NuScale Power's ENTRA1 Deal Deepens: Can it Deliver 6GW by 2030?

NuScale Power (SMR) is working closely with ENTRA1 to build up to 6 gigawatts (GW) of small modular reactor capacity for the Tennessee Valley Authority (“TVA”). This is the largest small modular reactor development plan announced in the United States so far, and it could include around 72 NuScale Power Modules across multiple sites. The first plant is expected to start producing power by 2030, with more sites added over time if demand continues to grow.

The term sheet signed between ENTRA1 and TVA is still in its early steps, but it shows real progress. ENTRA1 is now working on final agreements with TVA. NuScale Power made a milestone payment of $128.5 million in the third quarter of 2025 to support early development work. These payments help ENTRA1 move faster on-site tasks, project design, and supply chain planning.

NuScale Power ended the third quarter with $753.8 million in cash after raising $475.2 million through an equity program. This gives the company room to fund upcoming milestone payments and support early project work. Moreover, NuScale Power also noted that if TVA chooses fewer units, the milestone payments can be applied to other ENTRA1 projects.

However, the main risk that the company faces is timing. TVA is still reviewing different nuclear options, and the agreement is not yet a firm order. ENTRA1 also needs to complete its Power Purchase Agreement work before construction can begin. NuScale Power believes that it has an advantage because it already has the approval of the U.S. Nuclear Regulatory Commission and modules in production. The above-mentioned factors show that NuScale Power’s long-term growth is dependent on whether the partnership with ENTRA1 can turn this 6GW plan into firm contracts and deliver the first plant by 2030.

NuScale Power Faces Stiff Competition

Despite NuScale Power’s advancements in small modular reactor technology, the company faces stiff competition in the nuclear energy industry from companies like BWX Technologies (BWXT) and GE Vernova (GEV).

In September 2025, GE Vernova and Samsung C&T formed a partnership to speed up the rollout of GE Vernova’s BWRX-300 SMR in markets outside North America. The two companies will work together to build a strong supply chain and improve project delivery for these reactors.

In October 2025, BWX Technologies signed new agreements with Rolls-Royce SMR to design and supply steam generators and other key components for advanced reactors. The company's experience in nuclear manufacturing, along with its recent plant expansion in Canada, strengthens its position in the SMR supply chain.

NuScale Power’s Price Performance, Valuation & Estimates

Shares of NuScale Power have gained 4.5% year to date compared with the Zacks Computer and Technology Sector’s growth of 25%.

NuScale Power YTD Price Return Performance

From a valuation standpoint, NuScale Power trades at a forward price-to-sales ratio of 60.54X compared with the industry’s average of 25.29X.

NuScale Power Forward 12-Month P/S Ratio

The Zacks Consensus Estimate for 2025 is pegged at a loss of $1.64 per share. The current estimate has widened from a loss of 50 cents projected 30 days ago. NuScale Power reported earnings of 42 cents per share in the year-ago quarter.

NuScale Power currently carries a Zacks Rank #5 (Strong Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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