Nuscale Power Corp Q3 2025 Earnings Call Transcript

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

Question: Drew Nordquist - Cantor Fitzgerald LP - Analyst : This is Drew Nordquist on for Derek. I have two questions. First is regarding your supply chain. I saw that (inaudible) signed an agreement to deliver four Westinghouse AP1000s for a different company. I'm just wondering how that's going to impact your ability to secure supply?

Question: Drew Nordquist - Cantor Fitzgerald LP - Analyst : And then you briefly mentioned the US and Japan agreement. Can you just go into a little bit further detail on that and how it affects you guys?

Question: Drew Nordquist - Cantor Fitzgerald LP - Analyst : Yeah, I'd like to add --

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : Can we just start with the TVA setup you've got? I mean, just to be clear, because I've taken some questions, and it's clear that some people are a bit confused by it, but we should view this as this is a very critical step towards getting to your goal, which is a firm agreement by the end of 2025. This isn't necessarily that step, but it is a great indicator that you've kind of got all of the pieces in place, and now it's about getting that PPA signed. Is that right?

Question: Eric Stine - Craig-Hallum Holdings LLC - Analyst : Got it very exciting, no doubt. So we'll stay tuned on that. And then maybe just on the agreement that you announced today with Fluor, just on the monetization. In there, you talk about waiving certain -- I'm trying to look -- waiving certain claims related to commitments. Can you just talk -- I mean, does that change at all or signal something on Fluor's commitment? Is it unchanged? Or is that maybe opening it up that you can work with Fluor and you can work with others.

Question: Leanne Hayden - Canaccord Genuity Corp - Analyst : Just want to follow up on the ENTRA1 TVA agreement, discussed prior, what you view as the gating factors to ENTRA1 site evaluation or construction permit, NRC application?

Question: Leanne Hayden - Canaccord Genuity Corp - Analyst : Okay. And to the extent that there are any limitations on your ability to raise incremental equity given the monetization agreement with Fluor, how do you anticipate needing ENTRA1 milestone payments?

Question: Soundarya Iyer - B. Riley Securities Holdings Inc - Analyst : I'm asking on behalf of Ryan Pfingst. So my first part would be like what your confidence level that we see a binding agreement with TVA in the near term? And what has to be done for that to happen in the near term? And secondly, is TVA agreement is the main one that we are looking for as a firm order? Or is there a possibility that we could see some -- another agreement jumping in line?

Question: Soundarya Iyer - B. Riley Securities Holdings Inc - Analyst : Got it. No. Just to follow up on the financing question asked earlier. So once you hit the Milestone 2, could you give some color on your revenues to finance these payments, especially as they become greater in size, I think it's 35%? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, SMR.N - Q3 2025 Nuscale Power Corp Earnings Call

Question: Dimple Gosai - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Could you please help provide some clarity on how many of those 6 gigawatts under TVA are likely to reach a binding milestone under your partnership agreement? And what are the expected timing and economics for NuScale? And then the second part to that is, have any payments being made today to recognize? And how do you envision recognizing revenue and cash from ENTRA1 milestones across 2026 to 2028.

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : I know a lot of questions around this ENTRA1, TVA so apologies in advance because I have a few more. So the agreement here is targeting 6 gigawatts. And it looks like based on the first milestone payment you made this quarter, you're targeting the full 6 gigawatts. As you mentioned during part of the call, TVA is looking at other options across the nuclear technology spectrum. I won't name the names, but it's been in the press. And so if TVA decided rather than doing 6 gigawatts, they want to do -- just throw a number out there, 1.5 gigawatts, 1 gigawatt with NuScale. Do you get that money back from ENTRA1? Or does it roll over to another development? Like you're paying basically 4, 6 gigawatts on a nonbinding basis, but what happens if they never take that to fruition and get to PPA on the full 6 gigawatts?

