 modules a year. And I'll be honest, in my financial modeling, I'm more conservative. But supply chain isn't static. And money instigates money, it instigates investment.
Speaker Change: <unk> is due to your point multiple plants at any given time.
Ramsey Hamady: Ramsey I interrupted I am sorry.
Speaker Change: No.
Speaker Change: And I make the comment that we tend to be pretty conservative when we look at how we ramp up I think I think today, there is expectation that supply chain could take up to 20 module of the year.
I'll be honest and my financial modeling.
Speaker Change: More conservative.
Speaker Change: But supply chain isn't static.
Speaker Change: And money money instigates money instigates investment I think that our supply chain has been great partners, great great Great partners and we have bolstered up we are invested in supply chain, we've invested in design validation and our supply chain partners to invest in that as well.
Ramsey Hamady: I think that our supply chain has been great partners. Great, great, great partners. And we have bolstered up, we have invested in supply chain, we've invested in design finalization, and our supply chain partners have invested in that as well. Once we have a first contract, I think you'll see more money going into the supply chain in order to increase capacity. Right? We believe that getting the first contract is difficult, but we think there's gonna be a lot of fast sectors. And, you know, we'll be in a great place if our biggest challenge is keeping up with orders, but we anticipate that that's where we'll be, and we anticipate that our supply chain partners will invest for the capacity, and we're planning for that already.
Speaker Change: Once we have our first contract I think youll see more money going into the supply chain.
Speaker Change: Increased capacity right.
Speaker Change: We believe that getting the first contract is difficult, but we think theres going to be a lot of SaaS seconds.
Speaker Change: Yes.
Speaker Change: We will be in a great place if our biggest challenge is keeping up with orders, but we anticipate that thats, where we will be and we anticipate that our supply chain partners. We will invest further capacity and we're planning for that already.
Ramsey Hamady: So, you know, I don't know that we're able to fulfill, you know, two, three orders at once in the first year. I don't think that's reasonable. The nuclear supply chain is tight. It's very specific. There's a limited number of suppliers, but fortunately, we're the first SMR company to go into production. We're the first one.
Speaker Change: So.
Speaker Change: I don't know that were able to fulfill.
Speaker Change: Two to three orders at once in the first year I don't think thats reasonable the nuclear supply chain as tight it's very specific there is a limited number of suppliers.
Speaker Change: Lee.
What are the first <unk> companies to go into production where.
Speaker Change: The first one we've been working on our supply chain of broken that those partners for seven to eight years already.
Ramsey Hamady: We've been working on our supply chain, working with those partners for seven, eight years already. So I think we're well positioned to increase capacity in the supply chain and be the company that's able to deliver in volume relative to our competitors.
Speaker Change: I think we're well positioned to increase capacity in our supply chain and be the company, that's able to deliver in volume relative to our competitors.
Craig Share: Great, that's helpful.
Speaker Change: Great.
Speaker Change: Helpful and my second.
Ryan Pfingst: And my second... So, I mean, you only burned through less than 23 million of operating cash flow in the quarter, and you've got a fair amount of liquidity, and you seem to be indicating that you're anticipating at least one order that will turn you cash flow positive in whatever the next two, three quarters.
Speaker Change: So I mean, you only burn through less than $23 million of operating cash flow in the quarter.
Speaker Change: And you've got a fair amount of liquidity and you seem to be indicating that you are anticipating at least one order that will turn to cash flow positive.
Speaker Change: And whatever the next two or three quarters.
Speaker Change: So what's the rationale for continuing to hit the ATM and can we assume that that may slow or cease in the near future.
Ramsey Hamady: So, what's the rationale for continuing to hit the ATM, and could we assume that that may slow or cease in the near future? Well, one point is that especially on earnings calls in a public setting I make no forward-looking comments on the but I will say that we manage cash conservatively. We've done so in the past, we've raised capital. If you look at our slide, page eight, going from less than 200 million and Q1, Q2, Q3 of 24, now up to cash reserves of 526.5 million. We've done a great job in solidifying a liquidity position and I intend to keep about two years worth of cash flow.
Speaker Change: Well.
Speaker Change: One point is that especially on earnings calls in a public setting.
Speaker Change: No forward looking comments on the ATM.
Speaker Change: But I will say that we manage cash conservatively.
Speaker Change: We've done so in the past we've raised capital.
