NuScale (SMR) Q1 2025: Cash Reserves Climb to $521M as Firm Order Pipeline Advances

May 12, 2025 | By EarningsIQ Research

NuScale’s Q1 marked a pivotal inflection, with liquidity rising and a visible path to its first commercial SMR contract as customer interest deepened across data centers, utilities, and global markets. Manufacturing and supply chain investments are accelerating in anticipation of a 2025 order, with management signaling readiness for multi-project execution. Investors now face a near-term binary: contract conversion versus further runway extension.

Summary

• Liquidity Buffer Expands: NuScale strengthened its cash position, reinforcing operational runway ahead of commercialization.
• Commercial Pipeline Progress: Advanced customer negotiations span data centers, utilities, and global partners, with a 2025 firm order targeted.
• Manufacturing Readiness Accelerates: Supply chain investments and module fabrication are ramping to meet a potential 2030 delivery schedule.

Performance Analysis

NuScale’s top-line performance reflected a sharp YoY improvement, driven by engineering and licensing revenues from the Romanian RoPower project. The company reported $13.4 million in revenue, a material increase over the prior year, as phase-two engineering work advanced on schedule. This project is now a key revenue and cash flow anchor as other commercial orders remain in negotiation.

Operating expenses continued their disciplined trend, falling below the 2023 quarterly average and holding steady in the $41–44 million range. The cash position improved to $491.4 million, augmented by $102.4 million raised via ATM share sales, bringing total liquidity to $521.4 million. This robust balance sheet gives NuScale a two-year operational runway as it invests in supply chain and manufacturing readiness. Management emphasized that a single firm order would bring immediate cash inflow, with 25% of module value expected upfront, positioning the company for near-term cash flow positivity upon contract closure.

• Revenue Upswing: Engineering and licensing fees from the RoPower project drove the largest YoY revenue gain to date.
• OPEX Discipline: Operating expenses have stabilized well below 2023 levels, reflecting a shift from R&D to commercialization investment.
• Liquidity Strength: Cash reserves now cover two years of operations, allowing for continued investment in supply chain and readiness for scale.

NuScale’s financials now hinge on contract conversion, with the RoPower project providing interim stability but not yet delivering the scale needed for sustained profitability.

Executive Commentary

Strategic Positioning

1. First-Mover Regulatory Advantage

NuScale remains the only SMR (Small Modular Reactor, advanced nuclear reactor design for scalable deployment) firm with U.S. Nuclear Regulatory Commission (NRC) design approval, and is poised for a July power uprate approval to 77 MW per module. This regulatory lead is a core differentiator, as competitors face years of demonstration requirements before commercial deployment. Customers value this de-risked path, especially for near-term deployments.

2. Commercial Pipeline and Customer Diversity

Customer engagement has reached an advanced stage, with roughly 10 prospects in deep negotiation, including major U.S. data center hyperscalers (large-scale cloud operators), utilities, coal plant operators seeking nuclear conversion, and international stakeholders. Management is prioritizing closure of firm contracts over non-binding MOUs, with an explicit 2025 order target. The commercial model is designed for financial flexibility and risk mitigation, appealing to a diverse set of buyers and power users.

3. Manufacturing and Supply Chain Readiness

NuScale’s proactive investment in supply chain—particularly with Doosan (Korean nuclear manufacturer)—has enabled long-lead material orders and module fabrication to begin ahead of contract finalization. The company is building capacity to deliver up to 20 modules per year, with additional supplier relationships in Japan and the U.S. This readiness allows for quick ramp post-contract and supports the company’s 2030 delivery commitments.

4. Expanding Use Cases: Hydrogen and Industrial Applications

Beyond electricity generation, NuScale is positioning its SMR technology for carbon-free hydrogen production and industrial process heat, targeting commercial-scale applications exceeding 200 metric tons per day. Early demonstrations and strong interest from industrial players highlight the potential for diversified revenue streams and broader decarbonization impact.

5. Capital Allocation and Risk Management

Management’s conservative cash policy—maintaining at least two years of runway—has been reinforced by ATM share sales. Investments are now focused on supply chain and manufacturing, rather than R&D, with a clear pivot to commercialization. The company is actively monitoring geopolitical and tariff risks, though no material impact is anticipated at present.

Key Considerations

NuScale’s Q1 reflects a company at the commercialization threshold, balancing disciplined cash management with accelerated investment in manufacturing and customer engagement. The strategic context is defined by:

Key Considerations:

• Contract Conversion Imperative: The business model’s inflection point hinges on closing a firm order in 2025, which would trigger immediate cash flow and validate the supply chain investments.
• Regulatory Certainty: The pending NRC approval for the 77 MW uprate is critical for both customer confidence and competitive positioning.
• Supply Chain Scalability: NuScale’s ability to deliver multiple projects concurrently will depend on continued supplier investment and capacity expansion, especially as demand signals accelerate from AI and data center operators.
• Customer Diversity: The pipeline spans data centers, utilities, and international partners, but complexity of project structuring and stakeholder alignment remains a gating factor.
• Cash Burn Versus Liquidity: Current OPEX and investment levels are sustainable, but absence of contract conversion by late 2025 would eventually pressure the runway and strategic narrative.

Risks

The primary risk for NuScale is contract slippage—failure to secure a firm order in 2025 would delay cash flow inflection and potentially erode first-mover advantage. Supply chain bottlenecks, regulatory delays, or geopolitical/tariff shocks could also disrupt execution. The complexity of multi-party project structures adds further uncertainty to deal closure timelines.

Forward Outlook

For Q2 2025, NuScale expects:

• Steady revenue from ongoing RoPower engineering work
• Operating expenses to remain in the low $40 million range, with incremental supply chain investment

For full-year 2025, management maintained guidance:

• Liquidity sufficient for two years of operations at current burn rates

Management highlighted several factors that will shape the year:

• Anticipated NRC approval of the 77 MW uprate by July, unlocking new commercial opportunities
• Active pursuit of a firm customer order, with multiple advanced negotiations ongoing across geographies and use cases

Takeaways

NuScale’s Q1 performance solidifies its position as the SMR sector’s commercialization leader, but the next six months are binary: contract conversion or further cash runway drawdown. Investors should focus on:

• Order Conversion Watch: The timing and scale of the first firm contract will determine cash flow trajectory and sector leadership.
• Regulatory Milestone: July’s NRC decision on the 77 MW uprate is a critical catalyst for both customer and investor confidence.
• Execution Depth: The true test will be NuScale’s ability to manage complex, multi-stakeholder projects and scale supply chain capacity as demand from data centers and new industries accelerates.

Conclusion

NuScale enters mid-2025 with a fortified balance sheet and a commercial pipeline approaching critical mass. The company’s future now hinges on contract conversion and execution discipline as it transitions from technology validation to market deployment.

Industry Read-Through

NuScale’s supply chain investments and advanced regulatory status set a new bar for the SMR sector, highlighting the value of early manufacturing readiness and customer engagement. The growing demand from data centers and industrial decarbonization use cases signals an inflection in nuclear’s relevance for clean baseload power. Competitors still in the demonstration phase face a multi-year lag, while supply chain constraints and regulatory hurdles remain sector-wide challenges. Investors should monitor how quickly first movers can convert pipeline to contracts and deliver at scale, as this will define sector winners over the next cycle.

SMR Industrials Nuclear Clean Energy Commercialization Supply Chain Data Centers Hydrogen