Date: 12/10/2025

1. Introduction

NuScale Power Corporation (NYSE: SMR) stands as a pivotal player in the global energy transition, pioneering the development and commercialization of Small Modular Reactors (SMRs). Headquartered in Tigard, Oregon, NuScale has garnered significant attention as of late 2025 due to its unique regulatory achievements, its potential to address critical clean energy demands, and the inherent volatility of its stock performance. The company's innovative NuScale Power Module (NPM) represents a scalable, passively safe, and carbon-free nuclear technology, poised to revolutionize power generation, industrial processes, and even the burgeoning energy needs of the artificial intelligence (AI) sector. As the world grapples with climate change and seeks reliable baseload power, NuScale's position as the only SMR manufacturer with a U.S. Nuclear Regulatory Commission (NRC)-approved design places it at the forefront of a rapidly evolving industry, making it a focal point for investors, policymakers, and energy stakeholders alike.

2. Historical Background

NuScale Power's journey began with foundational research in 2000 at Oregon State University (OSU) and the Idaho National Laboratory (INL), backed by U.S. Department of Energy (DOE) funding. This culminated in the invention of the first commercial SMR in 2007 by OSU researchers, led by Dr. José N. Reyes Jr., who would later co-found NuScale Power Corporation in the same year. The company's initial mission was to commercialize SMR technology as a safer and more efficient alternative to conventional nuclear power plants, with OSU granting NuScale exclusive rights to its SMR intellectual property.

Early milestones included securing initial funding in 2008 and establishing its headquarters in Tigard, Oregon. A pivotal moment came in 2011 when Fluor Corporation, a global engineering and construction giant, became a lead and subsequently majority investor, injecting crucial capital and expertise. Substantial support from the DOE followed, with over $575 million in cost-sharing funds awarded between 2013 and 2015 to advance regulatory approval processes and host NuScale's SMRs at the Idaho National Laboratory as part of the Carbon Free Power Project (CFPP).

The company achieved a monumental regulatory breakthrough in December 2016 by submitting its comprehensive Design Certification Application (DCA) to the NRC, which was accepted in March 2017. In August 2020, the NRC issued a final safety evaluation report (FSER), certifying NuScale's 50 MWe SMR design, making it the first SMR design ever approved in the U.S. This was followed by official NRC certification in January 2023. Further strengthening its regulatory lead, the NRC approved NuScale's uprated 77 MWe module design in May 2025.

A significant transformation occurred on May 3, 2022, when NuScale Power went public through a merger with a Special Purpose Acquisition Company (SPAC), Spring Valley Acquisition Corp., listing on the New York Stock Exchange (NYSE: SMR). This made NuScale the world's first publicly traded SMR technology provider. While the CFPP project was mutually terminated in November 2023 due to escalating costs, NuScale quickly pivoted, securing crucial international partnerships in Romania and Poland, and most recently, a landmark agreement with ENTRA1 Energy and the Tennessee Valley Authority (TVA) in September 2025 for up to 6 gigawatts of SMR deployment. This historical progression underscores NuScale's journey from academic innovation to a commercializing entity navigating the complex path to global energy transformation.

3. Business Model

NuScale Power Corporation (NYSE: SMR) operates a business model primarily focused on the design, licensing, and eventual commercial deployment of its proprietary Small Modular Reactor (SMR) technology. As of December 10, 2025, the company's revenue largely stems from engineering and licensing services as it transitions from a research and development phase to commercialization.

Product Lines:
NuScale's core product is the NuScale Power Module (NPM), a small, factory-fabricated pressurized light-water reactor designed to generate 77 megawatts of electricity (MWe) per module. These NPMs are scalable and can be combined into various configurations to form VOYGR power plants:

• VOYGR-4: A four-module plant with a capacity of 308 MWe.
• VOYGR-6: A six-module plant with a capacity of 462 MWe.
• VOYGR-12: A twelve-module plant capable of producing up to 924 MWe.
  NuScale's SMR technology is the first and only design to receive certification from the U.S. Nuclear Regulatory Commission (NRC), with its 77 MWe module design receiving Standard Design Approval (SDA) in May 2025.

Services:
NuScale offers a comprehensive suite of services to support customers throughout the SMR project lifecycle, including:

• Pre-Commercial Operation Date (Pre-COD) Services: Covering startup and testing, ITAAC (Inspections, Tests, Analyses, and Acceptance Criteria) management, COLA (Combined License Application) management, and initial training.
• Post-Commercial Operation Date (Post-COD) Services: Including design engineering management, O&M engineering program management, requalification training, and procurement of spare parts.
• Technical Expertise: Supported by an integrated operations platform for end-to-end compliance and configuration management.

Revenue Sources:
As of late 2025, NuScale's revenue primarily comes from engineering and licensing fees and related services, rather than direct sales of operational reactors. For instance, Q3 2025 revenue was driven by engineering services for the RoPower project in Romania and a milestone contribution from its partnership with ENTRA1 Energy. The company is in a significant investment phase for technology development and commercialization.

Segments and Applications:
NuScale's SMR technology is designed for a diverse range of energy-intensive applications:

• Electrical Generation: Providing baseload, carbon-free power.
• Data Centers and AI: Meeting the high, consistent energy demands of rapidly expanding data centers and AI systems.
• Industrial Process Heat: Supplying heat for various industries, including clean hydrogen production.
• Desalination: Powering water desalination plants.
• District Heating: Providing energy for urban heating systems.
• Integration with Renewables: Offering stable power to complement intermittent renewable sources.
• Replacing Retiring Coal Plants: Utilizing existing infrastructure for SMR deployment.

Customer Base:
NuScale's commercialization strategy is built on strategic partnerships. Its exclusive global strategic partner, ENTRA1 Energy, is envisioned to develop, manage, own, and operate SMR plants, with NuScale supplying the modules.
Key customers and prospective agreements include:

• ENTRA1 Energy: Integral to NuScale's model, ENTRA1 recently signed an agreement with the Tennessee Valley Authority (TVA) for the potential deployment of up to six gigawatts of NuScale SMR capacity in the U.S.
• RoPower (Romania): Progressing with Front-End Engineering and Design (FEED) for a six-NPM plant.
• Standard Power: Selected NuScale's SMR technology for two data center facilities in Ohio and Pennsylvania, requiring 24 modules.
  While the Carbon Free Power Project (CFPP) with Utah Associated Municipal Power Systems (UAMPS) was terminated in November 2023, NuScale anticipates securing "hard contracts" with two or three major U.S.-based customers by the end of 2025, particularly driven by data center and AI interest.

4. Stock Performance Overview

NuScale Power Corporation (NYSE: SMR) commenced trading on the New York Stock Exchange on May 3, 2022, following a merger with a Special Purpose Acquisition Company (SPAC). Due to this relatively recent listing, a full 5-year and 10-year performance history is not available as of December 10, 2025.

IPO and Initial Performance:
The stock closed at $10.55 on its debut in May 2022. Early investor enthusiasm, fueled by U.S. Nuclear Regulatory Commission (NRC) approval for its SMRs, saw the stock reach an initial peak of $15.32 in August 2022.

1-Year Stock Performance (December 2024 – December 2025):
As of December 10, 2025, SMR's stock price has shown a 3.77% decrease over the last 12 months, although its year-to-date return stood at 18.72%. The closing price on December 8, 2025, was $21.56. This period has been marked by extreme volatility. The stock experienced a dramatic decline of over 50% in the month leading up to December 9, 2025, and a 20.3% loss over the past month.

