Is NuScale Power's 55% Stock Drop a Buying Opportunity or a Warning Sign?

NuScale Power's 55% stock plunge in November 2025 has ignited fierce debate among investors. Is this a buying opportunity for a company poised to lead the small modular reactor (SMR) revolution, or a warning sign of unsustainable financial practices in a high-risk sector? To answer this, we must dissect NuScale's Q3 earnings miss, Fluor's strategic stake sale, and the broader SMR market dynamics, while weighing the company's technological promise against its operational and financial challenges.

The Q3 Earnings Miss: A Harsh Reality Check

NuScale's Q3 2025 results were a stark reminder of the challenges facing pre-commercial nuclear startups. The company reported a loss of $1.85 per share, far exceeding the projected $0.13 loss and a year-over-year increase from $0.18. Revenue of $8.24 million missed the $11.55 million forecast by 25.7%, despite a 1,635% year-over-year jump driven by engineering and licensing fees for the RoPower project. General and administrative expenses surged 2,950.5% to $519.22 million, largely due to a $495 million milestone payment to ENTRA1 under their partnership agreement. This led to an operating loss of $538.44 million, dwarfing the $41.02 million loss in the prior-year quarter.

While NuScale ended the quarter with $753.8 million in cash-bolstered by a $475.2 million at-the-market offering-the stock plummeted 14.38% during regular trading and an additional 1.5% in after-hours trading according to financial reports. By late December, the stock had fallen 7.17%, reflecting investor skepticism about the company's ability to translate its technological advancements into profitability as market analysis shows.

Fluor's Stake Sale: A Mixed Signal

Fluor, NuScale's largest shareholder, announced plans to monetize its remaining stake by converting Class B units to Class A shares and selling them by Q2 2026 according to company filings. This move aligns with Fluor's strategy to unlock value for shareholders but also underscores the financial realities of NuScale's early-stage commercialization. Despite securing a landmark agreement with ENTRA1 and TVA to deploy up to 6 gigawatts of NuScale SMRs in the U.S. according to industry reports, the company remains unprofitable, with a $273 million net loss on $8 million in revenue in Q3 as financial data indicates. Fluor's exit could signal a lack of confidence in NuScale's short-term viability, though it also reflects the long-term potential of SMR technology.

The SMR Market: High Growth, High Stakes

The SMR market is projected to grow at a 42.31% compound annual growth rate from 2024 to 2035, driven by demand for scalable, low-carbon energy solutions. NuScale's technology, the first and only SMR to receive U.S. Nuclear Regulatory Commission (NRC) design certification, positions it as a market leader. Its modular design-scalable from 4 to 12 units-offers flexibility for diverse applications, from industrial decarbonization to AI-driven energy needs according to company insights. The TVA agreement, in particular, highlights NuScale's potential to meet surging demand in energy-intensive sectors like semiconductor manufacturing and national defense as market analysis shows.

However, NuScale faces stiff competition from GE Vernova and BWX Technologies, both advancing their own SMR designs according to industry reports. Regulatory hurdles, such as complex licensing processes and environmental opposition, remain significant barriers. Additionally, the company's reliance on government and private-sector funding raises questions about its ability to achieve price and performance parity with conventional energy sources as experts observe.