NUSCALE POWER Corp

# BUSINESS_SUMMARY NuScale Power Corp provides proprietary advanced small modular reactor (SMR) nuclear technology, generating approximately 77 MWe per module and offering scalable configurations up to 924 MWe, along with services such as licensing support, testing, and fuel supply. # CLASSIFICATION_SUMMARY NuScale is classified in the Utilities sector under Electric Utilities with a confidence level of 0.92, according to verified market data. --- NuScale Power Corp operates in a capital-intensive industry with a current liquidity position that appears robust, as evidenced by a current ratio of 4.3 and cash and equivalents of $836.4 million. However, the company is experiencing significant operating losses, with a net loss of $355.8 million for FY2025, and a negative return on equity of -30.44%. These figures are notably worse than the industry median for profitability and returns, indicating a challenging financial performance relative to its peers. The company's revenue is primarily derived from its SMR technology and related services, with no disclosed segment or geographic revenue concentration data provided in the input. This lack of information makes it difficult to assess the risk associated with revenue concentration in specific markets or product lines. Looking at the growth trajectory, NuScale has not provided specific numeric deltas for revenue growth in the outlook section. The company's financial history shows a consistent pattern of losses, with operating cash flow of -$459.6 million and free cash flow of -$460.1 million for FY2025. These figures suggest a need for continued external financing to support operations and capital expenditures, which were $508,000 for the same period. Risk factors include a medium dilution potential, as indicated by the risk assessment, and the company's filings mention dilution or offering risk. The company has also issued forward-looking statements about the need for additional equity financing or other sources of funding, which could lead to further dilution of existing shareholders. Recent events include the filing of a Form 10-Q with the SEC, which outlines various forward-looking statements and risk factors, including the need for additional equity financing, the ability to obtain regulatory approvals, and the impact of macroeconomic conditions on the business. The company also disclosed potential litigation risks and the importance of maintaining effective internal controls and procedures. --- # KEY_TAKEAWAYS - NuScale Power Corp has a strong liquidity position with a current ratio of 4.3 and significant cash reserves, but it is experiencing substantial operating losses. - The company's profitability metrics, such as return on equity and return on assets, are negative and significantly below industry medians. - There is no detailed information on revenue concentration by segment or geography, which could pose a risk if the company is overly reliant on a single market or product line. - The company's financial outlook is uncertain, with a history of losses and a need for continued external financing to support operations. - The risk assessment indicates a medium dilution potential, and the company has disclosed forward-looking statements about the need for additional equity financing. --- # RATIONALES - **margin_outlook_rationale**: The company's margin outlook is negative due to ongoing operating losses and a negative return on equity. - **rd_outlook_rationale**: Research and development outlook is uncertain, as the company has not provided specific figures or projections for R&D spending. - **capex_outlook_rationale**: Capital expenditure outlook is modest, with a small amount spent on capital expenditures in FY2025. - **revenue_outlook_rationale**: Revenue outlook is uncertain, with no specific numeric deltas provided for revenue growth. - **dilution_sources**: The company has mentioned dilution or offering risk in its filings, indicating potential for future dilution. - **dilution_near_term_probability**: Medium, as the company has indicated a need for additional equity financing. - **dilution_expected_timeframe**: No near-term pressure, as the company has not specified an immediate need for additional financing. - **concentration_risk**: Low, as there is no detailed information on revenue concentration by segment or geography. - **regulatory_risk**: Medium, as the company's business is subject to regulatory approvals for the deployment of its SMRs. - **liquidity_risk_rationale**: Low, as the company has a strong liquidity position with a current ratio of 4.3. - **credit_risk_rationale**: Low, as the company has a strong equity position and significant cash reserves. --- # INVERSION (DS-6) - **bull_to_bear_signals**: - {"signal_id": "nu-scale-liquidity-decline", "signal": "NuScale's liquidity position deteriorates", "monitorable_field": "financial_snapshot.cash_and_equivalents", "threshold": "yoy_pct < -20", "rationale": "A significant decline in cash and equivalents could indicate financial distress."} - {"signal_id": "nu-scale-operating-losses-widen", "signal": "NuScale's operating losses widen", "monitorable_field": "financial_snapshot.operating_income", "threshold": "yoy_pct < -50", "rationale": "Widening operating losses could signal declining business performance."} - **bear_to_bull_signals**: - {"signal_id": "nu-scale-liquidity-improves", "signal": "NuScale's liquidity position improves", "monitorable_field": "financial_snapshot.cash_and_equivalents", "threshold": "yoy_pct > 20", "rationale": "An improvement in liquidity could indicate better financial health."} - {"signal_id": "nu-scale-operating-profitability-improves", "signal": "NuScale's operating profitability improves", "monitorable_field": "financial_snapshot.operating_income", "threshold": "yoy_pct > 50", "rationale": "Improving operating profitability could signal better business performance."} --- # SELF_SCORING (§A.8) - **business_understanding_score**: 0.85 - **economics_quality_score**: 0.75 - **ten_year_visibility_score**: 0.65 - **competitive_landscape_visibility_score**: 0.70