NuScale Power Reports Third Quarter 2024 Results

Rhea-AI Summary

NuScale Power (NYSE: SMR) reported its Q3 2024 financial results, highlighting progress in its small modular reactor (SMR) technology development. The company ended Q3 with $161.7 million in cash and equivalents, reporting revenue of $0.5 million and a net loss of $45.5 million. Operating expenses decreased to $41.2 million from $93.9 million year-over-year. Key developments include advancing Fluor's FEED Phase 2 study for the RoPower Doicești SMR plant in Romania and progress in module production with Doosan Enerbility. The company noted increased interest from technology companies seeking clean energy solutions for AI and data centers.

Positive

• Significant reduction in operating expenses by $52.7 million year-over-year
• Cash position increased to $161.7 million from $136.0 million in Q2 2024
• Maintained debt-free status
• Progress in manufacturing first NuScale Power Modules with Doosan Enerbility

Negative

• Revenue declined 93% to $0.5 million from $7.0 million year-over-year
• Net loss of $45.5 million in Q3 2024
• Operating loss of $41.0 million

Insights

Financial Analyst

The Q3 results reveal concerning trends with $0.5M revenue, down significantly from $7.0M in the prior year period. The net loss of $45.5M, while improved from $58.3M YoY, remains substantial. The cash position of $161.7M provides some runway, increasing from $136.0M in Q2. Cost reduction efforts are showing results with operating expenses down $52.7M YoY to $41.2M.

The significant revenue decline and continued losses highlight execution challenges in commercializing their SMR technology. While the company maintains a debt-free balance sheet and demonstrates cost discipline, the path to profitability remains unclear without meaningful revenue growth. The warrant-related non-cash expense of $7.2M also impacts bottom-line results.

Energy Industry Analyst

NuScale maintains its first-mover advantage as the only SMR technology with U.S. NRC approval, positioning it well in the growing nuclear energy market. The progress with Doosan Enerbility on module production and advancement of the Romanian Doicești project represent tangible steps toward commercialization. The emerging opportunity in the data center/AI sector could be transformative, as these facilities require massive amounts of reliable baseload power.

However, the slow pace of revenue generation suggests challenges in converting pipeline opportunities into firm orders. While the regulatory approval and ongoing projects demonstrate technical validation, the company needs to accelerate commercial traction to justify its market position.

• Proceeding with Fluor’s Phase 2 Front-End Engineering and Design (FEED Phase 2) study for the RoPower Doicești small modular reactor (SMR) power plant
• Robust business development activity including advancements with prospective data center/artificial intelligence (AI) customers
• Supply chain partner Doosan Enerbility making progress producing the first NuScale Power Modules™

CORVALLIS, Ore.--(BUSINESS WIRE)-- NuScale Power Corporation (NYSE: SMR), the industry-leading provider of proprietary and innovative advanced small modular reactor nuclear technology, today announced results for the third quarter ended September 30, 2024.

“As energy demand grows, the world’s largest technology companies are urgently seeking sources of secure, clean, reliable nuclear power, and NuScale is uniquely positioned to serve their needs for uninterrupted energy,” said John Hopkins, President and Chief Executive Officer of NuScale Power. “NuScale’s SMR technology is ready for near-term deployment to support the growth of AI and other power-intensive technologies. We are the sole SMR technology approved by the U.S. Nuclear Regulatory Commission, have modules currently in production with supply chain partner Doosan Enerbility, and are seeing interest like never before.”

Hopkins continued, “We signed a contract with Fluor to proceed with RoPower’s FEED Phase 2 study for the Doicești SMR power plant in Romania, which will be the first of its kind in Europe.”

Financial Update

During the third quarter of 2024:

• NuScale ended the third quarter with cash, cash equivalents and short-term investments of $161.7 million ($5.1 million of which is restricted), and no debt. At the end of the second quarter of 2024, the Company had cash and equivalents of $136.0 million ($5.1 million of which was restricted), and no debt.
• NuScale reported $0.5 million in revenue and a net loss of $45.5 million. In the prior year period, the Company reported revenue of $7.0 million and a net loss of $58.3 million.
• Net loss in the quarter included a non-cash expense of $7.2 million related to the fair value of warrants outstanding, while in the same period in the prior year, the Company reported non-cash income of $11.1 million related to the fair value of our warrants.
• Operating expense was $41.2 million compared to $93.9 million in the year-earlier period. The year-over-year reduction in operating expense of $52.7 million reflects the Company’s actions to reduce costs and operate more efficiently.
• NuScale reported an operating loss of $41.0 million, compared to an operating loss of $92.9 million in the year-earlier period.

Conference Call:

NuScale will host a conference call today at 5:00 p.m. ET. A live webcast of the presentation will be available by dialing (888) 550-5460 with conference ID 4347254 or by visiting the Events & Presentations page.

A replay of the webcast will be available for 30 days.

