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Is XE Building the Infrastructure Needed for Advanced Nuclear Scale-Up?
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Key Takeaways
X-Energy is advancing TX-1 construction as it develops its Xe-100 commercial reactor projects.
TX-1 is designed to produce 700,000 TRISO-X fuel pebbles annually, enough for up to 11 Xe-100 reactors.
X-Energy secured HALEU agreements and expanded its nuclear-grade graphite relationship with SGL Carbon.
X-Energy, Inc. (XE - Free Report) is building more than an advanced nuclear reactor as it works to commercialize its Xe-100 small modular reactor. The company is developing infrastructure across several parts of the nuclear value chain, including reactor technology, fuel manufacturing and critical material supply. Recently, X-Energy advanced construction of its TX-1 fuel fabrication facility in Oak Ridge, TN, while continuing to develop its commercial reactor projects. This approach could help the company address some of the infrastructure requirements that may become increasingly important as advanced nuclear moves toward deployment.
The TX-1 facility is key part of this strategy. TRISO-X has advanced the project into its next phase of construction, with vertical construction nearing completion and interior build-out, auxiliary structures and equipment installation beginning. The approximately 214,000-square-foot facility is designed to produce around 700,000 TRISO-X fuel pebbles annually, enough fuel for up to 11 Xe-100 reactors. Developing this capability alongside its reactor portfolio could give X-Energy greater control over fuel production as it moves toward commercial deployment.
X-Energy is strengthening its supply chain by securing HALEU enrichment agreements with Centrus Energy and General Matter and expanding its nuclear-grade graphite relationship with SGL Carbon. These partnerships support key Xe-100 material needs and improve supply visibility. The company also extended its DOE program through March 2027 to support Xe-100, the Dow project in Texas, and the TX-1 fuel facility.
If TX-1 and the broader Oak Ridge expansion progress as planned, X-Energy could have a more integrated platform for supporting future Xe-100 deployments and potentially scaling its presence in the emerging advanced nuclear market.
Companies Benefiting From the Trend
The broader advanced nuclear buildout could create opportunities across the nuclear supply chain. Centrus Energy (LEU - Free Report) is particularly well positioned because it is expanding uranium enrichment capabilities and providing HALEU enrichment services, a critical input for advanced reactor technologies. SGL Carbon also provides exposure to the trend through its nuclear-grade graphite business and relationship with X-Energy. NuScale Power (SMR - Free Report) offers another way to participate in the development and commercialization of small modular reactors as demand grows for reliable, low-carbon power.
XE Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2027 earnings per share indicates an increase of 31.91% 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 10.97X compared with the industry average of 4.75X.
Image Source: Zacks Investment Research
XE Stock’s Price Performance
In the past three months, the company’s shares have lost 34.9% compared with the industry’s 13.2% decline.
View the Zacks #1 Rank List
Image: Bigstock
Is XE Building the Infrastructure Needed for Advanced Nuclear Scale-Up?
Key Takeaways
X-Energy, Inc. (XE - Free Report) is building more than an advanced nuclear reactor as it works to commercialize its Xe-100 small modular reactor. The company is developing infrastructure across several parts of the nuclear value chain, including reactor technology, fuel manufacturing and critical material supply. Recently, X-Energy advanced construction of its TX-1 fuel fabrication facility in Oak Ridge, TN, while continuing to develop its commercial reactor projects. This approach could help the company address some of the infrastructure requirements that may become increasingly important as advanced nuclear moves toward deployment.
The TX-1 facility is key part of this strategy. TRISO-X has advanced the project into its next phase of construction, with vertical construction nearing completion and interior build-out, auxiliary structures and equipment installation beginning. The approximately 214,000-square-foot facility is designed to produce around 700,000 TRISO-X fuel pebbles annually, enough fuel for up to 11 Xe-100 reactors. Developing this capability alongside its reactor portfolio could give X-Energy greater control over fuel production as it moves toward commercial deployment.
X-Energy is strengthening its supply chain by securing HALEU enrichment agreements with Centrus Energy and General Matter and expanding its nuclear-grade graphite relationship with SGL Carbon. These partnerships support key Xe-100 material needs and improve supply visibility. The company also extended its DOE program through March 2027 to support Xe-100, the Dow project in Texas, and the TX-1 fuel facility.
If TX-1 and the broader Oak Ridge expansion progress as planned, X-Energy could have a more integrated platform for supporting future Xe-100 deployments and potentially scaling its presence in the emerging advanced nuclear market.
Companies Benefiting From the Trend
The broader advanced nuclear buildout could create opportunities across the nuclear supply chain. Centrus Energy (LEU - Free Report) is particularly well positioned because it is expanding uranium enrichment capabilities and providing HALEU enrichment services, a critical input for advanced reactor technologies. SGL Carbon also provides exposure to the trend through its nuclear-grade graphite business and relationship with X-Energy. NuScale Power (SMR - Free Report) offers another way to participate in the development and commercialization of small modular reactors as demand grows for reliable, low-carbon power.
XE Stock’s Earnings Estimates
The Zacks Consensus Estimate for 2027 earnings per share indicates an increase of 31.91% 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 10.97X compared with the industry average of 4.75X.
Image Source: Zacks Investment Research
XE Stock’s Price Performance
In the past three months, the company’s shares have lost 34.9% compared with the industry’s 13.2% 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.