Performance Since IPO to Present (December 2025):
An investor who bought $1,000 worth of NuScale Power stock at the SPAC's IPO in 2020 (at $10 per share) would have approximately $1,167 by December 8, 2025, representing a compound annual growth rate of 16.73% over roughly five years. The stock reached its all-time high of $57.42 on October 15, 2025.

Notable Movements and Driving Factors:

• Late 2025 Decline: The sharp downturn in late 2025 was primarily attributed to disappointing Q3 2025 earnings, where NuScale reported a wider-than-expected loss per share of $1.85. Additionally, news of Fluor, a major investor, planning to sell its entire stake by Q2 2026, and uncertainty surrounding the company's first firm contract, contributed to the pressure. NuScale's valuation, particularly its price-to-sales ratio, was also noted as significantly higher than industry averages.
• Recent Upswing (December 2025): The stock saw an uptick on December 10, 2025, rising 5.9% after its partner, ENTRA1 Energy, secured an agreement to deploy up to 6 gigawatts of nuclear capacity with the Tennessee Valley Authority (TVA). This was further bolstered by the U.S. Department of Energy (DOE) announcing an $800 million funding initiative to accelerate SMR deployment on December 2, 2025.
• Upcoming Catalyst: A special meeting of stockholders on December 16, 2025, to vote on increasing authorized Class A common shares from 332 million to 662 million, is a critical event for the company's ability to raise equity for long-lead projects.

5. Financial Performance

NuScale Power Corporation (NYSE: SMR) concluded its third quarter of 2025 with a challenging financial report, characterized by significant losses and a revenue miss, yet demonstrating improved liquidity and ongoing strategic developments. As of December 10, 2025, the company's financial profile reflects its pre-commercial stage, marked by unprofitability, high growth percentages from a low base, robust cash reserves, and elevated valuation metrics.

Latest Earnings and Revenue Growth:
For the third quarter ended September 30, 2025, NuScale reported a net loss of $1.85 per share, substantially wider than the analyst consensus estimate of a $0.1472 loss per share. This also significantly exceeded the $0.18 per share loss from Q3 2024. Quarterly revenue was $8.24 million, falling short of analyst expectations ranging from $11.18 million to $11.55 million. Despite missing estimates, this revenue figure represents an impressive 1635.2% year-over-year increase from $0.5 million in Q3 2024, albeit from a very low base. NuScale's three-year revenue growth rate stands at 81.9%. Analysts forecast a full-year 2025 loss of $0.4746 per share on revenues of $45.39 million.

Margins:
NuScale continues to operate with negative margins, indicative of its substantial investment phase in technology development and commercialization. The company reported a negative net margin of 594.63% for Q3 2025. For the trailing twelve months, the operating margin was -233.9%, and the net margin was -221.07%, underscoring significant unprofitability. The net loss for Q3 2025 was $532.65 million, compared to $45.55 million in Q3 2024.

Debt:
NuScale Power maintains a strong balance sheet with respect to debt, reporting a debt-to-equity ratio of 0, meaning it currently carries no debt.

Cash Flow and Liquidity:
As of September 30, 2025, NuScale's overall liquidity significantly increased, with cash, cash equivalents, and investments totaling $753.8 million. This improvement was largely due to a capital raise of $475.2 million in gross proceeds from the sale of 13.2 million Class A shares through an at-the-market (ATM) offering during the third quarter. This was partially offset by a payment of $128.5 million to $148.5 million related to a Partnership Milestones Agreement (PMA) with ENTRA1 Energy. The company's cash flow per share is reported at $0.15.

Valuation Metrics:
NuScale Power's valuation metrics reflect its status as a growth company with significant future potential, rather than current profitability:

• Market Capitalization: Approximately $6.35 billion to $6.53 billion.
• P/E Ratio: -7.44 to -7.54 (negative due to losses).
• Price-to-Sales (P/S) Ratio: 78.17, significantly higher than the industry average, suggesting a premium valuation based on sales.
• Price-to-Book (P/B) Ratio: 12.98, further indicating a high valuation.
• Beta: 2.09 to 3.16, pointing to high stock volatility.

Future Outlook and Analyst Sentiment:
Analysts generally hold a cautious but optimistic outlook, with a median price target of $36.0 over the last six months. However, some have recently cut EPS estimates, with consensus EPS estimates falling by 380% in November. NuScale is projected to remain unprofitable for the next three years. Despite this, revenue is expected to grow significantly, with forecasts ranging from 55.7% to 61.9% per annum, outpacing the U.S. market. Strategic developments, such as the landmark agreement with the Tennessee Valley Authority (TVA) and ENTRA1 Energy for up to six gigawatts of SMR capacity, are positive, but the first plant is not expected to deliver power until 2030, creating uncertainty around the timeline for substantial revenue generation. Concerns also persist regarding Fluor's plan to sell its entire stake in NuScale by Q2 2026.

6. Leadership and Management

As of December 10, 2025, NuScale Power Corporation (NYSE: SMR) is steered by an experienced leadership team and a strategic board of directors, guiding the company through its critical transition from a pioneering research entity to a commercial deployer of Small Modular Reactor (SMR) technology.

CEO and Leadership Team:
John L. Hopkins serves as the President and Chief Executive Officer, a role he has held since December 2012, and is also a member of the Board. The leadership team comprises seasoned industry experts focused on the commercialization of NuScale's SMR technology. Key members include:

• José N. Reyes, Ph.D.: Chief Technology Officer and Co-founder, providing foundational technical expertise.
• Ramsey Hamady: Chief Financial Officer (appointed August 2023), overseeing financial strategy.
• Clayton Scott: Chief Commercial Officer, driving market engagement and partnerships.
• Carl Fisher: Chief Operating Officer (since 2023), managing operational execution.
• James D. Canafax: Chief Legal Officer and Corporate Secretary, ensuring legal and governance compliance.
  The management team is noted for its collective experience, with an average tenure of 2.4 years, and an average age of 63, indicating a blend of fresh perspectives and deep industry knowledge.

Board of Directors:
The Board of Directors brings a diverse set of skills and experiences in finance, the energy industry, and corporate governance. Effective January 15, 2025, Alan Boeckmann will assume the role of Non-Executive Chairman, succeeding Jim Hackett. Boeckmann, a long-standing board member and former CEO and Chairman of Fluor Corporation (NuScale's original sponsor), provides continuity and deep industry insight. The board expanded from eight to ten members in December 2022 with the appointments of Dr. Bum-Jin Chung and Shinji Fujino, further enhancing its nuclear expertise and international perspective.

Corporate Strategy:
NuScale's corporate strategy is centered on revolutionizing the energy landscape with safe, clean, and cost-effective SMR solutions globally. The strategy emphasizes innovation, sustainability, and collaboration, aiming to redefine the nuclear energy sector. Key strategic pillars include:

• SMR Technology Commercialization: Advancing VOYGR SMR power plants towards manufacturing and deployment, utilizing its 77 MWe NuScale Power Module.
• Regulatory Leadership: Capitalizing on its status as the first and only SMR technology with U.S. NRC design approval.
• Strategic Partnerships: Leveraging collaborations like the one with ENTRA1 Energy and the Tennessee Valley Authority (TVA) for large-scale SMR deployment, and pursuing international projects such as RoPower in Romania.
• Market Diversification: Targeting diverse applications beyond electricity, including data centers, industrial process heat, desalination, and hydrogen production.
• Financial Prudence: Managing a strong cash position while transitioning from R&D-focused spending to project delivery.

