NuScale's Strategic Momentum in the SMR Market and Capital Positioning for Growth

In the race to decarbonize global energy systems, small modular reactors (SMRs) have emerged as a promising solution, blending nuclear energy's reliability with the scalability needed for modern grids. NuScale Power (NYSE: SMR), a pioneer in this space, has positioned itself at the intersection of regulatory innovation, capital strength, and strategic partnerships. As the company navigates a competitive landscape and addresses lingering legal challenges, its ability to capitalize on its first-mover advantage in the U.S. SMR market will define its long-term investment potential.

Regulatory Leadership and Technological Edge

NuScale's most significant asset is its regulatory head start. In Q2 2025, the company secured its second U.S. Nuclear Regulatory Commission (NRC) approval for its 77-megawatt SMR design, solidifying its status as the only SMR technology cleared by the NRC, according to a Yahoo Finance analysis. This milestone is critical, as the U.S. government has prioritized advanced nuclear technologies through bipartisan support and executive orders. The NRC's endorsement not only reduces deployment risks but also creates a barrier to entry for competitors still navigating the approval process.

The company's international ambitions are also gaining traction. A partnership with RoPower in Romania, for instance, is advancing the Fluor-led Front-End Engineering and Design (FEED) study for the Doicești power plant, a project that could become a flagship for SMR deployments in Europe, according to a NuScale press release. Meanwhile, the Standard Design Approval (SDA) application for an uprated 77 MWe design is on track for NRC approval in July 2025, further expanding NuScale's technical flexibility, as noted in that same release.

Capital Resilience and Strategic Financing

NuScale's financial positioning has strengthened markedly in 2025. By the end of Q3, the company held $753.8 million in cash, cash equivalents, and investments-a 45% increase from Q1's $521.4 million, according to a Marketscreener report. This liquidity was bolstered by a $475.2 million capital raise through an at-the-market (ATM) program, which sold 13.2 million shares, as reported by Morningstar. Such flexibility is crucial for a capital-intensive industry, allowing NuScale to fund long-lead material production for 12 SMR modules and advance supply chain readiness, as noted in the NuScale press release.

The company's partnership with ENTRA1 Energy, its exclusive global strategic partner, has also unlocked new revenue streams. ENTRA1's landmark agreement with the Tennessee Valley Authority (TVA) to deploy up to six gigawatts of NuScale SMR capacity underscores the commercial viability of the technology, according to a StockTwits post. This collaboration enables ENTRA1 to develop, finance, and operate SMR-powered plants, offering customers a turnkey solution for carbon-free energy, as described in a Yahoo Finance analysis.

Competitive Landscape and Market Realities

Despite its regulatory and financial advantages, NuScale faces mounting competition. GE Vernova and BWX Technologies are accelerating their SMR programs, with GE Vernova recently partnering with Samsung C&T to expand the BWRX-300 SMR in international markets, as noted in a Yahoo Finance analysis. Similarly, Oklo and Blykalla's collaboration in Sweden highlights the global race to commercialize advanced nuclear technologies.

NuScale's financials, however, tell a mixed story. While the company's Q3 2025 results showed increased revenue ($7.8 million) driven by engineering services in Romania, its full-year 2025 revenue forecast of $45.06 million reflects a decline from earlier estimates, according to a Yahoo Finance earnings watch. Analysts project a loss of $0.46 per share for the year, with a forward P/S ratio of 89.34X-well above industry peers, as noted in the Yahoo Finance analysis. This valuation premium, while justified by NuScale's leadership in SMR design, raises questions about its ability to scale profitably in the near term.

Risks and Opportunities

The company's legal challenges remain a wildcard. A December 2023 shareholder lawsuit alleged that NuScale concealed inflationary pressures and partner instability, including issues with Standard Power, according to a Bloomberg Law report. While the case's outcome is uncertain, it underscores the risks of overpromising in a nascent industry.

On the flip side, NuScale's alignment with energy-intensive sectors like AI data centers and semiconductor manufacturing offers a compelling growth narrative. As global demand for reliable, carbon-free power surges, the company's SMRs could become a critical infrastructure component. However, this depends on maintaining its regulatory edge and executing on high-profile projects like the TVA and RoPower deployments.

Conclusion: A Hold with Caution

NuScale Power's strategic momentum is undeniable. Its regulatory leadership, capital strength, and partnerships position it as a key player in the SMR market. Yet, the company's high valuation, competitive pressures, and unresolved legal issues necessitate a cautious approach. Analysts' "Hold" recommendation, with a $40.84 price target (14.63% upside from current levels), reflects this balance, according to the Yahoo Finance earnings watch. For investors, NuScale represents a high-conviction bet on the energy transition-but one that requires patience and a long-term horizon.