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Yeah. Understood. That makes sense. Second question I had was just Ramsey and Clayton, I think you guys have spent a lot of time on this call sort of talking about ENTRA1 and articulating why that's the right partner, the right approach to go to market? And then also on the financial terms, lots of commentary around how the payments work and having the funding in place to be able to satisfy the milestone payments all the way through PPA. I guess the big question that we all have on our mind is when does NuScale get paid from ENTRA1? And I would presume it's at PPA, but if you get to PPA on the 6 gigawatts based on, again, you said it's in the Q, there's over $3 billion of payments you will have paid to ENTRA1 over the course of all these milestone payments to get to PPA. So my simple question would be when you get to PPA and you get into an equipment agreement with them, do they -- do you anticipate you'll get $3 billion on day one to pay that money back? Or is that a ratable sort of revenue rec over multiple years where you still don't accrue $3 billion plus that you spent with ENTRA1 until year, pick a number, T plus, I don't know. But just can you give us a sense -- I understand the milestone payments, that's specified in very clear detail. How are you guys going to monetize this? And what's the timeline for at least recapturing the $3 billion plus you would have paid to ENTRA1 by that point in time?

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Okay. Understood -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, SMR.N - Q3 2025 Nuscale Power Corp Earnings Call

Question: Brian Lee - Goldman Sachs Group Inc - Analyst : Yeah. No. I mean we're all searching for more details, but we'll take some of this offline.

Question: Marc Bianchi - Cowen and Company LLC - Analyst : I guess you kind of talked about this earlier and then mentioned it in the conversation just now with Brian, like the first projects that move towards this next milestone of a PPA, it wouldn't be the full 72, but maybe it's 12 or 24 modules and first part is maybe just correct me if I'm understanding that incorrectly. And then the real question is, how do you -- or how does ENTRA1 anticipate entering into a firm PPA agreement with TVA if the cost might be a bit of a moving target. How do they -- that's a kind of a classic challenge with all of these first-of-a-kind projects. So I'm just kind of curious how that's being addressed.

Question: Marc Bianchi - Cowen and Company LLC - Analyst : Clayton, does that mean that there needs to be a long series of front-end engineering work to kind of clearly identify that cost to give certainty and comfort to TVA as an off-taker and to ENTRA1 who would be presumably taking the risk if there is a cost overrun?

Question: Marc Bianchi - Cowen and Company LLC - Analyst : Got you. Okay. And then the other one I have was just on RoPower. So still looking for end of '26, early '27 for an FID. Are there going to be any interim updates on that project as the FEED study progresses? Is there anything that we can look out for on the horizon that would be an intermediate update?

Question: Marc Bianchi - Cowen and Company LLC - Analyst : Right. Okay --

Question: Marc Bianchi - Cowen and Company LLC - Analyst : Yeah. Yeah. Okay. And just one more real quick to go back to the ENTRA1 arrangement and TVA, so the $500 million or $495 million that's going for this first milestone, you guys talked a little bit about it in the prepared remarks, I think, about sort of giving supply chain certainty and stuff. But that's a lot of dollars. Could you maybe go through a little bit more about what ENTRA1 is going to use that money for and kind of how it helps move the project forward.

Question: Vikram Bagri - Citibank Cameroon SA - Analyst : I wanted to follow up with a few questions asked previously. Obviously, (inaudible) of the principals at ENTRA1 and they're standing in the industry, but the entity itself is new and appears that the entity does not have much in terms of assets as of yet. And as you're aware, nuclear deals are complex. So if, for any reason, this deal doesn't go forward or so to say, is this thing's [devil's advocate] this corporate maraging diverse, how do you protect your interest? The payment you're making is quite substantial, $500 million. Are there any safeguards in place to protect your interest if things don't go as planned. Is there anything in place to sort of like safeguard or protect that payment there?

Question: Vikram Bagri - Citibank Cameroon SA - Analyst : Sure, obviously. I mean, I'm asking because it's just good core practice to protect your interest and put safeguards in place, but I get the point. The second question I have is I was wondering like you had -- you're targeting a deal by year-end. Does this deal with TVA meet that commitment to sort of like deliver by year-end? Or should we look out for something else?

Question: Vikram Bagri - Citibank Cameroon SA - Analyst : I was asking you were targeting a deal by year-end. The deal announcement with TVA meet that commitment? Or should we look out for another deal by year-end?