Quarter 1
Q4 2025 Earnings Call — February 26, 2026
Analyst Eric Stein (Craig Halem): Hi, everyone. Thanks for taking the questions. So maybe if we could just start on the supply chain and specifically Doosan. You did talk about that a little bit, but I know that it's committed to 20 modules a year, committed to being able to take that higher. So just maybe some commentary on confidence in that, but also curious about you know, it's a pretty differentiated position to actually, you know, those are actually being built. And so curious, you know, how is that playing into the process with EntraOne and TVA and also, you know, just some of the other opportunities as they progress in your pipeline?
Executive Carl Fisher (Chief Operating Officer): As you know, we've progressed significantly well with Doosan. We have 12 modules under production right now. So, no matter what the project is, it gives us a significant timing advantage because we have ordered long-lead materials and the modules are under production. In terms of just feeling confident in, you know, that Doosan is, you know, committed and able, I know that they've got a big facility and they're, you know, they're committed to this space, but that they are, in fact, you know, in a position that should TVA, you know, should that move forward that they could, you know, I know it's a ways out, but that they could execute on that and help you get to, you know, potentially some big numbers. We have extreme confidence with Doosan. The other thing that you should know is that they're increasing their capacity so they can move up to 20 modules per year and then eventually doubling that capacity. I just recently was at Doosan and seen the works that are being done. These 12 modules will set the stage for the next set of 12 modules that could be used with the InterOne projects. And having these already in production, it really gives us a significant timing advantage because we do have the long-lead materials already ordered and the modules ready to be fabricated.
Analyst: And maybe just turn into, you know, the upgrade approval. I know that, you know, six-plus months ago I asked this on the call. Were there customers that were waiting for that upgrade from 50 megawatts to 77? What that potentially kind of set in motion? So I guess now that it's six plus months later, looking back, what has that impact been on your pipeline, whether it's overall growth of the pipeline or movement within that pipeline?
Executive: Yeah, I think, first of all, the, you know, the upgrade that was approved last year was approved ahead of schedule. And we've got, there's a lot of confidence we have with the fact that we have that approval because a lot of questions and any concerns that may have had by the regulator were put, were approved and put aside. In that case, after that and having that SDA approval, our customers, the ones that we've been speaking with, and also basically just the general industry, puts a lot of confidence in the fact that the NRC has made that approval. I'll let Clayton Scott discuss the pipeline aspect of it, but I will say even for our international projects, having that NRC approval is significant because of the respect that the international community and the international nuclear regulators have for the NRC.
Executive John: We do regular quarterly generally drop-ins with the commissioners of the NRC. We're just there two weeks. And, you know, it was a pleasant surprise to speak with the commissioners in relation to expediting processes and et cetera. They ask a lot of questions because, as you know, we are the only one who's ever submitted a design certification application from the SMR space and have been approved. So we've been through the rigor. And so we're ready to go. And we're just sitting here, you know, as a company wanting to get these things before. And the bottom line still is, I keep saying this, We are the only game in town that has an NRC certified not only to construct, but also to operate. But I think in addition to the 77 megawatt approval, it's really given EntraOne the opportunity to really push their pipeline. And it's given confidence from the industry to understand that that regulatory hurdle has been completed. And now that we can reach capacity levels that I think are a little bit more satisfactory when EntraOne looks at their overall facilities.
Analyst: Got it. Helpful. Last one for me, just you mentioned it in your commentary here, but the term sheet with EntraOne, you mentioned the one financial institution who has entered that. Can you just unpack that a little bit? Is that something that's firm that gets triggered on the signing of a PPA? or is that something where there would be some additional steps upon that signing to lock that in?
Executive Bill Cooper (General Counsel): Thanks for the question. We're under NDA with EntraOne, so we can't say any more about that.
Analyst Brian Finks (B Riley): Hey, guys. Thanks for taking my question. Maybe just to follow up on that last one to the extent that you can say, John, you mentioned the major institution that signed a multi-billion dollar term sheet with EntraOne. Is there anything you can share there around who the players might be? What exactly was signed for? Yeah, anything there I think would be super helpful.
