Valued at a market capitalization of $4.4 billion, X-Energy (XE) designs and develops nuclear-reactor technology and manufactures nuclear fuels. It provides the Xe-100 small modular reactor (SMR) — which is designed to generate 80 megawatts of electric power or 200 MW of thermal output — as well as TRISO-X, a fuel for reactors.
X-Energy recently announced a partnership with American Electric Power (AEP) and Amazon (AMZN) to bring a SMR project to Indiana. Let's take a closer look at whether the partnership marks a buying opportunity for potential XE stock investors.
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www.barchart.com X-Energy and AEP Eye 960 MW Nuclear Plant in Indiana
According to a statement, X-Energy and American Electric Power have signed a joint development agreement which covers feasibility work for a 960 MW SMR project in Sullivan County, Indiana. The plan calls for 12 Xe-100 units which will produce 80 MW of electricity each. The site sits near the retired Breed Generating Station, which AEP owns.
Amazon will provide project development funding as part of the agreement. This is the second deal under a larger plan between X-Energy and Amazon to add more than 5 gigawatts of nuclear power by 2039.
American Electric Power CEO Bill Fehrman said that the agreements with Amazon and X-Energy provide "all necessary capital protections and financial safeguards" the utility considers essential. Fehrman also said AEP wants to protect affordability for existing customers. “Together, we’re looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others,” said Amazon Vice President of Data Center Infrastructure Capacity Delivery Josh Weissman.
AEP owns the land for the project and has decades of nuclear operating experience. Moreover, Amazon is paying for early development, while X-Energy brings the reactor technology itself to the table.
Indiana Governor Mike Braun and state lawmakers have reportedly passed investment and manufacturing tax credits since 2025. The state of Indiana has also launched an Advanced Nuclear Community program. The latest project with Amazon and AEP is X-Energy's third announced U.S. commercial Xe-100 plant and its fourth worldwide, sitting inside a roughly 11.5 GW pipeline.
On the company's Aug. 13 earnings call, X-Energy CEO Clay Sell said the firm was in the "final throes" of an agreement with a major investor-owned utility for its next 1 GW project. The new Indiana plan fits that description.
How X-Energy's Q2 Shows the Stakes
X-Energy went public in April 2026, and the second quarter was its first as a public company. X-Energy reported revenue and grant income of $54.6 million in Q2, up 154% year-over-year (YOY). Most of the top-line originated from reactor design work funded through the U.S. Department of Energy's Advanced Reactor Demonstration Program (ARDP).
The ARDP program is the company's largest revenue source. The agency said it will add up to $1 billion to the award, lifting its total share to $2.1 billion. The government has already reimbursed $547 million through June 30, 2026.
Operating expenses totaled $164.6 million in Q2, while cash used in operations surged to $97.3 million, up from $20 million last year. X-Energy ended Q2 with liquidity of $1.9 billion and a debt-free balance sheet. Net proceeds from the initial public offering (IPO) totaled $1.1 billion.
Management noted on the Q2 earnings call that X-Energy has secured fuel supply deals with Centrus Energy (LEU) and General Matter. The company also holds about 7.6 metric tons of fuel material from the U.S. Department of Energy for its first Dow project.
Fuel Plant and U.K. Deal Add Momentum
In September, the company's TRISO-X fuel unit said it completed the main structure of its fuel plant in Oak Ridge, Tennessee. The 214,000-square-foot site is expected to manufacture about 700,000 fuel pebbles per year, enough for up to 11 Xe-100 reactors. The U.S. Nuclear Regulatory Commission (NRC) granted the company's fuel unit a 40-year license earlier this year, and the plant is expected to be the “first new commercial-scale advanced U.S. nuclear fuel fabrication facility built in more than 50 years.”
On Sept. 15, the company and Centrica (CPYYY) also said U.K. regulators accepted the Xe-100 into the Generic Design Assessment process. The review should take about three years. Centrica is the company’s U.K. partner, and Centrica CEO Chris O’Shea noted the two companies want to build up to 6 GW of new nuclear capacity across the U.K. with Hartlepool being the first site.
What Should XE Stock Investors Watch for Next?
X-Energy will have to focus on execution over the next decade. The company is spending heavily on capital expenditures, and its biggest revenue source is federal money tied to cost sharing. The NRC is weighing the Dow plant in Texas, and X-Energy expects a decision by the first quarter of 2027.
XE stock could generate sizable returns over the next decade if it continues to beat revenue estimates and turns cash flow positive in 2030.
Overall, X-Energy has a consensus “Moderate Buy” rating on Wall Street. Out of 11 analysts covering XE stock, six recommend a “Strong Buy” rating, one recommends a “Moderate Buy” rating, three recommend a “Hold," and one analyst has a “Strong Sell” rating. The average price target of $32.89 represents potential upside of 210% from current levels.
www.barchart.com On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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