Shares of NuScale Power (NYSE:SMR) posted a weekly gain of 4.8%, closing Friday at $8.09, despite a single-day decline of 8.2% that mirrored broader weakness across the nuclear energy sector. The stock's weekly advance came as the company disclosed that net proceeds from recent share sales reached approximately $250.8 million by early May, covering 96.5% of a $259.9 million first-quarter payment from partner ENTRA1.
The payment from ENTRA1, which is tied to a nonbinding agreement for the purchase of 72 NuScale power modules, represented 82.6% of the operating cash used by NuScale in the first quarter. The company reported operating cash consumption of $314.7 million during the period. The initial milestone payment of $507.4 million is scheduled to be split between 2025 and 2026, but further contributions hinge on the execution of a binding power purchase or equipment agreement.
NuScale's financial position has strengthened amid these developments. As of the end of March, the company reported $1.0 billion in liquidity and capital resources. By early May, that figure had surpassed $1.2 billion, according to Chief Financial Officer Ramsey Hamady. The company's economic interests—encompassing both Class A shares and Class B units—grew by at least 8.2% between year-end and early May, rising from $337.9 million to at least $365.5 million.
Despite the cash infusion, NuScale's operating results remain constrained. First-quarter revenue plunged 95.8% to just $565,000, while the Class A net loss widened to $44.0 million. Management attributed the revenue decline to the completion of licensing and engineering work in Romania, which had driven sales in early 2025 but has no equivalent in the current year.
Analysts are now focused on the company's upcoming second-quarter earnings report, scheduled for August 5 after the market close. The consensus estimate calls for a loss of 13 cents per share. Investors will closely scrutinize the company's utilization of its at-the-market (ATM) equity program, outstanding share count, and progress on partnership obligations. A confirmed order from ENTRA1 or another customer could shift the dynamic between dilution and income generation.
On July 23, Barclays analyst Christine Cho lowered her price target on SMR to $11 from $15 while maintaining an equal-weight rating, reflecting cautious sentiment ahead of the earnings release. The broader nuclear sector also faced headwinds on Friday: Oklo (NYSE:OKLO) dropped 8.5%, and Nano Nuclear Energy (NASDAQ:NNE) fell 7.6%, indicating industry-wide weakness.
NuScale's 77-megawatt reactor design has received approval from U.S. regulators, and the company continues to generate revenue from engineering, licensing, and related services. CEO John Hopkins described the customer closure process with ENTRA1 in May as “a complicated slow process,” while emphasizing that NuScale remains focused on its partnership with the Tennessee Valley Authority (TVA). ENTRA1’s TVA initiative aims to develop up to 6 gigawatts of capacity using NuScale’s technology, but the current agreement is nonbinding and will require future power-purchase agreements to move forward.
Key risks for NuScale include potential delays in sales due to project financing, manufacturing, and licensing hurdles. Future ENTRA1 milestones could lead to higher cash consumption, and additional ATM issuances would dilute existing shareholders. The company has no events scheduled for July 27-31, with all eyes now on the August 5 earnings call.