Executive: Nothing we can share. I'm sorry.
Analyst Romain: Could you talk about the next phase of the row power project? What will it entail for NuScale in terms of services rendered or maybe, you know, the potential revenue opportunity there?
Executive John: You know, we met with the Romanian government last night, actually, so it's a timely question. We, as we stated, feed phase two hasn't been completed as of the last quarter. February, they did have a shareholders meeting that they voted in favor of moving the project forward. Row Power is now authorized to advance the licensing and geotechnical moving towards a pre-EPC. And we anticipate NuScale will be generating revenues as soon as we understand we are a subcontractor to Flora Corporation and Flora's in negotiations right now with the Row Power government. Our contract is with Flora; it's not with the Romanian government, and we explained this last night to the Romanian government and they understood. We view this as a very important project that, you know, right now we're waiting for the next steps that Flora and Row Power to do their deal and then we move on. But it was a good, it was an interesting conversation last night. They appreciated it.
Analyst: And then just one more. Could you give an update on the status of the material weakness in your financial reporting that you identified last year and where that stands today?
Executive Ramzi Hamidi: In our 2024 annual report, we disclosed the material weakness on internal controls over financial reporting. ICFR is what we term it. And specifically, we focused on something called ITGC, which is Information Technology General Controls. We stated a plan to remediate it. We worked very hard. I would give credit to David Tuttle, Chief Accounting Officer and his team. And we've come through with a clean bill of health from EY. I think it's a remarkable feat. And so we no longer have that. We addressed it as we said we would.
Analyst Sheriff L. Magrabi (BTIG): Hi, thanks for sharing my questions. First on Flora, once they monetize their remaining stake, will they still have right of first refusal as your EPC provider for future projects?
Executive Bill Cooper (General Counsel): I'm not familiar with any right of first refusal, but the agreement is otherwise confidential.
Analyst: And then the study you completed with the Oak Ridge National Lab, that study gives us a sense of power module pricing that is significantly lower than large scale nuclear. Of course, that's part of the value proposition of SMRs, but is that sort of the pricing you're aiming for in Romania and with the TVA, or is it kind of for later stage projects?
Executive: I think what's important here, if you remember over the years, we said we see three significant markets. One was coal plant refurbishment. One was working with process companies for need of process heat. It could be for electricity. And the other one, obviously, the elephant in the room is hyperscalers. And these studies, the prevailing notion was that high temperature gas could only produce the steam requirements needed for high pressure steam. We went into an analysis that Oak Ridge or actually INL did for us to show that NuScale's light water reactor could provide the economics and efficiencies necessary to provide the steam requirements for these plants. And why this is getting specific interest, remember our emergency planning zone is that site boundary. So when I look at process plants in an area like Baytown, Texas, we have multiple companies that share a fence line, EntraOne could build that plant outside that fence line, close to the end user, and provide if it's process heat, if it's electricity, if they want to do hydrogen production, and it's not inside the evacuation zone typical of a large-scale nuclear reactor. The other thing is too, John, I think it's really important is we're also the only Nuclear Technology Company period that is certified by the NRC for behind the meter off the grid applications and that's a significant benefit.
Analyst Derek Soderbergh (Cantor Fitzgerald): Yeah. Hey, guys, thanks for taking the questions. Just on cash, 1.3 billion. What's sort of the expected cash burn range for 2026? And then can you talk about any sort of swing factors potentially in that as well?
Executive Ramzi Hamidi (Chief Financial Officer): As you pointed out, we ended 2025 with approximately 1.3 billion in cash. It's a tremendous achievement, shows a very defensive position in terms of our liquidity. Post-closed disclosure, I believe Note 9 in financial statements, we know the payment of about $250 million out. Arithmetically, we can assume about a billion of cash on balance sheet today. If I look at my OpEx, apart from what I would call one-time type items, my OPEX stays fairly consistent between 170 to call it $200 million, closer to 193 actually in 2024 on an adjusted basis. The billion dollars in cash, I think our investors can rest assured that we have taken a very conservative, very strong liquidity position, and burn rate or runway is not a problematic item for us. NuScale has the legs to run this race.