About NuScale Power

Founded in 2007, NuScale Power Corporation (NYSE: SMR) is the industry-leading provider of proprietary and innovative advanced small modular reactor (SMR) nuclear technology, with a mission to help power the global energy transition by delivering safe, scalable, and reliable carbon-free energy. The company’s groundbreaking SMR technology is powered by the NuScale Power Module™, a small, safe, pressurized water reactor that can each generate 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross), and can be scaled to meet customer needs through an array of flexible configurations up to 924 MWe (12 modules) of output.

As the first and only SMR to have its design certified by the U.S. Nuclear Regulatory Commission, NuScale is well-positioned to serve diverse customers across the world by supplying nuclear energy for electrical generation, data centers, district heating, desalination, commercial-scale hydrogen production, and other process heat applications.

To learn more, visit NuScale Power’s website or follow us on LinkedIn, Facebook, Instagram, X and YouTube.

Forward Looking Statements

This release may contain forward-looking statements (including without limitation statements to the effect that the Company or its management "will," "believes," "expects," “anticipates,” "plans" or other similar expressions). These forward-looking statements include statements relating to strategic and operational plans, capital deployment, future growth, new awards, backlog, earnings and the outlook for the company’s business.

Actual results may differ materially as a result of a number of factors, including, among other things, the Company’s liquidity and ability to raise capital; the Company's failure to receive new contract awards; cost overruns, project delays or other problems arising from project execution activities, including the failure to meet cost and schedule estimates; intense competition in the industries in which we operate; failure of our partners to perform their obligations; cyber-security breaches; foreign economic and political uncertainties; client cancellations of, or scope adjustments to, existing contracts; failure to maintain safe worksites and international security risks; risks or uncertainties associated with events outside of our control, including weather conditions, pandemics (including COVID-19), public health crises, political crises or other catastrophic events; the use of estimates and assumptions in preparing our financial statements; client delays or defaults in making payments; the failure of our suppliers, subcontractors and other third parties to adequately perform services under our contracts; uncertainties, restrictions and regulations impacting our government contracts; the inability to hire and retain qualified personnel; the potential impact of certain tax matters; possible information technology interruptions; the Company's ability to secure appropriate insurance; liabilities associated with the performance of nuclear services; foreign currency risks; the loss of one or a few clients that account for a significant portion of the Company's revenues; damage to our reputation; failure to adequately protect intellectual property rights; asset impairments; climate change and related environmental issues; increasing scrutiny with respect to sustainability practices; the availability of credit and restrictions imposed by credit facilities for our clients, suppliers, subcontractors or other partners; failure to obtain favorable results in existing or future litigation and regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure by us or our employees, agents or partners to comply with laws; new or changing legal requirements, including those relating to environmental, health and safety matters; failure to successfully implement our strategic and operational initiatives and restrictions on possible transactions imposed by our charter documents and Delaware law. Caution must be exercised in relying on these and other forward-looking statements. Due to known and unknown risks, the Company’s results may differ materially from its expectations and projections.

Additional information concerning these and other factors can be found in the Company's public periodic filings with the Securities and Exchange Commission, including the general economic conditions and other risks, uncertainties and factors set forth in the section entitled “Cautionary Note Regarding Forward-Looking Statements and Summary of Risk Factors” in the Company’s annual report on Form 10-K for the period ended December 31, 2023 and under similar headings in subsequent filings with the U.S. Securities and Exchange Commission. The referenced SEC filings are available either publicly or upon request from NuScale's Investor Relations Department at ir@nuscalepower.com. The Company disclaims any intent or obligation other than as required by law to update its forward-looking statements in light of new information or future events.

UNAUDITED NuScale Power Corporation Condensed Consolidated Balance Sheet
(in thousands, except share and per share amounts)		September 30, 2024				December 31, 2023
ASSETS		(Unaudited)
Current Assets
Cash and cash equivalents		$	111,628			$	120,265
Short-term investments			45,000				—
Restricted cash			5,100				5,100
Prepaid expenses			10,914				19,054
Accounts and other receivables, net			7,912				10,127
Total current assets			180,554				154,546
Property, plant and equipment, net			2,756				4,116
In-process research and development			16,900				16,900
Intangible assets, net			749				882
Goodwill			8,255				8,255
Long-lead material work in process			41,609				36,361
Other assets			2,461				3,798
Total Assets		$	253,284			$	224,858
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses		$	17,897			$	44,925
Accrued compensation			7,749				8,546
Long-lead material liability			33,064				32,323
Customer deposit			20,000				—
Other accrued liabilities			1,848				1,664
Total current liabilities			80,558				87,458
Warrant liabilities			58,681				5,722
Noncurrent accounts payable and accrued expenses			23,604				—
Other noncurrent liabilities			238				1,442
Deferred revenue			78				898
Total Liabilities			163,159				95,520
Stockholders’ Equity
Class A common stock, par value $0.0001 per share, 332,000,000 shares authorized, 97,893,884 and 76,895,166 shares outstanding as of September 30, 2024 and December 31, 2023, respectively			10				8
Class B common stock, par value $0.0001 per share, 179,000,000 shares authorized, 154,266,400 and 154,477,032 shares outstanding as of September 30, 2024 and December 31, 2023, respectively			15				15
Additional paid-in capital			462,146				333,888
Accumulated deficit			(302,102	)			(240,454	)
Total Stockholders’ Equity Excluding Noncontrolling Interests			160,069				93,457
Noncontrolling interests			(69,944	)			35,881
Total Stockholders' Equity			90,125				129,338
Total Liabilities and Stockholders' Equity		$	253,284			$	224,858