Speaker Change: You look at our slide page eight going from.
Speaker Change: Less than $200 million in Q.
Speaker Change: Q1, Q2, Q3 F 'twenty for Nab to cash reserves of $526 5 million.
Speaker Change: We've done a great job and solidifying our liquidity position and I intend to keep about two years' worth of cash flow I think thats, the smart conservative thing to do.
Ramsey Hamady: I think that's the smart, conservative thing to do. I anticipate a project coming this year. I anticipate a project coming soon, but I don't plan our financial outlook based on anticipate commercial activities. I plan it based on a conservative scenario. And so, again, without making any forward-looking statements on whether we hit the ATM, I think it's clear our cash position and our revenue relative to our OPEX our cash needs pretty low in order to maintain a two-year cash position. And we'll remain vigilant and we'll take advantage of positive market conditions if they exist. But there's no, looking at our balance You couldn't see a large need for, you know, for a big kind of follow-on or some convert or some sort of event like that.
Speaker Change: Tessa paid a project coming this year I anticipate a project coming soon bio plan, our financial outlook based on the anticipated commercial activities a plant based on a conservative scenario.
Speaker Change: And so again without making any forward looking statements on whether we hit the ATM I think it is clear our cash position and our revenue relative to our Opex makes our cash needs pretty low.
Speaker Change: To maintain a two year cash position and will remain vigilant and we will take advantage of positive market conditions.
Speaker Change: Exist, but there is no yes.
Speaker Change: Looking at our balance sheet.
Speaker Change: You could see a large need for for a bank kind of follow on or some convert or some sort of event like that.
Ramsey Hamady: That's just not where we are in our development.
Speaker Change: It's just not where we are in our development.
Ramsey Hamady: We've gone through. We've done the spending for R&D. Now we're really just investing in our supply chain and manufacturing readiness, and those are slightly different ideas. So two years, it sounds like, you know, in answer to your, George's question, I think you said like 41 million quarterly OPEX, give or take. So it's eight times that number is the minimum you want to maintain until you have a hard contract. Yeah, yeah. But, you know, we'll be pushing up some of the investments in supply chain because we believe we're nearing a commercial project. As we near the commercial project, we're investing in the long-lead materials, so we're investing in some of the components that will go into modules, and we're investing in design finalization, and we invest in our suppliers.
Speaker Change: Gone through we've done the spending for R&D now, we're really just investing in our supply chain and manufacturing readiness and those are slightly different ideas.
Speaker Change: So two years it sounds like an answer to your George's question. I think you said like $41 million quarterly opex give or take.
Speaker Change: It's eight times that number is the minimum you wanted to maintain until you have a.
Speaker Change: Hard contract.
Speaker Change: Yeah, yeah, but we'll be pushing up some of the investments in supply chain.
Speaker Change: We believe we're nearing.
Speaker Change: <unk> project as we near the commercial project, we're investing in the long lead materials. So investing in some of the components that will go into modules and where.
Speaker Change: We're investing in design Finalization, and we invest our suppliers.
Ramsey Hamady: So that may bump up a little bit, but we're taking this pretty conservative. Right? I do believe that we have a project just around the corner. I do believe that we're a responsible steward of capital to our shareholders. We're not just pushing cash into the market willy-nilly. So, you know, even the numbers I present, the 40 to 45 million vis-a-vis 500 plus million worth of cash, would seem to instigate an idea of greater than two years runway, especially when you add some revenue. because it lowers the burn rate. But I'd like to keep two years' runway.
Speaker Change: That may bump up a little bit, but we're taking this pretty conservatively.
Speaker Change: I do believe that we have a project just around the corner I do believe that we're responsible stewards of capital to our shareholders. We're not just pushing cash incentive market Willy nilly.
Speaker Change: Yes.
Speaker Change: Even the numbers I present, the 40 to 45 million. These are the 500 plus million worth of cash which seem to instigate idea of greater than two years runway, especially when you add some revenue there right because it lowers the burn rate, but I'd like to keep to two years' runway.
Ramsey Hamady: I foresee OPEX moving up just a little bit, and we remain conservative in how we look at the markets and potentially raise money, again, as market conditions permit us to, but we haven't done any large capital raises. We haven't introduced nothing strange into our cap structure. We haven't introduced convertibles or weird derivative liabilities that's going to impact our shareholders. We're trying to remain very conservative, very, very steady, very, very consistent. consistency and being steady and not surprising anyone is the key to, I think, good financial stewardship. And that's what we're trying to show. That's why our OPEX is so special.