Analyst: Got it. That's helpful. And then, Ramsey, you mentioned just the one-time payment. I'm wondering if you can talk about how many more of these sort of one-time payments or milestone payments you guys expect to make associated with the project, and will those payments sort of be a similar magnitude, or can you help us maybe quantify the potential there?
Executive: Sure. I think on this one, we have been very transparent in our disclosures and our filings. There is a partnership model center agreement filing, which describes all the payments in great detail. This is more of a developer-led model, which I would refer you to.
Analyst Nate Pendleton (Texas Capital Securities): Good afternoon. So after EntraOne signs a binding PPA with TVA, can you talk about what that means from a near term revenue perspective? And would that revenue be comparable to what we've seen at Row Power thus far?
Executive Clayton Scott (Chief Commercial Officer): So what we expect after the PPA is signed is that we would enter into COLA and feed activities to generate revenue, which will allow us to move forward. But this is something that I would expect to be more than what we see in Row Power, just because the size of the plants are much larger. And we anticipate a little bit more revenue stream in that respect.
Analyst: Got it. Thank you. And as my follow-up, perhaps staying with you, Clayton, referencing slide seven in the chemical plant study, has that study opened any new doors for the commercial team with that extra layer of validation there? And are there any other applications that you feel are underappreciated as well?
Executive: Yes, there's other discussions that are happening, and we're in concert with EntraOne to have those. But at this point in time, we're under NDA, and we can't really disclose anything.
Analyst Leanne Hayden (Canaccord Genuity): Good evening, everyone. Thanks so much for taking my questions. Just wanted to start by digging into progress with EntraOne and TVA. Can you please help us try to understand any sort of gating factors to securing a binding PPA? Understand that there's been some pretty strong progress since January and that you're in the process of drafting a PPA. I do believe you previously guided for binding PPA execution by the end of 2025, so any color around what may have caused that delay would be much appreciated. Thank you.
Executive Bill Cooper (General Counsel): We've said all that we can say about the PPA in the prepared remarks. We can't say anything more.
Analyst: To the extent that you're able to comment, when can we expect any sort of site permitting or early site submissions associated with the four identified sites?
Executive Rodney: Yeah, no, we went through that in the script to kind of lay that out with the four sites. So I would just reference that, or if not, we can circle up after the call.
Analyst Dimple Gozai (Bank of America): Good evening, gents. Thank you for taking my question. I understand that you don't give guidance, but there's just many different pieces here with the feed to coming to an end and row power advancement. Now, while you also kind of pre-funding EntraOne and/or Romania, can you help us or give us a sense of how to think of, you know, the revenue and liquidity outlook or quality profile over the next 12 to 24 months, please?
Executive Ramzi Hamidi: As we, as you pointed out in your question, we do not give guidance at this point. However, I think looking at our balance sheet, we look at our liquidity position. The company is conservatively positioned and prudently raised capital towards the end of last year. Or to give us a balance sheet that has lasting power and as I said, run rate and pardon me, runway. It's not an issue for us.
Analyst Brian Lee (Goldman Sachs): At the tone, please record your message. When you have finished recording, you may hang up or press 1 for more options.
Executive: All right. That concludes the question and answer session. I would like to turn the call back over to John Hopkins for closing remarks.
Executive John Hopkins: Thank you, operator. Thank you to everyone for joining us today. As we close this period for NuScale, we are excited about the path ahead in 2026. We look forward to continuing to take meaningful strides toward deployment of the ONI NRC certified SMR technology to support American and global energy security. Thank you very much. Ladies and gentlemen, that concludes today's call. Thank you all for joining in. You may now disconnect.