Governance Reputation:
NuScale's governance reputation is largely built on its significant regulatory achievements and strategic alliances. The company's adherence to stringent safety and operational standards, evidenced by its NRC certifications, underpins its credibility. The experienced and diverse board, particularly with the addition of members with deep nuclear and international expertise, reinforces a commitment to robust governance in a highly regulated sector.

However, as a largely pre-commercial "narrative stock," NuScale's valuation is heavily based on future execution. The termination of the Carbon Free Power Project (CFPP) in November 2023 was a setback, but the company's swift adaptation and recent workforce reduction demonstrate a strategic pivot towards commercialization. While a pristine balance sheet is a strength, ongoing unprofitability and a high cash burn rate warrant careful investor consideration. The market views NuScale as a speculative holding, requiring near-perfect execution to justify its current valuation.

7. Products, Services, and Innovations

NuScale Power Corporation, as of December 10, 2025, is a leading innovator in the Small Modular Reactor (SMR) space, distinguished by its unique technology, strategic partnerships, and a strong pipeline of advanced applications.

Current Offerings:
NuScale's flagship offering is the VOYGR power plant, powered by the proprietary NuScale Power Module (NPM).

• NuScale Power Module (NPM): This is a small, passively safe, pressurized water reactor. Initially, NuScale's 50 MWe (megawatt-electric) design received U.S. Nuclear Regulatory Commission (NRC) certification in 2020. Significantly, as of May 29, 2025, the NRC approved NuScale's upgraded 77 MWe module design, enhancing its power output and commercial appeal. Each NPM is a self-contained unit, integrating the reactor vessel, steam generator, and containment vessel, and relies on natural circulation for cooling, simplifying operations and enhancing safety.
• VOYGR Power Plants: These plants are designed for modularity and scalability, offering configurations such as VOYGR-4 (308 MWe), VOYGR-6 (462 MWe), and VOYGR-12 (924 MWe gross output), allowing for flexible deployment to meet diverse energy needs.
• Services: NuScale provides comprehensive plant services, including technical support for licensing, construction, commissioning, and ongoing operations and maintenance. The company also operates Energy Exploration (E2) Centers, which utilize advanced simulations for operator training and to foster nuclear science and engineering advancements.
• Commercialization Model: NuScale focuses on manufacturing the SMR modules, while its exclusive global strategic partner, ENTRA1 Energy, handles the commercialization, distribution, and deployment, including power plant development, ownership, and operation, and selling energy through long-term Power Purchase Agreements (PPAs).

Innovation Pipelines and R&D Efforts:
NuScale is actively engaged in research and development for advanced applications of its SMR technology, particularly in Integrated Energy Systems (IES).

• Integrated Energy Systems (IES): Research programs are advancing IES that can provide not only electricity but also clean water and energy-efficient hydrogen production.
• Desalination: Studies in June 2025 indicated that a single NuScale Power Module, when coupled with a reverse osmosis desalination system, could produce approximately 150 million gallons of clean water per day, with a 12-NPM plant capable of supplying 2.3 million residents.
• Hydrogen Production: NuScale is exploring innovative methods for hydrogen production, storage, and transport, including high-temperature steam electrolysis using its SMRs and utilizing desalination brine as feedstock.
• CO2 Capture: Patent filings suggest an interest in systems that use reactor-generated heat and electricity for CO2 capture to produce methanol.
• R&D Transition: NuScale's R&D expenses saw a decrease in Q3 2025 compared to Q3 2024, reflecting a strategic shift of personnel from R&D to commercial project execution.

Patents:
NuScale Power boasts a robust intellectual property portfolio, with over 650 patents granted or pending across 21 countries. The company strategically files patents related to Small Modular Reactors and Integrated Energy Systems, aiming to reduce environmental impact and carbon emissions.

Competitive Edge:
NuScale holds several distinct competitive advantages:

• Regulatory First Mover: As the first and only company with U.S. NRC-certified SMR designs (both 50 MWe and 77 MWe), NuScale has a significant regulatory head start, streamlining future licensing and creating a substantial "moat."
• Passive Safety Features: The NPM's advanced passive safety systems allow for indefinite safe shutdown and cooling without external power or operator intervention, enhancing safety and simplifying operations.
• Modularity and Scalability: The flexible VOYGR plant configurations (308 MWe to 924 MWe) enable utilities to match capacity to demand incrementally, reducing upfront costs and financial risk. Factory-built modules aim for faster construction to an estimated 36 months.
• Diverse Applications: The adaptability of NuScale's SMRs for baseload electricity, district heating, desalination, hydrogen production, and powering data centers broadens its market potential.
• Established Partnerships and Projects: Key partnerships, such as with ENTRA1 Energy (leading to the TVA agreement for up to 6 GW of SMR capacity) and international projects in Romania, Poland, and Ghana, demonstrate early commercial traction.
• Government Support: Substantial funding and support from the U.S. Department of Energy (DOE) and initiatives like the U.S. Army's "Janus Program" further bolster NuScale's position.

As of December 10, 2025, NuScale Power is in a critical transition phase, aiming to convert its technological and regulatory leadership into commercial success with its first firm U.S. commercial contract anticipated by year-end 2025.

8. Competitive Landscape

NuScale Power Corporation (NYSE: SMR) operates within a burgeoning and increasingly competitive landscape of Small Modular Reactors (SMRs) and the broader nuclear energy sector. As of December 10, 2025, NuScale's primary differentiator is its regulatory leadership, but it faces significant challenges in commercialization against a backdrop of well-funded rivals.

Industry Rivals:
Competition comes from both established nuclear players and innovative SMR developers globally:

• GE Hitachi Nuclear Energy (GEH): Developing the BWRX-300, which is progressing through regulatory assessments in Canada and the UK.
• Westinghouse Electric Company: Actively developing its own SMR technologies, including the AP300.
• TerraPower: Backed by Bill Gates, focused on advanced reactors like the Natrium, with molten salt energy storage, and securing substantial federal funding.
• Rolls-Royce SMR (UK): Developing a 470 MWe pressurized water reactor, selected by the UK government to lead its SMR program.
• X-energy: Specializing in high-temperature gas-cooled reactors (HTGRs) with its Xe-100 design, attracting significant capital, including a $700 million financing round led by Amazon in 2025.
• Holtec International: Developing SMR designs such as the SMR-160 and SMR-300, also featuring passive safety systems.
• Oklo Inc.: Focused on microreactors, like its 75-megawatt Aurora powerhouse, utilizing recycled nuclear fuel, and noted for advanced development stages.
• International State-Backed Entities: Rosatom (Russia) and China National Nuclear Corporation (CNNC) are already operating SMRs, posing significant global competition.
• Other Developers: Including BWX Technologies, Ultra Safe Nuclear Corporation (USNC), Candu Energy, Moltex Energy, Seaborg Technologies, newcleo, Last Energy, and LeadCold Reactors.

