SMR

NuScale Power Corp. 2025 Annual Report (10-K) Summary

Business Context and Reporting Period

This summary covers the fiscal year ended December 31, 2025. NuScale Power Corp. is a Delaware corporation developing and commercializing Small Modular Reactor (SMR) technology, specifically the NuScale Power Module (NPM). The company operates as a holding company with its primary asset being an interest in NuScale LLC. In May 2025, the U.S. Nuclear Regulatory Commission (NRC) approved the company's second Standard Design Approval (SDA) for a 6-unit, 77 MWe NPM design, a critical regulatory milestone for U.S. deployment.

Key Financial Metrics

Note: Total Investments includes Short-term investments ($417.8M) and Long-term Investments ($32.95M).

Material Changes vs. Prior Period

• Significant Expense Increase: General and Administrative (G&A) expenses surged to $609.8 million in 2025 from $75.9 million in 2024. This $533.9 million increase was primarily driven by a one-time $507.4 million Milestone Contribution to strategic partner ENTRA1 Energy LLC under the Partnership Milestones Agreement (PMA). This payment was triggered by ENTRA1 entering a non-binding agreement with the Tennessee Valley Authority (TVA).
• Revenue Decline: Revenue decreased 15% to $31.5 million, largely due to reduced recognition from the RoPower technology license agreement, partially offset by higher engineering services revenue from Fluor for the RoPower project.
• Capital Raising: The company raised approximately $1.3 billion in net proceeds through At-The-Market (ATM) equity offerings in 2025, significantly bolstering its cash position to fund commercialization and milestone payments.
• Regulatory Progress: Unlike prior years, 2025 saw the NRC finalize approval of the 77 MWe NPM design, enabling customers to reference this design for expedited licensing.

Guidance, Outlook, and Risks

• Commercialization Strategy: NuScale relies heavily on its exclusive global strategic partnership with ENTRA1. The company is focused on deploying NPMs for data centers, AI infrastructure, and replacing coal-fired plants. A key near-term project involves a potential 6-gigawatt deployment with TVA.
• Liquidity Outlook: Management states it has sufficient cash and investments to satisfy requirements for the next 12 months and beyond. However, the company expects to incur losses in the future and will require additional funding to achieve profitability.
• Key Risks:
  • Revenue Uncertainty: The company has not yet entered into a binding contract to deliver NPMs. The PMA with ENTRA1 requires significant cash outlays (milestone contributions) without guaranteeing future revenue-generating contracts.
  • Regulatory & Supply Chain: Delays in regulatory approvals outside the U.S. or supply chain constraints could impact deployment schedules and costs.
  • Tax Receivable Agreement (TRA): NuScale Corp must pay 85% of tax benefits realized from future exchanges of Class B units to legacy equityholders. An amendment in November 2025 reduced the payment obligation to Fluor by 50%, but the potential liability remains substantial (estimated accelerated payment of ~$365 million in a change of control scenario).
  • Legal Proceedings: A shareholder class action lawsuit was filed in February 2026 alleging false statements regarding ENTRA1's capabilities.

Investor Verification Checklist

• Binding Contracts: Verify if NuScale has secured a binding Engineering, Procurement, and Construction (EPC) contract or a binding Power Purchase Agreement (PPA) that would trigger revenue recognition, as current projects (TVA, RoPower) are in non-binding or pre-construction phases.
• ENTRA1 Milestone Payments: Confirm the status of the $259.9 million liability for Milestone Contribution 1 payable in 2026 and assess the risk of unrecoverable costs if the TVA or other ENTRA1 projects do not materialize into binding NPM sales.
• Cash Burn Rate: Monitor the rate of cash consumption given the $459.6 million used in operating activities in 2025, driven largely by the ENTRA1 milestone and long-lead material procurement.
• Fluor Relationship: Review the implications of the November 2025 Exchange Agreement where Fluor exchanged Class B units for Class A stock and the amendment to the Tax Receivable Agreement, and assess any remaining exclusivity constraints.
• Regulatory Status: Track the progress of the RoPower project in Romania following the February 2026 government investment decision approval.