Q2 2025 NuScale Power Corp Earnings Call
Speaker #4: Good afternoon and welcome to NUSCALE's second 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.
Speaker #4: A web replay will be available for 30 days following the earnings call. At this time, for opening remarks, I would like to turn the call over to Rodney McMahan, Senior Director of Investor Relations.
Speaker #4: Please go ahead.
Speaker #5: Thank you, operator. Welcome to NUSCALE's second quarter 2025 earnings results conference call. With us today are John Hopkins, President and Chief Executive Officer, and Ramsey Hamady, Chief Financial Officer.
Speaker #5: 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 questions.
Speaker #5: This afternoon, we posted a set of supplemental slides on our investor relations website as reflected in the Safe Harbor statements 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 risk and uncertainties.
Speaker #5: 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 #5: I'll now turn the call over to John Hopkins, NUSCALE's President and Chief Executive Officer.
Speaker #6: Thank you, Rodney, and good afternoon, everyone. To begin, I'd like remind everyone who we are and why NUSCALE a global leader in small-mod reactor or SMR technology, as outlined on slide three.
Speaker #6: Founded in 2007, NUSCALE is years ahead of the competition as the only SMR technology approved by the US Nuclear Regulatory Commission, or NRC. For more than a decade, our team has worked alongside the NRC to achieve the successful approval of our designs, including a second approval for our 77-megawatt electric design and a second quarter of 2025.
Speaker #6: in moving NUSCALE and our exclusive commercialization partner InterOne closer to meeting demands of energy users in need of clean, baseload power. Our design approvals, combined with an established manufacturing ecosystem, a life-to-date investment of approximately $2 billion to de-risk plant licensing and operation, and unmatched safety capabilities, make NUSCALE the only near-term deployable SMR technology with 12 NUSCALE power modules currently in A crucial step production.
Speaker #6: Through 18 years, NUSCALE has capitalized on the maturity and strong foundation of light water reactor technology, and has moved forward with confidence to develop unmatched capabilities with unprecedented vision.
Speaker #6: Our SMR technology offers a wide range of carbon-free energy-intensive application possibilities as outlined on slide continuity and consistency of four. Working with the industry and national laboratories, NUSCALE has assessed the integration of these applications into facilities powered by NUSCALE power modules, and published the results in peer-reviewed journals or presented them at national conference proceedings.
Speaker #6: These applications include providing power to mission-critical facilities, water desalinization needs, and hydrogen production and process heat to meet the needs of commercial-scale industrial applications.
Speaker #6: However, the application currently garnering the most attention and representing the biggest opportunity for NUSCALE's technology is a generation of uninterruptible carbon-free baseload power to meet the energy demands of advanced data centers and sophisticated artificial intelligence systems.
Speaker #6: While there are other SMR technologies in ment, NUSCALE's module architecture is the only one with NRC approval. It's the only one in the manufacturing stage, and the only one that offers the flexibility to serve multiple energy applications within a single plant.
Speaker #6: As our design allows for different modules in the same power plant to be designated for a variety of applications, turning to slide five, we summarize the NUSCALE and InterOne global commercialization partnership.
Speaker #6: Under this partnership, NUSCALE, serving as a technology provider tells its NUSCALE power modules directly to InterOne for installation in the reactor buildings of InterOne Energy plants.
Speaker #6: InterOne, in turn, develops, finances, and depending on the business model, may own and operate the energy production plants powered by NUSCALE's SMR technology. By providing customized plant development, ownership, and operating structures, InterOne is able to de-risk projects and meet each customer's unique needs.
Speaker #6: We continue be optimistic that the growing interest in our technology and its critical use cases as well as NUSCALE's distinctive competitive edge in the module manufacturing and conventional fuel readiness will result in an order in 2025 for our NUSCALE power modules.
Speaker #6: Since our last earnings call, we have seen strengthening of the regulatory tailwinds supporting the nuclear power industry driven by the president's executive orders to deploy advanced nuclear reactor technologies and support of national security.
Speaker #6: These executive orders, which we summarize on slide six, were issued in addition to ongoing bipartisan support for the advancement of carbon-free advanced nuclear projects through the Inflation Reduction Act.
Speaker #6: A $900 million appropriation for SMR-specific cost-sharing funding in the advanced act designed to streamline NRC approvals for faster deployment, NUSCALE supports these efforts to transform and modernize the NRC while maintaining the NRC safety standards.
Speaker #6: While not all regulatory actions will directly benefit NUSCALE, as we have progressed beyond research and development to commercialization, we expect to benefit from shortened regulatory timelines for new deployments, a bolstered domestic nuclear supply chain, and the overall commitment of the US government to prioritize the deployment of advanced nuclear reactor technologies.
Speaker #6: Importantly, interest in NUSCALE's SMR technology extends domestically and abroad. As discussed on slide seven, NUSCALE continues to support RO-POWER's goal of developing and deploying the first SMR power plant in Romania at Dochest.
