NuScale Power Corp (NYSE:SMR) reported its financial results for the third quarter of 2025, revealing a significant earnings miss against analyst expectations alongside a notable expansion in its project pipeline. The company's results reflect the substantial costs associated with scaling its advanced nuclear technology while simultaneously securing landmark deployment agreements.
Earnings and Revenue Performance
The company's financial performance for the quarter fell short of Wall Street forecasts. The reported figures show a wider-than-expected loss and revenue that did not meet consensus estimates.
- Earnings Per Share (EPS): Reported a loss of $1.85 per share, which was substantially greater than the analyst estimate for a loss of $0.1472 per share.
- Revenue: Posted revenue of $8.24 million, falling short of the estimated $11.18 million for the quarter.
This earnings miss appears to be a primary driver behind the stock's negative reaction in after-hours trading, where it declined over 3%. The performance extends a negative trend for the stock, which has declined over 20% in the past month.
Strategic Developments and Liquidity
Beyond the quarterly earnings figures, the company's press release highlighted significant strategic progress and a strengthened financial position. The quarter was marked by a major partnership and successful capital raising efforts.
The company announced a collaborative agreement with the Tennessee Valley Authority and ENTRA1 Energy, described as the largest small modular reactor (SMR) deployment program in U.S. history. This program represents a key milestone in the commercialization of NuScale's technology. From a financial perspective, the company significantly bolstered its balance sheet.
- Cash Position: Ended the quarter with $753.8 million in cash, cash equivalents, and investments.
- Capital Raise: Generated $475.2 million in gross proceeds through the sale of 13.2 million shares via an at-the-market offering program.
Operational Cost Analysis
A deep dive into the company's expenses reveals a substantial one-time charge that heavily impacted the quarterly loss. While some operational costs showed improvement, a major non-recurring item drove the overall loss.
- General and Administrative (G&A) Expenses: Increased dramatically by $502.2 million compared to the prior year period. This surge was primarily attributable to the recognition of a $495.0 million charge related to "Milestone Contribution 1" under the company's Partnership Milestones Agreement with ENTRA1.
- Research and Development (R&D) Expenses: Decreased by $1.1 million as personnel transitioned from R&D to revenue-generating commercial projects.
- Revenue and Cost of Sales: Both increased year-over-year, primarily due to engineering services for a project in Romania.
Future Outlook and Analyst Estimates
Looking ahead, Wall Street analysts have established estimates for the company's upcoming performance. These projections provide a benchmark against which NuScale's future execution will be measured.
- Q4 2025 Estimates: Analysts expect a loss of $0.1519 per share on revenue of $11.19 million.
- Full-Year 2025 Estimates: The consensus estimates project a full-year loss of $0.4746 per share on revenue of $45.39 million.
The press release did not provide specific quantitative financial guidance for the coming quarters, focusing instead on operational milestones and strategic positioning.
Conclusion
NuScale Power's third quarter presents a mixed picture. While the company demonstrated formidable strategic execution by securing a historic deployment agreement and strengthening its cash reserves, the financial results for the period were overshadowed by a significant earnings miss and a large, one-time expense. The market's negative reaction appears to focus on the immediate financial performance relative to expectations. Investors will now be watching closely to see how the company's robust project pipeline and substantial liquidity translate into future revenue growth and a path toward profitability.
For a detailed look at upcoming earnings dates and analyst estimates, you can review the earnings and estimates page for SMR.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in any stock mentioned. Please conduct your own research before making any investment decisions.