Speaker Change: Foresee opex moving up just a little bit.
Speaker Change: We remain conservative in how we look at the markets.
Speaker Change: Yes, potentially raise money is again as market conditions permit us to but we haven't done any large capital raise as we havent introduced something nothing strange into our cap structure. We haven't convertibles are we a derivative.
Speaker Change: <unk>, that's going to impact our shareholders. We're trying to remain very conservative very very steady very very consistent.
Speaker Change: <unk> see it being steady and not surprising anyone is the key to I think good financial stewardship and that's what we're trying to show that's our Opex is still steady.
Ramsey Hamady: a quarter on quarter. It's just very, very consistent. And we intend to maintain that level or a little bit higher level of OPEX, just investing into the supply chain.
Speaker Change: One quarter, it's just very very consistent.
Speaker Change: Intend to maintain that level or a little bit higher level of opex just investments in supply chain.
Speaker Change: Thank you.
Ryan Pfingst: Yeah, thank you.
Speaker Change: Thank you.
Ryan Pfingst: And our next question comes from the line of Ryan Pfingst with B. Reilly Securities. Your line is open. Hey guys, thanks for taking my questions and I appreciate all the details so far. Just a quick one, for the 10 customer discussions that you're considering advanced, are those all around U.S.
Speaker Change: Our next.
Speaker Change: <unk> comes from the line of Ryan <unk> with B Riley Securities. Your line is open.
Speaker Change: Hey, guys. Thanks for taking my questions and I appreciate all the detail so far.
Speaker Change: Just a quick one for the customer discussions that you are considering advanced are those all around U S data center related projects or is there anything in there that's not.
John Hopkins: data center related projects, or is there anything in there that's not data center related or not U.S.? No, it's not all data centers. There's three components of what we see in the market right now. There's the coal plant replacement. We've got a lot of coal plants coming offline at the end of this decade. That market's still there. We're in discussions with process companies that have interest in energy for process heat or energy for ammonia production. And interestingly, those particular customers that we're talking don't necessarily want to own a nuclear asset. What they want is clean, reliable 24-7 energy.
Speaker Change: Data center related or not U S.
Speaker Change: No its not all data centers.
Speaker Change: There's three components of what we see the market right now there is the co plant replacement of we've got a lot of coal plants coming offline at the end of this decade, Denmark is still there.
Speaker Change: In discussions with process companies that have interest in.
Speaker Change: Energy for processes or energy for ammonia production.
Speaker Change: And interestingly those particular customers that were talking.
Speaker Change: We don't necessarily want to own our nuclear asset.
Speaker Change: One is clean reliable 24, seven energy misses were.
John Hopkins: And this is where the BOOT, BOO Intra One model comes to play.
Speaker Change: Hello.
Speaker Change: Intra one model comes to play.
John Hopkins: And then the third one, to your point, and the elephant in the room is AI and soon to be quantum, just huge amounts of energy. So in part of these sales, it's working with the state, it's working with utility, working with an AI company, and then working with our developer to bring it all together. That's the degree of complexity that Ramsey was alluding. that it's not necessarily just AI. Got it, that's helpful, thanks John.
Speaker Change: And then the third one to your point and the elephant in the room is AI and soon to be quantum just huge amounts of energy. So.
Speaker Change: And part of these sales it's working with the state is working with the utility working with an AI company and then working with.
Speaker Change: With our developer to bring it all together.
Speaker Change: The degree of.
Ramsey Hamady: Complexity that Ramsey was alluding to.
Ramsey Hamady: It's not necessarily just AI.
Ramsey Hamady: Got it that's helpful. Thanks, John It and then just one on Romania can.
John Hopkins: And then just one on Romania. Can you give more detail on what goes into the class three estimate you expect to deliver to Row Power this fall and what the next steps are for you and for in between that and FID? Got it. Appreciate that detail.
Speaker Change: Can you give more detail on what goes into the class III estimates you expect to deliver turow power. This fall and what the next steps are for you and for in between that and <unk>.
Ramsey Hamady: Yes.
Ramsey Hamady: We are a subcontractor to Florida are the prime on this particular project.
Ramsey Hamady: The class III yesterday, just gets rolled power in a better position just to understand the cost to complete and what's going to take time for the next step so.
