NuScale Power Plunges 54% in 3 Months: Time to Hold Tight or Exit?

NuScale Power’s SMR shares have lost 54.4% over the past three months, underperforming the Zacks Electronics- Power Generation industry’s decline of 50.6. The stock has underperformed its industry competitors as well, including Oklo OKLO, BWX Technologies BWXT and GE Vernova GEV. In the past three months, shares of BWX Technologies have gained 2.2%, while shares of GE Vernova and Oklo have lost 3.8% and 36.4%, respectively.

NuScale Power’s underperformance can be attributed to execution risks being faced by the company on its plans to set up 6 gigawatts (GW) of nuclear capacity and to a highly competitive energy market, which includes the growing presence of renewable energy sources. The underperformance of NuScale Power’s share price raises the question: Should investors continue holding NuScale Power or exit the investment?

3-month Price Return Performance

NuScale Power’s Expansion Plans Face Execution Risk

NuScale Power is moving ahead with its plan to support up to 6 GW of new nuclear capacity through its partnership with ENTRA1 and the Tennessee Valley Authority (TVA). The program includes about 72 small modular reactor modules across multiple sites, making it the largest planned small modular reactor deployment in the United States. The first plant, which will use 12 modules, is targeted to begin delivering power around 2030.

NuScale Power is entering a critical stage as it works with ENTRA1 and TVA. While the opportunity is large, the company faces several risks that could affect its path to deployment. TVA and ENTRA1 must finalize site selection, complete engineering work and convert the current term sheet into a binding power purchase agreement (PPA). NuScale Power says these discussions are progressing, but no firm contract has been signed yet. The company continues to focus on the combined operating license application process, which is needed before construction can begin.

The company paid $128.5 million to ENTRA1 during the third quarter as part of its milestone agreement. The management stated that total payments across all six TVA projects could reach several billion dollars before NuScale Power receives any equipment orders. This could hurt NuScale Power’s prospects as its revenues are still very small, with $8.2 million reported for the third quarter of 2025.

Another key risk is that the TVA agreement is not a binding PPA yet, and delays in signing PPAs could push out orders and revenues. Timelines of projects are long, with the first plant expected around 2030, which shows that meaningful revenues are still years away. 

For now, the timeline depends on coordinated progress across engineering, licensing, supply chain planning and customer decisions, but delays in PPA negotiations, licensing steps, or site work could push the date out.

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 such as Oklo, BWX Technologies and GE Vernova.

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.

In September 2025, Oklo, a U.S.-based advanced nuclear company, and Sweden’s Blykalla formed a partnership to speed up the development and commercialization of advanced nuclear reactors. The two companies will work together on technology development, supply chain planning, and sharing regulatory expertise.

What Do SMR’s Earnings Estimates Hint?

For 2026, the Zacks Consensus Estimate for loss is pegged at 52 cents per share, widened by a penny from the loss of 51 cents per share anticipated 60 days ago.

Key Technical Indicator Signals Bearish Trend for SMR

NuScale Power shares have dipped below their 50-day & 200-day moving averages, a bearish technical signal that indicates the potential for continued downward pressure in the short term.

SMR 50-Day & 200-day Simple Moving Average

Valuation: NuScale Power Trades Above Industry

NuScale Power is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NuScale Power’s forward 12-month P/S ratio sits at 51.69X, significantly higher than the industry’s forward 12-month P/S ratio of 31.27X.

NuScale Power stock trades at a higher P/S multiple compared with its peers as well, including BWX Technologies and GE Vernova. At present, BWX Technologies and GE Vernova have P/S multiples of 5.05X and 3.98X, respectively.

Conclusion: Sell NuScale Power Stock Right Now

NuScale Power has important technology advantages and major long-term project announcements. However, projects’ timeliness and massive upfront investments before receiving equipment orders put a question mark on their growth prospects.

The company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. NuScale Power’s stretched valuation warrants a cautious approach to the stock.

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

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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