Speaker #6: The site of a decommissioned coal-fired plant that has now entirely removed. To further advance the project, in June of this year, an international atomic energy agency site and external events design advisory mission visited Dochest to advise on the finalization of the site license application.
Speaker #6: The project continues to generate revenue and positive cash flow for NUSCALE from engineering and licensing fees. As well as pre-commercial operation date services, primarily in connection with the floor lead phase two front-end engineering and design study.
Speaker #6: As its critical work on the RO-POWER project continues, we're also working with floor towards their input to a decision. In a second quarter, we also continued our efforts to prepare the next generation of nuclear talent by opening two more energy exploration or E2 centers.
Speaker #6: At South Carolina State University and George Mason University, bringing a total number of NUSCALE 11 with locations in US, Europe, Asia, and Africa. As discussed on slide eight, these centers use state-of-the-art computer modeling paired with a fully integrated SMR control room simulator.
Speaker #6: Supporting users to step into the role of control room operators and navigate a wide range of simulated plant scenarios. These workstations provide real-time visibility into the status of any unit across the plant model.
Speaker #6: Enabling effective oversight of operations. It is worth noting that, unlike traditional nuclear energy facilities, our NUSCALE power modules are designed with advanced safety systems that operate independently of human intervention.
Speaker #6: Offering a new standard for passive safety. We are proud of the progress we continue to make at NUSCALE as a leader in our space, and excited to continue to build on this momentum through the remainder of the year.
Speaker #6: Now over to Ramsey for the financial update.
Speaker #7: Thank you, John. And hello, yone. Our financial results are available in our filings. To my focus will be on explaining major line items which can be found on slide nine.
Speaker #7: NUSCALE's overall equity and capital resources, which includes cash and cash equivalents, short-term investments, and long-term investments, remain a robust $49.9 million in total at June 30th, 2025.
Speaker #7: This represents a 31.5 million decline from the prior quarter, but an increase of $359 million from the same quarter in the prior year. NUSCALE reported revenue of $8.1 million for the quarter ended June 30th, 2025, compared to $1 million during the same period in the prior year.
Speaker #7: This increase was primarily driven by fees received from the engineering and licensing work, as well as other pre-commercial operational date services we provide in support of the RO-POWER ect.
Speaker #7: Operating expenses were $44.9 million for the quarter ended June 30th, 2025, compared to $42 million during the same period in the prior year. While operating expenses increased slightly in the second quarter, our quarterly spend remains consistent with the prior periods.
Speaker #7: And reflects management's disciplinary approach to cash management. Looking ahead, we expect operating expenses to increase beginning the second half of 2025 as purchases of long lead materials increase, to further enhance our manufacturing and supply chain readiness.
Speaker #7: I'll conclude my remarks with a brief overview of our capitalization summary, as shown on slide 10. Additional information may be found in our 10-Q and earnings release.
Speaker #7: Both of which are filed with the EC. With that, I'd like to thank you again for joining today and for your continued support of NUSCALE.
Speaker #7: We'll now take questions. Operator?
Speaker #4: Thank ou. Ladies and gentlemen, if you would like to ask a estion today, remember it's star followed by the number one on your touchtone phone.
Speaker #4: Our first question for today comes from the line of Mark Bianchi with TD Cohen. Your line is live.
Speaker #8: Hey, thanks, guys. Ramsey, I ess just a follow-up on that. You talked about the operating expense increase in the second half. Curious if you could quantify that and does this relate to the earlier plan to increase the long lead item procurement?
Speaker #8: Or are you actually increasing that again? So there's, I think it was 12 modules. Are you going to more than that or is this just part of the original plan and phasing of that spend?
Speaker #7: Yeah, Mark. You know, I reciate you asking that because we did want to indicate to our analysts and to the markets that we do plan an increase in OPEX for Q3 in additional increase for Q4.
Speaker #7: That's really, Mark, while I think you're aware, we don't provide specific guidance on numbers. But that is in line with our our efforts to continue to develop the 12 modules.
Speaker #7: And develop our supply chain and invest in the commercialization of NUSCALE. So it's not, there's an intent to build more than 12 modules right now.
Speaker #7: You know, we don't build speculatively. But we are investing in our supply chain in anticipation of commercial contracts and design finalization, investing in supply chain just takes an itional money.
Speaker #7: So we've maintained discipline over, I think it's been six quarters where we've OPEX to plus or minus 5% or so. And now, you know, we're engaging a very kind of, you know, very focused and very methodical increase in OPEX in order to engage the supply chain and just get ready for, you ow, for the commercial contracts which we're icipating.
Speaker #8: Yep. Okay, great. Thanks. Another question on, so floor, when they had their quarter the other day, they also had an announcement about converting fee shares to A-shares and said they're oking at a stock market-facing solution rather than the strategic that they've been talking about for for several quarters.
