NuScale Power (NVLS) saw its stock plummet 42% in February 2026, driven by prolonged delays in commercial deployment and intensified regulatory review of its small modular reactor (SMR) design. Analysts warn the company may face additional setbacks, with potential implications for clean energy investments and federal nuclear programs.
- NVLS stock declined 42% in February 2026
- Commercial SMR deployment delayed from 2027 to 2028
- NRC extended licensing review by six months
- Project cost overrun projected at $2.3 billion
- U.S. DOE committed $4.3 billion in loan guarantees
- XLE index fell 2.1% amid broader energy sector caution
NuScale Power (NVLS) experienced a sharp 42% decline in its share price during February 2026, marking one of the steepest monthly drops in the clean energy sector. The sell-off followed the company’s announcement that its first commercial SMR unit at the Idaho National Laboratory would not achieve criticality by the revised 2027 deadline, pushing the timeline to 2028 at the earliest. This delay came amid renewed scrutiny from the U.S. Nuclear Regulatory Commission (NRC), which has extended its review of the company’s final safety and licensing documentation by an additional six months. The downturn reflects broader concerns about the commercial viability of small modular reactors, a key component of the U.S. Department of Energy’s plan to expand low-carbon energy infrastructure. With NVLS now projecting a $2.3 billion cost overrun and a 24-month delay in first power generation, investor confidence eroded rapidly. The stock, which traded above $22 in January, closed February at $12.60, a level not seen since late 2023. Market indicators suggest broader ripple effects: the S&P 500 Energy Select Sector Index (XLE) declined 2.1% in February, while crude oil futures (CL=F) rose 3.4%, signaling a shift toward traditional energy assets. Analysts at major brokerages downgraded NVLS to 'sell' from 'hold', citing mounting execution risks and a lack of third-party validation for SMR scalability. The move has also triggered caution among private investors in other nuclear startups, with several projects facing renewed due diligence. The U.S. Department of Energy has pledged continued support, including a $4.3 billion loan guarantee for the Idaho project, but the delay underscores systemic challenges in regulatory alignment and supply chain readiness. If NVLS fails to meet its updated milestones, the company may need to seek additional capital, potentially diluting existing shareholders and further pressuring the stock.