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SMR Q3 Earnings Call Highlights Shift to Module Manufacturing
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Key Takeaways
NuScale advances reactor module manufacturing with Doosan as it prepares for commercial deployment.
SMR awaits a TVA power purchase deal, but binding module sales require a separate OEM deal with ENTRA1.
NuScale holds $1.9B in liquidity and leverages over 60 suppliers to support reactor production readiness.
NuScale Power Corporation (SMR - Free Report) emphasized its transition from technology development to physical manufacturing during its third-quarter 2026 earnings call. Management highlighted progress in reactor component production, supply-chain readiness and preparations for commercial deployment.
The company is advancing manufacturing investments while awaiting binding customer commitments. Its discussions with ENTRA1 Energy and the Tennessee Valley Authority (TVA) remain central to converting technical readiness into commercial revenues.
NuScale reported a third-quarter loss of 11 cents per share, in line with the Zacks Consensus Estimate of a loss of 11 cents. Quarterly revenues totaled $0.28 million, missing the Zacks Consensus Estimate of $3.1 million. Revenues declined from $8.2 million in the year-ago quarter, reflecting the completion of engineering services associated with Romania's RoPower project.
NuScale Power Corporation Price, Consensus and EPS Surprise
President and CEO John Hopkins emphasized the company's agreement with Doosan Enerbility to manufacture critical components for its first commercial NuScale Power Module.
The agreement covers fabrication of the upper reactor coolant system, marking a transition from engineering preparation to physical production.
Hopkins explained that early manufacturing activities would help identify production challenges before larger-scale deployment, reducing execution risks associated with future customer orders.
SMR Focuses on TVA Commercial Agreements
Management identified the potential TVA deployment program as its immediate commercial priority. ENTRA1 continues discussions with TVA regarding a power purchase agreement (PPA).
During the Q&A, a Cantor Fitzgerald analyst sought clarification on whether signing a PPA would automatically trigger reactor module orders.
CFO Ramsey Hamady clarified that the PPA would precede engineering, licensing and other preliminary services. Binding module sales would require a separate original equipment manufacturer (OEM) agreement between NuScale and ENTRA1.
NuScale Strengthens Supply-Chain Readiness
Hopkins highlighted the company's network of more than 60 specialized suppliers supporting reactor components, fuel systems, instrumentation and other manufacturing requirements.
Framatome continues advancing nuclear fuel design, while Paragon is developing safety instrumentation and control systems. MillenniTEK also achieved a fabrication milestone involving passive emergency core cooling components.
Management emphasized its efforts to establish alternative suppliers for major component categories, limiting dependence on individual vendors and supporting repeatable reactor production.
SMR Maintains Liquidity and Spending Discipline
NuScale ended September 2026 with approximately $1.9 billion in cash, cash equivalents and investments, compared with approximately $916 million a year earlier.
Hamady reported quarterly operating expenses of approximately $65 million, down from $549 million in the prior-year period. Management expects underlying operating expenses to remain relatively stable.
During the Q&A, Hamady explained that spending on long-lead reactor components would accumulate primarily as inventory on the balance sheet. These costs would subsequently flow through cost of goods sold when modules are delivered under commercial agreements.
NuScale Addresses Deployment Timing and Demand
Analysts pressed management for greater visibility into commercial agreement timing. Hopkins remained optimistic about TVA but did not provide a definitive schedule.
Regarding Romania, management confirmed continuing discussions with RoPower and Nuclearelectrica following changes in the country's government. Hopkins emphasized protecting shareholder interests through appropriate commercial terms.
Management also discussed opportunities beyond data centers, including industrial process heat, district heating and utility applications. Hopkins said NuScale was increasing customer outreach to broaden its commercial pipeline.
SMR Prioritizes Execution Over Near-Term Guidance
Management's overarching message centered on manufacturing readiness, disciplined spending and securing customer commitments rather than providing near-term financial projections.
Hopkins reiterated that commercial execution would ultimately be measured through module sales, project deliveries and recurring service opportunities. The company continues preparing its infrastructure while ENTRA1 advances customer negotiations.
What Zacks Rank and Style Scores Indicate for SMR
NuScale currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term outlook based on earnings estimate revisions. Its Value and Growth Scores of F reflect unfavorable characteristics in those categories, while its Momentum Score of A indicates stronger relative price momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of F points to weakness across the combined value, growth and momentum framework despite its favorable individual Momentum Score. The Zacks Rank could change as analysts revise their earnings estimates following the latest quarterly results.