Ramsey Hamady: As I said, we're keeping.
Ramsey Hamady: Vigilant on there is an election coming up I did speak with those CEO of nuclear electric here today.
Ramsey Hamady: And he said so far they have had no indications of any slowdown.
Ramsey Hamady: We'll see what happens after Sunday with the new President.
Ramsey Hamady: Romania.
Ramsey Hamady: I'd like to better Romania, they have need to have candy reactors to refurbish it and they have a strong regulator and regulators actually working.
Discussions with the NRC.
Ramsey Hamady: Our Romanian wed like to see themselves positioned for central Eastern Europe to be a manufacturing facility. So.
Ramsey Hamady: I think from what I'm hearing is the groundswell continues to build.
Ramsey Hamady: For that particular country and again, we hope it just.
Ramsey Hamady: <unk> staying after the elections, we will have a better sense.
Ramsey Hamady: I'll be in a couple of two weeks, if theres going to be any changes, but right now it looks to be as far as what we've been told things continue to move forward.
Ramsey Hamady: Got it I appreciate that detail I will turn it back.
Ryan Pfingst: I'll turn it back.
Ramsey Hamady: Yeah.
Eric Stine: And our next question comes from Eric Stine with Craig Hallam. Your line is open. Hi everyone, good afternoon. Hey, good afternoon. So many of my questions obviously answered a lot of detail in the call, so thank you for that. But what I kind of keep thinking about, obviously this has been really important as you've gone through the regulatory process and everything that you have accomplished over many years, but I'm just curious the importance of light water technology rather than some of the other advanced reactors and technologies that don't have the operating history of what yours is based on, how that has played in discussions with customers.
Eric Stine: And our next question comes from Eric Stine with Craig Hallum. Your line is open.
Eric Stine: Hi, everyone. Good afternoon.
Eric Stine: Hi.
Eric Stine: Thank you.
Speaker Change: Good afternoon. So many of my questions, obviously answered a lot of detail on the call. So thank you for that.
Speaker Change: But what I kind of keep thinking about obviously this has been really important as you've gone through the regulatory process and everything that you have accomplished over many years, but I'm just curious the importance of of Lightwater technology rather than.
Speaker Change: Some of the other advanced reactors and <unk>.
Speaker Change: And technologies that don't have the operating history.
Speaker Change: Of what yours is based on how that has played in discussions with customers clearly I mean, even in the last two months right. Your tone is different it seems.
John Hopkins: Clearly, I mean, even in the last two months, your tone is different, it seems. It seems like some of these opportunities have accelerated. And I know part of it is obviously what you're doing in the supply chain, that's key. But just curious how the basis being light water reactor technology plays into all of it. When I hear the word advanced nuclear, I immediately come to mind of NuScale. If you're really looking for a truly advanced SMR, it's NuScale. I think Dr. Jose Reyes, because I've often asked him, you know, did you look at other fuel sources?
Speaker Change: It seems like some of these opportunities have accelerated.
Speaker Change: And I know part of it is obviously, what youre doing in the supply chain, that's key but just curious how.
Speaker Change: The basis being light water reactor technology plays into all of it.
When I hear the word advanced nuclear I immediately come to mind new scale. If you are not really looking for a truly advanced SCR its new scale.
Speaker Change: Thank you Dr. Jose Reyes, because I've often ask Jim did you look at other fuel sources.
John Hopkins: You know, we have the ability to burn mixed oxide fuel. We have the ability, we could burn thorium. And we've done a lot of studies to justify that. But the fact is, as I mentioned before, the regulators around the world, they know light water. The NRC regulators, you know, 70 years of experience in this technology with light water. And so I think, you know, it took us 42 months even though to get through that NRC process. And a lot of it was to have to scale up. And that's how we ended up spending so much money to prove the NRC that, you know, we don't need a lot of the components of a gigawatt-sized reactor.
Speaker Change: The ability to burn mixed oxide fuel, we have the ability we could burn thorium.
Speaker Change: And we've done a lot of studies to justify that but the fact is as I mentioned before the.
Speaker Change: The regulators around the world They know light water.
Speaker Change: NRC regulators 70 years of experience in this technology with light water.
Speaker Change: And so I think it took us 42 months, even though to get through that NRC process and a lot of it was.
Speaker Change: You have to scale up but that's how we ended up spending so much money to prove the NRC.