Speaker #8: And I guess I'm ious, you know, I know you guys don't have anything to say probably about their plans for selling stock. But my question's more about, you know, the strategic transaction some presumed, you ow, partner of NUSCALE's or would-be partner of NUSCALE's that could have an equity stake now no longer potentially having that equity stake.
Speaker #8: Does it change sort of the business outlook or the go-to-market strategy that you guys would have if, you ow, that strategic weren't to be an equity holder of NUSCALE?
Speaker #7: Yeah, I ink maybe a few comments there. And one is a arification item, Mark. Floor owns Class B units. And so they're a Class B unit holder.
Speaker #7: Class B units may be exchangeable to Class A shares. And periodically, we offer B unit holders an portunity to engage in an change. And you know, at the last time we approached the Class B unit holders, Floor held their hands up and said, "Hey, we'd like to do an exchange." And we permitted conversion of $15 million shares.
Speaker #7: Subject to some bumpers because we just weren't sure that we maintained early markets. I don't, you know, Mark, I can't read into whether or not Floor is, well, even sell those Class A shares.
Speaker #7: have no idea. I don't know if their strategy has changed vis-à-vis future shareholder. But I'll tell you that our o-to-market strategy has not changed.
Speaker #7: And you know, Floor's actions in relation to their shares are those are their own decisions. And we, you ow, we don't have insight and don't provide commentaries.
Speaker #7: But our go-to-market strategy hasn't changed at all. It's it's well-defined. It's been consistent. I think it's a winning strategy. And we maintain that regardless of, you know, what Floor es with their ownership stake.
Speaker #8: Okay, thanks very much. I'll turn it back.
Speaker #7: Okay, thank ou, Mark.
Speaker #4: Our next estion comes from the line of Sharif El-Maghrabi, with BTIG. Your line is live.
Speaker #9: Hi, thanks for taking my estions. Can ou remind us how many modules design can make in a year? And you talked about maintaining discipline.
Speaker #9: What would it take for you to order long lead items for an artistic module this year?
Speaker #7: Yeah, this is John Hopkins.
Speaker #10: I'm ry, go head.
Speaker #7: No, no, John, you go ahead, please.
Speaker #10: No, Dusan has commented to us that they can make up to 20 modules per year. With the existing and also their continued to up.
Speaker #10: You know, interestingly, last month, we actually took a customer with us in a state government official to visit Dusan to actually see production ongoing and they're quite surprised at how advanced Dusan was in the manufacturing of our modules.
Speaker #10: Not only the modules, but the helical coil steam generators. So going out and actually seeing in production and touching steel, so to speak, that's a major marketing tool for us that I don't I don't believe anybody else currently could do that.
Speaker #10: Within the market.
Speaker #4: Thank you for your questions. Our next question is from the line of Eric Stein with Craig Hallam. Your line is live.
Speaker #11: Hi, yone. Thanks for taking the questions.
Speaker #7: Hey, how are ou doing?
Speaker #11: Hey, doing well. Thanks. So obviously, in Q2, I mean, the operator approval, that was a very nice event to have that occur early. You know, I'm curious, you know, has that set off, you know, maybe a higher number of discussions?
Speaker #11: Maybe taking those discussions to an elevated level of engagement? I mean, obviously, that was a needed step to reach your goal of a firm commitment by the end of 2025.
Speaker #11: So just curious the response or the impact of that.
Speaker #10: Yeah, this is John Hopkins. I would say that the response people were in a waiting mode to see if in fact we could go from the 50 to 77.
Speaker #10: It was accomplished. We're ere. And now we are, in fact, seeing more line of sight of potential customers. In fact, last week, we were with a new customer that I would say new.
Speaker #10: We've been in discussions with quite some time. There was kind of in a holding mode. But now that we're at 77, it's prompted him to have additional conversations with us going forward.
Speaker #7: And if I can add, let's call away. It wasn't just like a nice thing to have. We're the only company with two NRC approvals for small-mod reactors.
Speaker #7: There's no other company with even one. And we got through with two. And there's a lot of people out there doubting saying, "Hey, you're not going to get through.
Speaker #7: It's going take too long. It's going overrun this and that and the other." And we came out very quietly, just like we always do.
Speaker #7: We got the work done. We got across the line early. And we are, you know, our team's working on that. They did an absolutely excellent job.
Speaker #7: They smashed it. It was a grand slam to get that done early, to get it over the line, and just further differentiates us from the competition.
Speaker #10: Yeah, that's a good point, Ramsey. We were scheduled. Yeah, we were scheduled for July completion. And we made it two months earlier. And I got to give credit to the nuclear regulatory commission and our licensing team for staying on top of it and getting it accomplished because to Ramsey's point, it has opened the aperture for other customers because we are near-term deployable.
Speaker #10: We got modules in production. we're ready to go. We have, under part 52, we have both, operating license and a construction license. You're eing a lot of construction permits, but you cannot, you can build a plant, but you can't operate it without an operating license.
