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NuScale Power Plunges 20% in a Month: Time to Hold Tight or Exit?

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Key Takeaways

  • SMR shares plunged after a wider-than-expected Q3 loss and Fluor's plan to sell its entire stake.
  • NuScale faces tiny revenues, large milestone payments and non-binding TVA agreements.
  • Competition from GEV, BWXT and OKLO, plus a rich valuation, adds pressure to SMR's near-term prospects.

NuScale Power’s ((SMR - Free Report) ) shares have lost 20.3% over the past month, underperforming the Zacks Electronics- Power Generation industry’s decline of 18.4%. The stock has also underperformed its industry competitors, including Oklo ((OKLO - Free Report) ), BWX Technologies ((BWXT - Free Report) ) and GE Vernova ((GEV - Free Report) ). In the past month, shares of GE Vernova have gained 8.5%, while shares of BWX Technologies and Oklo have lost 7.5% and 0.3%, respectively.

One-month Price Return Performance

Zacks Investment Research
Image Source: Zacks Investment Research

What’s Behind the Recent Plunge in NuScale Power Stock?

NuScale Power’s underperformance can be attributed to the company reporting weaker-than-expected bottom-line results for the third quarter of 2025. The company reported a loss per share of $1.85 for the third quarter, wider than the loss of 18 cents reported in the year-ago quarter. The figure was also wider than the Zacks Consensus Estimate of a loss of 11 cents.

NuScale Power Corporation Price, Consensus and EPS Surprise

NuScale Power Corporation Price, Consensus and EPS Surprise

NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote

Furthermore, Fluor’s plan to slowly sell its NuScale Power shares has raised some concerns. Fluor has decided to convert its remaining Class B units into Class A shares and then sell its entire stake in NuScale Power by the second quarter of 2026. The company will still support NuScale Power, remain on the board and continue engineering work, but the move suggests Fluor no longer wants a large financial exposure to the project. Management says the sale is structured to avoid harming NuScale Power’s stock price, but investors may still worry that a major early backer is choosing to step back rather than stay heavily invested.

Additionally, NuScale Power is entering a critical stage as it works with ENTRA1 and Tennessee Valley Authority (TVA) on plans for up to 6 gigawatts of small modular reactor capacity. While the opportunity is large, the company faces several risks that could affect its path to deployment. NuScale Power’s revenues are still very small, with $8.2 million reported for the third quarter of 2025. The company also paid $128.5 million to ENTRA1 during the third quarter as part of its milestone agreement. Moreover, the management stated that total payments across all six TVA projects could reach several billion dollars before NuScale Power receives any equipment orders.

Another key risk is that the TVA agreement is not a binding Power Purchase Agreement (PPA) yet, and delays in signing PPAs could push out orders and revenues. Furthermore, timelines of projects are long, with the first plant expected around 2030, which shows that meaningful revenues are still years away.

NuScale Power Faces Stiff Competition

Despite NuScale Power’s advancements in small modular reactor technology, the company faces stiff competition in the nuclear energy industry from companies, such as Oklo, BWX Technologies and GE Vernova.

In September 2025, GE Vernova and Samsung C&T formed a partnership to speed up the rollout of GE Vernova’s BWRX-300 SMR in markets outside North America. The two companies will work together to build a strong supply chain and improve project delivery for these reactors.

In October 2025, BWX Technologies signed new agreements with Rolls-Royce SMR to design and supply steam generators and other key components for advanced reactors. The company's experience in nuclear manufacturing, along with its recent plant expansion in Canada, strengthens its position in the SMR supply chain.

In September 2025, Oklo, a U.S.-based advanced nuclear company, and Sweden’s Blykalla formed a partnership to speed up the development and commercialization of advanced nuclear reactors. The two companies will work together on technology development, supply chain planning, and sharing regulatory expertise.

SMR Earnings Estimate Shows Downward Trend

For 2025, the Zacks Consensus Estimate for loss is pegged at $1.64 per share, widened from the loss of 50 cents anticipated 30 days ago. This also fares unfavorably with the 2024 earnings of 42 cents per share.

Zacks Investment Research
Image Source: Zacks Investment Research

Valuation: NuScale Power Trades Above Industry and Peers

NuScale Power is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NuScale Power’s forward 12-month P/S ratio sits at 124.47X, significantly higher than the industry’s forward 12-month P/S ratio of 31.27X.

NuScale Power stock also trades at a higher P/S multiple compared with its peers, including BWX Technologies, Oklo and GE Vernova. At present, BWX Technologies, Oklo and GE Vernova have P/S multiples of 4.57X, 4.59X and 4.06X, respectively.

Conclusion: Sell NuScale Power Stock for Now

NuScale Power has important technology advantages and major long-term project announcements. However, projects’ timeliness and massive upfront investments before receiving equipment orders put a question mark on its growth prospects.

Furthermore, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. Additionally, NuScale Power’s stretched valuation also warrants a cautious approach to the stock.

NuScale Power currently has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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