NuScale Power Stock Barely Budged After Earnings. Time to Buy?

On paper, NuScale Power (NYSE: SMR) failed to meet expectations when it reported quarterly earnings on Aug. 5. The nuclear power stock reported a quarterly loss of $0.13 per share, in line with expectations. Revenue, however, came in at just $80,000 for the quarter, missing estimates by 93%. Sales were down 99% versus the quarter prior.

These are poor figures for a company that supposedly has massive long-term growth potential. Yet shares traded mostly flat following earnings, with the stock price roughly where it was before the earnings announcement.

The reality is that very little was expected of the company this quarter anyway. No major catalysts were expected to be revealed, and the company has no commercial projects underway, despite an impressive pipeline of interested customers. Revenue and profits, therefore, were always expected to be minimal and, in some ways, irrelevant to the company's long-term future.

When might a meaningful growth catalyst arrive? Good news could be on the way later this year regarding NuScale's biggest project.

NuScale Power stock could receive a massive boost later this year

Nuclear energy is experiencing a renaissance. Some of that is due to climate concerns and a rising global need for low-carbon energy sources. Most of it, however, is due to rising energy demand across the board, driven by the rapid adoption of energy-intensive AI technologies. The Energy Information Administration observes:

[W]e forecast U.S. annual electricity consumption will increase in 2025 and 2026, surpassing the all-time high reached in 2024. This growth contrasts with the trend of relatively flat electricity demand between the mid-2000s and early 2020s. Much of the recent and forecasted growth in electricity consumption is coming from the commercial sector, which includes data centers.

Still, a resurgence in electricity demand translates to just a few percentage points of annual growth, and getting new energy sources online can often take years. In short, this is a massive opportunity, but it will take decades to fully play out.

Image source: Getty Images.

Investors, therefore, shouldn't expect major revelations during every NuScale earnings release. That's especially true since the company has yet to break ground on any of its SMR deals.

Why hasn't NuScale begun construction? None of its customers have committed to payments. NuScale will only start construction once funds are legally obligated to pay for the construction. NuScale's inability to reach this milestone is a big reason why its valuation remains under $4 billion despite operating in a long-term growth market.

However, NuScale's CFO believes that a power purchase agreement could be signed by its utility customer in the U.S. by the end of 2026, committing it to buying power from the future facility, perhaps for decades to come. If a PPA is secured, construction can finally begin.

A signed PPA would likely be a huge boost to NuScale's stock price. It would provide serious social validation of the company's technology and adoption potential. It would also clear up some of NuScale's financing concerns.

To be sure, NuScale's management team has missed self-imposed deadlines before. But if you're looking for high-upside-potential stocks and are willing to take on extra risk, NuScale could be positioned for a stellar second half of 2026.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.