View the Zacks #1 Rank List
Image: Bigstock
SMR Q3 Earnings Call Highlights Shift to Module Manufacturing
Key Takeaways
NuScale Power Corporation (SMR - Free Report) emphasized its transition from technology development to physical manufacturing during its third-quarter 2026 earnings call. Management highlighted progress in reactor component production, supply-chain readiness and preparations for commercial deployment.
The company is advancing manufacturing investments while awaiting binding customer commitments. Its discussions with ENTRA1 Energy and the Tennessee Valley Authority (TVA) remain central to converting technical readiness into commercial revenues.
NuScale reported a third-quarter loss of 11 cents per share, in line with the Zacks Consensus Estimate of a loss of 11 cents. Quarterly revenues totaled $0.28 million, missing the Zacks Consensus Estimate of $3.1 million. Revenues declined from $8.2 million in the year-ago quarter, reflecting the completion of engineering services associated with Romania's RoPower project.
NuScale Power Corporation Price, Consensus and EPS Surprise
NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote
NuScale Advances Reactor Manufacturing
President and CEO John Hopkins emphasized the company's agreement with Doosan Enerbility to manufacture critical components for its first commercial NuScale Power Module.
The agreement covers fabrication of the upper reactor coolant system, marking a transition from engineering preparation to physical production.
Hopkins explained that early manufacturing activities would help identify production challenges before larger-scale deployment, reducing execution risks associated with future customer orders.
SMR Focuses on TVA Commercial Agreements
Management identified the potential TVA deployment program as its immediate commercial priority. ENTRA1 continues discussions with TVA regarding a power purchase agreement (PPA).
During the Q&A, a Cantor Fitzgerald analyst sought clarification on whether signing a PPA would automatically trigger reactor module orders.
CFO Ramsey Hamady clarified that the PPA would precede engineering, licensing and other preliminary services. Binding module sales would require a separate original equipment manufacturer (OEM) agreement between NuScale and ENTRA1.
NuScale Strengthens Supply-Chain Readiness
Hopkins highlighted the company's network of more than 60 specialized suppliers supporting reactor components, fuel systems, instrumentation and other manufacturing requirements.
Framatome continues advancing nuclear fuel design, while Paragon is developing safety instrumentation and control systems. MillenniTEK also achieved a fabrication milestone involving passive emergency core cooling components.
Management emphasized its efforts to establish alternative suppliers for major component categories, limiting dependence on individual vendors and supporting repeatable reactor production.
SMR Maintains Liquidity and Spending Discipline
NuScale ended September 2026 with approximately $1.9 billion in cash, cash equivalents and investments, compared with approximately $916 million a year earlier.
Hamady reported quarterly operating expenses of approximately $65 million, down from $549 million in the prior-year period. Management expects underlying operating expenses to remain relatively stable.
During the Q&A, Hamady explained that spending on long-lead reactor components would accumulate primarily as inventory on the balance sheet. These costs would subsequently flow through cost of goods sold when modules are delivered under commercial agreements.
NuScale Addresses Deployment Timing and Demand
Analysts pressed management for greater visibility into commercial agreement timing. Hopkins remained optimistic about TVA but did not provide a definitive schedule.
Regarding Romania, management confirmed continuing discussions with RoPower and Nuclearelectrica following changes in the country's government. Hopkins emphasized protecting shareholder interests through appropriate commercial terms.
Management also discussed opportunities beyond data centers, including industrial process heat, district heating and utility applications. Hopkins said NuScale was increasing customer outreach to broaden its commercial pipeline.
SMR Prioritizes Execution Over Near-Term Guidance
Management's overarching message centered on manufacturing readiness, disciplined spending and securing customer commitments rather than providing near-term financial projections.
Hopkins reiterated that commercial execution would ultimately be measured through module sales, project deliveries and recurring service opportunities. The company continues preparing its infrastructure while ENTRA1 advances customer negotiations.
What Zacks Rank and Style Scores Indicate for SMR
NuScale currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term outlook based on earnings estimate revisions. Its Value and Growth Scores of F reflect unfavorable characteristics in those categories, while its Momentum Score of A indicates stronger relative price momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of F points to weakness across the combined value, growth and momentum framework despite its favorable individual Momentum Score. The Zacks Rank could change as analysts revise their earnings estimates following the latest quarterly results.