Will OKLO's Siemens Agreement Strengthen Its Long-Term Story?

Oklo Inc. (OKLO) shares saw a sharp increase yesterday, jumping about 6.5% and closing above the $100 mark, following a critical announcement. The company has signed a firm, binding contract with Siemens Energy to provide the crucial system that converts the reactor’s heat into electricity for its first Aurora powerhouse. This deal immediately authorizes Siemens Energy to start detailed engineering, order major parts with long lead times, and begin manufacturing the necessary hardware.

By securing this contract now, OKLO moves a vital component of its Idaho National Laboratory project from the drawing board into actual construction. Since the reactor fuel and site location are already secured, this agreement significantly lowers the supply-chain risks that often complicate other next-generation nuclear projects.

A key part of the deal involves Siemens Energy’s SST-600 steam turbine and SGen-100A generator — standard, off-the-shelf industrial systems that will turn the Aurora unit’s fast-fission heat into usable power. Siemens Energy will manage the complex engineering and system layout, providing a robust power-generating backbone that has been proven reliable in global power markets.

OKLO points out that because their Aurora reactor is inherently safe, they can use this conventional, reliable turbine technology. This design choice is critical because it helps speed up the timeline and reduce overall costs compared to building specialized systems unique to this reactor. For Siemens Energy, this partnership confirms its commitment to providing turbine solutions for new, clean-energy technologies.

This announcement also marks a significant change for OKLO. After months of stock volatility and doubt due to its lack of revenues, this contract represents a concrete, tangible step toward its goal of deploying the reactor in 2027-2028. This is a real purchase order, not just a concept or a preliminary agreement, confirming that critical construction work is now underway. While OKLO still faces risks, it’s clear that nuclear energy, driven by the massive power needs of the AI era and the push for net-zero emissions, is experiencing a strong revival.

Partnerships Driving OKLO's Energy Strategy

OKLO has teamed up with Vertiv Holdings (VRT), a top provider of data center cooling systems, to make powerful new facilities more efficient. This partnership will use the steam and electricity from OKLO's nuclear plants to power Vertiv’s cooling technology. By integrating the two systems, OKLO and Vertiv aim to enhance energy efficiency for massive, high-performance data centers.

OKLO has also got a partnership with Liberty Energy (LBRT), an energy services firm. This collaboration offers high-demand customers a complete energy roadmap. Liberty Energy will first provide immediate power using natural gas plants, and then OKLO’s nuclear reactors will be integrated to supply clean, continuous power. This dual-phase approach by Liberty Energy gives customers reliable power today and a guaranteed shift toward zero-carbon energy.

The Zacks Rundown on OKLO

Shares of Oklo have surged nearly 400% so far this year, breezing past the industry's growth.

OKLO currently has an average brokerage recommendation (ABR) of 2.28 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 18 brokerage firms.

See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past 30 days.

The stock currently carries a Zacks Rank #3 (Hold).

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).

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