Speaker #4: Yep, absolutely. No, I mean, a clear differentiator. maybe a good segue. I mean, obviously, this took you, I mean, the uprate, clearly a shorter period of time given that you'd already had the first uprate.
Speaker #4: And that that was an add-on. But, you know, as you think about the regulatory process and the differentiator that that is in the market, you know, maybe some high-level thoughts on on the regulatory, environment and a lot of the talk about, you know, whether it's streamlined process, potentially the DOD or the DOE having some say in, in, in the regulatory side of it.
Speaker #4: You know, just maybe what ou think that means for, you know, some of your competitors. Or just others in the market. you know, that would be very pful.
Speaker #10: Yeah, I think, you ow, one, I think a big distinctive we have is we are using conventional fuel that's readily available in the marketplace.
Speaker #10: You know, it's 400-plus light water reactors around the world. We 't need high assay halo fuel. Which has been a, it's going to be an issue, I think, going forward.
Speaker #10: It's going to be costly. But as we release the NRC, you know, having been through the process, what we're hoping for is more of the streamlined of getting through the construction operation license agreement.
Speaker #10: And, you know, it's, it's going into the, the, the build stage of our plants, having, again, we're not having to worry about going to the NRC licensing per se.
Speaker #10: But, ou know, we are hopeful that, and it's to be seen, you know, our other technologies are going to be able to move quicker.
Speaker #10: I hope so. We don't necessarily want to be a monopoly or the only US-based customer. And the market is, and you could just read the headlines every day.
Speaker #10: The market potential on a global scale is phenomenal.
Speaker #4: Okay, thank you.
Speaker #7: I add to that the other, the other major differentiator is our progress on our supply chain. There's no one else that's engaged manufacturing and supply chain like we have.
Speaker #7: You know, even with a like Dusan, we've been working seven years. They've, they've invested, you know, even not, not just in us on an equity perspective, but in their facility, in new technologies, and, and building our LLMs.
Speaker #7: I think the supply chain differentiation is massive. And so it's, you ow, there's, there's a, there's a two-part dance here. Regulatory and licensing, but also you got to get the darn things built.
Speaker #7: And that takes a Herculean effort. we've been engaged in that for years now.
Speaker #4: Yep, thank you.
Speaker #10: Now, ally, I had, I had dinner last, I'm sorry, I had dinner last week with the, with the CEO of one of our suppliers out of Japan, IHI.
Speaker #10: And, again, we, we sat down and looked through the pipeline of what the potential opportunities are in, you know, for them to gear up.
Speaker #10: But if you, if you look at some of these organizations like Dusan, as an ample, they have many, subcontractors that here in the United States were engaged with too.
Speaker #10: And many of the, many of the suppliers, we had a phenomenal over 100 people, I think it 32 suppliers, in North Carolina, kicking the tires.
Speaker #10: And ready to get tooled up to, to take advantage of the opportunities they see coming down the pike.
Speaker #4: Very good. Thank you for your questions. Our next question is from the line of Sundaria. Iyer, with Riley Securities. Your line is live.
Speaker #2: Hi, everyone. This is Sundaria on behalf of Ryan Fingst from B Riley Securities. Thanks for taking my question. Yeah, I just wanted to touch on the macro part, like, looking at the recent, executive orders.
Speaker #2: Like, what do you guys think are the mandates or directions in the executive orders which are, like, most beneficial for NUSCALE specifically?
Speaker #10: Ramsey?
Speaker #7: Pardon e, sorry, John. look, I, I, I, when we look at the executive orders, you know, I, I ink, I ink there's, there's more of a macro, idea that promotes the whole industry.
Speaker #7: I mean, you ow, there's, there's a lot that supports NUSCALE. There's a lot around, licensing, but, but the licensing that we see in the executive orders that, that, that benefits us specifically is more site-specific licensing.
Speaker #7: And I think when you're dealing with projects, and for us, remember, EnterOne does the projects. They execute on projects. That type of licensing is more beneficial to us simply by the fact that we're so far ahead of the competition.
Speaker #7: So, you know, I, I think there's some tailwinds for licensing in relation to technology. And that's great. And that's good for the whole industry.
Speaker #7: And we support that. But, but in terms of the most recent executive orders, looking at how they look, seek to expedite site-specific licensing, benefits NUSCALE more than anyone else.
Speaker #7: And I think that just further pushes us ahead.
Speaker #10: Yeah. And, and part of that answer, we, we spend a lot of time on the hill with, with both, both sides of the aisle.
Speaker #10: And the bipartisan support for advanced nuclear for a variety of reasons, either national security or reliability or climate disruption, I think it's stronger now than I've seen historically.
Speaker #10: And that bodes well for the industry. And it's just a matter of time that we're going to see a big move. And I believe within this country, there's, there's current administration is pressed to get success stories quickly.
Speaker #10: they have a limited period of time to make that happen. So I think with the executive orders, with the possible streamlining of the NRC, and as I say, that we're a benefits us is to move quicker on the construction and the operation side.
