NuScale’s Earnings Call: Romania Revenue Timing, TVA Readiness, and Supply Chain Claims Don’t Match

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Date of Call: Aug 5, 2026

Financials Results

• Revenue: $0.1M, compared to $8.1M in the same period last year (down 98.6% YOY)

Business Commentary:

Regulatory and Supply Chain Readiness:

• NuScale Power is the only SMR company with design certification from the U.S. Nuclear Regulatory Commission, including standard design approvals for two of its designs.
• The company has signed supplier agreements with over half of its more than 60 specialized suppliers, with many components already in production.
• The readiness is attributed to years of deliberate investment in engineering and design maturity, avoiding the delays and cost overruns seen in past large nuclear projects.

Financial Position and Strategic Investments:

• NuScale closed Q2 with approximately $1.9 billion in cash, cash equivalents, and investments, an increase of $900 million since March 31, 2026.
• This liquidity position allows the company to de-risk the cost structure of its first projects by investing in supply chain agreements and fuel design.
• The proactive approach to liquidity is to ensure financial stability and optionality as the company anticipates near-term commercial deployment.

Commercial and Project Advancements:

• InterOne Energy is advancing discussions with the Tennessee Valley Authority toward a definitive power purchase agreement, representing a significant potential deployment program.
• NuScale is working on the Rural Power project in Romania, which involves six NuScale power modules at a former coal plant site, marking the most advanced SMR effort in Europe.
• The progress is driven by active dialogue with key stakeholders and the strategic positioning of NuScale's technology as a reliable, carbon-free power solution.

Sentiment Analysis:

Overall Tone: Positive

• Management expresses strong confidence in readiness and commercial positioning, citing 'urging is real and it is growing,' 'NuScale is near-term deployable,' 'we are in a very good position,' and 'we're ready for it.' The tone is optimistic about pending deals and technological advantages.

Q&A:

• Question from Craig-Hallum Capital Group (Luke for Eric): Do the sizable financial and trade commitments from Japan and South Korea play into the timeline at all for converting TBA to a firm PPA? How are you thinking about those in the equation here?
  Response: The investments are promising but not dependent on the PPA or capital structure; they would benefit but are not required.

• Question from Craig-Hallum Capital Group (Luke for Eric): Can you just maybe talk a little bit more about EntraOne'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 new scale applications?
  Response: Focus is on readiness for TVA, but discussions with hyperscalers and data centers are ongoing; demand is driven by the urgent need for clean energy, as highlighted by Texas' energy shortages.

• Question from Deal (name not specified): 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? And does that sit with design, commercial structure, or supply chains?
  Response: NuScale has been steadily working for a decade to get ready for deployment and is near-term deployable; the company will continue to improve efficiencies but feels in a very good position.

• Question from Deal (name not specified): I wanted to touch on the process heat opportunity... do you expect these applications to use the standard voyager 12 or six configurations or will this be a distinct product...?
  Response: NuScale is well-positioned to provide process heat, electricity, and other services using its existing design; the ability to locate near end-users and use dry cooling is a distinctive advantage.

• Question from George Giannarikas (Canaccord Genuity): TVA made a few disclosures... I'd love to get your perspective on what you took away from the commentary, maybe an update on your bilateral discussions... and maybe any specific gating items remaining before reaching a definitive contract.
  Response: Management is extremely encouraged by conversations with Inter1 and TVA; discussions are progressing well, and NuScale will be ready to implement once the agreement is signed.

• Question from George Giannarikas (Canaccord Genuity): I noticed that in your balance sheet the investments increased significantly... Could you just sort of talk about what compelled that to move up to $800 million relative to last quarter?
  Response: The increase is a treasury strategy to bolster the balance sheet for long-term planning and optionality, involving reclassification to longer-term instruments.

• Question from Esteban (TD Cowen): I wanted to ask on the Romania project... Can you walk us through some of those updates and when we should expect further progress on the project?
  Response: The front-end engineering design phase was successful; the company is waiting for the new government to provide a green light to finalize contract agreements, with the next phase (pre-EPC) expected to take about another year.

• Question from Esteban (TD Cowen): I just wanted to get a little bit more color on how much of that COLA standardized and can be carried over to another U.S. project and roughly how much time and probably regulatory costs that could save.
  Response: About 60% of the previous COLA work can be utilized for the next project, which will be one of the first initiatives once PPAs are in place.

• Question from Drew Norquist for Derek (Cantor Fitzgerald): Just going back on road power, 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 road power's hands?
  Response: Completion of the prime contractor's contract arrangement with the customer is needed, followed by contract negotiations with the prime EPC; the company is waiting for progress and plans to meet with the new government.

• Question from Greg Lewis (BTIG): I was hoping to talk a little bit more how you're thinking about the liquidity position... is there any kind of timeline you can give us in terms of when we're going to have to start deploying that capital?
  Response: The $1.9 billion liquidity position provides optionality and changes the framework to focus on capital allocation; the commercial contract is the main catalyst, and the company is preparing for it.

• Question from Greg Lewis (BTIG): 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?
  Response: The company has been working for years with strategic suppliers who offer competitive rates; it has a good handle on costs and expects to move quickly once the commercial contract is secured.

• Question from (name not specified): So first, I mean, you sound very confident about pending, you know, first-of-a-kind customer FIDs. So presumably around TVA. Would you expect with the first FID to be in a position to share with the street new scale level margin clarity...?
  Response: Internally, the company has expectations for margins, but it wants to provide guidance based on OEM and supplier contracts once it is confident, which will be prior to the first commercial contract.

