SMR Q2 Earnings Meet Estimates, Revenues Miss on RoPower Timing

Management expects product and services revenues to increase as project activity advances and additional commercial work moves forward.

NuScale Deepens Supply Chain Readiness

NuScale continued preparing for future reactor construction by expanding its supplier network. The company said the detailed designs for many of its most important reactor components are largely complete, and that it has signed agreements with more than half of its supplier base. One key partner, Doosan Enerbility, has already started producing large steel components for NuScale Power Modules, helping reduce manufacturing delays for future projects.

Other suppliers are also making progress. Framatome is developing nuclear fuel for NuScale's reactors, while Paragon is completing the final design of an important reactor safety and control system. NuScale also plans to use commercially available low-enriched uranium, making fuel sourcing simpler than relying on newer fuel types that are not yet widely available.

SMR's Costs Rise as Readiness Spending Builds

NuScale's expenses increased during the quarter as it continued investing in future growth. Research and development expenses rose by $6.6 million, mainly because the company spent $7.1 million more on improving reactor designs and preparing its technology for commercial deployment. This was partly offset by $0.6 million of lower regulatory costs.

General and administrative expenses increased by $4.4 million, driven by $1.2 million of higher employee and stock-based compensation costs, and $3.9 million of higher organizational expenses. These increases were partly offset by $1 million of lower legal costs. Other expenses rose by $8 million as more engineering and project teams focused on preparing future commercial projects instead of current customer work, reflecting NuScale's continued investment in building its technology, supply chain and workforce.

NuScale Advances TVA and RoPower Work

ENTRA1 Energy continues discussions with the Tennessee Valley Authority toward a definitive power purchase agreement using NuScale technology. Management described the negotiations as active and progressing and said the company is prepared to begin licensing, front-end engineering and OEM contracting activities once agreements are finalized.

In Romania, NuScale is working with Nuclearelectrica and RoPower to satisfy conditions for advancing a six-module project at Doicesti. Management expects the next pre-engineering, procurement and construction phase to run toward a final notice to proceed, while roughly 60% of prior combined operating license application work can be reused for another U.S. project.

SMR's Liquidity Supports Commercial Ramp

NuScale ended June with $766.5 million in cash and cash equivalents, $305.7 million in short-term investments and $820.8 million in long-term investments. The company characterized its liquidity strategy as preparation for commercialization, working-capital requirements and investments needed to reduce deployment timelines.

Investment income increased $8.5 million year over year, reflecting the stronger cash position and larger holdings of cash equivalents and investments. Management also emphasized disciplined operating spending while continuing to fund supply-chain agreements, design finalization and fuel-system development.

Zacks Rank & Other Stocks to Consider

NuScale Power currently carries a Zacks Rank #4 (Sell).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Celestica CLS, Amphenol APH and Broadcom AVGO, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Celestica have gained 6.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.61 per share, up 4.4% over the past 30 days, indicating an increase of 75.4% year over year.

Amphenol shares have gone up 26.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up by 11.7% over the past 30 days, indicating an increase of 57.2% year over year.

Shares of Broadcom have gained 21.5% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating an increase of 72.1% year over year.

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