Quarter 2
Q3 2025 Earnings Call — November 6, 2025
Analyst Name (Firm): Derek Soderberg (Cantor Fitzgerald) Executive Name (Title): Management: Hi, this is Drew Yorkquist calling for Derek. Thank you guys for taking questions. I have two questions. First, is regarding your supply chain. I saw that Doosan signed an agreement to deliver four Westinghouse APU-100s for a different company. I'm just wondering how that's going to impact your ability to secure supplies.
No, our relationship with Doosan is we communicate almost every other day. Doosan has come out and publicly stated that they have the current capacity of producing 20 NuScale power modules per year and looking to expand that as needed. So they have a huge facility. So it's not just limited to NuScale, but the focus that they have on the NuScale modules is dedicated to NuScale. Thank you.
And then you briefly mentioned the U.S. and Japan agreement. Can you just go into a little bit further detail on that and how it affects you guys?
Sure. I think what we can survive from that, which is an absolutely incredible achievement with EnterOne, is that we were named. We're the sole group that was named under Power Development for AI. And so, you know, this is really a historic time. The agreement between Japan and the U.S. is extraordinary. Extraordinary show of support from a longstanding strategic partner of U.S. scale. As you'll recall, we have great support from JVIC, Chubu, JGC, and IHI. And to be named specifically and solely in this one area really shows that I think it's really a testament to the connectivity and importance of our technology, both to Japan as a manufacturing partner, as well as potentially customer, and to America and our stakes for putting power to drive AI. So this was an interesting accomplishment, really. I think it's an interesting accomplishment from, if I could say to the end of one group, and look at the other names that were named here. Softbank, CE, EWIT, Bechtel, Westinghouse, you know, name it. Toshiba, Hitachi. These are Mitsubishi even. These are the biggest names in technology. And for us and for one to be named inclusive in that group, it's really an extraordinary achievement. I'm glad you brought that up.
Yeah, I'd like to add and reiterate what was stated. I mean, InterOne was the only developer mentioned. And InterOne, they're looking to develop a fleet of power plants utilizing baseload energy sources. And so the program will serve for fast-growing demand for AI data centers, as Ramsey alluded to, but also national defense and manufacturing programs. So we were quite excited about being mentioned in that group of companies.
I'm going to further add one other point. I think as people, you know, a lot of people would ask early on, who's in Taiwan, where are the capacities, what is their connectivity? And I think this past quarter, both with disagreements with Japan, as well as the announcement in relation to TVA that I'm sure we'll be after that, we'll speak about later in this call. I think we've shown the markets, we've shown everyone, just how far this combination of entry-level energy scale can take us. And so this is, again, I think the details are still emerging of this, but really it's a terrible accomplishment. We're super proud and we're grateful to be included in this. Thank you, guys.
Analyst Name (Firm): Eric Stein (Craig Halem) Executive Name (Title): Management: Hi, everyone. Thanks for taking the questions. Can we just start with the TVA setup you've got? I mean, just to be clear, because I... You know, 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?
Yeah, that's correct. I mean, I'm sorry. Go ahead, Ramsey.
No, no. I mean, this just didn't happen overnight. It was a long-term, almost a year between TVA and InterOne coming to terms and term sheet. And to your point, what we're excited about for New Scale is, you know, this represents 72 potential modules on multiple sites within one. So we are excited about it. And TVA also being a government entity, although they operate like a public company, having the government stature behind it, I think it's going to be a good thing. So everyone's already in the process right now of hopefully finalizing these PPAs. And then this thing, it becomes very real.
I don't know if Clayton's on the phone. Clayton is our chief commercial officer who's been intimate and working through this process. Are you on Clayton?
Yeah, I'm on. Thanks. And, uh, yeah, this is something that, as John stated, we've been working for quite some time, and it's an exciting opportunity, and like I said, EntraOne is getting ready to move this forward, and we'll be prepared to support the path and bring this to fruition.
