We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can X-Energy's Fuel Strategy Accelerate SMR Commercialization?
Read MoreHide Full Article
Key Takeaways
X-Energy secured HALEU enrichment agreements and expanded its graphite supply relationship in Q2 2026.
Its Oak Ridge fuel campus could provide greater visibility over a critical component for future projects.
X-Energy ended Q2 with $1.9B of liquidity and no debt while advancing reactor and fuel projects.
X-Energy, Inc. (XE - Free Report) is positioning its fuel and supply-chain capabilities as key competitive advantages as it works to commercialize its Xe-100 small modular reactor. During second-quarter 2026, the company secured long-term agreements for high-assay low-enriched uranium (HALEU) enrichment services from Centrus Energy and General Matter and expanded its graphite supply relationship with SGL Carbon. These agreements address some of the key material requirements for scaling advanced nuclear reactors.
The company is also developing its TRISO-X fuel manufacturing campus in Oak Ridge, TN. Building fuel production capacity alongside its reactor technology could give X-Energy greater visibility over a critical component of its future projects. The strategy is particularly important because advanced nuclear developers face limited supplier capacity for specialized materials and HALEU.
X-Energy received approval to extend its DOE Advanced Reactor Demonstration Program budget period through March 2027, supporting continued work on the Xe-100 design, the first commercial advanced nuclear plant with Dow in Seadrift, TX, and the TX-1 fuel facility. However, X-Energy's filing notes that changes in government funding, tax incentives or energy policy could affect the economics and demand for its technology.
XE ended the quarter with approximately $1.9 billion of liquidity and no debt, giving it the financial flexibility to continue funding reactor development, fuel manufacturing, and commercial projects. Its reported pipeline comprises 144 reactors, representing approximately 11.5 gigawatts (GW) of potential capacity.
Overall, X-Energy's progress suggests that controlling fuel and critical materials could be as important as reactor design itself as the SMR industry moves toward commercialization.
Companies Benefiting From the Trend
The broader nuclear renaissance is creating opportunities across multiple parts of the nuclear value chain. Centrus Energy (LEU - Free Report) is particularly well positioned because it is expanding uranium enrichment capabilities and developing HALEU production, a specialized fuel required by many advanced reactor designs, including X-Energy’s technology. NuScale Power (SMR - Free Report) provides exposure to the development and commercialization of advanced small modular reactors, targeting growing demand for reliable, low-carbon electricity.
XE Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2027 earnings per share indicates an increase of 27.46% year over year.
Image Source: Zacks Investment Research
XE Stock Trading at a Premium
XE is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 12.43X compared with the industry average of 5.14X.
Image Source: Zacks Investment Research
XE Stock’s Price Performance
In the past three months, the company’s shares have lost 34.2% compared with the industry’s 9.1% decline.
View the Zacks #1 Rank List
Image: Bigstock
Can X-Energy's Fuel Strategy Accelerate SMR Commercialization?
Key Takeaways
X-Energy, Inc. (XE - Free Report) is positioning its fuel and supply-chain capabilities as key competitive advantages as it works to commercialize its Xe-100 small modular reactor. During second-quarter 2026, the company secured long-term agreements for high-assay low-enriched uranium (HALEU) enrichment services from Centrus Energy and General Matter and expanded its graphite supply relationship with SGL Carbon. These agreements address some of the key material requirements for scaling advanced nuclear reactors.
The company is also developing its TRISO-X fuel manufacturing campus in Oak Ridge, TN. Building fuel production capacity alongside its reactor technology could give X-Energy greater visibility over a critical component of its future projects. The strategy is particularly important because advanced nuclear developers face limited supplier capacity for specialized materials and HALEU.
X-Energy received approval to extend its DOE Advanced Reactor Demonstration Program budget period through March 2027, supporting continued work on the Xe-100 design, the first commercial advanced nuclear plant with Dow in Seadrift, TX, and the TX-1 fuel facility. However, X-Energy's filing notes that changes in government funding, tax incentives or energy policy could affect the economics and demand for its technology.
XE ended the quarter with approximately $1.9 billion of liquidity and no debt, giving it the financial flexibility to continue funding reactor development, fuel manufacturing, and commercial projects. Its reported pipeline comprises 144 reactors, representing approximately 11.5 gigawatts (GW) of potential capacity.
Overall, X-Energy's progress suggests that controlling fuel and critical materials could be as important as reactor design itself as the SMR industry moves toward commercialization.
Companies Benefiting From the Trend
The broader nuclear renaissance is creating opportunities across multiple parts of the nuclear value chain. Centrus Energy (LEU - Free Report) is particularly well positioned because it is expanding uranium enrichment capabilities and developing HALEU production, a specialized fuel required by many advanced reactor designs, including X-Energy’s technology. NuScale Power (SMR - Free Report) provides exposure to the development and commercialization of advanced small modular reactors, targeting growing demand for reliable, low-carbon electricity.
XE Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2027 earnings per share indicates an increase of 27.46% year over year.
Image Source: Zacks Investment Research
XE Stock Trading at a Premium
XE is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 12.43X compared with the industry average of 5.14X.
Image Source: Zacks Investment Research
XE Stock’s Price Performance
In the past three months, the company’s shares have lost 34.2% compared with the industry’s 9.1% decline.
Image Source: Zacks Investment Research
XE’s Zacks Rank
The company currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.