Speaker #10: of the ledger, I, I think the tailwinds bode well for the industry. And NUSCALE particularly.
Speaker #2: Yeah, but that's helpful. Thank you. And if I may add in just one more, like on, on your expectation on sort of like what, what would be the first project or, how it would look like in terms of potential partners or the power users, like?
Speaker #10: Well, you know, as we stated, and we're, we're working with our developer strategic partner, EnterOne, and EnterOne has been out in conversations with our government.
Speaker #10: And, and with prospective clients to do, you know, it's, the hyperscalers, it's utilities, it's even process-oriented companies. Because what we're still seeing many of these entities don't necessarily want to own the nuclear asset.
Speaker #10: They just want 24/7 clean energy. And so what we're seeing is, you know, if I look historically what the market has been, coal plant refurbishment, that's not gone away.
Speaker #10: We still see a pretty big, spike of, of coal plant up. Our process-oriented heat, we are the only company that has a legitimate emergency planning zone.
Speaker #10: Licensed by the NRC at site boundary. that is bode well for process-oriented companies that would like to see something outside the fence line. Where any disruption wouldn't have a material impact on their ongoing business operations.
Speaker #10: And then, and then the big gorilla in room is still the hyperscalers, data centers, and their thirst for energy going forward. And a plus that they see in NUSCALE is the scalability of our units.
Speaker #10: With 12 modules online, that's 924 megawatts. You're pushing a gigawatt size. But the beauty of that, any refueling cycle is only a 10-day cycle.
Speaker #10: So you could take one down, and you have 11 modules continuing to run 24/7. It's not like a single screw plan, as we state that once that plant comes offline, you have to look elsewhere for energy.
Speaker #10: So that's a big selling point for us.
Speaker #2: Thank ou. That's helpful.
Speaker #7: If you want to take look at some of the business model, I think also our presentation I think on the third slide has a good, has a good explanation of the business model with EnterOne and how we intend work together.
Speaker #7: And then how they, intend to work with, power users. and utilities. And, and so there's, there's, you know, there's a good, good explanation there.
Speaker #7: of, of how InterOne builds and develops plants. And, and it also just, just since, since we're on the presentation, put the page from there.
Speaker #7: And there's the next slide talks about the regulatory tailwinds. And it goes in specific executive orders. yeah, most, of them like the, the May 23rd, 2025 executive orders.
Speaker #7: And then the output of, you know, what we see from the macro basis. You know, why I ked about kind of site-specific ideas. It was a response to the question of, "Hey, what benefits NUSCALE specifically?" I think site-specific ideas benefit us the most since we are licensed.
Speaker #7: And we are near-term deployable. But if you want a full rundown, there's a good, you ow, there's a good kind of summary there within our, our investor presentation.
Speaker #2: Sure. I'll check that out. Thank you. Thank you for clarifying.
Speaker #10: Thank you.
Speaker #4: Our next question is from the line of Vikram Bakri with Citigroup. Your line is live.
Speaker #11: Hey, guys. thanks for taking my question. This is Vignesh, in place of Vikram. just touching back on the customer agreements, I know you guys talked about it.
Speaker #11: Just curious on any updates on the, like, the active customer negotiations. I believe you guys mentioned there's about 10 advanced discussions last quarter or so.
Speaker #11: And what categories kind of these are focused on? know you guys are focused on, e, these hyperscalers, utilities. But anything outside of that, any color on that would be great.
Speaker #10: Yeah, we're, we're in discussions with the US government. Somebody commented earlier about the Department of Defense. they have an interest. And the utilities, we're, we're focused on, on some of the utilities.
Speaker #10: And they'd like to see their licensed site. They'd like to see the hyperscalers come onto their facility. So, you know, again, as I stated in earlier calls, it's a complex financial transaction.
Speaker #10: You're dealing with utility owner, or the owner in general. And our, our case, our, the owner is InterOne, who's a negotiations with these entities to bring hyperscalers to bring, the Department of Defense, and so we're, we're kind of across the board.
Speaker #10: We're, one thing we're finding is that, you know, we do have a, the ongoing Romania there's a lot of interest in the outside this country right now, but we're finding within the United States, you know, we have limited resources.
Speaker #10: So we're really laser-focused in on closure on maybe one or two sites or one or two customers.
Speaker #7: Hey, and you know, now, now maybe a good time to, to maybe define this a little bit more clearly. I know we have some, some newer analysts on the line.
Speaker #7: And we have, some long-term, ike Mark Bianchi. Mark, you've been with us since day one. I think, you know, you, you, you, you've seen the development of our business model.
Speaker #7: but it's important to remember, when we say, you know, when we talk about our ustomers, EnterOne is our ustomer. EnterOne is a developer of power plants.
Speaker #7: They're One power plants with NUSCALE ide. It's like buying computer with like Intel chip. We're the Intel chip inside. In this case, in the power plant.
