Q2 2026 NuScale Power Corp Earnings Call

Operator 2: Welcome to NuScale Power's Q2 2026 Earnings Conference Call. Today's call is being recorded. A replay will be available on NuScale's Investor Relations website for 30 days. At this time, I would like to turn the call over to Ramsey Hamady, Chief Financial Officer. Please go ahead.

Operator: Welcome to NuScale Power's Q2 2026 Earnings Conference Call. Today's call is being recorded. A replay will be available on NuScale's Investor Relations website for 30 days. At this time, I would like to turn the call over to Ramsey Hamady, Chief Financial Officer. Please go ahead.

Speaker #1: At this time, I would like to turn the call over to Ramsey Hamady, Chief Financial Officer. Please go ahead.

Speaker #2: Thank you, operator. Joining me today is John Hopkins, president and chief executive officer of NUSCALE. We will begin by providing an update on our business, followed by a discussion of our financial results.

Ramsey Hamady: Thank you, operator. Joining me today is John Hopkins, President and Chief Executive Officer of NuScale. We will begin by providing an update on our business, followed by a discussion of our financial results. We will then open the phone lines for questions. This afternoon, we posted supplemental slides to 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 risks and uncertainties. For a detailed discussion of our risk factors that could contribute to differences in our expectations, please refer to our Form 10-K for the year ending 31 December 2025, and to our subsequent SEC filings. I will now turn the call over to John Hopkins.

Ramsey Hamady: Thank you, operator. Joining me today is John Hopkins, President and Chief Executive Officer of NuScale. We will begin by providing an update on our business, followed by a discussion of our financial results. We will then open the phone lines for questions. This afternoon, we posted supplemental slides to 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 risks and uncertainties. For a detailed discussion of our risk factors that could contribute to differences in our expectations, please refer to our Form 10-K for the year ending 31 December 2025, and to our subsequent SEC filings. I will now turn the call over to John Hopkins.

Speaker #2: We will then open the phone lines for questions. This afternoon, we posted supplemental slides to our investor relations website. As reflected in the Safe Harbor statements on slide 2, the information set forth in the presentation and discussed during the course of our remarks in 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.

Speaker #2: For a detailed discussion of our risk factors, that could contribute to differences in our expectations, please refer to our Form 10-K for the year ending December 31, 2025, and to our subsequent SEC filings.

Speaker #2: I will now turn the call over to John Hopkins.

Speaker #3: Thank you, Ramsey. I want to start with a simple observation about where the market stands now. Demand for reliable carbon-free power is not building slowly.

John Hopkins: Thank you, Ramsey. I want to start with a simple observation about where the market stands now. Demand for reliable carbon-free power is not building slowly. It is accelerating. Every major hyperscaler, every large industrial offtaker, every utility with an eye on the next decade is now engaged in some version of the same conversation. We need power now, we need it to be clean, and we need it on a timeline that actually maps to our business. That urgency is real, and it is growing. What I want to address today is what separates a company that can meet that urgency from one that cannot. The answer to that question is not branding or ambition, it is readiness.

John Hopkins: Thank you, Ramsey. I want to start with a simple observation about where the market stands now. Demand for reliable carbon-free power is not building slowly. It is accelerating. Every major hyperscaler, every large industrial offtaker, every utility with an eye on the next decade is now engaged in some version of the same conversation. We need power now, we need it to be clean, and we need it on a timeline that actually maps to our business. That urgency is real, and it is growing. What I want to address today is what separates a company that can meet that urgency from one that cannot. The answer to that question is not branding or ambition, it is readiness.

Speaker #3: It is accelerating. Every major hyperscaler, every large industrial off-taker, every utility with an eye on the next decade is now engaged in some version of the same conversation.

Speaker #3: We need power now. We need it to be clean. And we need it on a timeline that actually maps to our business. That urgency is real, and it is growing.

Speaker #3: What I want to address today is what separates a company that can meet that urgency from one that cannot. Because the answer to that question is not branding or ambition, it is readiness.

Speaker #3: And readiness, in this industry, is a function of years of deliberate work, work that does not generate headlines but that determines more than anything else whether a nuclear project gets built on time and on budget or does not get built at all.

John Hopkins: Readiness in this industry is a function of years of deliberate work that does not generate headlines but that determines more than anything else whether a nuclear project gets built on time and on budget or does not get built at all. That distinction is what I want to focus on today. Let me start with context, I think the history here explains why engineering and design maturity matters more than most investors currently appreciate. The Vogtle AP1000 expansion, the most recent large nuclear construction project in the United States, is the clearest example of what happens when a project goes to construction before the engineering is substantially complete. When that project started, the detailed design was not in an advanced state of completion. Significant engineering decisions were still being made on active construction sites. That result contributed to years of delays and billions in cost overruns.

John Hopkins: Readiness in this industry is a function of years of deliberate work that does not generate headlines but that determines more than anything else whether a nuclear project gets built on time and on budget or does not get built at all. That distinction is what I want to focus on today. Let me start with context, I think the history here explains why engineering and design maturity matters more than most investors currently appreciate. The Vogtle AP1000 expansion, the most recent large nuclear construction project in the United States, is the clearest example of what happens when a project goes to construction before the engineering is substantially complete. When that project started, the detailed design was not in an advanced state of completion. Significant engineering decisions were still being made on active construction sites. That result contributed to years of delays and billions in cost overruns.

Speaker #3: That distinction is what I want to focus on today. Let me start with context. Because I think the history here explains why engineering and design maturity matters more than most investors currently appreciate.

Speaker #3: The Vogel AP-1000 expansion. The most recent large nuclear construction project in the United States. It is the clearest example of what happens when a project goes to construction before the engineering has substantially complete.

Speaker #3: When that project started, the detailed design was not in an advanced state of completion. Significant engineering decisions were still being made on active construction sites.

Speaker #3: That result contributed to years of delays and billions in cost overruns. This is not a story about nuclear being hard to build. It is a story about what happens when you start construction without a mature detailed design.

John Hopkins: This is not a story about nuclear being hard to build. It is a story about what happens when you start construction without a mature detailed design. NuScale has spent years deliberately applying the hard lessons of past large-scale nuclear projects. We've made significant sustained investment so that when we go to market, the engineering is as complete as possible. That investment is the foundation of everything I'm going to share with you today. A brief word first on two pillars of our readiness position, regulatory approval and fuel readiness. NuScale remains the only SMR company to have received design certification from the U.S. Nuclear Regulatory Commission, including standard design approvals for two of our designs. The NRC's design certification is the global gold standard for nuclear safety. Certification takes years. There are no shortcuts.

John Hopkins: This is not a story about nuclear being hard to build. It is a story about what happens when you start construction without a mature detailed design. NuScale has spent years deliberately applying the hard lessons of past large-scale nuclear projects. We've made significant sustained investment so that when we go to market, the engineering is as complete as possible. That investment is the foundation of everything I'm going to share with you today. A brief word first on two pillars of our readiness position, regulatory approval and fuel readiness. NuScale remains the only SMR company to have received design certification from the U.S. Nuclear Regulatory Commission, including standard design approvals for two of our designs. The NRC's design certification is the global gold standard for nuclear safety. Certification takes years. There are no shortcuts.

Speaker #3: NUSCALE has spent years deliberately applying the hard lessons of past large-scale nuclear projects. We've made significant sustained investment so that when we go to market, the engineering is as complete as possible.

Speaker #3: That investment is the foundation of everything I'm going to share with you today. A brief word first on two pillars I've already mispositioned. Regulatory approval and fuel readiness.

Speaker #3: NUSCALE remains the only SMR company to have received design certification from the U.S. Nuclear Regulatory Commission, including standard design approvals for two of our designs.

Speaker #3: The NRC's design certification is the global gold standard for nuclear safety. Certification takes years. There are no shortcuts. Will operate using standard low-enriched uranium, a proven fuel source which is available today from established suppliers from around the world.

John Hopkins: We'll operate using standard low-enriched uranium, a proven fuel source which is available today from established suppliers from around the world. Several other designs being marketed today require high-assay, low-enriched uranium or HALEU, which is not available on a commercial scale. That dependency is a fundamental supply risk embedded in their programs that does not exist in NuScale. The combination of NRC approval, conventional fuel, and a mature supply chain that I'm about to describe, that combination, along with engineering, is what commercial readiness actually means. No other company in this space has all four. NuScale's role in an ENTRA1 Energy plant is that of technology systems integrator and engineer of record. We are responsible for the NuScale Power Modules and services. Supporting delivery of the NuScale Power Module, we have assembled a network of more than 60 specialized suppliers.

John Hopkins: We'll operate using standard low-enriched uranium, a proven fuel source which is available today from established suppliers from around the world. Several other designs being marketed today require high-assay, low-enriched uranium or HALEU, which is not available on a commercial scale. That dependency is a fundamental supply risk embedded in their programs that does not exist in NuScale. The combination of NRC approval, conventional fuel, and a mature supply chain that I'm about to describe, that combination, along with engineering, is what commercial readiness actually means. No other company in this space has all four. NuScale's role in an ENTRA1 Energy plant is that of technology systems integrator and engineer of record. We are responsible for the NuScale Power Modules and services. Supporting delivery of the NuScale Power Module, we have assembled a network of more than 60 specialized suppliers.

Speaker #3: Several other designs being marketed today require high assay low-enriched uranium or halu. Which is not available on a commercial scale. That dependency is a fundamental supply risk embedded in their programs that does not exist in NUSCALE.

Speaker #3: The combination of NRC approval, conventional fuel, and a mature supply chain that are amount to describe that combination along with engineering is what commercial readiness actually means.

Speaker #3: No other company in this space has all four. NUSCALE's role in an enter one energy plant is that of technology systems integrator and engineer of record.

Speaker #3: We are responsible for the NuScale power modules and services. Supporting delivery of the NuScale power module, we have assembled a network of more than 60 specialized suppliers.

Speaker #3: Each supplier brings deep domain expertise in a specific system. Fuel, safety, and transportation and controls, valves, cranes, and modular handling. Each holds detailed design responsibility for their own scope with NUSCALE providing the overall integration.

John Hopkins: Each supplier brings deep domain expertise in a specific system: fuel, safety and instrumentation and controls, valves, cranes, and modular handling. Each holds detailed design responsibility for their own scope, with NuScale providing the overall integration. Here's where we stand. The detailed design for the critical path components of our modules, the systems that govern schedule and cost, is mature. We've already negotiated supplier agreements with more than half of our 60-plus supplier relationships, many whom we believe to be best in class. This means when we execute an OEM, many of our suppliers will already have designed, scaled, tested, and in some cases, began production of components. Taken together, this shortens the path to actual power generation, not by months, but by years, and supports certainty of execution. Let me highlight a few of our suppliers. Doosan Enerbility is one of the world's foremost manufacturers of heavy nuclear components.