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 the floor, just on the monetization. In there, you talk about waving certain claims related to commitments. Can you just talk, I mean, does that change at all you know, or signal something on FLUR's commitment? Is it unchanged or is that, you know, maybe opening it up that you can work with FLUR and you can work with others?
Eric, I'm going to take your question and use it as kind of a stepfather to talk more broadly about the agreement. I think, you know, it just came out and I think the floor has decided, as well as we have, to have minimal impact to the market. And then the idea of, like, the reduction of economic rights is delivered to our shareholders because there are economic rights under the B units. Employers agreed to give some of those up, so that's a win for us. And it certainly explains commercial agreements with New Scale. I think it just, you know, it is at least a certain obligation of the U.S. Council in relation to some APC work. But, again, as we've evolved, we're not really developing projects. So it's just a logical outcome of this.
No, that's great. I mean, that's kind of how it read, but just wanted to confirm. So I appreciate it. Thank you.
Analyst Name (Firm): Leanne Hayden (Canaccord Genuity) Executive Name (Title): Management: Good afternoon, everyone. Thanks so much for taking my question. Just want to follow up on the ENTER1 TVA agreement we discussed prior. What do you view as the gating factors to ENTER1 site evaluation or construction permit NRC application?
Well, I think one of the, yeah, John, is, you know, they clearly have a number of sites that have gone through previous preparation approvals and early site permits. So that falls in well with the strategy of focusing on Tier 1 sites to move forward.
So I think the evaluations that I've seen and participated with Intra1 and TVA that there are any limitations on your ability to raise incremental equity given the monetization agreement with Floor. How do you anticipate meeting entry one milestone payments?
Hi, this is Ramsey. How are you?
I'm good, Ramsey. How are you?
Good, good. I think as we've demonstrated, you know, even during the quarter, we were able to raise a fair amount of cash from the markets, a sensible amount of cash, I should say. Any of the quarters over $750 million worth of cash. The restrictions that we put in terms of our ability to raise funds are in line with our budgeting, and they're in line with our objectives to support shareholders and ensure that there's not selling pressure in the market that is excessive or that starts in the market pricing. So we've taken a very careful consideration of what the milestone payments are, what we anticipate to receive them or to pay them. And there are funding and liquidity needs. There's been a lot of work that goes in behind that.
Understood. Thanks, everyone.
Analyst Name (Firm): Joseph Osha (Google) Executive Name (Title): Management: And, you know, Robert Fardy are, you know, very well-connected guys and done some digging there. But I'm trying to understand this. Has EntraOne ever built or owned or operated anything? And if they haven't, I guess, where are the boots on the ground going to come from? Because it looks... I'll respect you to these guys. They're very well connected. There are pictures of them with Trump and so forth. But I'm trying to understand where the actual operational capabilities and history of InfraOne are. Thank you.
Yeah, I can start. You know, they're an independent global energy company, and they have years of experience delivering large-scale energy and infrastructure projects worldwide. In fact, part of the due diligence when we went into the program was looking at their extensive knowledge of building coal-fired plants, combined cycle plants. So they've had a lot of, it's not a, it's a family name, but it's not well-known in an industry, but they've had significant experience in building these plants globally.
And, you know, you've been working pretty closely with Clayton, and you're part of that due diligence process. Do you have anything else to add?
I mean, they, you know, they've built a lot of plants. They're certainly tied in the infrastructure companies, and, you know, they had cogentrics one time prior to them divesting it. So they have a lot of experience, in my opinion, as far as building infrastructure and ramping. So they've done a lot of diligence on the technical side and on the construction side, and we're quite confident that they will be ready to promote these plants and move them forward.
Yeah, you made a good point. Can I follow up here? It sounds to me like you're talking about Habush Group, which is fine. There's no information about any projects on EntraOne that EntraOne has done at all. And if it's Habush Group, that's fine. That's a big company, and they've done a lot, and that's great. Are you telling me that EntraOne has built and operated projects? And I guess it's still a what, because there's no information about any of them on their website.