Speaker #7: So we're hand in glove with EnterOne. Like, I don't sell you know, we talk about discussions with the ilities, and the hyperscaler, and, you know, the military, the US government.
Speaker #7: Those are all end users. But we don't sell electrons, right? So, so if we like, let's, I just want to kind of reset and, and, and, and kind of level the idea that we sell NPMs, NUSCALE power modules.
Speaker #7: Those power modules go into the plant. EnterOne develops the plant. They may own and operate the plant. There's different business models. But it's an EnterOne plant.
Speaker #7: EnterOne sells the energy to the customer, whether it be, you know, a utility or, or government or military, whomever it is, EnterOne has been out there selling the PPAs.
Speaker #7: And selling the power. So it's, just, just so we kind of craft this correctly, I, you know, I want market to understand what the story is and what the business model is.
Speaker #7: Because that business model, the fact that we have EnterOne, as our developer, is a differentiator. Right? We're out here trying to develop technology, develop power plants, get PPAs.
Speaker #7: That's, that, that's, that's, that's a huge pull. We're a tech company. We develop technology. Technology is for a NUSCALE power module. NUSCALE power module is built, as in, you know, we're, we're kind of a, a, an OEM reseller.
Speaker #7: I'm sorry, not to resell, but we're an EM seller of a piece of equipment. We outsource that equipment. We outsource the production. We deliver it to an EnterOne power plant.
Speaker #7: EnterOne puts it the power plant and then sells the power. And so, so, you know, again, we talk about customers. Let's be clear. Again, I, I do this for some of our newer analysts.
Speaker #7: I think it's important. We have one customer. That customer is EnterOne. EnterOne faces the market. They develop the power plants. They sell the power.
Speaker #7: We just sell the NUSCALE module. We're the Intel inside. To the laptop. If you use that analogy or what, whatever analogy you want to use, but, but we're, we're the tech inside the power plant.
Speaker #7: We're not the power plant developers.
Speaker #10: Yeah, that, that coincides what said earlier that many of these entities, not necessarily, they don't necessarily want to, you know, the asset. They don't ant to own nuclear.
Speaker #10: They just want 24/7. So with our developer, in their banking relationships and, and source of funding, they're able to offer a build-on transfer, build-on operate, or be flexible enough to work out scenarios that's, that's, providing solutions to these entities that Ramsey just mentioned.
Speaker #11: Got, got it. That, that's super helpful. Thanks for the, thanks for the breakdown. And just one more question, if I'm, if I may. would you be, would you be able to quantify kind of the progress on the, the phase two feed study for our power and how the next steps kind of might look like in terms timeline or any other developments around that?
Speaker #11: Thanks.
Speaker #10: Yeah, you ow, as you know, we're, we're a floor corporation as a prime. we're a subcontractor floor. RO-POWER and the remaining government, they continue to pay their bills and we're, keeping our finger on the pulse and, you know, watching it very closely.
Speaker #10: We have ongoing almost weekly conversations on progress. They're, they're looking at their final notice to proceed now looks to be probably, in, in the timeframe of mid to late '26, early '27.
Speaker #10: So we continue to support floor as the prime, providing the engineering requirements for the modules. And, so far, so good.
Speaker #4: Thank you for your questions. Our next question is from the line of Craig Sher with Toy Brothers. Your line is live.
Speaker #12: Hi, good afternoon and thanks for taking my questions. on, on Sharif's question and the answer about the supply chain having the ability to make up to 20 modules annually, does that mean you have the ability to shoulder two orders, somewhat concurrently, of a 12 module and a 6 module order?
Speaker #12: But you couldn't shoulder, say, two dozen orders simultaneously? And to the degree there's any kind of competition in terms of getting it to the customer on time by 2030, 2031, what kind of negotiation, discussion, or coordination do you have with EnterOne?
Speaker #12: If maybe ou have a 6 module order ready to go, but that might slow down a 12 module order?
Speaker #10: No, you know, our, our model has always been predicated on the fact, you know, we, we manufacture in, in, we manufacture our models in a factory.
Speaker #10: They're fungible assets. With the intent to have multiple projects going at any given time. However, also, very cognizant of our act of what our capacity to execute is.
Speaker #10: So we don't want to get out over our ski tips. Now, but quite frankly, I just want one right now. I want to get a hard contract, near term, and we continue to build out our supply chain, which is critical for us.
Speaker #10: We have ongoing meetings. Because many of the suppliers, as you know, once ou get the order booked, they'll, they'll start gearing up. And as for Dusan, we've got 12 modules coming online right now.
Speaker #10: that's, you know, that's a gigawatt size plant. And in our discussions with them, they're willing to tool up and even do more. IHI and the other suppliers.
Speaker #10: But we're, we're limited to our supply chain and, to get those modules and that's why I long lead I'm so critical. Anybody says they can get to 2030, COD, without these long lead items, I don't see it as a possibility.
