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NuScale Power’s Earnings Surge Signals a New Era in Clean Energy Infrastructure

Albert FoxMonday, May 12, 2025 4:52 pm ET

49min read

The global energy transition is no longer a distant ideal—it is an urgent, multi-trillion-dollar reality. Nowhere is this clearer than in the performance of NuScale Power (NYSE: SMR), which delivered a Q1 2025 revenue beat that underscores its emergence as a leader in scalable decarbonization infrastructure. With revenue surging to $13.4 million—a staggering 93% above estimates and a 900% jump from Q1 2024—the company has validated its strategic pivot from R&D to commercialization. This is more than a quarterly win: it is a harbinger of a valuation re-rating as NuScale capitalizes on the $1.3 trillion annual clean energy investment needed to meet global climate targets.

Revenue Momentum: From Validation to Scalability

NuScale’s Q1 results shattered expectations, with revenue growth driven by two critical commercial milestones: progress on the RoPower Doicești FEED Phase 2 study (managed by Fluor) and a strategic licensing agreement. These wins are not one-off events but proof of NuScale’s ability to execute on its transition to a commercial-scale SMR provider.

While the company reported a net loss of $35.3 million, this reflects ongoing operational restructuring—not recurring risks. Year-over-year operating expenses dropped by $108.6 million, as NuScale shifted focus from R&D (which dominated its balance sheet in prior years) to manufacturing and project delivery. Crucially, this quarter’s loss excludes the $170 million non-cash warrant valuation hit that plagued Q4 2024, signaling a clearer path to profitability as commercial contracts ramp up.

Strategic Leverage: SMR Tech as a Decarbonization Engine

NuScale’s core asset—its U.S. Nuclear Regulatory Commission (NRC)-certified SMR technology—is unmatched in the clean energy space. These small modular reactors offer 24/7 carbon-free power in a compact, scalable format, ideal for data centers, industrial complexes, and hydrogen production facilities.

The company’s Doosan Enerbility partnership is now delivering on this vision: long-lead materials for 12 Power Modules™ are in production, with a target delivery date of 2030. This aligns with NuScale’s ENTRA1 Energy model, which structures projects to minimize risk for customers by bundling financing, engineering, and operations.

Market Opportunity: A Multi-Decade Tailwind

The demand for 24/7 clean energy is exploding. Data centers, AI infrastructure, and green hydrogen projects require reliable baseload power—needs that intermittent renewables alone cannot meet. NuScale’s SMRs are uniquely positioned to fill this gap:

AI/Data Centers: The global hyperscale data center market is projected to grow at a 10% CAGR, demanding 24/7 power to avoid downtime.
Hydrogen Production: Green hydrogen requires massive, constant energy input. SMRs can supply it at a fraction of the cost of alternatives.
Grid Stability: SMRs can complement renewables, providing resilience to grids strained by climate volatility.

Valuation Case: A Buying Opportunity Before the Market Catches Up

At its current price of $16.92, NuScale is undervalued relative to its growth trajectory. Analysts project a $20.58 average 12-month target (a 21.6% upside), with GuruFocus estimating a $19.58 target. Even conservative estimates suggest the stock is trading at 0.8x its 2025 revenue guidance, a discount to peers in capital-intensive sectors.

The Investment Thesis: Act Before the Transition Accelerates

NuScale’s Q1 results are not just a financial win—they are a strategic inflection point. The company has:
1. De-risked its growth path with NRC certification, Doosan’s manufacturing progress, and ENTRA1’s risk-mitigated project model.
2. Proven execution in transitioning from R&D to commercial revenue, with costs falling as scale rises.
3. A fortress balance sheet ($521 million in cash) to fuel expansion without overleveraging.

The market has yet to fully price in these advantages. As SMRs gain traction in the $1.3 trillion clean energy market—and as global energy planners recognize the necessity of 24/7 carbon-free power—NuScale stands to benefit disproportionately.

Conclusion: The SMR Play for the Decade

NuScale is no longer a speculative bet on nuclear innovation. It is a strategic investment in the energy transition’s next phase: the scaling of 24/7 carbon-free power. With a compelling valuation, a proven execution track record, and a technology uniquely suited to decarbonization’s most critical needs, NuScale offers investors a rare chance to participate in a multi-decade secular trend.

The time to act is now—before the market catches up to NuScale’s commercialization momentum.

—Mohammed El-Erian

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