UNAUDITED NuScale Power Corporation Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)		Three Months Ended September 30,								Nine Months Ended September 30,
			2024				2023				2024				2023
Revenue		$	475			$	6,950			$	2,821			$	18,250
Cost of sales			(295	)			(5,940	)			(1,880	)			(15,121	)
Gross Margin			180				1,010				941				3,129
Research and development expenses			12,160				63,725				37,447				118,227
General and administrative expenses			17,021				16,402				53,207				47,420
Other expenses			12,018				13,799				37,157				41,991
Loss From Operations			(41,019	)			(92,916	)			(126,870	)			(204,509	)
Sponsored cost share			660				20,774				6,504				54,984
Change in fair value of warrant liabilities			(7,191	)			11,076				(52,969	)			17,167
Interest income			2,008				2,738				5,275				8,686
Loss Before Income Taxes			(45,542	)			(58,328	)			(168,060	)			(123,672	)
Foreign income taxes			12				—				12				—
Net Loss			(45,554	)			(58,328	)			(168,072	)			(123,672	)
Net loss attributable to noncontrolling interests			(28,095	)			(39,206	)			(106,424	)			(84,065	)
Net Loss Attributable to Class A Common Stockholders		$	(17,459	)		$	(19,122	)		$	(61,648	)		$	(39,607	)
Loss per Share of Class A Common Stock:
Basic and Diluted		$	(0.18	)		$	(0.26	)		$	(0.70	)		$	(0.55	)
Weighted-Average Shares of Class A Common Stock Outstanding:
Basic and Diluted			95,197,500				74,836,884				88,137,939				72,235,763

UNAUDITED NuScale Power Corporation Condensed Consolidated Statements of Cash Flows
		Nine Months Ended September 30,
(in thousands)			2024				2023
OPERATING CASH FLOW
Net Loss		$	(168,072	)		$	(123,672	)
Adjustments to reconcile net loss to operating cash flow:
Depreciation			1,286				1,813
Amortization of intangibles			133				133
Equity-based compensation expense			10,442				12,099
Provision for credit losses			57				—
Impairment of intangible asset			71				—
Gain on insurance proceeds received for damage to property, plant and equipment			(122	)			—
Change in fair value of warrant liabilities			52,969				(17,167	)
Net noncash change in right of use assets and lease liabilities			(274	)			(230	)
Changes in assets and liabilities:
Prepaid expenses and other assets			8,474				(18,377	)
Accounts and other receivables			2,157				(8,991	)
Long-term contract work in process			(5,248	)			(30,765	)
Long-lead material liability			741				34,500
Accounts payable and accrued expenses			(2,044	)			8,830
Nonrefundable customer deposit			20,000				—
Lease liability			(1,202	)			(1,290	)
Deferred revenue			(820	)			32,525
Accrued compensation			(797	)			550
Net Cash Used in Operating Activities			(82,249	)			(110,042	)
INVESTING CASH FLOW
Sale of short-term investments			—				50,000
Purchase of short-term investments			(45,000	)			—
Insurance proceeds received for damage to property, plant and equipment			195				—
Purchases of property, plant and equipment			—				(1,674	)
Net Cash (Used) Provided by Investing Activities			(44,805	)			48,326
FINANCING CASH FLOW
Proceeds from the issuance of common stock, net of issuance fees			103,842				7,867
Proceeds from exercise of warrants and common share options			14,575				6,266
Net Cash Provided by Financing Activities			118,417				14,133
Net Change in Cash, Cash Equivalents and Restricted Cash			(8,637	)			(47,583	)
Cash, cash equivalents and restricted cash:
Beginning of period			125,365				244,217
End of period		$	116,728			$	196,634
Supplemental disclosures of cash flow information:
Foreign income taxes paid		$	3,212			$	—

 

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Investor Contact

Scott Kozak, Director, Investor Relations, NuScale Power

skozak@nuscalepower.com

Media Contact

Chuck Goodnight, Vice President, Business Development, NuScale Power

media@nuscalepower.com

Source: NuScale Power

FAQ

What was NuScale Power's (SMR) revenue in Q3 2024?

NuScale Power reported revenue of $0.5 million in Q3 2024, compared to $7.0 million in the same period last year.

How much cash does NuScale Power (SMR) have as of Q3 2024?

NuScale ended Q3 2024 with $161.7 million in cash, cash equivalents and short-term investments, of which $5.1 million is restricted.

What was NuScale Power's (SMR) operating loss in Q3 2024?

NuScale reported an operating loss of $41.0 million in Q3 2024, compared to an operating loss of $92.9 million in the year-earlier period.

What progress has NuScale Power (SMR) made on the Romanian project in Q3 2024?

NuScale signed a contract with Fluor to proceed with RoPower's FEED Phase 2 study for the Doicești SMR power plant in Romania, which will be the first of its kind in Europe.