Nuclear energy is gaining attention as governments and corporations seek reliable, low-carbon power sources that can operate around the clock. NuScale Power SMR looks to benefit from this trend through its small modular reactors (“SMRs”) technology, which is designed to offer lower upfront costs, smaller footprints, and cleaner energy compared to traditional nuclear plants. With U.S. regulatory approval already secured and partnerships expanding, the company appears well-positioned for long-term growth as energy demand rises.
However, the near-term picture remains challenging. NuScale is yet to build a commercial reactor and continues to generate losses as it invests heavily in development and operations. Those concerns resurfaced after weak first-quarter results, which showed sharply lower revenues, wider losses and significantly higher cash burn.
Revenues fell sharply to $0.6 million from $13.4 million a year ago due to the completion of prior RoPower and Fluor FEED work. Meanwhile, net loss widened to $46.7 million as operating expenses increased, while operating cash burn jumped to $314.7 million from $22.7 million during the quarter.
NuScale Power Corporation Price, Consensus and EPS Surprise
NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote
The disappointing report pushed the stock lower again, after an already steep 58% decline over the past six months. The stock has also underperformed its peers like Oklo Inc. OKLO and Nano Nuclear Energy NNE.
6-Month Price Performance Comparison
Image Source: Zacks Investment Research
While the long-term nuclear opportunity remains promising, investors should decide if the recent selloff has created a buying opportunity or if the risks still outweigh the potential rewards.
What’s Working in NuScale’s Favor?
NuScale remains the only SMR company with U.S. Nuclear Regulatory Commission standard design approval. The company has approvals for both its 50 MW and 77 MW reactor designs, which significantly lowers licensing and deployment uncertainty compared to many competitors that are still navigating earlier regulatory stages. This gives utilities and large commercial customers more confidence in NuScale’s ability to move toward commercialization faster. Beyond utilities, the company is increasingly targeting AI data centers, industrial heat applications, and behind-the-meter energy solutions, which could materially expand its long-term growth opportunities as global electricity demand accelerates.
Another major catalyst is the Tennessee Valley Authority (TVA) and ENTRA1 deployment initiative, which targets up to 6 GW of nuclear capacity. Management believes this could become one of the largest nuclear deployment programs in U.S. history. The project also benefits from support tied to U.S.-Japan and South Korean investment frameworks, potentially improving financing access and lowering commercialization risk.
International progress is also encouraging. NuScale’s RoPower project in Romania remains among the most advanced SMR projects in Europe, with continued backing from Nuclearelectrica. At the same time, partnerships with Framatome and Doosan Enerbility strengthen manufacturing readiness and supply-chain reliability. Framatome improves fuel sourcing flexibility across the United States and Europe, while Doosan continues producing key reactor components.
NuScale also benefits from using conventional low-enriched uranium (LEU) fuel instead of HALEU fuel required by several advanced reactor competitors. Since LEU already has an established global supply chain, NuScale faces fewer fuel availability risks in the near term.
Lastly, the company ended the first quarter of 2026 with roughly $1 billion in liquidity, giving it financial flexibility to continue investing in manufacturing, procurement and commercialization efforts.
SMR: Near-Term Pain, Long-Term Nuclear Potential
While NuScale’s commercialization narrative is improving, the gap between technological readiness and meaningful recurring revenues remains significant. The company still faces execution risk as it works to convert partnerships, deployment discussions, and regulatory progress into long-term revenue-generating projects. Near-term financial pressure is also likely to persist.
However, these challenges do not weaken the company’s long-term story. SMR still holds several strategic advantages, including NRC-approved reactor designs, TVA and ENTRA1 partnership, established fuel availability through conventional LEU, growing international partnerships, and exposure to rising electricity demand from AI infrastructure and industrial applications.
Importantly, Wall Street expects losses to narrow meaningfully over the next two years. The Zacks Consensus Estimate indicates loss per share could narrow by roughly 80% in 2026 and another 12% in 2027. Here’s how the estimates have been revised over the past 90 days.
Image Source: Zacks Investment Research
That said, SMR remains a high-risk, high-reward investment and is not for conservative investors. But if you are willing to look beyond current challenges, buying the stock at these levels for the long haul would be a smart move.
NuScale Power currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
