NuScale Power falls on disappointing drop in Q1 sales
NuScale shares are dropping in the early trading session after it released Q1 earnings yesterday after the bell that are failing to rejuvenate any excitement in the once high-flying, early-stage nuclear energy company.
The company announced Q1 revenue of just $560,000, well below the $10.5 million estimate, with sales down materially year over year thanks to old licensing and design deals that have since been completed.
The lack of financial progress has made NuScale Power more of a momentum-driven way to play the intersection of clean energy and AI infrastructure, particularly as hyperscalers and data center operators search for long-term power sources.
“The demand for reliable, carbon-free power has never been greater, and NuScale is the only SMR technology provider with a U.S. Nuclear Regulatory Commission approved design, an established supply chain and NPM components currently in production for commercial use to meet this essential need,” said John Hopkins, NuScale president and CEO. “We are building the infrastructure that this pivotal moment requires.”
Analysts at Goldman Sachs trimmed their price target to $9 from $10 in the wake of this report.
The company ended this quarter with cash, cash equivalents, and short- and long-term investments of $1.0 billion. The stock has dropped more than 25% year to date.
