Nuscale Power Corp Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Marc Bianchi - TD Cowen - Analyst : Ramsey, I guess just a follow-up on that. You talked about the operating expense increase in the second half. Curious if you could quantify that. And is this related to the earlier plan to increase the long-lead item procurement? Or are you actually increasing that again? So I think it was 12 modules. Are you going up to more than that? Or is this just part of the original plan and the phasing of that spend?

Question: Marc Bianchi - TD Cowen - Analyst : Okay. Great. Another question on, so Fluor when they had their quarter, the other day, they also had an announcement about converting shares to share that said they're looking at a stock market facing solution rather than the strategic that they've been talking about for several quarters. And I guess I'm curious, I know you guys don't have anything to say probably about their plans for selling stock. But my question is more about the strategic transaction, some presume partner of NuScale's or would be partner of NuScale's that could have an equity stake now no longer potentially having that equity stake? Does it change sort of the business outlook or the go-to-market strategy that you guys would have that strategic wants to be an equity holder

Question: Sherif Elmaghrabi - BTIG LLC - Analyst : Can you remind us how many modules Doosan can make in a year? And you talked about maintaining discipline. What would it take for you to order long lead items for another six modules this year?

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : So obviously, in Q2, I mean, the uprate approval, that was a very nice event to have that occur early. I'm curious, has that set off maybe a higher number of discussions, maybe taking those discussions to an elevated level of engagement. I mean, obviously, that was a needed step to reach your goal of a firm commitment by the end of 2025. So just curious the response for the impact of that.

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : Yeah, absolutely. No. I mean a clear differentiator, maybe a good segue. I mean, obviously, this took you -- I mean, the uprate clearly a shorter period of time given that you'd already had the first uprate and that, that was an add-on. But as you think about the regulatory process and the differentiator that, that is in the market, maybe some high-level thoughts on the regulatory environment and a lot of the talk about whether it's streamline process, potentially the DoD or the DOE having to say in the regulatory side of it. Just maybe what you think that means for some of your competitors or just others in the market, that would be very helpful.

Question: Soundarya Iyer - B. Riley Securities - Analyst : This is Soundarya on behalf of Ryan Pfingst from B. Riley Securities. I just wanted to touch on the macro part, like looking at the recent executive orders, like what do you guys think are the mandates or directions in the executive orders, which are like most beneficial for NuScale specifically?

Question: Soundarya Iyer - B. Riley Securities - Analyst : That's helpful. And if I may add in just one more. Like on your expectation on sort of like what would be the host project or how it would look like in terms of potential partners or the power users like --

Question: Craig Shere - Tuohy Brothers - Analyst : On Sherif's question and the answer about the supply chain, having the ability to make up 20 modules annually, does that mean you have the ability to shoulder two orders, somewhat currently of a 12 module and a six molecule order? But we couldn't shoulder, say, two dozen orders simultaneously? And to there's any kind of competition in terms of getting it to the customer on time by the 2030, 2031, what kind of negotiation discussion coordination do you have with ENTRA1 if maybe you have a six module order ready to go, but that might slow down a 12 module?

Question: Craig Shere - Tuohy Brothers - Analyst : That's helpful. So you had mentioned, I believe, historically, that you're on the hook if you don't have a customer covering for over a couple of hundred million dollars of CapEx the next couple of years on what you've already ordered. And then you just said you're going to be ramping OpEx and presumably having a wider cash burn. So is it fair to say that this is carpe diem time that the second half of this year is a critical time to get signed and delivered customer commitment or two that can start shouldering some of this so you don't have to do it all on balance sheet?

Question: Leanne Hayden - Canaccord Genuity Corp - Analyst : Congrats on the NRC upgrade approval. Just to start, I was curious if you've noticed any industry trends in terms of project financing. Just curious broadly, if you've noticed any sort of third-party ecosystem or anything of that nature taking shape?

Question: Leanne Hayden - Canaccord Genuity Corp - Analyst : Certainly, yeah. Completely agree. Just one more for me. Of course, there's been a lot of exciting momentum domestically in the nuclear space. Just curious you're seeing any sort of similar trends internationally in terms of customer interest specifically?

Question: Marc Bianchi - TD Cowen - Analyst : Yeah. John, I heard you comment on -- in reference to the RoPower project that they would be -- I think you said looking at FID later in '26 or early '27. If I recall that, that's a little bit later than we previously talked about. Can you talk about what's going on there? And when we should be kind of expecting the cost estimate and Phase 2 fee to wrap up?

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Apologies, I jumped on late, so some of this may be redundant, but I caught the last tail of the question right before me. Could you provide us an update kind of on RoPower timing and kind of what the milestones are. I thought that was one where originally, you guys are maybe targeting as early as end of calendar '25 to see something kind of up there, but can you give us the latest on where RoPower stands? And then I had a follow-up.

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Okay. Fair enough. And so presumably -- and I think you guys have been public about targeting maybe a US-based customer being your first to move forward sometime by the end of this year. Is that still kind of the target? And what are the latest discussions you're having with some of your key constituents on the US customer side of things? And then maybe if I could just squeeze one last one in, the Trump executive orders, obviously, we've all gone through those. It seems like there's some action happening behind the scenes, things kind of moving forward. solicitations, et cetera. Could you kind of give us a bit of an update as to where your visibility stands around some of the executive orders and maybe where NuScale is to be positioned to potentially see some benefits from those moving forward?