While NuScale Power has captured attention with its small modular reactor concept, its financial instability and delayed milestones make it a high-risk bet. Investors seeking exposure to the nuclear revival should consider a more established player with proven execution and strong cash flow.
- NuScale Power reported a $142 million net loss in 2023 and burned $80 million in cash.
- First NuScale reactor now scheduled for 2027, three years behind initial timeline.
- Constellation Energy (CEG) generated $3.2 billion in adjusted EBITDA in 2023.
- Constellation’s Natrium reactor project targets 2026 commissioning in Wyoming.
- Constellation’s nuclear capacity has grown 72% since 2020.
- CEG’s stock outperformed the S&P 500 by 18 percentage points over the past year.
NuScale Power’s vision of scalable, safe nuclear power has drawn investor interest, but its path to commercialization remains uncertain. The company reported a net loss of $142 million in 2023, with cash burn exceeding $80 million in the same period. Despite receiving a $1.1 billion federal loan guarantee in 2022, NuScale has yet to deliver its first operational unit, with the first project now delayed to 2027—three years behind original projections. The broader nuclear energy sector is gaining momentum, driven by climate mandates and energy security concerns. However, NuScale’s reliance on government funding and lack of revenue stream underscore its vulnerability. With a market capitalization under $1.2 billion and a debt-to-equity ratio of 3.4, the company’s balance sheet reflects significant financial strain. In contrast, TerraPower, backed by Bill Gates and operating under the umbrella of Constellation Energy (NYSE: CEG), presents a more compelling investment case. Constellation reported $3.2 billion in adjusted EBITDA in 2023, with a 72% increase in nuclear generation capacity since 2020. Its Natrium demonstration reactor in Wyoming, expected online by 2026, leverages molten salt technology with integrated battery storage—a design offering greater efficiency and grid flexibility. Constellation’s stock has outperformed the S&P 500 by 18 percentage points over the past 12 months, supported by long-term power purchase agreements and a stable dividend. With over 30 GW of nuclear capacity under operation or in development, Constellation offers diversified exposure to nuclear energy without the execution risks tied to early-stage startups.