Market Share:
The SMR market is still nascent, making definitive market share figures difficult. However:

• Leading Position: NuScale is often recognized as an "industry-leading provider" due to its U.S. regulatory first-mover advantage.
• Market Size & Growth: The global SMR market was estimated at $6.3 billion in 2024, projected to grow to $13.8 billion by 2032 (CAGR of 9.1%). In terms of installed capacity, it's projected to increase from 312.5 MW in 2025 to 912.5 MW by 2030 (CAGR of 23.9%).
• Funding Concentration: NuScale, X-Energy, TerraPower, and newcleo have captured nearly 92% of the total $3.2 billion in equity funding directed towards SMR-focused firms over the past eight years, indicating significant investor confidence in these leaders.
• Pre-Commercial Status: Despite its regulatory lead, NuScale remains largely pre-commercial, yet to deliver an operational reactor or generate substantial revenue from module sales.

Competitive Strengths:

1. U.S. NRC Design Certification: NuScale is the only SMR technology provider with NRC design certification for both its 50 MWe and uprated 77 MWe modules, giving it a substantial regulatory head start.
2. Proprietary and Innovative Technology: Its VOYGR plants and E2 Centers offer scalable, safe, and cost-effective solutions with advanced passive safety systems.
3. Modular and Scalable Design: The NPM allows for flexible plant sizing (308 MWe to 924 MWe), enabling incremental capacity matching and reduced upfront costs. Factory-built modules aim for faster construction.
4. Strategic Partnerships: Key agreements, including the ENTRA1 Energy/TVA collaboration for up to 6 GW of SMR deployment, and international projects in Romania and Poland, demonstrate early commercial traction.
5. Government Backing: Substantial funding and support from the U.S. Department of Energy (DOE) and other governmental bodies de-risk development and deployment.
6. Diversified Applications: SMRs are positioned for various uses beyond electricity, such as district heating, desalination, and hydrogen production.
7. Shift to Commercialization: Strategic restructuring, including workforce reductions and the establishment of a VOYGR Services and Delivery (VSD) unit, signals a focus on product delivery.

Competitive Weaknesses:

1. Financial Performance and Operational Losses: NuScale continues to report significant net losses and high operational expenses, reflecting the substantial investment required. The Q3 2025 earnings miss and stock plunge in November 2025 highlight financial risks.
2. High Initial Capital Expenditure: Upfront costs, estimated at around $3 billion for a 462 MW plant, can be a barrier for customers.
3. Market Adoption Risks and Limited Operational History: Success depends on widespread market adoption, and NuScale lacks a track record of delivering commercial reactors.
4. Reliance on Government Subsidies: Heavy dependence on grants and partnerships for financial viability poses a risk if support wanes.
5. Execution and Cost Overrun Risks: The nuclear industry has a history of project delays and budget overruns, which NuScale must prove it can avoid.
6. Public Perception Challenges: Nuclear energy still faces public resistance over waste and safety, impacting acceptance.
7. Supply Chain Vulnerability: The specialized nuclear-grade component market is limited, creating potential for disruptions.
8. Dilution Risk: The approved increase in authorized Class A common shares (to 662 million) supports future equity issuance but also heightens near-term dilution risk.
9. Intense Competition: NuScale faces strong competition from other SMR developers, traditional nuclear providers, and advancing renewable energy sources.

In conclusion, NuScale Power holds a significant competitive advantage through its NRC-certified SMR design and early strategic projects. However, it must navigate substantial financial challenges, market adoption hurdles, and a crowded competitive landscape to successfully transition from a developmental stage to a commercially viable and profitable entity in the global clean energy transition.

9. Industry and Market Trends

NuScale Power Corporation (NYSE: SMR) operates within a rapidly evolving nuclear energy sector, specifically the burgeoning Small Modular Reactor (SMR) market. As of December 10, 2025, several sector-level trends, macro drivers, supply chain considerations, and cyclical effects are profoundly impacting the company.

Sector-Level Trends in Nuclear Energy and SMRs:
The global nuclear energy sector is experiencing a resurgence, with generation projected to grow by nearly 3% annually through 2026. SMRs are at the forefront of this transformation, with over 80 diverse designs under development globally.

• Leading Designs: NuScale's VOYGR, with its 77 MW modules and U.S. NRC certification, holds a prominent position. Other key designs include GE Hitachi's BWRX-300, Rolls-Royce, and Westinghouse's AP300. NuScale benefits from a significant first-mover advantage in U.S. regulatory approval.
• Market Growth: The global SMR market is projected for substantial growth, with conservative estimates of $10-15 billion by 2030, and more optimistic projections of $40-50 billion by 2035. Installed capacity is expected to rise from 312.5 MW in 2025 to 912.5 MW by 2030 (CAGR of 23.9%).
• Diverse Applications: SMRs are increasingly seen as versatile solutions beyond electricity generation, including industrial process heat, clean hydrogen production, desalination, and powering energy-intensive data centers for the artificial intelligence (AI) boom. Tech giants like Google, Microsoft, and Amazon are exploring nuclear power for their energy needs.
• Geographic Leadership: North America, particularly the U.S., leads in SMR development, backed by significant government funding. The Asia-Pacific region is the fastest-growing market.

Macro Drivers:

• Decarbonization and Climate Goals: Global efforts to achieve net-zero emissions are driving demand for low-carbon energy. Nuclear power, as a reliable baseload source, is crucial for deep decarbonization.
• Energy Security: Geopolitical events are pushing countries to diversify energy portfolios and reduce reliance on fossil fuels, boosting interest in nuclear energy.
• Government Policy and Funding: Governments worldwide are providing substantial support for SMR development. The U.S. DOE has offered significant funding, including an $800 million initiative in December 2025 to accelerate SMR deployment. The UK government has also committed funds.
• Demand from AI and Data Centers: The exponential energy demand from AI data centers is a powerful new driver for SMR adoption, requiring 24/7 reliable, low-carbon power.
• Coal Replacement: SMRs are being considered for repurposing retiring coal plants, leveraging existing sites and workforces.

Supply Chains:
Developing a robust SMR supply chain is critical but faces challenges:

• Supplier Base: The nuclear industry has seen a decline in qualified suppliers. Investment in new capabilities requires assurance of consistent orders.
• Lack of Standardization: Numerous SMR designs hinder economies of scale in manufacturing and supply chain development.
• Regulatory Hurdles and Financing: Supply chain development is intertwined with the complexity of regulatory processes and financing for "first-of-a-kind" projects.
• Geopolitical Factors: Trade policies and material origins can impact supply chain reliability.
• Modular Manufacturing: SMRs' factory-based manufacturing aims to reduce on-site labor and costs but requires re-tooling and re-training for the existing nuclear supply chain.
• Harmonization Efforts: International initiatives like the IAEA's Nuclear Harmonization and Standardization Initiative (NHSI) aim to streamline regulations and improve supply chain efficiency.
• NuScale's Position: NuScale has proactively established material and outsourcing partnerships, a competitive advantage.

