Should You Buy, Sell or Hold NuScale Stock Post Q2 Earnings?

NuScale’s key advantage is that it has already made significant progress in preparing its reactor technology for commercial use. The company has received U.S. Nuclear Regulatory Commission approvals for two designs and plans to use commercially available low-enriched uranium as fuel. NuScale has also built a network of more than 60 specialized suppliers and signed agreements with over half of them. Doosan Enerbility is working on major reactor components, while Framatome is developing the fuel and Paragon is completing a key safety and control system.

This progress could give NuScale an advantage as competition in advanced nuclear energy grows. Oklo Inc. OKLO is developing a broader business covering nuclear power, fuel and isotopes, while NANO Nuclear Energy NNE is working on its KRONOS microreactor and fuel-related capabilities. OKLO is also investing in manufacturing and fuel infrastructure, while NNE has submitted a construction permit application for its University of Illinois project. NuScale’s approved designs, readily available fuel and established supplier network could help reduce some of the challenges involved in moving from development to actual deployment.

TVA and RoPower Could Drive the Next Leg of Growth

For NuScale, turning potential projects into firm contracts is now the key challenge. ENTRA1 Energy is continuing discussions with the Tennessee Valley Authority (“TVA”) on a potential power purchase agreement using NuScale’s technology. Management said the talks are progressing, with the proposed projects potentially covering 6-8 gigawatts of capacity. If agreements are finalized, NuScale could move ahead with licensing, engineering work and negotiations with equipment suppliers.

The RoPower project in Romania is another potential growth opportunity. NuScale is working with Nuclearelectrica and RoPower to advance plans for a six-module project at Doicesti. The next stage would involve engineering, procurement and construction work, which could eventually lead to a final decision to begin the project. NuScale also expects to reuse about 60% of the licensing work completed for an earlier U.S. project, which could help reduce the time and cost needed for another domestic deployment.

Image Source: NuScale Power Corporation

Competition, however, remains strong. OKLO is developing its nuclear power, fuel and recycling businesses, while NANO Nuclear is targeting applications such as AI data centers with its KRONOS microreactor. NNE has completed a feasibility study for up to 1 gigawatt of power for a Texas data-center and manufacturing campus. These developments highlight the importance of NuScale securing firm customer agreements and turning its technology and regulatory progress into actual projects and revenues.

Price Performance and Earnings Estimates Signal Caution

SMR shares have gained 17.6% over the past month, suggesting renewed investor interest, but the stock remains down nearly 31% year to date. That compares with year-to-date declines of 32.6% for OKLO and 21.5% for NANO Nuclear. The weakness across SMR, OKLO and NNE highlights how advanced-nuclear stocks remain sensitive to project timelines, financing needs and expectations for commercialization.

YTD Price Performance

Image Source: Zacks Investment Research

The earnings outlook also argues against becoming overly aggressive. The Zacks Consensus Estimate for NuScale’s 2026 loss is 45 cents per share, implying a 79.3% improvement from 2025. However, the estimated loss has widened to 79 cents per share for 2027, or 76.3% from the 2026 level. This uneven trajectory shows that NuScale may need substantial time before its commercial progress translates into consistent earnings improvement.

Image Source: Zacks Investment Research

Strong Liquidity Helps, but Execution Risks Remain

NuScale ended the second quarter with roughly $1.9 billion in cash, cash equivalents and investments. That provides a substantial financial cushion for supplier commitments, design completion, fuel-system work and other commercialization needs. It also gives SMR flexibility while waiting for major projects to reach definitive agreements.

Still, investors should not overlook the risks. Current revenues are minimal, operating expenses are rising as NuScale invests in readiness, and the timing of major projects remains dependent on customers and partners. OKLO and NANO Nuclear are also moving quickly, raising the competitive stakes. Although SMR appears well prepared technically, the next major proof point must come from converting negotiations into binding commercial activity.

Conclusion

NuScale’s second-quarter results support a balanced investment view. Its regulatory approvals, conventional fuel strategy, mature supply chain, strong liquidity and progress with TVA and RoPower strengthen the long-term case. At the same time, weak current revenues, continued losses, uncertain project timing and growing competition from OKLO and NNE argue against chasing the stock after its recent rebound. Investors may want to wait for clearer evidence of contract conversion and better earnings visibility before becoming more bullish. SMR stock is currently a Zacks Rank #3 (Hold), appropriately reflecting its promising commercial position alongside meaningful execution and earnings risks.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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