And the, you know, as I mentioned before in an earlier question, you know, ha having our regulatory approval is 1 thing, and that's great. And having 2, amazing excellent, The Best of the Best.
But supply chain is also another another tough not to crack.
You know, there's not there's not a ton of of of, of of nuclear suppliers worldwide, right? And in America, especially, you know, the, the the the nuclear industry has been has been staggered for a long time.
So, you know, for us, I think there's there's a fine line there where we're activating our suppliers working with them. We're investing in them and we're investing in our inventory. But you know, as as, as a as a management team, you know, we also are very careful about shareholder funds and we're not you know, we're not going to like expect. It's not like you know I'm not going for broke and H2, I'm just going to build as many as I can. That's not the way we operate a company, right? We we take it more, measured approach,
Fair enough. I appreciate the time.
Yeah, yeah. Thank you.
Our next question is from the line of lean Haden with canaccord genuity. Your line is life,
Good evening everyone. Thanks so much for taking my questions and
thank you.
Course course. Um, just to start, I was curious if you've noticed any industry Trends in terms of project financing. Um, just curious, broadly, if you've noticed any sort of third-party, ecosystem or anything of that nature taking shape,
John, do you want to go or should I go ahead? I'm thinking on the question.
Yeah, um, look. So so
So, we work.
Again, like all, you know, I'll take the opportunity to to continue this kind of this distinction of of the roles between use going into 1 and just kind of, you know, hand and gloves, sort of relationship that we have. Um, we don't Finance projects at this scale because we don't build projects. Um, you know, we build, we build a piece of equipment for a customer and the customer finances that, uh, through through orders and through payments and we Finance, you know, there may be something that's been working capital but it's not project Finance.
Um but to get your question it doesn't mean we don't have visibility into uh into some of the discussions and the dialogue.
And we've seen remarkably, you know, pretty significant interest from large-scale us. And, you know, even as like, you know, go go, go out. Look at, look at, like what large pools of capital outside the country. So I don't know what phones or others. We've seen significant interests from those groups and financing as as kind of like scale. Uh scale Capital outlays. Scale investment team is financing projects more enter 1 using these scale technology and I think part of that comes down to the fact that we use a were the only like, you know, we're the only licensed technology and we got 2 of them. We use conventional fuel. It's Like Water Reactor technology.
It's everything that's commonly understood within the nuclear world. It's everything that financing wants.
Plus, it's built off-site and control environments without doing complex nuclear Fabrication in the field. So, so we've seen a ton of Interest
And we see it through it like and we talk about project Finance interest. We see it throughout the 1, you know, I see ton of Interest through the equity markets, right? I I see people wanting to own new scale. I I see I see money coming into the into the company but also see when we go out and we talk to potential customers of venture 1 in coordination, with Venture 1, we see these third-party supporting those dialogues. And that's, you know, I think that's something where, you know, this, this is what it takes to kind of reinvigorate nuclear America. These are Big projects. They cost a lot of money. This is scale. Infrastructure investment from very large sources of capital and we're seeing them Pilots
That's very interesting. Also that
Yeah and just to add to that you know we as a stated in there we have over 2 billion dollars invested in this asset. A lot of that.
Went through scaling up, all our components within this model to where, when you say first of a Kind, the first of a Kind really, is you need to put 1 together and get an operational. The components themselves are typically is is Ramsey said conventional fuel.
Our skid Mount our, our turbine generators are skid Mount units that are used in the oil patch. I mean, there's not really the helical coil steam generators have been scaled and tested in Viva chenza Italy and duan's building them currently. So I I don't see where we are right now. I don't I don't from a supply chain, it's just that we got to be careful that we don't
Exceed expectations. Do we do? What we say we can do, and we treat our, our suppliers, fairly, we continue to build out our supply chain, which what we're doing right now?
Certainly yeah.
Completely agree. Just one more for me. Um, of course, there's been a lot of exciting momentum domestically in the nuclear space. I'm just curious if you're seeing any sort of similar trends internationally in terms of customer interest specifically.
Yeah, we do. I commented earlier, we're getting a lot of, um, are you know, Finland, Sweden, um, you know, the you're even seeing Germany's now talking about possibly re-energized and reactors, uh, because of, you know, energy requirements, but it gets back to where I'm saying, right now, I, I would like to stay focused right on the US base building out our us supply chain. Um and you know Romania is a great project that we have currently right now that we're working on in Romania aspirations of being a, a provider of of of SMR
In central eastern Europe, where we hope we're part of that.
But the whole ground swell, you know, desalinization, uh, hydrogen production. None of that's gone away. In fact, it's it's ramping up and, you know, we, we're, we've been working on hydrogen for quite some time with some processed companies about and for hydrogen, it's really about ability to get down to about a dollar fifty per kilogram.