John Hopkins: Each supplier brings deep domain expertise in a specific system: fuel, safety and instrumentation and controls, valves, cranes, and modular handling. Each holds detailed design responsibility for their own scope, with NuScale providing the overall integration. Here's where we stand. The detailed design for the critical path components of our modules, the systems that govern schedule and cost, is mature. We've already negotiated supplier agreements with more than half of our 60+ supplier relationships, many whom we believe to be best in class. This means when we execute an OEM, many of our suppliers will already have designed, scaled, tested, and in some cases, began production of components. Taken together, this shortens the path to actual power generation, not by months, but by years, and supports certainty of execution. Let me highlight a few of our suppliers. Doosan Enerbility is one of the world's foremost manufacturers of heavy nuclear components.

Speaker #3: Here's where we stand. The detailed design for the critical path components of our govern schedule and cost, is mature. We've already negotiated supplier agreements with more than half of our 60-plus supplier relationships.

Speaker #3: Many whom we believe to be best in class. This means when we execute an OEM, many of our suppliers will already have designed, scaled, tested, and in some cases began production of components.

Speaker #3: Taken together, this shortens the path to actual power generation. Not by months, but by years. And supports certainty of execution. Let me highlight a few of our suppliers.

Speaker #3: Tucson Enterability is one of the world's foremost manufacturers of heavy nuclear components. They are our strategic partner on a major components of our modules.

John Hopkins: They are our strategic partner on the major components of our modules, the heavy forgings at the heart of every NuScale Power Module. What you see on this slide are photographs taken at Doosan's facilities in South Korea, actual components in active production for NuScale Power Modules. Framatome is one of the world's leading nuclear fuel companies. Fuel design has a long lead time, years, not months. Rather than wait for a signed customer contract before beginning that work, we entered into a dedicated agreement with Framatome to complete the fuel design. Our fuel supply will be ready as customers come online. This quarter, we announced that Paragon has been awarded a contract to complete the final design development of the safety instruments and control systems for our NuScale Power Modules. These three partners are example of the depth of our supply chain ecosystem.

John Hopkins: They are our strategic partner on the major components of our modules, the heavy forgings at the heart of every NuScale Power Module. What you see on this slide are photographs taken at Doosan's facilities in South Korea, actual components in active production for NuScale Power Modules. Framatome is one of the world's leading nuclear fuel companies. Fuel design has a long lead time, years, not months. Rather than wait for a signed customer contract before beginning that work, we entered into a dedicated agreement with Framatome to complete the fuel design. Our fuel supply will be ready as customers come online. This quarter, we announced that Paragon has been awarded a contract to complete the final design development of the safety instruments and control systems for our NuScale Power Modules. These three partners are example of the depth of our supply chain ecosystem.

Speaker #3: The heavy forgings at the heart of every NUSCALE power module. What you see on this slide are photographs taken at Ducson's facilities in South Korea.

Speaker #3: Actual components and active production for NUSCALE power modules. Framatone is one of the world's leading nuclear fuel companies. Fuel design has a long lead time, years, not months.

Speaker #3: Rev and wait for a signed customer contract before beginning that work, we entered into a dedicated agreement with Framatone to complete the fuel design.

Speaker #3: Our fuel supply will be ready as customers come online. This quarter we announced that Paragon has been awarded a contract to complete the final design development of the safety instruments and control systems for our NUSCALE power modules.

Speaker #3: These three partners are example of the depth of our supply chain ecosystem. Ducson, on major portions of the modules. Framatone on fuel, Paragon on safety control systems.

John Hopkins: Doosan on major portions of the modules, Framatome on fuel, Paragon on safety control systems. We have comparable relationships across cranes, module handling, valves, and more, with additional announcements expected. I will briefly discuss key commercial updates from the quarter. ENTRA1 Energy, our strategic partner, continues to advance discussions with the Tennessee Valley Authority toward a definitive power purchase agreement for potentially the largest nuclear power deployment program in the US history, utilizing NuScale SMR technology. Our understanding is that these discussions are active and progressing. We look forward to providing a further update as milestones are achieved. Next is RoPower. NuScale is working with Nuclearelectrica and RoPower to satisfy conditions attached to Nuclearelectrica shareholders vote to advance the RoPower project in Doicesti, Romania, which will deploy six NuScale Power Modules at a former coal plant site and represents the most advanced SMR effort in Europe.

John Hopkins: Doosan on major portions of the modules, Framatome on fuel, Paragon on safety control systems. We have comparable relationships across cranes, module handling, valves, and more, with additional announcements expected. I will briefly discuss key commercial updates from the quarter. ENTRA1 Energy, our strategic partner, continues to advance discussions with the Tennessee Valley Authority toward a definitive power purchase agreement for potentially the largest nuclear power deployment program in the US history, utilizing NuScale SMR technology. Our understanding is that these discussions are active and progressing. We look forward to providing a further update as milestones are achieved. Next is RoPower. NuScale is working with Nuclearelectrica and RoPower to satisfy conditions attached to Nuclearelectrica shareholders vote to advance the RoPower project in Doicesti, Romania, which will deploy six NuScale Power Modules at a former coal plant site and represents the most advanced SMR effort in Europe.

Speaker #3: And we have comparable relationships across cranes, module handling, valves, and more, with additional announcements expected. I'll briefly discuss key commercial updates from the quarter.

Speaker #3: Enter One Energy, our strategic partner, continues to advance discussions with the Tennessee Valley Authority toward a definitive power purchase agreement for potentially the largest nuclear power deployment program in the U.S.

Speaker #3: history, utilizing NUSCALE SMR technology. Our understanding is that these discussions are active and progressing. We look forward to providing a further update as milestones are achieved.

Speaker #3: Next is RoPower. NUSCALE is working with nuclear electrica and RoPower to satisfy conditions attached to nuclear electric shareholders' vote to advance the RoPower project in Dorchester, Romania.

Speaker #3: Which will deploy six NUSCALE power modules at a former coal plant site and represents the most advanced SMR effort in Europe. Finally, let me now turn to another area where NUSCALE is building last in advantage.

John Hopkins: Finally, let me now turn to another area where NuScale is building lasting advantage, our Energy Exploration Centers. This quarter, we opened our 12th E2 Center at the University of Virginia's College at Wise, supported by a grant from the Virginia Clean Energy Innovation Bank. These centers deliver immersive, hands-on nuclear training in high-fidelity simulation environments designed specifically for the next generation of plant operators, technicians, and engineers. Another highlight is our liquidity position. NuScale closed Q2 with approximately $1.9 billion in cash equivalents, and investments. Our cash position reflects a conservative approach to liquidity as we anticipate near-term commercial deployment. Now I will turn the call over to Ramsey.

John Hopkins: Finally, let me now turn to another area where NuScale is building lasting advantage, our Energy Exploration Centers. This quarter, we opened our 12th E2 Center at the University of Virginia's College at Wise, supported by a grant from the Virginia Clean Energy Innovation Bank. These centers deliver immersive, hands-on nuclear training in high-fidelity simulation environments designed specifically for the next generation of plant operators, technicians, and engineers. Another highlight is our liquidity position. NuScale closed Q2 with approximately $1.9 billion in cash equivalents, and investments. Our cash position reflects a conservative approach to liquidity as we anticipate near-term commercial deployment. Now I will turn the call over to Ramsey.

Speaker #3: Our energy exploration centers. This quarter we opened our 12th E2 center at the University of Virginia's College at Wise. Supported by a grant from the Virginia Clean Energy Innovation Bank.

Speaker #3: These centers deliver immersive, hands-on nuclear training and high-fidelity simulation environments designed specifically for the next generation of plant operators, technicians, and liquidity position. NUSCALE closed the second quarter with approximately $1.9 billion in cash.

Speaker #3: Cash equivalents and investments. Our cash position reflects a conservative approach to liquidity as we anticipate near-term commercial deployment. Now I'll turn the call over to Ramsey.

Speaker #2: Thank you, John. Good afternoon. Our financial results are available in our filings. So my focus will be on explaining major line items, which can be found on slide seven.

Ramsey Hamady: Thank you, John. Good afternoon. Our financial results are available in our filings, so my focus will be on explaining major line items, which can be found on slide seven. NuScale reported revenue of $0.1 million for the three months ended 30 June 2026, compared to $8.1 million in the same period last year. The year-on-year decrease reflects the completion in late 2025 of the FEED phase two work in support of the RoPower project. That scope had no comparable activity in the current quarter. As project activity advances, we expect both our product and services revenue to grow. We closed Q2 with approximately $1.9 billion in cash equivalents, and investments, an increase of $900 million since 31 March 2026. As John said, this increase in liquidity reflects a proactive approach to conservatively positioning the business as we continue to deploy capital for commercial readiness.

Ramsey Hamady: Thank you, John. Good afternoon. Our financial results are available in our filings, so my focus will be on explaining major line items, which can be found on slide seven. NuScale reported revenue of $0.1 million for the three months ended 30 June 2026, compared to $8.1 million in the same period last year. The year-on-year decrease reflects the completion in late 2025 of the FEED phase two work in support of the RoPower project. That scope had no comparable activity in the current quarter. As project activity advances, we expect both our product and services revenue to grow. We closed Q2 with approximately $1.9 billion in cash equivalents, and investments, an increase of $900 million since 31 March 2026. As John said, this increase in liquidity reflects a proactive approach to conservatively positioning the business as we continue to deploy capital for commercial readiness.

Speaker #2: NuScale reported revenue of $0.1 million for the three months ended June 30, 2026, compared to $8.1 million in the same period last year. The year-on-year decrease reflects the completion in late 2025 of the FLIR front-end engineering design phase two work in support of the RoPower project.

Speaker #2: That scope had no comparable activity in the current quarter. As project activity advances, we expect both our product and services revenue to grow. We closed Q2 with approximately $1.9 billion in cash.

Speaker #2: Cash equivalents and investments. An increase of $900 million since March 31st, 2026. As John said, this increase in liquidity reflects a proactive approach to conservatively positioning the business as we continue to deploy capital for commercial readiness.

Speaker #2: When we invest in supply chain agreements, we reduce the time to deployment and de-risk the cost structure of our first projects. When we invest in Framatone's fuel design, as an example, we remove a bonnet from the critical path.

Ramsey Hamady: When we invest in supply chain agreements, we reduce the time to deployment and de-risk the cost structure of our first projects. When we invest in Framatome fuel design, as an example, we remove a bottleneck from the critical path. Finally, on slide eight you'll find the capitalization summary. With that, thank you again for joining us today. We will now take your questions. Operator, please go ahead.