Speaker Change: We we don't need a lot of the components of the gigawatt size reactor.
John Hopkins: You know, our fuel is conventional fuel. We don't have a need for more, you know, our fuel is less than 5% enriched. We don't need up to 19% halo high assay fuel. And as you know, that fuel is not commercially readily available for scale in this country. So I think there are a lot of distinctives. And...
Speaker Change: Our fuel is conventional fuel, we don't have a need for more fuels less than 5% and rich, we don't need up to 19% <unk> high assay fuel and as you know.
Fuel is not commercially commercially readily available for scale in this country. So.
There aren't a lot of distinctive and.
John Hopkins: Once, that's why it's so important to get to 77 complete because then we are truly, we have the ability not only go construct a plant, you can construct plants, but you can't operate it without an operating license. So, we went under Part 52, where we construct and operate a plant, you know, via the, you know, Part 52 NRC. So, you know, I want others, I don't want to be a monopoly. I want others to be successful, but I think we're still in a very good position to be the first mover. No, absolutely. And, you know, curious.
Speaker Change: That's why it's so important to get to 77 complete because then we are truly.
Speaker Change: We have the ability not only go constructive flat you can construct plants, which can operate without an operating license.
Speaker Change: We went under part 52, where we construct and operate a plant.
Speaker Change: Via the part for Q2 and our <unk> so.
Speaker Change: I want others, I don't want to be a monopoly I wonder if this should be successful, but I think we're still in a very good position to be the first mover.
Speaker Change: No absolutely.
Speaker Change: I'm curious.
Eric Stine: Also, just, you know, it seemed like for a bit of time, the fact that you were ahead and that you were, as you said, you know, you can be, I guess I'm forgetting the exact term you used, but deployable, right, in the near term. That might've been something that, you know, kind of, I don't want to say scared counterparties, but, you know, it's like, if they're going to talk with you about something, you know, they better be prepared to move forward. So, just, I mean, obviously, the urgency in some of these applications is what's pushing people to, you know, be the first, and as Ramsey said, you know, many seconds to follow.
Speaker Change: Also.
Speaker Change: You know.
Speaker Change: It seemed like for a bit of time. The fact that you were ahead and that you were as you said you can be I guess I am forgetting the exact term you use but deployable right in the near term that might have been something thats that kind of.
Speaker Change: I don't want to say scared counterparties, but.
Speaker Change: If they're if they're going to talk with you about something.
Speaker Change: Be prepared to move forward. So just I mean, obviously the urgency in some of these applications is what's pushing people.
Speaker Change: I'll be the first in his ramps you said.
Many seconds to follow.
John Hopkins: So, I don't even know if that was a question, but anyways, thanks a lot. No, thank you. And that concludes our question and answer session. Well, thank you, operator. Oh, I'm sorry.
Speaker Change: So I don't even know if that was the question but.
Speaker Change: Hey, guys. Thanks, a lot.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: And that concludes our question and answer session.
Speaker Change: Well, thank you operator.
Speaker Change: Oh I'm sorry.
John Hopkins: No, please go ahead, Mr. Hopkins. Now, I just wanted to end up by saying, you know, we truly believe NuScale is leading the way in the SMR industry. We believe we're uniquely positioned to commercialize and deliver clean energy at scale. With nuclear technology becoming increasingly vital to meeting global energy demands, we are both excited and proud to be at the forefront, delivering safe, reliable, and scalable carbon-free power. So, I'd like to thank all of you. Thank you for your interest in NuScale and for joining our call today. Operator? Thank you, and ladies and gentlemen, this concludes today's call, and we thank you for your participation.
Speaker Change: Please go ahead Mr Hopkins.
Speaker Change: I just wanted to end up by saying, we we truly believe that scale is leading the way in the <unk> industry. We believe we are uniquely positioned to commercialize and deliver clean energy at scale with nuclear technology become an increasingly vital to meet global energy demands. We are both excited and proud to be at the forefront of delivering say.
Speaker Change: If reliable and scalable carbon free power, so I'd like to thank to all of you. Thank you for your interest in new scale and for joining our call today operator.
Speaker Change: Thank you and ladies and gentlemen, this concludes today's call and we thank you for your participation you may now disconnect.
Operator: You may now disconnect.
Speaker Change: [music].
Yes.
Speaker Change: [music].