Cyclical Effects Impacting NuScale Power Corporation (SMR):

• "Pre-Revenue" Stage and Volatility: NuScale is largely a pre-revenue company, making its stock highly sensitive to news, partnerships, regulatory milestones, and broader market sentiment.
• Recent Stock Performance (Late 2025): After tripling in value earlier in 2025, NuScale's stock plunged 55.4% in November 2025 following a Q3 earnings miss (net loss of $273 million on $8 million revenue) and a $475 million share issuance.
• Reliance on Partnerships and Orders: NuScale's success hinges on converting Memoranda of Understanding (MOUs) into firm construction contracts. The ENTRA1 Energy/TVA agreement is crucial, but firm orders and significant revenue are still years away.
• Financing and Capital Investment Cycles: SMR development is capital-intensive, requiring ongoing fundraising.
• Investor Confidence and "Hype": While there's excitement around SMRs, investors are closely watching for concrete commercial deployments and sustained revenue. Past project delays have impacted confidence.
• Shareholder Actions: Fluor Corporation, NuScale's largest shareholder, plans to sell its stake in 2026, a development investors are monitoring.

In summary, NuScale Power is positioned within a burgeoning SMR market driven by global decarbonization, energy security, and AI energy demands. While it benefits from a significant regulatory advantage and key partnerships, it faces challenges typical of an early-stage technology firm, including high capital requirements, reliance on converting MOUs to firm orders, and market volatility influenced by project milestones and investor sentiment. The development of an efficient supply chain remains a critical long-term factor.

10. Risks and Challenges

NuScale Power Corporation (NYSE: SMR), despite its pioneering role in Small Modular Reactor (SMR) technology, faces substantial operational, regulatory, and market risks, compounded by ongoing controversies, as of December 10, 2025. These challenges underscore the inherent difficulties in commercializing a transformative, capital-intensive technology in a highly regulated industry.

Operational Risks:

• Pre-Revenue Status and Financial Losses: NuScale is largely a pre-revenue company, generating minimal income primarily from engineering services. It continues to report substantial financial losses and cash depletion. For Q3 2025, the company reported a net loss of $1.85 per share on $8 million in revenue, significantly wider than expected.
• Project Cancellations and Delays: The mutual termination of the Carbon Free Power Project (CFPP) with Utah Associated Municipal Power Systems (UAMPS) in November 2023 was a major setback. This flagship project, intended for the first U.S. SMR deployment, was abandoned due to escalating costs (from $3 billion to $9.3 billion) and failure to secure sufficient power purchase commitments. NuScale's most advanced international project in Romania also faces delays, with the final investment decision now expected between mid-2026 and early 2027.
• Long Timelines to Revenue: Substantial revenue generation from commercial reactor sales is still years away, likely delaying the financial justification for the company's current market valuation.
• Workforce Reduction: A 28% workforce reduction in January 2024, while framed as a strategic pivot, highlights the need for cost control and efficiency during this transitional phase.

Regulatory Risks:

• Ongoing Scrutiny for New Designs: While NuScale has achieved U.S. NRC design approval for its 50 MWE and 77 MWE SMRs, regulatory scrutiny continues. In June 2024, the NRC requested additional information regarding the 77 MWe design, specifically questioning risk mitigation plans and the categorization of certain systems, raising concerns about "defense-in-depth" strategies. Further regulatory work is required before commercial construction can begin.
• Complex Licensing Process: Beyond design approval, obtaining a combined operating license (COL) from the NRC for each specific project involves lengthy and expensive processes, including addressing site-specific emergency planning zones and multi-module operations.
• International Regulatory Fragmentation: Differing national regulations globally can complicate and slow down international deployment efforts, increasing costs.

Controversies:

• Shareholder Lawsuits: Following the CFPP cancellation and a sharp stock decline, multiple law firms announced class-action shareholder lawsuits in late 2023 and 2024. These allege that NuScale made materially false or misleading statements regarding the financial viability of the Idaho project. While some initial allegations were dismissed in May 2025, new investigations have emerged.
• SEC Investigation: In July 2024, reports surfaced of an "active and ongoing" SEC investigation into NuScale. While NuScale initially denied awareness, it later admitted in August 2024 that the SEC had requested information in December 2023 regarding employment, severance, and confidentiality agreements, raising concerns about potential whistleblowing suppression.
• "Misleading" Research Reports: NuScale has been targeted by short-selling firms, such as Iceberg Research, which published a report in October 2023 alleging inaccuracies in NuScale's business and prospects, particularly regarding the UAMPS project. NuScale has vehemently refuted these claims.

Market Risks:

• Stock Volatility: NuScale's stock has experienced extreme volatility, including a 31% drop in August 2025 and a 55% plunge in November 2025, driven by limited revenue, substantial losses, and an uncertain project pipeline.
• Lack of Firm Revenue-Producing Contracts: Despite the landmark agreement with ENTRA1 Energy and the Tennessee Valley Authority (TVA) for up to 6 GW of SMR capacity, this is not yet a binding Power Purchase Agreement (PPA), and firm orders and revenues are still years away.
• Fluor's Planned Divestment: Fluor, NuScale's largest shareholder, plans to sell its entire stake by Q2 2026. This move, while strategic for Fluor, could be perceived as a lack of confidence by investors and create selling pressure.
• High Valuation and Dilution Risk: NuScale's stock valuation remains very high, based on future potential rather than current fundamentals. Reliance on at-the-market equity offerings and the approved increase in authorized shares (from 332 million to 662 million) raise concerns about potential dilution for existing shareholders. Failure to secure approval for the share increase could even raise substantial doubt about its ability to continue as a going concern.
• Competition and Market Adoption: NuScale faces intense competition from other SMR developers and traditional nuclear providers. The success of its technology hinges on broader market adoption, which is still in its nascent stage.
• Cost Overruns for SMRs: Critics argue that SMRs may not offer significant cost advantages over larger reactors on a per-megawatt basis, potentially leading to higher electricity prices. The industry continues to struggle with cost control and establishing robust supply chains.

In conclusion, NuScale Power Corporation, as of December 2025, presents a high-risk investment due to its pre-revenue status, ongoing financial losses, significant project cancellations and delays, persistent regulatory hurdles, investor lawsuits, and a volatile stock performance. While the potential of SMR technology is widely recognized, NuScale's ability to translate its technological lead into profitable commercial deployment remains a substantial challenge.

11. Opportunities and Catalysts

NuScale Power Corporation (NYSE: SMR) is strategically positioned to capitalize on numerous opportunities and potential catalysts that could drive significant growth and value creation. As of December 10, 2025, these range from its pioneering technology and expanding market demand to strategic partnerships and governmental support.

Growth Levers:

• Regulatory Leadership: NuScale holds a unique and significant first-mover advantage as the only SMR technology with U.S. Nuclear Regulatory Commission (NRC) design certification for both its 50 MWe and uprated 77 MWe modules (approved May 2025). This regulatory "moat" streamlines licensing for future projects and sets it apart from competitors.
• Addressing AI and Data Center Energy Demand: The explosive growth of artificial intelligence (AI) and data centers is creating an unprecedented demand for reliable, carbon-free baseload power. NuScale's scalable SMRs (up to 924 MWe) are ideally suited to meet this need, and the company's CEO has noted "unprecedented interest" from this sector.
• Decarbonization and Energy Transition: Global mandates for net-zero emissions and energy independence position SMRs as a critical component of the clean energy transition. NuScale's technology offers a carbon-free, baseload power solution that can complement intermittent renewables and facilitate the repowering of retiring coal plants.
• Strategic Partnerships and Commercialization: The exclusive global strategic partnership with ENTRA1 Energy is crucial for de-risking projects and accelerating deployment. NuScale is actively transitioning to secure "hard contracts" for its VOYGR power plants.

New Markets:
NuScale is aggressively pursuing new markets both geographically and in terms of diverse applications.