Ramsey Hamady: When we invest in supply chain agreements, we reduce the time to deployment and de-risk the cost structure of our first projects. When we invest in Framatome fuel design, as an example, we remove a bottleneck from the critical path. Finally, on slide eight you'll find the capitalization summary. With that, thank you again for joining us today. We will now take your questions. Operator, please go ahead.

Speaker #2: Finally, on slide eight, you'll find the capitalization summary. With that, thank you again for joining us today. We'll now take your questions. Operator, please go ahead.

Speaker #1: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand and join the queue.

Operator 2: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand and join the queue. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you're muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Eric Stine with Craig-Hallum Capital Group. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand and join the queue. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you're muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Eric Stine with Craig-Hallum Capital Group. Your line is open. Please go ahead.

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you're muted, locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Eric Stein with Craig Hallam Capital Group.

Speaker #1: Your line is open. Please go ahead.

Speaker #4: Hey, this is Luca for Eric. Thanks for taking our questions. So first one here. Do the sizable financial and trade commitments from Japan and South Korea play into the timeline at all for converting TVA into a firm PPA?

[Analyst] (Craig-Hallum Capital Group): Hey, this is Luke on for Eric. Thanks for taking our question. First one here. Do the sizable financial and trade commitments from Japan and South Korea play into the timeline at all for converting TVA into a firm PPA? How are you thinking about those in the equation here?

[Analyst] (Craig-Hallum Capital Group): Hey, this is Luke on for Eric. Thanks for taking our question. First one here. Do the sizable financial and trade commitments from Japan and South Korea play into the timeline at all for converting TVA into a firm PPA? How are you thinking about those in the equation here?

Speaker #4: How are you thinking about those in the equation here?

Speaker #5: Hi, this is Ramsey Hamady, CFO. Well, I think those announcements and the ideas behind them are very promising. I don't know that that's built into the particular capital structure for the plant.

Ramsey Hamady: Hi, this is Ramsey Hamady, CFO. I think those announcements and the ideas behind them are very promising. I don't know that that's built into the particular capital structure for the plant. I stress that NuScale builds reactors. Our commercial partner, ENTRA1, builds plants. I know they have a great relationship with the Japanese, with the Koreans, as do we, so we remain hopeful, but I wouldn't say that the PPA or the capital structure is dependent upon that cash. I think it would benefit, but it's not dependent.

Ramsey Hamady: Hi, this is Ramsey Hamady, CFO. I think those announcements and the ideas behind them are very promising. I don't know that that's built into the particular capital structure for the plant. I stress that NuScale builds reactors. Our commercial partner, ENTRA1, builds plants. I know they have a great relationship with the Japanese, with the Koreans, as do we, so we remain hopeful, but I wouldn't say that the PPA or the capital structure is dependent upon that cash. I think it would benefit, but it's not dependent.

Speaker #5: And I stress that NUSCALE builds reactors are a commercial partner to one builds plants. I know they have a great relationship with the Japanese and the Koreans, as do we.

Speaker #5: So we remain hopeful that I wouldn't say that the PPA or the capital structure is dependent upon that cash. I think it would benefit, but it's not dependent.

Speaker #4: But do remember that, as stated, it's a significant piece of these investments is slated for energy projects in the U.S., which also includes SMRs.

John Hopkins: Do remember that, as stated, a significant piece of these investments is slated for energy projects in the US, which also includes SMRs.

John Hopkins: Do remember that, as stated, a significant piece of these investments is slated for energy projects in the US, which also includes SMRs.

Speaker #5: Understood. Thanks.

[Analyst] (Craig-Hallum Capital Group): Understood. Thanks. For our second question here, can you just maybe talk a little bit more about ENTRA1's project pipeline and how that's evolving just in terms of end users? Are they seeing any particular customer type or use cases gaining particular traction for the NuScale applications, and whether that's just within the data center industry or other applications? Thanks.

[Analyst] (Craig-Hallum Capital Group): Understood. Thanks. For our second question here, can you just maybe talk a little bit more about ENTRA1's project pipeline and how that's evolving just in terms of end users? Are they seeing any particular customer type or use cases gaining particular traction for the NuScale applications, and whether that's just within the data center industry or other applications? Thanks.

Speaker #4: So for our second question here, could you just maybe talk a little bit more about Enter One's project pipeline and how that's evolving, just in terms of end users?

Speaker #4: Are they seeing any particular customer type or use cases gaining particular traction for the NUSCALE applications? And whether that's just within the data center industry or other applications?

Speaker #4: Thanks.

Speaker #5: Yeah, we continue dialogue with hyperscalers, data centers, our focus right now has been for readiness for TVA when the announcements get made. But recognize the need right now for clean energy.

John Hopkins: Yeah. We continue dialogue with hyperscalers, data centers. Our focus right now has been for readiness for TVA when the announcements gets made. Others that we talk to, and I think you'd recognize the need right now for clean energy. Texas just came out and stated here today that they have to shut down data center promotions because of lack of energy and water. We're an answer to that, and we're positioning ourselves to move forward as quickly. It's really the timing of the customer and when they need their energy, and we're ready to enter into discussions at any time.

John Hopkins: Yeah. We continue dialogue with hyperscalers, data centers. Our focus right now has been for readiness for TVA when the announcements gets made. Others that we talk to, and I think you'd recognize the need right now for clean energy. Texas just came out and stated here today that they have to shut down data center promotions because of lack of energy and water. We're an answer to that, and we're positioning ourselves to move forward as quickly. It's really the timing of the customer and when they need their energy, and we're ready to enter into discussions at any time.

Speaker #5: Texas just came out and stated here today that they have to shut down data center promotions because of lack of energy and water. We're an answer to that.

Speaker #5: And we're, precision in ourselves to move forward is quickly. So it's really the timing of the customer. And when they need their energy and we're ready to enter into discussions at any time.

Speaker #4: All right. Thanks for the caller. I'll turn it over.

[Analyst] (Craig-Hallum Capital Group): All right. Thanks for the color. I'll turn it over.

[Analyst] (Craig-Hallum Capital Group): All right. Thanks for the color. I'll turn it over.

Speaker #1: Thank you. Your next question comes from the line of Nate Pendleton with Texas Capital. Your line is open.

Ramsey Hamady: Thank you.

Ramsey Hamady: Thank you.

Operator 2: Your next question comes from the line of Nate Pendleton with Texas Capital.

Operator: Your next question comes from the line of Nate Pendleton with Texas Capital.

Speaker #2: Good afternoon. Thanks for taking my question. Good afternoon. Thanks for taking my questions. John, I wanted to go back to where you really started the call and dig into the competitive landscape as you see it, really focus on the Q3 plus light water SMR segment on slide three.

Nate Pendleton: Good afternoon.

Nate Pendleton: Good afternoon.

Operator 2: Your line is open.

Operator: Your line is open.

Nate Pendleton: Thanks for taking my question. Good afternoon. Thanks for taking my questions.

Nate Pendleton: Thanks for taking my question. Good afternoon. Thanks for taking my questions.

Ramsey Hamady: Thank you.

Ramsey Hamady: Thank you.

Nate Pendleton: John, I wanted to go back to where you really started the call and dig into the competitive landscape as you see it, really focused on the Gen III+ light water SMR segment on slide three. Beyond the head start you guys have with NRC approval, how do you view the durability of your technology advantage if we roll forward the clock a few years? Does that sit with design, commercial structure, or supply chains?

Nate Pendleton: John, I wanted to go back to where you really started the call and dig into the competitive landscape as you see it, really focused on the Gen III+ light water SMR segment on slide three. Beyond the head start you guys have with NRC approval, how do you view the durability of your technology advantage if we roll forward the clock a few years? Does that sit with design, commercial structure, or supply chains?

Speaker #2: Beyond that head start, you guys have with NRC approval, how do you view the durability of your technology advantage if we roll forward the clock a few years?

Speaker #2: And does that sit with design, commercial structure, or supply chains?

Speaker #5: Yeah, I think we're in a position right now. Over the last 10 years, we've been working steadily to get ready for deployment. And we we are near-term deployable.

John Hopkins: Yeah. I think we're in a position right now, over the last 10 years, we've been working steadily to get ready for deployment, and we are near-term deployable. I commented about over 60 suppliers, which half of them we have massive services agreement. We have 12 modules, which a lot of them are currently in production, which are long lead items, and we've been working on those over a two-year period. If I look at the landscape moving forward, we're ready to deploy now, as I commented earlier. If you look future state, nothing stays static. We'll continue to promote this project and look at ways to improve efficiencies and costs. We feel like we're in a very good position.

John Hopkins: Yeah. I think we're in a position right now, over the last 10 years, we've been working steadily to get ready for deployment, and we are near-term deployable. I commented about over 60 suppliers, which half of them we have massive services agreement. We have 12 modules, which a lot of them are currently in production, which are long lead items, and we've been working on those over a two-year period. If I look at the landscape moving forward, we're ready to deploy now, as I commented earlier. If you look future state, nothing stays static. We'll continue to promote this project and look at ways to improve efficiencies and costs. We feel like we're in a very good position.

Speaker #5: I commented about over 60 suppliers, which half of them we have master services agreement. We have 12 product we have 12 modules, which a lot of them are currently in production, which are long lead items.

Speaker #5: And we've been working on those over two-year period. So if I look at the landscape moving forward, we're ready to deploy now. As I commented earlier, if you look future state, nothing stays static.

Speaker #5: We'll continue to promote this project and look at ways to improve efficiencies and costs. But we feel like we're in a very good position.

Speaker #2: Good deal. And then maybe shifting gears a little bit, I wanted to touch on the process heat opportunity. From recent disclosures, I think most recently a blog post from Dr. Reyes, the high temperature steam potential seems really encouraging.

Nate Pendleton: Good deal. Then maybe shifting gears a little bit, I wanted to touch on the process heat opportunity. From recent disclosures, I think most recently a blog post from Dr. Reyes, the high temperature steam potential seems really encouraging. Do you expect these applications to use the standard VOYGR 12 or six configurations, or will this be a distinct product? Then perhaps how should we think about the potential parasitic load that's needed to support that compression step to boost the temperature to that 500 degree level?

Nate Pendleton: Good deal. Then maybe shifting gears a little bit, I wanted to touch on the process heat opportunity. From recent disclosures, I think most recently a blog post from Dr. Reyes, the high temperature steam potential seems really encouraging. Do you expect these applications to use the standard VOYGR 12 or six configurations, or will this be a distinct product? Then perhaps how should we think about the potential parasitic load that's needed to support that compression step to boost the temperature to that 500 degree level?