Let me, if I may. Yes, it's all projects. EntraOne is really set up. Androla set up for the purpose Entra, energy transition. That was the focus of the company. And so, you know, I would shy away from the idea that Entra hasn't developed, for example, an SMR project because nobody has. I'd shy away from the idea that Entra may not be able to build power plants because Entra doesn't pour concrete and they're not operating yellow trucks. Interland is hiring the biggest CPT companies and construction companies with experience in energy and infrastructure to do this work. They're a developer. It's not like they're out there building and separating what's the value of Interland and their ability to coordinate projects, to bring in partners, to get deals, and the partners they bring in that can execute and have executed power plants in the U.S. and elsewhere. And that's really what we're talking about.
Analyst Name (Firm): Sondarya Iyer (Riley Securities) Executive Name (Title): Management: Hi, Tim. Thank you for taking my questions. I'm asking on behalf of Ryan Fink. So, my first thought would be, like, what's 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, if the agreement is the main one, what we are looking for as a full model, or is there a possibility that we could see some another agreement jumping in?
I think there's limited information we can provide on the details of where they are contractually. But we're very confident that things will move forward in a timely manner. What they've announced with TVA, their pipeline is fairly robust, and we anticipate to see some other things coming in the near-term future, and some of that is probably aligned with some of the reasons mentioned earlier around the Japan deal. So we're confident that ENTRO-1 will be moving forward with some other advances at this point.
A few weeks ago, we had a... It was at the Combined Nuclear Energy Institute, American Nuclear Society. There was about 1,600 people there. We were on stage with the CEO of TVA, Don Maul, myself, and the CEO of IntraOne, and, you know, we kind of walked through the process of TVA, and the CEO of TVA was very bullish on wanting to get Eclure. They're working with other companies, as you know, as well. But bottom line, we're still the nearest term, the nearest company that's near-term deployable. And we can, in fact, we are the only company that can do behind the meter. We've gone through the NRC process, so... If you want to expedite and if this administration wants to move quickly, it's with NuScale.
Got it. No. Thank you.
Analyst Name (Firm): Dimple Besai (Bank of America) Executive Name (Title): Management: Thank you. Good evening, team. Could you please help provide some clarity on how many of those six gigawatts under TVA are likely to reach a binding milestone under your partnership agreement? And what are the expected timing and economics for new scale?
And then the second part to that is, have you been recognizing revenue and cash from intro one milestones across 2026 to 2028? Thank you.
Clay, do you want to take the first part of that?
I'll take the second. I didn't understand. I didn't catch the very first.
That would be all six.
Yeah, correct. I think we can provide some insight into what you think of the developer timeline. I think, as we mentioned earlier in the call, that we're looking at a timeline of as soon as 2030 for COD on the first plant and then a follow-up thereafter. But yes, the intention is to fulfill the full six gigawatts. Don't forget, we've already got 12 modules under production for the first plant, which is hopeful by the end of the decade will be COD, as Clayton said. Each of these plants are 12-module plants, which ultimately represents 72 modules for our suppliers and us to bring to these sites. So right now, our focus is to get the first one in the ground and running. And then for ones working on what that model layout is, they'll reveal that to us at the appropriate time.
Yeah, in terms of our accounting treatment. I think a precise explanation of how we have account for the first set of payments. So stage one of the PA and they agreement is included in our 10 Q under our accounting policy. In our income statement, PMA payment to TBD. I think our preference obviously is to capitalize rather than expense, but... But that's TVE. We'll figure it out when we get to the PPA. We'll determine what it looks like. We'll determine what the appropriate accounting treatment is. I think on the third stage of the milestone payments, I think we're fairly certain there of our ability to capitalize those expenses, which will then be deducted from future revenues. But again, I would refer you to the Q to just take a look at our accounting policies. How we've analyzed.
Terrific. Thank you.
Analyst Name (Firm): Brian Lee (Goldman Sachs) Executive Name (Title): Management: Your line is open. Hey, guys. Good afternoon. Thanks for taking the questions.
Hey, Brian.