• International Expansion:
  • Romania: A flagship project for a 462 MWe plant is in the Front-End Engineering and Design (FEED) phase, with a Final Investment Decision (FID) expected in 2026, targeting operation by 2030.
  • Poland: A partnership with KGHM Polska Miedź SA aims to deploy a VOYGR-12 SMR (924 MWe) by as early as 2029.
  • Ghana: An agreement was signed in August 2024 for Ghana's inaugural commercial nuclear project, involving a VOYGR-12 SMR.
  • Estonia: An MOU with Fermi Energia evaluates SMR plant deployment by 2031.
• Diversified Applications: Beyond traditional electrical generation, NuScale's SMRs are positioned for:
  • Powering data centers.
  • District heating.
  • Desalination (a single module could produce 150 million gallons of clean water daily).
  • Commercial-scale hydrogen production.
  • Other process heat applications for heavy industry.

M&A Potential:

• Industry Consolidation & Investment: The rapid growth and significant investments in the SMR market (e.g., U.S. DOE's $800 million funding in December 2025) could lead to further strategic partnerships, joint ventures, or consolidation.
• Fluor's Exit: While Fluor's planned divestment in 2026 could introduce volatility, it also removes a potential overhang and could lead to a broader, more diversified institutional ownership base.
• Authorized Share Increase: The stockholders' approval on December 16, 2025, to increase authorized Class A common shares to 662 million provides flexibility for future equity issuance to fund major projects and potentially strategic investments.

Near-Term Events (as of 12/10/2025):

• U.S. Contracts: NuScale's CEO anticipates securing "hard contracts" with two or three major U.S.-based customers by the end of 2025, a critical near-term catalyst.
• TVA Agreement Progress: The landmark collaboration with the Tennessee Valley Authority (TVA) and ENTRA1 Energy for up to 6 GW of SMR capacity in the U.S. is a major driver. Progress on converting this into binding Power Purchase Agreements (PPAs) will be closely watched. First power delivery is anticipated by 2030.
• AI Data Center Deployments: Standard Power's plan to deploy 24 of NuScale's 77 MWe modules by 2029 for two SMR-powered data centers in Ohio and Pennsylvania (1,848 MWe total) signifies concrete market traction.
• Romania Project Milestones: The RoPower project is moving forward, with a final investment decision expected in 2026.
• Manufacturing Readiness: NuScale has 12 modules already in the manufacturing process with partner Doosan, with a capacity to deliver 20 per year as orders materialize.
• Q4 2025 Earnings: Projected for March 11, 2026, this will provide an update on financial performance and project progress.

In summary, NuScale Power is at a pivotal stage, poised to translate its technological and regulatory leadership into commercial contracts and global deployments. While financial performance has shown revenue growth, significant losses persist as the company invests heavily in commercialization. The successful securing of definitive contracts and ongoing project execution will be key determinants of its short-to-medium-term trajectory.

12. Investor Sentiment and Analyst Coverage

As of December 10, 2025, investor sentiment for NuScale Power Corporation (NYSE: SMR) is a complex blend of caution and long-term optimism, significantly influenced by recent stock volatility and the company's pre-commercial status.

Wall Street Ratings and Analyst Coverage:
Analyst coverage for NuScale is mixed. MarketBeat data indicates a "Reduce" consensus, with an average price target of $36.12. Other analyses show a "Hold" consensus with an average price target of $38.50 from 7 analysts, suggesting an 80.58% upside from the December 5, 2025, price of $21.39. A broader analysis of 16 Wall Street analysts shows a neutral consensus with a median price target of $37.50 (ranging from $15.00 to $60.00), implying a 75.3% upside from the current trading price. This is composed of 6 Buy, 7 Hold, and 3 Sell ratings.

Recent analyst actions reflect the shifting sentiment:

• UBS reiterated "Neutral" and cut its price target to $20.00 from $38.00 (November 25, 2025), citing near-term headwinds like Fluor's stake monetization and the need for new equity.
• RBC Capital maintained "Hold" and adjusted its price target to $32.00 from $35.00 (November 10, 2025).
• Cantor Fitzgerald initiated coverage with a "Buy" rating and a $55.00 price target (October 21, 2025).
• Citigroup downgraded NuScale to "Sell" from "Hold" and lowered its price target to $37.50 from $46.00 (October 21, 2025), further reducing it to $18.50 later, reflecting a 52% stock decline over the quarter.
• B of A Securities downgraded to "Underperform" with a $34.00 price target (September 30, 2025).
• Zacks Research cut the stock to a "strong sell" (November 12, 2025), and Weiss Ratings reissued a "sell (d-)" rating (December 1, 2025).

Hedge Fund Moves and Institutional Investors:
Institutional investors hold significant sway, with approximately 78.37% institutional ownership. In Q3 2025, 302 institutions increased their positions, while 201 decreased them. Key holders include Vanguard Group Inc., BlackRock, Inc., and Samsung C&T Corp.

• D. E. SHAW & CO., INC. significantly reduced its position by 69.5%.
• TIDAL INVESTMENTS LLC dramatically increased its holdings by 639.3%.
• SAMSUNG C&T CORP increased its stake by 98.9%, making NuScale 100% of its 13F reportable portfolio.
• UBS GROUP AG decreased its holdings by 54.5%.
• Clear Street Group Inc. purchased a new stake worth approximately $155.6 million.
  A notable development is Fluor's plan to monetize its remaining stake by Q2 2026, which has contributed to downward pressure and signals mixed investor confidence.

Retail Chatter:
Retail investor sentiment has been characterized by "intense discussions on X" (formerly Twitter) following dramatic stock price swings, including the recent 50%+ decline. Discussions oscillate between concerns over fundamental company issues and optimism for future potential, especially regarding SMRs powering AI data centers. While some express hope for government support and future partnerships, others remain skeptical about project timelines and costs. Technical indicators as of December 9, 2025, suggest a "bearish" sentiment, with the Fear & Greed Index showing "Fear" at 39. Despite this, a Simply Wall St. analysis on December 10, 2025, highlighted NuScale's SMR ambitions gaining traction with the ENTRA1/TVA agreement, though noting it's not yet a binding Power Purchase Agreement.

In essence, while NuScale's technological lead and strategic partnerships provide a compelling long-term narrative, recent financial performance, significant insider selling, and the inherent risks of a pre-commercial, capital-intensive industry have created a cautious short-term outlook among analysts and investors.

13. Regulatory, Policy, and Geopolitical Factors

NuScale Power Corporation (NYSE: SMR) operates within a complex and evolving environment marked by significant regulatory advancements, robust government backing, and a fluctuating geopolitical landscape as of December 10, 2025. The company has achieved crucial design approvals and forged strategic partnerships, paving the way for the deployment of its small modular reactor (SMR) technology both domestically and internationally. Nonetheless, it continues to face challenges related to regulatory harmonization, cost control, and global market competition.

Laws and Compliance:
NuScale has reached key regulatory milestones with the U.S. Nuclear Regulatory Commission (NRC). Its 50-MWe SMR design received the first-ever certification for an SMR from the federal regulatory agency in January 2023. Building on this achievement, the NRC approved NuScale Power's uprated 77-megawatt electric (MWe) reactor design (US460) in May 2025. This makes NuScale the only SMR technology company with two NRC-approved designs, solidifying its leadership in the SMR industry. This Standard Design Approval (SDA) enables companies to reference the NuScale US460 SMR design in applications for construction permits or operating licenses.