Speaker #2: Do you expect these applications to use the standard Voyager 12 or 6 configurations, or will this be a distinct product? And then, perhaps, how should we think about the potential parasitic load that's needed to support that compression step to boost the temperature to that 500-degree level?

Speaker #5: Well, what I would say is that he's out promoting, and in fact, he spoke at CERAWeek at the Petrochemical Conference. He's speaking here, coming up again, and we've worked with the national labs on the ability for our reactor, as a light water reactor, to produce the steam and pressure requirements needed for process heat.

John Hopkins: Well, José has been out promoting, and in fact, he spoke at CERAWeek at the Petrochemical Conference. He is speaking here coming up again. We worked with the national labs and the ability for our reactor as a light water reactor to produce the steam and pressure requirements needed for process heat. We think we're in a very good position to, and again, compounded with an emergency planning zone. If you look what these process companies are looking for, the further you are from a given site, the end user, it dissipates. Having the approval of the emergency planning zone, we're right up next to the end user. We can provide process heat, we can provide electricity.

John Hopkins: Well, José has been out promoting, and in fact, he spoke at CERAWeek at the Petrochemical Conference. He is speaking here coming up again. We worked with the national labs and the ability for our reactor as a light water reactor to produce the steam and pressure requirements needed for process heat. We think we're in a very good position to, and again, compounded with an emergency planning zone. If you look what these process companies are looking for, the further you are from a given site, the end user, it dissipates. Having the approval of the emergency planning zone, we're right up next to the end user. We can provide process heat, we can provide electricity.

Speaker #5: And we think we're in a very good position to and again, compounded with an emergency planning zone, if you look at what these process companies are looking for, the further you are from a given site, the end user, it dissipates.

Speaker #5: Having the approval of the emergency planning zone, we're right up next to the end user. We can provide process heat. We can provide electricity.

Speaker #5: The interline model also supports the fact if you go to an area like Baytown or Corpus or anywhere we have a high density of process companies, we could build, own, and probably have somebody operate the plant.

John Hopkins: The ENTRA1 model also supports the fact if you go to an area like Baytown or Corpus or anywhere we have a high density of process companies, we could build, own, and probably have somebody operate the plant. It could be Entergy or whomever. That allows us on that fence line, they're not inside the evacuation zone. It doesn't entail there any business interruption to provide the requirements those companies are looking for, if it's electricity or ammonia production, hydrogen injection, or to your point, process heat. Very enthusiastic about that opportunity. We do believe district heat and process heat is going to be, and the ability to dry cool are very much distinctives that we have that are going to be. Again, I mentioned today, just earlier I heard on a report that Texas, everywhere you go, there's droughts, there's water restrictions.

John Hopkins: The ENTRA1 model also supports the fact if you go to an area like Baytown or Corpus or anywhere we have a high density of process companies, we could build, own, and probably have somebody operate the plant. It could be Entergy or whomever. That allows us on that fence line, they're not inside the evacuation zone. It doesn't entail there any business interruption to provide the requirements those companies are looking for, if it's electricity or ammonia production, hydrogen injection, or to your point, process heat. Very enthusiastic about that opportunity. We do believe district heat and process heat is going to be, and the ability to dry cool are very much distinctives that we have that are going to be. Again, I mentioned today, just earlier I heard on a report that Texas, everywhere you go, there's droughts, there's water restrictions.

Speaker #5: You could be enter G or whomever. That allows us on that fence line they're not inside the evacuation zone. It doesn't entail there any business interruption.

Speaker #5: The provider requirements, those companies are looking for if it's electricity or ammonia production, hydro injection, or to your point, process heat. Very enthusiastic about that opportunity.

Speaker #5: We do believe district heat and process heat is going to be in the ability to dry cool. Are very much distinctives that we have that are going to be again, I mentioned today, just earlier, I heard on a report that Texas everywhere you go, there's droughts, there's water restrictions.

Speaker #5: Having the combination of emergency planning zone and being able to dry cool using air conditioners is going to be extremely important going forward.

John Hopkins: Having a combination of emergency planning zone and being able to dry cool using air condensers is going to be extremely important going forward.

John Hopkins: Having a combination of emergency planning zone and being able to dry cool using air condensers is going to be extremely important going forward.

Speaker #1: Your next question comes from the line of George Giannericas with Canaccord Genuity. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of George Gianarikas with Canaccord Genuity. Your line is open. Please go ahead.

Operator: Your next question comes from the line of George Gianarikas with Canaccord Genuity. Your line is open. Please go ahead.

Speaker #5: Hi everyone. Thank you for taking my questions. So TVA made a few disclosures and I think some media comments today regarding their nuclear roadmap.

George Gianarikas: Hi, everyone. Thank you for taking my questions. TVA made a few disclosures and I think some media comments today regarding their nuclear roadmap. I'd love to get your perspective on what you took away from that commentary, maybe an update on your bilateral discussions beyond what you've already said, and maybe any specific gating items remaining before reaching a definitive contract. Thank you.

George Gianarikas: Hi, everyone. Thank you for taking my questions. TVA made a few disclosures and I think some media comments today regarding their nuclear roadmap. I'd love to get your perspective on what you took away from that commentary, maybe an update on your bilateral discussions beyond what you've already said, and maybe any specific gating items remaining before reaching a definitive contract. Thank you.

Speaker #5: I'd love to get your perspective on what you took away from the commentary, maybe an update on your bilateral discussions beyond what you've already said.

Speaker #5: And maybe any specificating items remaining before reaching a definitive contract. Thank you. Hey, George. All that I can say at this time is that we're extremely encouraged by our conversations that enter one and TVA are having.

John Hopkins: Hey, George. All that I can say at this time is that we're extremely encouraged by our conversations that ENTRA1 and TVA are having. We've heard similar that it was announced in a conversation today that TVA is actively engaged, and this is the same what we're hearing. The conversations, we understand, are progressing well. I can tell you that when the agreement is signed, NuScale will be ready to implement.

John Hopkins: Hey, George. All that I can say at this time is that we're extremely encouraged by our conversations that ENTRA1 and TVA are having. We've heard similar that it was announced in a conversation today that TVA is actively engaged, and this is the same what we're hearing. The conversations, we understand, are progressing well. I can tell you that when the agreement is signed, NuScale will be ready to implement.

Speaker #5: We've heard similar that it was announced in a conversation today that TVA is actively engaged and it's the same what we're hearing. The conversations we understand are progressing well.

Speaker #5: And I can tell you that when the agreement is signed, NuScale will be ready to implement.

Speaker #2: Thank you. And one more question, just a little bit of a minutia item. I noticed that in your balance sheet, the investments increased significantly.

George Gianarikas: Thank you. One more question, just a little bit of a minutiae item. I noticed that on your balance sheet, the investments increased significantly. I haven't gone through your 10-Q yet. Could you just sort of talk about what compelled that to move up to $800 million relative to last quarter? Thank you.

George Gianarikas: Thank you. One more question, just a little bit of a minutiae item. I noticed that on your balance sheet, the investments increased significantly. I haven't gone through your 10-Q yet. Could you just sort of talk about what compelled that to move up to $800 million relative to last quarter? Thank you.

Speaker #2: I haven't gone through your Q yet. Could you just sort of talk about what compelled that to move up to 800 million relative to last quarter?

Speaker #2: Thank you.

Speaker #5: Hi, George. This is Ramsey. How are you doing?

Ramsey Hamady: Hi, George. This is Ramsey. How are you doing?

Ramsey Hamady: Hi, George. This is Ramsey. How are you doing?

Speaker #2: Good. How are you?

George Gianarikas: Good. How are you?

George Gianarikas: Good. How are you?

Speaker #5: To good, good. This is really just a treasury strategy. As we bolster our balance sheet, we kind of pull away from this idea of traditional startup.

Ramsey Hamady: Good. This is really just a treasury strategy. As we bolster our balance sheet, we kind of pull away from this idea of traditional startup burn rates, runway, and more about cash allocation and long-term planning. That's what $1.9 billion gives us, the ability to plan long-term. It gives us optionality. As you have that amount of cash on balance sheets, you tend to look into longer-term instruments. Within a treasury strategy, all high-grade, you look at longer-term instruments, so there's a reclassification on the balance sheets. It's all cash and cash-like investments.

Ramsey Hamady: Good. This is really just a treasury strategy. As we bolster our balance sheet, we kind of pull away from this idea of traditional startup burn rates, runway, and more about cash allocation and long-term planning. That's what $1.9 billion gives us, the ability to plan long-term. It gives us optionality. As you have that amount of cash on balance sheets, you tend to look into longer-term instruments. Within a treasury strategy, all high-grade, you look at longer-term instruments, so there's a reclassification on the balance sheets. It's all cash and cash-like investments.

Speaker #5: Burn rate, and runway, and more about cash allocation. And long-term planning. And that's what 1.9 billion gives us, the ability to plan long-term and gives us optionality.

Speaker #5: And as you have that amount of cash on balance sheet, you tend to look into longer-term instruments. Within a treasury strategy, all high grade, but you look at longer-term instruments.

Speaker #5: So there's really classification on the balance sheet. But it's all cash and cash-like investments.

Speaker #2: Great. Thanks, guys.

George Gianarikas: Great. Thanks, guys.

George Gianarikas: Great. Thanks, guys.

Speaker #5: Thank you.

Ramsey Hamady: Thank you.

Ramsey Hamady: Thank you.

Speaker #3: Thank you.

John Hopkins: Thank you.

John Hopkins: Thank you.

Speaker #1: Your next question comes from the line of Mark Bianchi with TD Cohen. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Marc Bianchi with TD Cowen. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Marc Bianchi with TD Cowen. Your line is open. Please go ahead.

Speaker #4: Hi. How's it going? This is Esteban Abad for Mark. Thanks for taking the question. So, I wanted to ask about the Romania project. I believe Rogue Power earlier this year had some new contingencies around an FID, including a proposal regarding the purchase cadence of the power modules.

Esteban Abarca: How's it going? This is Esteban Abarca.

Esteban Abarca: How's it going? This is Esteban Abarca.

John Hopkins: Hello, Marc.

John Hopkins: Hello, Marc.

Esteban Abarca: in for Marc. Thanks for taking the question. I wanted to ask on the Romania project. I believe RoPower earlier this year had some new contingencies around an FID, including a proposal on sort of the purchase cadence of the power modules. I think there was also a more recent update to stick with NuScale rather than considering other technologies for the project. Can you walk us through some of those updates and when we should expect further progress on the project?

Esteban Abarca: in for Marc. Thanks for taking the question. I wanted to ask on the Romania project. I believe RoPower earlier this year had some new contingencies around an FID, including a proposal on sort of the purchase cadence of the power modules. I think there was also a more recent update to stick with NuScale rather than considering other technologies for the project. Can you walk us through some of those updates and when we should expect further progress on the project?