Based customers aside from Romania to get closure and near-term deals.
that we
We we we just I I I just received and we received, you know, great information all the time but you know a study of kind of us and their allies and the drivers for nuclear and kind of expectations finally gigawatts and they expect to see. And yeah like and I'm looking at this now, you know, people expect about
Demand for her 100 gigawatts of new nuclear by 2040, at least, in among America and her allies.
Um, uh, and the Euro area probably about 40 gigs and UK and scandi. Probably about 16 gigs. And, and just for the reasons that John mentioned, you know, like reducing vulnerability, creating altar of energy Supply, making with fuels and hydrogen, you know, from from like, for example, for the EU from EU sources, higher, reliability, for power, um, all these ideas that that's that just makes sense. And, you know, if we go, if we go to China and other parts of the world, you know, you have very significant numbers there as well but we tend to focus on the US and and, and our allies here.
You know, we used to hear those requests. Yeah, for those that have been following us, you know, it was only 3 or 4 years ago that we had customers asking for 4-module plans or 6-module plans. What we're hearing today is that the more the better; it's 12-module plus.
It's an interesting development. A lot of it is due to the hyperscalers' data centers and their energy requirements. Even outside this country, we're seeing requests for a minimum of 12 modular plants, which has been a shift over the last, I'd say, 2 to 3 years.
Got it.
Thank you.
We have a final follow-up question for today from the line of Mark, biyani with TD, TD Cohen, excuse me, please go ahead.
Mark, are you there?
Give you another another line here. 1 SEC here.
I am. Can you hear me? There you go. Go ahead, sir. Yes, okay.
Thanks. Thanks for squeezing me back in guys. Um, John, I heard you, uh, comment, uh, on in reference to the row power project that they would be. I think you said, um, looking at FID later in 26 or early 27. If I recall, that that's a little bit later than we'd previously talked about, um, can you talk about what's going on there and, and when we should be kind of expecting the, the cost estimate and Phase 2 feed to wrap up,
Yeah, we’re at about a cost class for estimate right now with floor.
So, you know we've recently been informed that they're pushing it out a little bit. You know when they're going to have a phased approach for the final investment decision. But we've been told their final notice to proceed is probably looking towards the later part of '26. But we continue to move forward under the direction of Fluor, providing the engineering and deliverables that they and the customer are requesting. So that's not all I know right now, Mark, in terms of what we've been told by the customer themselves.
Okay, but they're still very bullish on, they're still very bullish on the project, it's just timing.
Got it, got it. Okay, thanks so much.
Thank you, Mark.
Operator. Are we complete?
God, I can't hear anything either. I hope it's not just you and me on the line.
We're here. We do have a final call uh our final question from Brian Lee with Goldman Sachs, go ahead, Brian, your Line's life.
Hey guys, good afternoon. Thanks for squeezing me in. Um, apologies, I jumped on late, so, uh, some of this may be redundant but but I, I caught the last tale of the question right before me. Um, were, were you, uh, could you provide us an update kind of on on rope, power timing and kind of what the Milestones are? I I thought that was 1. Where originally you guys were maybe targeting as, as early as end of calendar. 25 to to see something kind of FID there, but can you give us the latest on where real power stands? And then I had a follow-up? Yeah.
Yeah, certainly yeah, we just commented earlier that, you know we we are a subcontractor for corporation. Who's the Prime the customer? You know, we've been working with them on a regular steady state basis and we've been told that their final investment decision is a phased approach. However, the final, uh, determination to proceed with the project is probably looking to be 26 later. Part of 26 is what we've been informed right now that could change. Uh, but that's that's what we're working towards.
Okay, fair enough. And so, you know, presumably um and you know, I think you guys have been um, uh, public about, you know, targeting, maybe a, a us-based customer being your first to move forward. Uh, you know, sometime by the end of this year is that still kind of the the Target and and what are the latest discussions you're having with some of your your key uh constituents on the US, customer side of things uh and then maybe if I could just squeeze 1 last 1 in, um, the the Trump executive orders. Uh, obviously we've all gone through those. It seems like there's some action happening behind the scenes. Um, you know, things kind of moving forward. Um, solicitations Etc, could you kind of give us uh, uh, a bit of an update as to, where your visibility stands around some of the executive orders and, and maybe where new scale is is best positioned.
To potentially uh see some. See some benefits from those moving forward. Thank you.
Contracts in place by the end of this year, 2025.
And there, and those are all U.S.-based customers.
Super helpful. Thank you guys. I'll pass it on.
Thank you for your questions, and ladies and gentlemen, that will conclude our Q&A session here for today. I would like to turn it back to Mr. Hopkins for any closing comments.
Yeah, thank you, operator. Again, NuScale continues to make strides towards deploying our technology, and as I commented earlier, with strong tailwinds that are back, we believe we are well-positioned to meet increasing global energy demands with safe, reliable, and sustainable energy. And, um, right now, as I stated again, those tailwinds appear to be pretty strong moving forward. So I'd like to thank all of you for your interest in NuScale and for um joining us on this call today. Until next time, thanks.