Despite these successes, the overall licensing process for SMRs can still be protracted and costly. Individual project licensing continues to face uncertainties regarding emergency planning zones, multi-module operations, and integration into existing grid infrastructure. A subsequent step after design approval involves obtaining a combined operating license (COL) from the NRC, which grants permission for both construction and operation of the reactor.

Internationally, fragmented regulatory frameworks present a significant hurdle for global SMR deployment. Leading nuclear companies, including U.S. firms, are advocating for the harmonization of SMR regulations to achieve standardization and economies of scale. The International Atomic Energy Agency (IAEA) is actively involved in initiatives like the SMR Pilot School (launched in August-September 2025) to prepare regulators for new SMR technologies. However, some national regulatory bodies, such as Germany's Federal Office for the Safety of Nuclear Waste Management (BASE), have cautioned against compromising national safety standards in the pursuit of harmonization. Recent maritime SMR research, published in November 2025, also underscores the urgent need for unified global safety, liability, and port-access rules, indicating that the technology is advancing faster than the regulatory frameworks. Bilateral agreements, such as the September 2025 Memorandum of Understanding between the U.S. NRC and the UK Office for Nuclear Regulation, aim to accelerate the deployment of next-generation nuclear technologies by setting targets for reactor design reviews within two years and nuclear site licensing within one year.

Government Incentives:
U.S. Federal Support: The U.S. Department of Energy (DOE) has been a crucial financial supporter of NuScale, contributing over $575 million towards the design and licensing of its SMR plant. The Trump administration has actively promoted nuclear energy, issuing four executive orders in May 2025 aimed at expanding reactor deployments, streamlining regulations, and bolstering domestic fuel and equipment supply chains. These orders mandate the NRC to review new reactor applications within 18 months and direct the U.S. Secretary of State to secure new international agreements for nuclear technology exports.

In March 2025, the DOE re-issued a $900 million solicitation to support SMR deployment, specifically targeting the de-risking of Generation III+ light-water SMRs. This includes up to $800 million for "First Mover Team Support" for collaborations involving utilities, reactor vendors, constructors, and end-users committed to deploying an initial plant. To address supply chain vulnerabilities, particularly the reliance on Russian-produced High-Assay Low-Enriched Uranium (HALEU), the DOE has released 20 metric tons of HALEU from strategic reserves.

State and International Incentives: At the state level, Indiana has implemented an aggressive SMR support framework through several legislative bills. Internationally, the U.S. government is actively promoting nuclear technology exports, with the EU Commission committing to purchase an estimated $300 billion worth of U.S. energy sources and nuclear technology over the next three years as part of a broader energy agreement.

Geopolitical Risks and Opportunities:
Geopolitical Risks:

• Supply Chain Vulnerabilities: While NuScale maintains that its components can be fabricated by existing qualified vendors, the broader nuclear industry remains susceptible to supply chain disruptions. Dependence on foreign enriched uranium, particularly from Russia, poses a risk, though U.S. initiatives aim to reduce this reliance. New U.S. tariffs could also significantly impact NuScale's global supply chain, potentially increasing production costs and undermining projected cost-effectiveness and speed to market.
• International Regulatory Fragmentation: Divergent national safety requirements and site-specific design adjustments can lead to increased costs and slower international deployment.
• Public Opposition: SMR projects face challenges from public perception, environmental justice concerns, and potential "not in my backyard" (NIMBY) lawsuits.
• Project Delays and Cost Overruns: NuScale has experienced past challenges, notably the abandonment of the Carbon Free Power Project (CFPP) with Utah Associated Municipal Power Systems (UAMPS) in late 2023 due to financing difficulties and escalating costs, despite substantial federal funding. This underscores the execution risks inherent in pioneering reactor deployments and the potential for cost overruns.
• Competition: NuScale faces competition from other SMR developers; those with protracted licensing processes or an inability to secure significant deployment deals may struggle to gain market share.

Geopolitical Opportunities:

• Energy Security and Decarbonization: The global transition away from fossil fuels, coupled with heightened demands for energy security, positions nuclear energy, particularly SMRs, as a vital carbon-free energy source. Countries like Poland are actively considering SMRs to reduce coal dependence and meet decarbonization targets.
• International Partnerships and Market Expansion: NuScale has secured significant international agreements, including a 4.4 GW nuclear project in Romania with RoPower and an expansion into Africa through an agreement with Ghana and Regnum Technology Group in August 2024. The company also partnered with KGHM Polska Miedź SA in February 2022 to deploy its VOYGR-12 SMR plant in Poland, aiming for operation by 2029. Collaborations, such as with Ukraine's State Scientific and Technical Center for Nuclear and Radiation Safety, aim to align regulatory frameworks.
• U.S.-Japan Framework Agreement: NuScale's exclusive global strategic partner, ENTRA1 Energy, is positioned to receive up to $25 billion in funding under the $550 billion U.S.-Japan Framework Agreement, announced in October 2025. This agreement targets critical energy infrastructure expansion and supply chain strengthening, with ENTRA1 Energy developing power plants utilizing NuScale SMRs.
• Demand from AI and Data Centers: The escalating power demands of cloud infrastructure and artificial intelligence (AI) markets are driving a significant need for reliable, low-carbon baseload power, creating a substantial market opportunity for SMRs. ENTRA1 Energy has secured an agreement with the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts of NuScale SMR capacity across seven U.S. states, specifically targeting energy for AI and industrial growth.
• Military Applications: The U.S. Army's "Janus Program," launched in October 2025, aims to integrate commercially owned and operated nuclear microreactors into military installations worldwide by September 2028, positioning NRC-approved technologies like NuScale's as prime candidates.

14. Outlook and Scenarios

NuScale Power Corporation (NYSE: SMR) faces a dynamic outlook as of December 10, 2025, characterized by both compelling long-term potential and significant near-term uncertainties. The company's trajectory will be shaped by its ability to translate regulatory and technological leadership into commercial success.

Bull Case Outlook:
The bullish scenario for NuScale hinges on its pioneering position in the SMR market and the escalating global demand for clean, reliable, and scalable energy.

Short-Term Bull Case (Late 2025 – 2026):

• Regulatory First-Mover Advantage: NuScale's exclusive U.S. NRC design approval for its 50 MWe and 77 MWe SMRs provides a crucial head start, streamlining future project licensing.
• Expanding Project Pipeline: The landmark agreement with ENTRA1 Energy and the Tennessee Valley Authority (TVA) for a large SMR deployment program in the U.S. is a major catalyst. Continued progress on international projects, such as the RoPower Doicești project in Romania, reinforces global traction.
• Strong Liquidity: With $753.8 million in cash and investments as of Q3 2025, NuScale has a substantial financial buffer for ongoing operations and project development.
• Growing Market Interest: The surging energy demands from AI data centers and the broader decarbonization push create a highly favorable market environment for SMRs.

Long-Term Bull Case (2027 and beyond):

• Successful Deployment: The successful commissioning and operation of NuScale's first VOYGR power plants would validate the technology and accelerate wider adoption globally.
• Scalability and Versatility: The modular design (up to 924 MWe) and diverse applications (electricity, district heating, desalination, hydrogen production) expand NuScale's total addressable market significantly.
• Cost Reduction: Economies of series from standardized, factory-built SMRs are expected to reduce construction costs and timelines over time as more units are produced and deployed.
• Sustained Government Support: Ongoing global governmental support and incentives for advanced nuclear technologies are anticipated to drive long-term growth for SMRs.