Speaker #4: And I think there was also a more recent update to stick with NuScale rather than considering other technologies for the project. Can you walk us through some of those updates and when we should expect further progress on the project?

Speaker #3: Yeah. I could probably this is John speaking and appreciate the question. We as you know, we're a subcontractor to Fluor Corporation who is a prime contractor.

John Hopkins: This is John speaking, appreciate the question. As you know, we're a subcontractor to Fluor Corporation, who is the prime contractor, and we completed successfully the front-end engineering design. There is a new government that's coming in that's being seated as we speak. Myself and my COO are planning to go to Bucharest to meet with that government probably later this month. We're ready to go. We're just waiting on the green light to finalize our contract agreements. As I said, phase one went well. Now we're going into what's called the pre-EPC, which will take it up to the final notice to proceed, which is probably another year from now.

John Hopkins: This is John speaking, appreciate the question. As you know, we're a subcontractor to Fluor Corporation, who is the prime contractor, and we completed successfully the front-end engineering design. There is a new government that's coming in that's being seated as we speak. Myself and my COO are planning to go to Bucharest to meet with that government probably later this month. We're ready to go. We're just waiting on the green light to finalize our contract agreements. As I said, phase one went well. Now we're going into what's called the pre-EPC, which will take it up to the final notice to proceed, which is probably another year from now.

Speaker #3: And we completed successfully the front-end engineering design. There is a new government that's coming in that's being seated as we speak. Myself and my COO are planning to go to Bucharest to meet with that government probably later this month.

Speaker #3: But we're ready to go. We're just waiting on the green light to finalize our contract agreements. But as I said, phase one went well.

Speaker #3: Now we're going into what's called the pre-EPC. Which will take it up to the final notice to proceed, which is probably another year from now.

Speaker #4: Okay. Thank you. And my follow-up is on application. I know you had already completed a meaningful amount of work there on the COLA from the previous CFTP project.

Esteban Abarca: Okay, thank you. My follow-up is on the combined operating license application. I know you had already completed a meaningful amount of work there on the COLA from the previous CFPP project. I think you're still engaged-

Esteban Abarca: Okay, thank you. My follow-up is on the combined operating license application. I know you had already completed a meaningful amount of work there on the COLA from the previous CFPP project. I think you're still engaged-with NRC with that. I just wanted to get a little bit more color on how much of that COLA is standardized and can be carried over to another US project, and roughly how much time and probably regulatory costs that could save.

Speaker #4: And I think you're still engaged with NRC with that. So I just wanted to get a little bit more color on how much of that COLA standardized and can be carried over to another US project.

John Hopkins: Right

Esteban Abarca: with NRC with that. I just wanted to get a little bit more color on how much of that COLA is standardized and can be carried over to another US project, and roughly how much time and probably regulatory costs that could save.

Speaker #4: And roughly, how much time and, probably, regulatory costs could that save?

Speaker #3: That's a great question. We're looking at what we have done for the previous project you commented on. About 60% of that COLA can be utilized.

John Hopkins: That's a great question. We're looking at what we have done for the previous project you comment on. About 60% of that COLA can be utilized. As soon as these PPAs are put in place, that's one of the first initiatives we'll have is starting a construction operating license agreement with the customer. Again, about 60% of that we can move over to this next project.

John Hopkins: That's a great question. We're looking at what we have done for the previous project you comment on. About 60% of that COLA can be utilized. As soon as these PPAs are put in place, that's one of the first initiatives we'll have is starting a construction operating license agreement with the customer. Again, about 60% of that we can move over to this next project.

Speaker #3: And as soon as these PPAs are put in place, that's one of the first initiatives we'll have—starting the construction operating license agreement with the customer.

Speaker #3: So again, about 60% of that we can move over to this next project.

Speaker #4: Okay. Great. Thank you. I'll turn it back.

Esteban Abarca: Okay, great. Thank you. I'll turn it back.

Esteban Abarca: Okay, great. Thank you. I'll turn it back.

Speaker #3: Thank you.

John Hopkins: Thank you.

John Hopkins: Thank you.

Speaker #1: Your next question comes from the line of Derek Soderbergh with Canter Fitzgerald. Your line is open. Go ahead.

Operator 2: Your next question comes from the line of Derek Soderberg with Cantor Fitzgerald. Your line is open. Go ahead.

Operator: Your next question comes from the line of Derek Soderberg with Cantor Fitzgerald. Your line is open. Go ahead.

Speaker #5: This is Drew Nordquist on the line for Derek. Thank you guys for taking questions. Just going back on Rogue Power, did you guys highlight what the sort of conditions need to be satisfied in order to move on and if that's in your hands or if that's more in Rogue Power's hands?

Drew Nordquist: This is Drew Nordquist on the line for Derek. Thank you guys for taking questions. Just going back on RoPower, can you guys highlight what sort of conditions need to be satisfied in order to move on, and if that's in your hands or if that's more in RoPower's hands?

Drew Nordquist: This is Drew Nordquist on the line for Derek. Thank you guys for taking questions. Just going back on RoPower, can you guys highlight what sort of conditions need to be satisfied in order to move on, and if that's in your hands or if that's more in RoPower's hands?

Speaker #3: Actually, in the first phase, it needs to get done really is a completion of the prime contractor to come into contractor arrangement with the customer.

John Hopkins: Actually, the first phase that needs to get done really is the completion of the prime contractor to come into contract arrangement with the customer, then we will enter into contract negotiations with the prime EPC. We're all kind of in a wait mode right now, waiting for things to progress, and that's one of the reasons we're heading over to meet with the new government to talk about what are the next steps.

John Hopkins: Actually, the first phase that needs to get done really is the completion of the prime contractor to come into contract arrangement with the customer, then we will enter into contract negotiations with the prime EPC. We're all kind of in a wait mode right now, waiting for things to progress, and that's one of the reasons we're heading over to meet with the new government to talk about what are the next steps.

Speaker #3: And then we will enter into contract negotiations with the prime PPC. So we're all kind of in a wait mode right now, waiting for things to progress.

Speaker #3: And that's one of the reasons we're heading over to meet with the new government to talk about what are the next steps.

Speaker #5: All right. Thank you. I'll turn it over.

Drew Nordquist: All right. Thank you. I'll turn it over.

Drew Nordquist: All right. Thank you. I'll turn it over.

Speaker #1: Your next question comes from the line of Greg Lewis with BTIG. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Greg Lewis with BTIG. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Greg Lewis with BTIG. Your line is open. Please go ahead.

Speaker #2: My line is open.

Speaker #4: Yeah. Hey, thank you. And good afternoon. And thanks for taking my question. Ramsey, I was hoping to talk a little bit more how you're thinking about the liquidity position.

Greg Lewis: Thank you, and good afternoon, and thanks for taking my question. Ramsey, I was hoping to talk a little bit more how you're thinking about the liquidity position. Clearly, you made some moves to really bolster that heading into the back half of this year and into next year. Just kind of clear up any kind of broad strokes you can give us around, let's just assume that we eventually get these contracts from TVA to move forward. Is there any kind of timeline you can give us in terms of when we're going to have to start deploying that capital? Just kind of curious around that.

Greg Lewis: Thank you, and good afternoon, and thanks for taking my question. Ramsey, I was hoping to talk a little bit more how you're thinking about the liquidity position. Clearly, you made some moves to really bolster that heading into the back half of this year and into next year. Just kind of clear up any kind of broad strokes you can give us around, let's just assume that we eventually get these contracts from TVA to move forward. Is there any kind of timeline you can give us in terms of when we're going to have to start deploying that capital? Just kind of curious around that.

Speaker #4: Clearly, you made some moves to really bolster that heading into the back half of this year and in the next year. So just kind of clear any kind of broad strokes you can give us around what's just assume that we eventually get these contracts from TVA to move forward.

Speaker #4: Is there any kind of timeline you can give us in terms of when we're going to have to start deploying that capital and just kind of curious around that?

Speaker #5: Sure. Thank you for the question. Let's talk about a few ideas. We did bolster our cash. 1.9 billion. As a it reflects a strong liquidity position.

Ramsey Hamady: Sure. Thank you for the question. Let's talk about a few ideas. We did bolster our cash. $1.9 billion reflects a strong liquidity position. It reflects a conservative approach to liquidity. As finance people on the line, I think we all understand liquidity is one of those things where it's often there when you don't need it, and it's often not when you do. We took the opportunity last quarter to bolster our liquidity and set ourselves in a pretty good position. What this does is it changes, and I think I mentioned this in an earlier question, it changes the framework by which we look at our cash. We've diverged from those startup metrics. We've diverged from burn rate, and we provide optionality, and now we think about capital allocation.

Ramsey Hamady: Sure. Thank you for the question. Let's talk about a few ideas. We did bolster our cash. $1.9 billion reflects a strong liquidity position. It reflects a conservative approach to liquidity. As finance people on the line, I think we all understand liquidity is one of those things where it's often there when you don't need it, and it's often not when you do. We took the opportunity last quarter to bolster our liquidity and set ourselves in a pretty good position. What this does is it changes, and I think I mentioned this in an earlier question, it changes the framework by which we look at our cash. We've diverged from those startup metrics. We've diverged from burn rate, and we provide optionality, and now we think about capital allocation.

Speaker #5: It reflects a conservative approach to liquidity. And as finance people on the line, I think we all understand liquidity is one of those things where it's often there when you don't need it.

Speaker #5: And it's often not when you do. And so we took the opportunity last quarter to bolster our liquidity and set ourselves in a pretty good position.

Speaker #5: What this does is it changes—and I think I mentioned this in an earlier question—it changes the framework by which we look at our cash.

Speaker #5: We've diverged from those startup metrics. We've diverged from burn rate. And we provide optionality. And now we think about capital allocation. And as I think about capital allocation for a company that's engaging production first of a kind technology, one thing that comes to my mind is ideas around working capital changes our opex.

Ramsey Hamady: As I think about capital allocation for a company that's engaging production, first-of-a-kind technology, one thing that comes to my mind is ideas around working capital, changes in our OpEx, and how cash enables the business to be in a better position to deliver our product when we say we're going to do it, and at the cost we say we're going to deliver at. That's become some of the change. When do we expect that the draws on cash will happen? I think that question is similar to when do we expect commercialization to happen. Some of our expectation has been reflected in some of the announcements we've seen, for example, with Framatome over the last quarter. We expect commercialization to happen soon, we're preparing for it. We're investing in the supply chain. We're investing in design finalization. We're investing in fuel systems.