Hey, how's it going? I know a lot of questions around this, you know, Entra1 TVA, so apologies in advance because I have a few more. So the agreement here is targeting six gigawatts, and it looks like based on the first milestone payment you made this quarter, you're targeting the full six 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. Back from Entra 1, or does it roll over to another development? You're paying basically for 6 gigawatts on a non-binding basis, but what happens if they never take that to fruition and get to BPA on the full 6 gigawatts?
Yeah, Brian, that's a great question. So the payments would roll into the next project that those term sheets not materialize into a BPA region. So it's not like it's money out the door, it's money gone. That bank has stayed in the system. And I think another important concept here is that once we start the machine, and once you have continued movement from Term C to PPA to OEM, as we expect, as we commercialize, as we scale up, you'll start to see those payments kind of rolling through and they'll almost become self-funding group projects because that's really what it is, Brian. It's like we develop a technology. We manufacture a wholesale distribution partner, and they place those out to market for the projects. And so these P&A payments, these are all just paid into the business plans, paid into the economics. Really, this is a question of timing for us rather than a question of absolute financial impact. So by forwarding the timing of some of those payments, by forwarding that central line, it allows us to commercialize faster, allows us to catalyze this progress, this great momentum that we have. And ultimately, and we say this firmly, we think this is in the best interest of shareholders to push this forward.
Yep, understood. That makes sense.
Analyst Name (Firm): Mark Bianchi (T.C. Kellan) Executive Name (Title): Management: Your line is open. Okay. In the conversation just now with Brian, that like the first projects that move towards this next milestone of a PPA wouldn't be the full 72, but maybe it's 12 or 24 modules. And I mean, first part is maybe just correct me if I'm understanding that incorrectly.
And then the real question is, you know, how do you or how does EntraOne anticipate entering into a firm PPA agreement with TVA if the cost might be a bit of a moving target? That's kind of a classic challenge with all of these first-of-a-kind projects, so I'm kind of curious how that's being addressed.
I'll let you or John take that one.
Well, I think the discussions around the PPA and the cost structure or the pricing structure, I think, is somewhat established. And I don't think they're going to get into a firm PPA unless it resonates to allow them to move the project forward positively. There needs to be, you know, 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 enter one who, you know, would be presumably taking the risk if there is a cost overrun? I think all of that is kind of factored into the final net number on the cents per kilowatt. But I think, yes, they're all contributory, but I think they've all been kind of identified from what I can understand.
Gotcha. Okay. And then 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, you know, be an intermediate update?
Yeah, we talk to RealPower, Mark, almost once a week. In fact, I was just talking with the CEO of NucleoElectrica, who Rowe Power comes under. So as you remember, we're a subcontractor to Florida. We're doing a feed phase two right now. They're paying us. We got our licensing payments.
Right, right. Okay. Right now, to your point, I mean, we're not, as I stated before, you know, we're getting paid, and it's been a good project. Romania is very aggressively trying to establish their own Central Eastern European Manufacturing Hub project, so we're hopeful they're successful. They have their own regulator. They're into the nuclear with Chernivota, with CANDU reactors. So it's not that they're unfamiliar. It's hopefully we're hoping they get the funding necessary to carry it on to the final phase of the projects.
Yep. Yep. Okay. Thanks for that, John. Just one more real quick to go back. So the $500 million or $495 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, you know, what EntraOne's going to use that money for and, you know, kind of, how it helps move the project forward?
I can answer that. I think the short answer is that everyone pushes that money into project development. I don't have a source that uses this share, but we know that everyone has pushed forward with this term sheet. We're not saying they're taking like a fine-tooth comb to the spend, except that the spend is towards projects. It's towards development of our projects. And I think this is the most critical thing for NuScale is to forward these. We know that Entra1 has done a lot of work here. They put a lot of effort into these projects. to concede to the law of effort, first dollars in are very, very difficult and very challenging to get. And this is supporting up the commercialization. I think that's... Clay, you've developed more nuclear plants than I have, so you probably can articulate what the early development looks like better than I can on this one.