Bear Case Outlook:
The bearish scenario emphasizes NuScale's significant financial challenges, execution risks, and competitive pressures within a nascent industry.

Short-Term Bear Case (Late 2025 – 2026):

• Continued Financial Losses: NuScale's Q2 and Q3 2025 earnings misses, reporting wider-than-expected losses, highlight the substantial costs of scaling advanced nuclear technology prior to widespread commercialization.
• Project Delays and Uncertain Timelines: While the TVA agreement is positive, converting it into binding Power Purchase Agreements (PPAs) and executing projects on time and budget remains a challenge. The past cancellation of the CFPP project demonstrates these risks.
• Insider Selling and Investor Sentiment: Recent stock volatility (50%+ decline in the past month) and Fluor's planned divestment in 2026 could signal waning confidence from major investors and create selling pressure.
• Intense Competition: NuScale faces strong competition from well-funded rivals like Westinghouse, GE Hitachi, and TerraPower, who are also advancing SMR technologies.
• High Capital Requirements and Dilution Risk: Sustained losses and potential project cost overruns could necessitate further capital raises, leading to dilution for existing shareholders, especially with the recently approved increase in authorized shares.

Long-Term Bear Case (227 and beyond):

• Unproven Economic Viability: If promised cost reductions through modularization do not fully materialize, SMRs may struggle to compete economically with other energy sources.
• Global Regulatory Hurdles: Fragmented international regulatory frameworks and permitting challenges could prolong deployment timelines and increase costs worldwide.
• Public Perception: Despite enhanced safety features, nuclear power still faces public resistance, which could hinder widespread SMR adoption.
• Supply Chain Constraints: Scaling global SMR production will require a robust supply chain for specialized components, which could face bottlenecks.

Strategic Pivots for NuScale Power Corporation:
To mitigate risks and capitalize on opportunities, NuScale may implement several strategic pivots:

1. Accelerated Commercialization: Prioritize converting MOUs and agreements into definitive EPC contracts and binding PPAs, particularly with ENTRA1 Energy and TVA. Leverage ENTRA1's "one-stop shop" model for financing and project development to reduce NuScale's direct financial burden.
2. Market Diversification: Aggressively pursue opportunities in high-demand sectors like AI data centers and industrial process heat (e.g., hydrogen production), where SMRs offer compelling value propositions. Expand the international footprint through strategic alliances in supportive markets.
3. Enhanced Investor Relations: Improve transparency on financial performance, project timelines, and the path to profitability to rebuild investor confidence. Proactively manage communications regarding Fluor's exit to minimize market disruption.
4. Technological Evolution: Continue R&D into advanced SMR features, fuel cycles, and integrated energy systems for applications like clean hydrogen production.

In summary, NuScale Power's outlook presents a compelling long-term growth story driven by its technological leadership and market potential. However, the short-term will likely be characterized by continued financial scrutiny, critical project execution, and the need to solidify its commercial pipeline to convert its regulatory advantage into substantial revenue and sustained profitability.

15. Conclusion

NuScale Power Corporation (NYSE: SMR) stands at a critical juncture as of December 10, 2025, embodying both the immense promise and the inherent challenges of pioneering a transformative energy technology. The company's journey from academic research to a publicly traded entity with U.S. Nuclear Regulatory Commission (NRC)-approved Small Modular Reactor (SMR) designs is a testament to its innovation and perseverance.

Summary of Key Findings:
NuScale's financial performance in Q3 2025 revealed significant losses ($1.85 per share) and a revenue miss ($8.24 million), contributing to a dramatic stock plunge of over 50% in November 2025. Despite this, the company maintains a strong liquidity position, with $753.8 million in cash and investments, bolstered by recent capital raises. Its regulatory leadership is undeniable, being the only SMR technology provider with multiple NRC-approved designs (50 MWe and 77 MWe). Strategic partnerships, notably the landmark agreement with ENTRA1 Energy and the Tennessee Valley Authority (TVA) for up to 6 gigawatts of SMR deployment, and international projects in Romania and Poland, underscore its commercial potential. However, the planned divestment by Fluor, a long-time major shareholder, and the long timelines to commercial operation (early 2030s for first plants) introduce elements of uncertainty and potential share dilution risks.

Balanced Perspective:
The bull case for NuScale is compelling, rooted in its unparalleled regulatory advantage and the burgeoning global demand for clean, reliable, and scalable energy. SMRs are increasingly seen as a vital solution for decarbonization, energy security, and powering energy-intensive sectors like AI data centers. NuScale's modular, passively safe design offers flexibility and could revolutionize power generation. The ENTRA1/TVA agreement represents a significant step towards large-scale U.S. deployment, potentially de-risking future projects.

Conversely, the bear case highlights the substantial financial and execution risks. NuScale remains a pre-revenue company with significant ongoing losses, requiring continuous capital infusion. The cancellation of the Carbon Free Power Project (CFPP) serves as a stark reminder of project execution challenges and cost overruns. The long lead times before substantial revenue generation, coupled with intense competition and potential supply chain vulnerabilities, mean that NuScale's current high valuation rests heavily on future, unproven commercial success. The uncertainty surrounding binding Power Purchase Agreements (PPAs) and the impact of Fluor's exit also weigh on investor sentiment.

What Investors Should Watch For as of 12/10/2025:
Investors in NuScale Power Corporation should meticulously monitor several critical factors:

1. Conversion of Agreements to Binding PPAs: The most crucial near-term catalyst is the conversion of preliminary agreements, particularly the TVA/ENTRA1 collaboration, into definitive, revenue-generating Power Purchase Agreements.
2. Financial Performance and Capital Management: Scrutinize future earnings reports for signs of improved financial discipline, revenue growth (even if small initially from engineering services), and efficient deployment of its cash reserves. The balance between funding ambitious projects and managing shareholder dilution will be critical.
3. Fluor's Exit Impact: Observe the market's reaction to Fluor's planned divestment throughout 2026 and whether it influences other institutional investors or causes further stock volatility. The manner and pace of Fluor's share sales will be important.
4. Project Execution and Timelines: Track progress on current projects, particularly the RoPower plant in Romania and the Poland initiative, as well as the initial phases of the TVA/ENTRA1 deployment. Any significant delays or cost overruns could negatively impact investor sentiment. The anticipated 2029-2030 operational timelines for first plants are crucial benchmarks.
5. Competitive Landscape and Market Share: While NuScale has a first-mover advantage, the SMR market is competitive. Investors should watch for the progress of other SMR developers in obtaining regulatory approvals and securing their own deployment agreements, especially as demand for SMRs grows from industries like AI and advanced manufacturing.
6. Government Support and Policy: Continued government support, funding initiatives (like those from the U.S. Department of Energy), and regulatory streamlining will be vital for the acceleration of SMR deployment and could significantly de-risk future projects.

In conclusion, NuScale Power represents a high-potential, yet high-risk investment. Its technological leadership and major strategic partnerships position it well for the long-term growth of the SMR market. However, investors must be prepared for continued financial losses, potential share dilution, and the inherent long timelines and execution risks associated with bringing a transformative energy technology to commercial scale.

This content is intended for informational purposes only and is not financial advice