• Question from (name not specified): Understood. So I want to talk a little about speed to market... From FID on the first project, how quickly can that be producing power And then is there a gap on the second project...
  Response: Construction timeframes are generally within a 40-month window from the first pouring of safety-related concrete to mechanical completion; the first modules will be operational to showcase before subsequent ones are brought in.

• Question from Ellen Page (Truist): The power plant business had negative revenue in the quarter due to a negotiation with Thor. How do we think about that impact or how does we think about the real power progression going forward...?
  Response: The negative revenue was an adjustment due to prior-year work that did not repeat and is not indicative of a trend; it involves small numbers and should not be overinterpreted.

• Question from Ellen Page (Truist): And then maybe just on PVA, is there any like milestones in particular or next steps you can call out ahead of a PPA...?
  Response: Discussions with Inter1 and TVA are active on a daily basis; the company is in a mode to move quickly once PPAs are definitive, starting the COLA, FEED, and OEM contract processes.

• Question from Tyler Bissett (Goldman Sachs): There's been a lot of focus on TVA, but curious if you can discuss any other pipeline opportunities. So what other engagements are out there...?
  Response: The company is in discussions with hyperscalers, governments, and internationally, but the current focus is on getting the TVA project across the goal line with Inter1, as energy demand is urgent.

• Question from Sundariya Lyar (B. Riley Securities): 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?
  Response: The company is in good shape; long-lead items (e.g., Doosan components) are already in production, fuel design is complete with Framatome, and safety instrument systems are ahead of schedule.

• Question from Sundariya Lyar (B. Riley Securities): one more uh on following up on that romanian project uh raw power um could that trigger any revenue generating services in 2026 or should we think about it in 2027 and beyond
  Response: Revenue is hoped for in 2027 if the contract is finalized and the project moves into the next phase, depending on the customer's timeline.

• Question from Ignis (for Vikram): Just wondering, could you help us think about the cadence of OPEX over the next few quarters?...
  Response: Management is deliberate and precise with OPEX, maintaining control and preventing creep; past quarters show consistency, and the focus is on executing projects without impacting liquidity.

Contradiction Point 1

Timeline and Conditions for Romania Project Revenue

Contradiction on when revenue from the Romania project could be recognized, impacting financial expectations.

Sundariya Lyar (B. Riley Securities) - Sundariya Lyar (B. Riley Securities)

2026Q2: Revenue is hoped for in 2026 if the contract is finalized and the next phase (pre-EPC) starts. - John Hopkins(CEO)

Could the Romanian project trigger revenue-generating services in 2026 or should we expect it in 2027 and beyond? - Soundarya Iyer (B. Riley Securities)

2026Q2: The company hopes so. If the contract is finalized, there will be revenue in the following year (2027). - John Hopkins(CEO)

Contradiction Point 2

Readiness for TVA Project Implementation

Contradiction on the company's preparedness to start implementation once a PPA is signed, affecting project timeline expectations.

George Giannarikos (Canaccord Genuity) - George Giannarikas (Canaccord Genuity)

2026Q2: When the agreement is signed, NuScale will be ready to implement. - John Hopkins(CEO)

Are there any specific gating items remaining before finalizing the definitive contract? - Ellen Page (Truist)

2026Q2: The company is in a mode where it is ready to move as soon as PPAs are definitive, meaning it can start the COLA process, FEED, and OEM contract negotiations. - John Hopkins(CEO)

Contradiction Point 3

TVA Project Readiness and Focus

Statements conflict on whether TVA is the sole focus or if other opportunities are actively pursued, indicating a shift in strategic emphasis.

Craig-Hallum Capital Group (Questioner Luke for Eric) - Craig-Hallum Capital Group (Questioner Luke for Eric)

2026Q2: The **current focus is on readiness for TVA**... However, there is strong positioning for other customers... - John Hopkins(CEO)

Can you discuss how Inter1's project pipeline is evolving from an end-user perspective? - Jon Windham (UBS)

2026Q1: The **focus is on executing COLA-driven activities**, not the incremental steps seen in less mature projects. - John Hopkins(CEO), Clayton Scott(CCO)

Contradiction Point 4

Supply Chain and Long-Lead Item Status

Contradiction on the progress and certainty of the supply chain, impacting project readiness and cost predictability.

Sundariya Lyar (B. Riley Securities) - Sundariya Lyar (B. Riley Securities)

2026Q2: The **long-lead items are already in production** (e.g., Doosan's forgings for ~2 years). The **fuel supply... is ahead of schedule or already designed**. NuScale sees **no problems responding and is good to go**. - John Hopkins(CEO)

What are the remaining long-lead items in the supply chain after agreements are signed with over half of suppliers? - Nate Pendleton (Texas Capital)

2026Q1: The **process is complex and slow**, but they are in serious discussions with potential customers... - John Hopkins(CEO), Carl Fisher(COO)

Contradiction Point 5

Deployment Timeline and Readiness for First Commercial Project

Contradiction on the company's immediate readiness and the timeline for starting construction, affecting operational and financial planning.

Unknown Questioner - Unknown Questioner

2026Q2: The **focus is on one project at a time**... The **construction timeline is targeted within a 40-month window** from first concrete pour to mechanical completion. - John Hopkins(CEO)

Will the first FID provide clear NuScale margins to the market, or remain uncertain with the initial order? - Derek Soderberg (Cantor Fitzgerald)

20260227-2025 Q4: Operating expenses are typically **$170–$200 million annually**. The company views its liquidity as a **“very defensive position”** with a strong runway. - Ramsey Hamady(CFO)

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