Ramsey Hamady: As I think about capital allocation for a company that's engaging production, first-of-a-kind technology, one thing that comes to my mind is ideas around working capital, changes in our OpEx, and how cash enables the business to be in a better position to deliver our product when we say we're going to do it, and at the cost we say we're going to deliver at. That's become some of the change. When do we expect that the draws on cash will happen? I think that question is similar to when do we expect commercialization to happen. Some of our expectation has been reflected in some of the announcements we've seen, for example, with Framatome over the last quarter. We expect commercialization to happen soon, we're preparing for it. We're investing in the supply chain. We're investing in design finalization. We're investing in fuel systems.

Speaker #5: And how cash enables the business to be a better position to deliver to deliver our product when we say we're going to do it.

Speaker #5: And the cost we say we're going to deliver at. And so that's become some of the change. When do we expect that draws in cash will happen?

Speaker #5: I think that question is similar to, "When do we expect commercialization to happen?" Some of our expectations have been reflected in some of the announcements we've seen.

Speaker #5: For example, with Framatome, over the last quarter, we expect commercialization to happen soon. And so we're preparing for it. We're investing in the supply chain.

Speaker #5: We're investing in design finalization. We're investing in fuel systems. So you can read into our expectations based on our actions. But ultimately, the commercial contract is the main catalyst.

Ramsey Hamady: You can read into our expectations based on our actions, but ultimately, the commercial contract is the main catalyst, and we're ready for it, and I think it's a great position for us to be in.

Ramsey Hamady: You can read into our expectations based on our actions, but ultimately, the commercial contract is the main catalyst, and we're ready for it, and I think it's a great position for us to be in.

Speaker #5: And we're ready for it, and I think it's a great position for us to be in.

Speaker #4: Okay. And so as we think about some of those parts of the supply chain that need to be addressed, I imagine we'll spend a lot of time thinking about the cost associated with those moving the commercialization, is that things that we're starting to look at now or is it more kind of getting everything in ready mode for when we eventually get the green light from our first commercial partner?

Greg Lewis: Okay. As we think about some of those parts of the supply chain that need to be addressed, I imagine we'll spend a lot of time thinking about the cost associated with those. Moving to commercialization, is that things that we're starting to look at now, or is it more kind of getting everything in ready mode for when we eventually get the green light from our first commercial partner?

Greg Lewis: Okay. As we think about some of those parts of the supply chain that need to be addressed, I imagine we'll spend a lot of time thinking about the cost associated with those. Moving to commercialization, is that things that we're starting to look at now, or is it more kind of getting everything in ready mode for when we eventually get the green light from our first commercial partner?

Speaker #3: Yeah. I'm sorry. Go ahead. No, we're recognized, as I said, we've been working for years with these key suppliers. And they're strategic buyers. Some of these suppliers are investors in NuScale.

Ramsey Hamady: Yeah.

John Hopkins: I'm sorry, go ahead. As I said, we've been working for years with these key suppliers, and they're strategic suppliers. Some of these suppliers are investors in NuScale. They're not looking for a one-off project. They're looking for the opportunity for sustainable supply, and they give us very competitive rates. As an OEM, about maybe 30-plus% is going to be our cost, and then the rest is going to be the EPC and other contractors. I believe we have a very good handle with what our suppliers are offering us in terms of being on a competitive basis. The bottom line, they have to prove competitiveness, so it's not open-ended.

John Hopkins: I'm sorry, go ahead. As I said, we've been working for years with these key suppliers, and they're strategic suppliers. Some of these suppliers are investors in NuScale. They're not looking for a one-off project. They're looking for the opportunity for sustainable supply, and they give us very competitive rates. As an OEM, about maybe 30-plus% is going to be our cost, and then the rest is going to be the EPC and other contractors. I believe we have a very good handle with what our suppliers are offering us in terms of being on a competitive basis. The bottom line, they have to prove competitiveness, so it's not open-ended.

Speaker #3: They're not looking for a one-off project. They're looking for the opportunity for sustainable supply. And they give us very competitive rates. As an OEM, about 30, maybe 30-plus percent is going to be our cost.

Speaker #3: And then the rest is going to be the EPC and other contractors. So I believe we have a very good handle with what our suppliers are offering us in terms of being on a competitive basis.

Speaker #3: And the bottom line, they have to prove competitiveness. So it's not open-ended.

Speaker #4: Thank you very much.

Greg Lewis: Thank you very much.

Greg Lewis: Thank you very much.

Speaker #5: Thank you.

Ramsey Hamady: Thank you.

Ramsey Hamady: Thank you.

Speaker #1: Your next question comes from the line of Craig Share. With TUI Brothers, your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Craig Shere with Tuohy Brothers. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Craig Shere with Tuohy Brothers. Your line is open. Please go ahead.

Speaker #6: Good afternoon. Thanks for taking the questions. So, first, I mean, you sound very confident about pending first-of-a-kind customer FIDs, presumably around TVA.

Craig Shere: Good afternoon. Thanks for taking the questions. First, you sound very confident about pending first-of-a-kind customer FIDs, presumably around TVA. Would you expect with the first FID to be in a position to share with the Street NuScale level margin clarity, or would that be a bit of a moving target with the first order?

Craig Shere: Good afternoon. Thanks for taking the questions. First, you sound very confident about pending first-of-a-kind customer FIDs, presumably around TVA. Would you expect with the first FID to be in a position to share with the Street NuScale level margin clarity, or would that be a bit of a moving target with the first order?

Speaker #6: Would you expect with the first FID to be in a position to share with the street NuScale level margin clarity or would that be a bit of a moving target with the first order?

Speaker #3: No. I think internally,

Ramsey Hamady: No, I think internally we have expectations of where we want our margins to come out. I think we all acknowledge that first of a kind may be more challenging than nth of a kind. I think we get to nth of a kind pretty quickly with the type of manufacturing we're engaging. Look, we want to be able to provide guidance to the Street, but I want to be able to provide guidance based on our OEM contracts, our supplier contracts, and doing it absent or prior to that real visibility, I think it just becomes a little bit problematic. As soon as we can, as soon as we're confident, we'll start to provide guidance. I think you, as analysts, will have a better construct to come out with your price targets and understand the value that we're creating within our business for our shareholders.

Ramsey Hamady: No, I think internally we have expectations of where we want our margins to come out. I think we all acknowledge that first of a kind may be more challenging than nth of a kind. I think we get to nth of a kind pretty quickly with the type of manufacturing we're engaging. Look, we want to be able to provide guidance to the Street, but I want to be able to provide guidance based on our OEM contracts, our supplier contracts, and doing it absent or prior to that real visibility, I think it just becomes a little bit problematic. As soon as we can, as soon as we're confident, we'll start to provide guidance. I think you, as analysts, will have a better construct to come out with your price targets and understand the value that we're creating within our business for our shareholders.

Speaker #5: we have expectations of where we want our margins to come out. I think we all acknowledge that first of a kind may be more challenging than nth of a kind.

Speaker #5: I think we get to nth of a kind pretty quickly with the type of manufacturing we're engaging. And look, we want to be able to provide guidance to the street.

Speaker #5: But I want to be able to provide guidance based on our OEM contracts, our supplier contracts, and doing it absent or prior to that real visibility.

Speaker #5: I think it just becomes a little bit problematic. So as soon as we can, as soon as we're confident, we'll start to provide guidance.

Speaker #5: And I think you, as analysts, will have a better construct to come out with your price targets and understand the value that we're creating within our business for our shareholders.

Craig Shere: Understood. I want to talk a little about speed to market, because that was most of your prepared comments, and your leadership there, given the fact that you're ahead on the regulatory and you've pre-ordered these 12 modules. Obviously we're getting other announcements that are more immediate and are not SMRs, right? We're getting announcements of behind the meter CT projects for 18 months deployment, maybe three to four years on CCGTs. Given the fact you've already deployed resources and relationships for your first 12 modules, from FID on the first project, how quickly can that be producing power? Then is there a gap on the second project since you don't have that on order today? Given your great liquidity position, is that a reason to put more on order today or in the near future?

Craig Shere: Understood. I want to talk a little about speed to market, because that was most of your prepared comments, and your leadership there, given the fact that you're ahead on the regulatory and you've pre-ordered these 12 modules. Obviously we're getting other announcements that are more immediate and are not SMRs, right? We're getting announcements of behind the meter CT projects for 18 months deployment, maybe three to four years on CCGTs. Given the fact you've already deployed resources and relationships for your first 12 modules, from FID on the first project, how quickly can that be producing power? Then is there a gap on the second project since you don't have that on order today? Given your great liquidity position, is that a reason to put more on order today or in the near future?

Speaker #6: Understood. So I want to talk a little about speed to market. Because that was most of your preferred comments. And your leadership there given the fact that you're ahead on the regulatory and you've pre-ordered these 12 modules.

Speaker #6: So, obviously, we're getting other announcements that are more immediate and are not SMRs, right? I mean, we're getting announcements of behind-the-meter CT projects for 18 months deployment.

Speaker #6: Maybe three to four years on CCGTs. Given the fact you've already deployed resources and relationships, for your first 12 modules, from FID on the first project, how quickly can that be producing power?

Speaker #6: And then is there a gap on the second project since you don't have that on order today? And given your great liquidity position, is that a reason to put more on order today or in the near future?

Speaker #3: So our position right now, I just want to get the first module up and running to showcase. And remember, these are redundant systems. When the last thing that's going to happen after the plant is built and the balance of plant and the reactor building, NuScale will move DART modules into the factory.

John Hopkins: Our position right now, I just want to get the first module up and running to showcase. Remember, these are redundant systems. When the last thing that's going to happen after the plant is built and the balance of plant and the reactor building, NuScale will move our modules into the factory, and we'll erect them one at a time. Once the first one or first two are up and running, they're operational, we bring the second one in, and we bring the third one in. If you remember, the NuScale module is predicated not on doing any given one plant at any given time. It was multiple plants. These are fungible assets. We build them in a factory, and we ship them. Now with the magnitude of what we're talking about with TVA, anywhere from six to eight gigawatts, it's massive.

John Hopkins: Our position right now, I just want to get the first module up and running to showcase. Remember, these are redundant systems. When the last thing that's going to happen after the plant is built and the balance of plant and the reactor building, NuScale will move our modules into the factory, and we'll erect them one at a time. Once the first one or first two are up and running, they're operational, we bring the second one in, and we bring the third one in. If you remember, the NuScale module is predicated not on doing any given one plant at any given time. It was multiple plants. These are fungible assets. We build them in a factory, and we ship them. Now with the magnitude of what we're talking about with TVA, anywhere from six to eight gigawatts, it's massive.

Speaker #3: And we'll erect them one at a time. Once the first one, our first two, are up and running—they're operational—we bring the second one in.