I think you stated it well. I mean, there's six projects, up to six projects, and there's a lot of front-end work that needs to be done. So, you know, it's all to catalyze and move this forward.
Yep. Yep. Okay, guys. Thanks so much. I'll turn it back.
Analyst Name (Firm): Vikram Bagri (Citi) Executive Name (Title): Management: Your line is open. Good evening, everyone. I wanted to follow up on a few questions asked previously. Obviously, aware of the principles that enter one and their standing in the industry, but the entity itself is complex. So if for any reason this deal doesn't go forward or, you know, so to say this takes Devon's ad Okay, this marriage, corporate marriage ends up in divorce. 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?
Yeah, I'll tell you. Yes, are there safeguards? Absolutely. Absolutely. The money that we put out now for the term sheets in relation to TVA were rolled to other term sheets for other projects, so TVA somehow disappeared. But I still struggle, and I guess the market continues to struggle, with this idea of who InterOne is and what they've done. There was so much questioning about the InterOne team, about the principles of InterOne, the backing of InterOne. And now they come out and they signed a term sheet for six gigawatts, five and a half gigawatts of power with TVA, with the U.S. government. And we're still getting these same questions. And then they go and they secure with the Japanese, they secure a place in this tremendous, this landmark Japanese investment into the U.S. We were the sole group TVA, sorry, there's one, like number two, if you look at this joint fact sheet, number two, power development for AI, new skill into an energy. At what point, and I'm asking our analyst group collectively, at what point do you stop doubting this partner? Why, what name for investment? Let's come back to reality, guys. We picked a partner. We picked an amazing partner. The partner has delivered and is delivering, and yet we're still questioning what if, what if. We're committed to the partner. The partner has done a great job. I think we need to recognize that.
I mean, I'm asking because just good corporate practice to protect your interests and put safeguards in place, but I get the point. The second question I have is I was wondering, like, you had a – you were targeting a deal by your end. Does this deal with TPA meet that commitment to sort of, like, John, I'll let you guys answer that.
I didn't hear the part of the question. It was muffled. I was asking, you were targeting a deal by year-end. Does the deal or announcement with TVA meet that commitment, or should we look out for another deal by year-end? Thank you.
Okay. So I think we're still looking at the construct of the deal when it gets signed and how that contributes to our classification of a deal by the end of the year. And we're kind of working through that right now.
Analyst Name (Firm): Moses Sutton (P&P Paribus) Executive Name (Title): Management: Your line is open. This is Joe Nussbaum. I'm for Moses. Thanks for taking my question. Within the PMA agreement, we see a 5% annual escalator on new milestone payments and an arm of math that increases the all-in payment per project from 600 a kilowatt to up to 1,200 a kilowatt by 2040. And while it may be premature to think that far out, can you confirm this escalator point and how do you weigh it against module orders, or should we assume you increase ASPs in tandem with milestone payments? Thank you.
I'll weigh in as well. I think the escalation is, like, it's an inflationary fuss, is the escalation. Where we see the cost of production of our modules, I think would be the right question because it has relocated margins. For us, we believe that the cost of production is going to go down as we go from personal time to producing, you know, in the case of TVA, potentially up to 72 modules. But really, much more. So, you know, this is kind of a very positive idea where we bring down our costs while we have an escalator to our pricing. And, you know, we're always going to keep pricing in line with what is necessary to be commercially competitive in the market. But this is a great deal for New Scale, right? You know, we all know from first-of-a-kind to end-of-a-kind, we bring down production costs. When manufacturing gets better, it gets more efficient. We optimize the supply chain. So I think that was, you know, that was a big win for us.
Great. Thank you. Very helpful.
And with no further questions in queue, I would like to turn the conference back over to John Hopkins for closing remarks.
Executive Name (Title): Management: Thank you. I apologize. I'm losing my voice here. But a lot of good questions today, a lot of speculation of how this is going to get done. I think Ramsey ma