TenQ

The NuScale Power story

NuScale Power develops small modular nuclear reactors, and its central question is whether ENTRA1’s TVA negotiations and Romania’s RoPower project can turn approved designs into commercial deployments.

Written from NuScale Power's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $7.91share price, last close
  • $3.2Bmarket value
  • 5/36TenQ Score checks passed

The story in brief

  • Approval precedes deployment. NuScale has US regulatory design approval, but ENTRA1’s proposed TVA program remained under discussion in the quarter to June 2026.
  • Revenue remains small. Revenue in the quarter to June 2026 was $75,000, comprising $250,000 from E2 control-room simulators against -$175,000 from engineering and licensing work.
  • Liquidity is not profitability. NuScale ended June 2026 with $1.9 billion in cash, cash equivalents and short- and long-term investments, while free cash flow over the last twelve months was -$779 million.

What drives the business

  • NuScale’s core product is the 77 MWe NuScale Power Module, and the Nuclear Regulatory Commission approved its six-module design in May 2025, allowing US customers to reference that approval in construction and operating license applications.
  • The business model combines reactor modules and technology licenses with planned services spanning licensing support, testing, training, fuel supply and program management throughout plant development and operation.
  • Exclusive global strategic partner ENTRA1 entered a Partnership Milestones Agreement with NuScale in August 2025 and is negotiating with the Tennessee Valley Authority over a program of up to six 12-module power plants, with discussions toward a definitive power purchase agreement continuing in the quarter to June 2026.
  • Customer RoPower, a venture established by Nuclearelectrica and Nova Power & Gas, plans six modules at a former coal plant in Doicești, Romania, but completion of Fluor’s associated engineering work in late 2025 left no comparable activity in 2026 and was the primary reason quarterly revenue decreased by $8.0 million.
  • NuScale awarded Paragon a contract in the quarter to June 2026 to complete final design development of the Highly Integrated Protection System, adding to manufacturing preparations that include orders with Doosan Enerbility for materials for the first twelve module upper reactor vessels.

What the price assumes

At $7.91, the reverse DCF cannot measure an implied growth rate because free cash flow and operating earnings are both negative, leaving the price dependent on future profits rather than an established cash flow base.

The $3.2 billion market value represents 303.7x sales against $11 million of revenue over the last twelve months, when revenue growth was -81.0%, compared with annual growth of 38.7% over the last three years.

NuScale passes 0 of 6 TenQ Value checks, including failing the cash flow yield bar of above 3% with a free cash flow yield of -24.0%.

What could change the story

  • The TVA discussions are not a definitive power purchase agreement, and the RoPower project still depends on satisfying conditions attached to Nuclearelectrica shareholders’ vote to advance it.
  • Dependence on ENTRA1 and the Partnership Milestones Agreement adds partner and funding risk, while customer financing, regulatory approvals and manufacturing delays could slow deployment.
  • The cost competitiveness of electricity from NuScale modules remains a commercial risk in a market for small modular reactors that is not yet established.
  • Total debt of $0 limits debt-related pressure, but negative free cash flow leaves NuScale dependent on its financial reserves and access to funding rather than self-funded operations.
  • Shares increased 222.5% over the last three years, showing that maintaining financial resources has come alongside substantial dilution.

What to watch next

  • NuScale issued no numerical guidance with the release for the quarter to June 2026, leaving a definitive ENTRA1 and TVA agreement and satisfaction of RoPower’s conditions as the clearest commercial milestones.
  • Subsequent releases can show whether Paragon’s protection-system design work and Doosan’s manufacturing preparations advance alongside binding customer commitments.
  • Revenue from engineering and licensing, operating cash use, share count and the $1.9 billion cash and investment balance will show whether commercial progress is beginning to support the cost of readiness.

Sources

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