Speaker #3: And we bring the third one in. And if you remember, the NuScale module is predicated not on doing any given one plant at any given time.

Speaker #3: It was multiple plants, and these are fungible assets. We build them in a factory, and we ship them. Now, with the magnitude of what we're talking about with TVA—I mean, anywhere from six to eight gigawatts—it's massive.

Speaker #3: It's a massive undertaking. But as one project at a time.

John Hopkins: It's a massive undertaking, it's one project at a time.

John Hopkins: It's a massive undertaking, it's one project at a time.

Craig Shere: Any thoughts on the first 12 modules being online given the progress you have there?

Craig Shere: Any thoughts on the first 12 modules being online given the progress you have there?

Speaker #6: Any thoughts on the first 12 modules being online, given the progress you have there?

Speaker #3: Oh, we've stated publicly that from a first pouring of safety-related concrete to mechanical completion, we'll generally take a little less than 40 months. But that does not entail we still got the upfront dealing with the NRC and the licensing process.

John Hopkins: We've stated publicly that from a first pouring of safety-related concrete to mechanical completion will generally take a little less than 40 months. We still got the upfront dealing with the NRC and the licensing process. Construction timeframes are within that window, we believe, within a 40-month window for construction. Pouring the concrete to mechanical completion.

John Hopkins: We've stated publicly that from a first pouring of safety-related concrete to mechanical completion will generally take a little less than 40 months. We still got the upfront dealing with the NRC and the licensing process. Construction timeframes are within that window, we believe, within a 40-month window for construction. Pouring the concrete to mechanical completion.

Speaker #3: So construction time frames are within that window, we believe. Within a 40-month window. For construction. Pouring of concrete to mechanical completion.

Speaker #6: Great. Thank you.

Craig Shere: Great. Thank you.

Craig Shere: Great. Thank you.

Speaker #3: And so hopefully, with the NRC, we've had great conversations. In fact, the team was just with the Nuclear Regulatory Commission last week. They're doing a lot of things, particularly in that front-end advancement, to help get contractors or get technologies to move quicker on the licensing front.

John Hopkins: Hopefully, with the NRC, we've had great conversations. In fact, the team was just with the U.S. Nuclear Regulatory Commission last week. They're doing a lot of things, particularly in that front-end advancement to help get technologies to move quicker on the licensing front. We're hoping maybe what would typically take a two-year, it could be reduced significantly.

John Hopkins: Hopefully, with the NRC, we've had great conversations. In fact, the team was just with the U.S. Nuclear Regulatory Commission last week. They're doing a lot of things, particularly in that front-end advancement to help get technologies to move quicker on the licensing front. We're hoping maybe what would typically take a two-year, it could be reduced significantly.

Speaker #3: So we're hoping maybe what would typically take a two-year it could be reduced significantly.

Speaker #6: Understood. Thank you.

Craig Shere: Understood. Thank you.

Craig Shere: Understood. Thank you.

Speaker #1: Your next question comes from the line of Ellen Page. With Truist. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Ellen Page with Truist. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Ellen Page with Truist. Your line is open. Please go ahead.

Speaker #7: Hi, thanks for the question. Maybe just to start, the power plant business had negative revenue in the quarter due to a negotiation with Fluor.

Ellen Page: Hi. Thanks for the question. Maybe just to start, the power plant business had a negative revenue in the quarter due to a negotiation with Fluor. How do we think about that impact, or how do we think about the real power progression going forward under that new price agreement? Any more color you can provide would be great.

Paige Allen: Hi. Thanks for the question. Maybe just to start, the power plant business had a negative revenue in the quarter due to a negotiation with Fluor. How do we think about that impact, or how do we think about the real power progression going forward under that new price agreement? Any more color you can provide would be great.

Speaker #7: How do we think about that impact or how do we think about the real power progression going forward under that new price agreement? And any more color you can provide would be great.

Speaker #5: Yeah. I don't think the negative revenue number is really indicative of some ongoing trend with row power with our margins there. That was an adjustment.

Ramsey Hamady: Yeah, I don't think the negative revenue number is really indicative of some ongoing trend with real power with our margins there. That was an adjustment. What you really saw is we had work with Fluor related to FEED phase II in the prior quarter, or two prior quarters, pardon me, or in the same quarter or the period in the prior year, which we didn't have this year. That revenue is gone. There's an adjustment. What you saw is negative margin. It looks a little funny, but it's not indicative of a trend. We're talking about pretty small numbers on a pretty small basis. I wouldn't read much into that.

Ramsey Hamady: Yeah, I don't think the negative revenue number is really indicative of some ongoing trend with real power with our margins there. That was an adjustment. What you really saw is we had work with Fluor related to FEED phase II in the prior quarter, or two prior quarters, pardon me, or in the same quarter or the period in the prior year, which we didn't have this year. That revenue is gone. There's an adjustment. What you saw is negative margin. It looks a little funny, but it's not indicative of a trend. We're talking about pretty small numbers on a pretty small basis. I wouldn't read much into that.

Speaker #5: And what you really saw is we had worked with FLOR related to feed phase two. In the prior quarter, there are two prior quarters.

Speaker #5: Pardon me. Or in the same quarter and period in the prior year, which we didn't have this year. So that revenue was gone. There's an adjustment.

Speaker #5: What you saw is negative margin. It looks a little it looks a little funny, but it's not indicative of a trend. And we're talking about pretty small numbers and pretty small basis.

Speaker #5: So I wouldn't read much into that.

Speaker #7: Okay. Great. And then maybe just on TVA, is there any milestones in particular or next steps you can call out ahead of a PPA or we're just kind of waiting for those negotiations to be complete?

Ellen Page: Okay, great.

Paige Allen: Okay, great.

Ramsey Hamady: Yeah

Ramsey Hamady: Yeah

Ellen Page: Maybe just on TVA, are there any milestones in particular or next steps you can call out ahead of a PPA? We're just kind of waiting for those negotiations to be complete?

Paige Allen: Maybe just on TVA, are there any milestones in particular or next steps you can call out ahead of a PPA? We're just kind of waiting for those negotiations to be complete?

Speaker #3: No, I think, as I stated in the comments, that talks are progressing. We're very active with InterOne in communications on a daily basis. Our Chief Commercial Officer is involved with it.

John Hopkins: I think as I stated in the comments, talks are progressing. We're very active with ENTRA1 and in communications on a daily basis, and our Chief Commercial Officer is involved with it again on a daily basis. We're in a mode right now that as soon as these PPAs are definitized, we're ready to move. By move, I mean enter into, start to COLA position, start the front-end engineering design, and initiate the OEM contracts or negotiations.

John Hopkins: I think as I stated in the comments, talks are progressing. We're very active with ENTRA1 and in communications on a daily basis, and our Chief Commercial Officer is involved with it again on a daily basis. We're in a mode right now that as soon as these PPAs are definitized, we're ready to move. By move, I mean enter into, start to COLA position, start the front-end engineering design, and initiate the OEM contracts or negotiations.

Speaker #3: Again, on a daily basis. So we're in a mode right now that as soon as these PPAs are definitized, we're ready to move. And by move, I mean enter into start the COLA position, start the front-end engineering design, and initiate the OEM contracts.

Speaker #3: Or negotiations.

Speaker #7: Great. Thanks. I'll leave it there.

Ellen Page: Great. Thanks. I'll leave it there.

Paige Allen: Great. Thanks. I'll leave it there.

Speaker #5: Thank you.

Ramsey Hamady: Thank you.

Ramsey Hamady: Thank you.

Speaker #1: Your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open. Please go ahead.

Speaker #8: Hey, guys. This is Tyler Bissett on for Brian. Thanks for taking our question. There's been a lot of focus on TVA, but curious if you can discuss any other pipeline opportunities.

[Analyst] (Goldman Sachs): Hey, guys. This is Tyler sitting in for Brian.

[Analyst] (Goldman Sachs): Hey, guys. This is Tyler sitting in for Brian.

Ramsey Hamady: Hi.

Ramsey Hamady: Hi.

[Analyst] (Goldman Sachs): Thanks for taking our question. There's been a lot of focus on TVA. Curious if you can discuss any other pipeline opportunities. What other engagements are out there, and any other details you can provide on timing, geographies, or types of customers that ENTRA1 is working with?

[Analyst] (Goldman Sachs): Thanks for taking our question. There's been a lot of focus on TVA. Curious if you can discuss any other pipeline opportunities. What other engagements are out there, and any other details you can provide on timing, geographies, or types of customers that ENTRA1 is working with?

Speaker #8: So, what other engagements are out there, and are there any other details you can provide on timing, geographies, or types of customers that InterOne is working with?

Speaker #3: I'll just say, as I said earlier, we're in a lot of discussions with the hyperscalers, with the governments, with international, but our focus right now is to try to get this these working with InterOne to get TVA across the go-line.

John Hopkins: I'll just say, as I said earlier, we're in a lot of discussions with the hyperscalers, with the governments, with international. Our focus right now is to try to get these working with ENTRA1 to get TVA across the go line. As you know, everybody needs energy. We're part of the mix, and customers have different strategies, and our strategy right now is if they're ready to move and they need near-term deployment, we're willing to talk.

John Hopkins: I'll just say, as I said earlier, we're in a lot of discussions with the hyperscalers, with the governments, with international. Our focus right now is to try to get these working with ENTRA1 to get TVA across the go line. As you know, everybody needs energy. We're part of the mix, and customers have different strategies, and our strategy right now is if they're ready to move and they need near-term deployment, we're willing to talk.

Speaker #3: But as you know, I mean, everybody needs energy. We're part of the mix. And customers have different strategies. Our strategy right now is: if they're ready to move and they need near-term deployment, we're willing to talk.

Speaker #8: All right. That's it from us. Thank you.

[Analyst] (Goldman Sachs): All right. That's it from us. Thank you.

[Analyst] (Goldman Sachs): All right. That's it from us. Thank you.

Speaker #5: Thank you.

Ramsey Hamady: Thank you.

Ramsey Hamady: Thank you.

Speaker #1: Your next question comes from the line of Sundaria Lyre with B. Reilly Securities. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Sundaria Leyer with B. Riley Securities. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Sundaria Leyer with B. Riley Securities. Your line is open. Please go ahead.

Speaker #9: Thank you, team. This is Sundaria on behalf of Ryan Finkst. Most of my questions have been answered, but just a couple more. On the supply agreements that you mentioned have been signed with more than half of your suppliers, what are some of the long-lead items left to achieve on that supply chain?

Sundaria Leyer: Thank you, team. This is Sundaria on behalf of Ryan Pfingst. Most of my questions have been answered, but just a couple more. On the supply agreements that you mentioned have been signed with more than half of your suppliers, what are some of the long lead items left to achieve on that supply chain?

