TLDR
- NuScale Power (NYSE:SMR) entered a Partnership Milestones Agreement with ENTRA1 Energy LLC for small modular reactor technology supply, effective August 27, 2025
- The deal includes a partnership contribution of $35-55 million from NuScale, paid in stages based on commercial milestones
- The agreement runs until December 31, 2045, with automatic 20-year renewals unless terminated with 12-month notice
- NuScale’s stock rose 7.47% following the partnership announcement, adding to its 93% year-to-date gains
- The company recently missed Q2 earnings expectations with EPS of -$0.13 versus forecasted -$0.11, and revenue of $8.1 million versus expected $11.89 million
NuScale Power Corporation struck a partnership deal with ENTRA1 Energy LLC on August 27, 2025. The agreement positions NuScale as a key technology supplier for future energy projects using small modular reactor systems.
The partnership includes a financial commitment from NuScale ranging from $35 million to $55 million. This money will fund a NuScale Power Module for use in ENTRA1’s planned energy facilities.
The payment structure ties directly to project milestones. NuScale will pay 15% when ENTRA1 signs a non-binding term sheet with a third party for an energy project.
Another 35% gets released when ENTRA1 executes a binding power purchase agreement or energy off-take deal. The final 50% comes when parties sign an equipment manufacturing agreement or other binding purchase documentation.
The stock jumped 7.47% following news of the partnership. NuScale shares have gained 93% year-to-date, reaching a market cap of $9.87 billion.
Agreement Terms and Duration
The initial agreement runs through December 31, 2045. It automatically renews for additional 20-year periods unless either party gives 12 months written notice.
Both companies can terminate the deal under specific conditions. These include insolvency or inability to pay debts.
NuScale also signed a separate guaranty agreement with ENTRA1 on the same date. This ensures NuScale LLC meets its obligations under the partnership deal.
Recent Financial Performance
The company’s second-quarter earnings fell short of analyst expectations. NuScale posted an earnings per share of -$0.13 compared to the forecasted -$0.11.
Revenue came in at $8.1 million, missing the anticipated $11.89 million. Despite the earnings miss, the company showed 305% revenue growth over the past twelve months.
NuScale maintains gross profit margins of 71.5% in its capital-intensive industry. The company also announced a $500 million at-the-market stock offering program.
Analyst Coverage Updates
UBS raised its price target for NuScale to $38 from $34 while keeping a Neutral rating. The upgrade reflects adjustments in cash EBITDA estimates for future years.
BofA Securities initiated coverage with a Neutral rating and $36 price target. The firm noted NuScale’s role in developing small modular reactor nuclear technology.
Analysts remain cautious about profitability challenges despite the strong revenue growth. The average trading volume sits at 13.3 million shares with a technical sentiment signal showing Buy.
The ENTRA1 partnership represents NuScale’s latest move to expand its small modular reactor technology footprint in the growing clean energy sector.