Soundarya Lyer: Thank you, team. This is Sundaria on behalf of Ryan Pfingst. Most of my questions have been answered, but just a couple more. On the supply agreements that you mentioned have been signed with more than half of your suppliers, what are some of the long lead items left to achieve on that supply chain?

Speaker #3: I think we're in pretty good shape. As I said, the real long lead items are 4Gs, which are being in production currently. They've been in production for the last two years.

John Hopkins: I think we're in pretty good shape. As I said, the real long lead items are forgings, which are in production currently. They've been in production for the last two years. We mentioned we use conventional fuel. Framatome is our fuel supplier. That fuel will be manufactured in the state of Washington. Paragon, we mentioned for instrument and control, for safety, that's ahead of schedule. I think, again, I don't see any problems with being able to respond, as I said. We're good to go.

John Hopkins: I think we're in pretty good shape. As I said, the real long lead items are forgings, which are in production currently. They've been in production for the last two years. We mentioned we use conventional fuel. Framatome is our fuel supplier. That fuel will be manufactured in the state of Washington. Paragon, we mentioned for instrument and control, for safety, that's ahead of schedule. I think, again, I don't see any problems with being able to respond, as I said. We're good to go.

Speaker #3: We mentioned we use conventional fuel. Framatone is our fuel supplier. That fuel will be manufactured in the state of Washington. Paragon, we mentioned for instrument and control, for safety.

Speaker #3: That's ahead of schedule. So I think, again, I don't see any intent to—I don't see any problems with being able to respond, as I said.

Speaker #3: We're good to go.

Speaker #9: Yeah. That's good to hear. Thank you. And one more. Following up on that Romanian project, our row power, could that trigger any revenue-generating services in 2026, or should we think about it in 2027 and beyond?

Sundaria Leyer: Yeah, that's good to hear. Thank you. One more. Following up on that Romanian project, RoPower, could that trigger any revenue-generating services in 2026 or should we think about it in 2027 and beyond?

Soundarya Lyer: Yeah, that's good to hear. Thank you. One more. Following up on that Romanian project, RoPower, could that trigger any revenue-generating services in 2026 or should we think about it in 2027 and beyond?

Speaker #3: We certainly hope so. If you look at Romania in general and if you look at the success on the front and engineering design, it's really up to the timeline of the customer and when we're going to start the next phase.

John Hopkins: We certainly hope so. If you look at Romania in general, and if you look at the success on the front-end engineering design, it's really up to the timeline of the customer and when we're going to start the next phase. If we get the contract in place, yes, there'll be revenue next year.

John Hopkins: We certainly hope so. If you look at Romania in general, and if you look at the success on the front-end engineering design, it's really up to the timeline of the customer and when we're going to start the next phase. If we get the contract in place, yes, there'll be revenue next year.

Speaker #3: So, if we get the contract in place, yes, they'll be ready next year.

Speaker #9: That's great. Thank you. I'll turn it over.

Sundaria Leyer: That's great. Thank you. I'll turn it over.

Soundarya Lyer: That's great. Thank you. I'll turn it over.

Speaker #5: Thank you so much.

Ramsey Hamady: Thank you so much.

Ramsey Hamady: Thank you so much.

Speaker #1: Your next question comes from the line of Vikram Bagri with Citigroup. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Vikram Bagri with Citigroup. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Vikram Bagri with Citigroup. Your line is open. Please go ahead.

Speaker #10: Hey, guys. This is Vignesh for Vikram. Thanks for taking the question. Just wondering, could you help us think about the cadence of optics over the next few quarters?

[Analyst] (Citigroup): Hey, guys. This is Vignesh for Vikram. Thanks for taking the question. Just wondering, could you help us think about the cadence of OpEx over the next few quarters? I think you mentioned previously for it to ramp over time, any color or range would be helpful and kind of some of the key drivers on the incremental spend. Thanks.

[Analyst] (Citigroup): Hey, guys. This is Vignesh for Vikram. Thanks for taking the question. Just wondering, could you help us think about the cadence of OpEx over the next few quarters? I think you mentioned previously for it to ramp over time, any color or range would be helpful and kind of some of the key drivers on the incremental spend. Thanks.

Speaker #10: I think you mentioned previously for it to ramp over time, but any color or range would be helpful in kind of some of the key drivers on the incremental spend.

Speaker #10: Thanks.

Speaker #5: Yeah. Sure. Hi. This is Ramsey Hamady. I don't want to give too much of guidance on future optics. I don't think we're in a position to do that.

Ramsey Hamady: Yeah, sure. Hi, this is Ramsey Hamady. I don't want to give too much guidance on future OpEx. I don't think we're in a position to do that, we generally don't give guidance yet. I will look to the past 10 quarters. Starting from the beginning of 2004, right through the end of 2005, this management team kept OpEx within somewhere around like a two or three million dollar band between $41 to 44 million per quarter. We were deliberate, we were targeted, we executed, and we were consistent. Over the past two quarters, We had worked with RoPower originally back in 2005. As we got to 2006, some of that work went away. We kept those same engineers. They went from the cost of goods sold line down to OpEx.

Ramsey Hamady: Yeah, sure. Hi, this is Ramsey Hamady. I don't want to give too much guidance on future OpEx. I don't think we're in a position to do that, we generally don't give guidance yet. I will look to the past 10 quarters. Starting from the beginning of 2004, right through the end of 2005, this management team kept OpEx within somewhere around like a two or three million dollar band between $41 to 44 million per quarter. We were deliberate, we were targeted, we executed, and we were consistent. Over the past two quarters, We had worked with RoPower originally back in 2005. As we got to 2006, some of that work went away. We kept those same engineers. They went from the cost of goods sold line down to OpEx.

Speaker #5: And we generally don't give guidance yet. But I will look to the past 10 quarters, starting from the beginning of 2004, running through the end of 2005.

Speaker #5: This management team kept optics within somewhere around like a two or three million dollar band between like 41 and 44 per quarter. We were deliberate.

Speaker #5: We were targeted. We executed, and we were consistent. Over the past two quarters, as we moved, we had work with row power originally, back in 2005, as we got to 2006.

Speaker #5: Some of that work went away. We kept those same engineers; they went from the cost of goods sold line down to OpEx. So, we saw a bit of a bump up in OpEx because we need those people.

Ramsey Hamady: We saw a bit of a bump up in OpEx because we need those people. They're executing on projects, we expect to continue executing on projects in the near future. We kept those people. You saw a bump up in OpEx. Again, our OpEx was within $1 million or so this past quarter, as it was within Q1. Without commenting or providing guidance, I think the lesson to take away is that management's deliberate, we're precise, we control OpEx, we're active on it. What we won't do, which I think may have made it to the heart of some of your question, is allow OpEx creep to come up and start to impact our liquidity. I would just take the lesson away that we're pretty conservative, and we're pretty well-focused and disciplined here.

Ramsey Hamady: We saw a bit of a bump up in OpEx because we need those people. They're executing on projects, we expect to continue executing on projects in the near future. We kept those people. You saw a bump up in OpEx. Again, our OpEx was within $1 million or so this past quarter, as it was within Q1. Without commenting or providing guidance, I think the lesson to take away is that management's deliberate, we're precise, we control OpEx, we're active on it. What we won't do, which I think may have made it to the heart of some of your question, is allow OpEx creep to come up and start to impact our liquidity. I would just take the lesson away that we're pretty conservative, and we're pretty well-focused and disciplined here.

Speaker #5: They're executing on projects, and we expect to continue executing on projects. And then near future. So we kept those people. You saw a bump up in optics.

Speaker #5: But again, our optics was within like a million or so this past quarter as it was within Q1. So without commenting or providing guidance, I think the lesson to take away is that management's deliberate.

Speaker #5: We're precise. We control optics. We're active on it. And what we won't do, which I think is maybe to the heart of some of your question, is allow optics creep to come up and start to impact our liquidity.

Speaker #5: So I would just take the lesson away. They were pretty conservative, and we're pretty well-focused and disciplined here. Model on valuation, but I think that's best we're going to get.

Ramsey Hamady: Our model on valuation, but I think that's the best we're going to get.

Ramsey Hamady: Our model on valuation, but I think that's the best we're going to get.

Speaker #1: There are no further questions at this time. I would like to now turn the call back over to John for closing remarks.

Operator 2: There are no further questions at this time. I would like to now turn the call back over to John for closing remarks.

Operator: There are no further questions at this time. I would like to now turn the call back over to John for closing remarks.

Speaker #3: Yeah. Thank you, operator. And again, thanks, everyone, for attending. As we heard throughout these Q&A, we get questions about when this new scale is moving from potential to proven, and it's a fair question.

John Hopkins: Yeah. Thank you, operator. Again, thanks, everyone, for attending. As we heard throughout these Q&A, we get questions about when is NuScale moving from potential to proven, and it's a fair question. We're in discussions regularly with hyperscalers and utilities and governments. The bottom line is the preconditions for us to move are in place. The regulatory approval exists. Our fuel supply exists. The engineering is mature. The supply chain is mostly contracted. As we stated, we've got long lead items in production. Our liquidity ramp-up for manufacturing is in place. The market's waiting for definitive agreements, and once they're in place, we're ready to move. I'm looking forward to the next session we all get together, and again, thanks for joining us today.

John Hopkins: Yeah. Thank you, operator. Again, thanks, everyone, for attending. As we heard throughout these Q&A, we get questions about when is NuScale moving from potential to proven, and it's a fair question. We're in discussions regularly with hyperscalers and utilities and governments. The bottom line is the preconditions for us to move are in place. The regulatory approval exists. Our fuel supply exists. The engineering is mature. The supply chain is mostly contracted. As we stated, we've got long lead items in production. Our liquidity ramp-up for manufacturing is in place. The market's waiting for definitive agreements, and once they're in place, we're ready to move. I'm looking forward to the next session we all get together, and again, thanks for joining us today.

Speaker #3: We're in discussions regularly with hyperscalers and utilities and governments that bottom line is the preconditions for us to move are in place. The regulatory approval exists.

Speaker #3: Our fuel supply exists. The engineering is mature. The supply chain is mostly contracted. As we stated, we've got long lead items in production. Our liquidity ramp up for manufacturing is in place.

Speaker #3: The market's waiting for definitive agreements, and once they're in place, we're ready to move. So, I'm looking forward to the next session when we all get together. Again, thanks for joining us today.

Speaker #5: Thanks, everyone.

Ramsey Hamady: Thanks, everyone.

Ramsey Hamady: Thanks, everyone.

Operator 2: This concludes today's call. Thank you all for attending. You may now disconnect.

Operator: This concludes today's call. Thank you all for attending. You may now disconnect.