NuScale Advances Supply Chain with Doosan Component Deal; Commercial Contracts Still Pending

What happened

NuScale Power announced on its Q3 earnings call that it has entered an agreement with Doosan Enerbility to manufacture components for its first NuScale Power Module, signaling supply chain preparation ahead of potential customer orders. This agreement is a tangible step in building manufacturing readiness, consistent with earlier Framatome and Paragon partnerships, but it does not represent a binding customer contract or revenue-generating order. The company's deep value report highlights that NuScale remains pre-revenue with minimal Q2 revenue, no binding module delivery contract, and commercialization gated by non-binding TVA power purchase agreements and Romanian financing hurdles. While the Doosan deal de-risks hardware readiness, the core investment thesis still hinges on converting TVA/ENTRA1 and Romania discussions into binding off-take agreements, which have not yet materialized. As such, the news is mildly positive for execution but does not alter the fundamental wait-and-see stance given the stock's current valuation and continued cash burn.

Implication

Near term, the Doosan agreement supports supply chain readiness but does not reduce the key risk that no binding customer contract exists, leaving revenue and cash flow dependent on future milestones. Existing shareholders may see incremental progress, but the stock still trades at a premium to its base-case value of $10 given a market cap near $2.9B and minimal revenue. Potential catalysts remain TVA/ENTRA1 signing a definitive PPA and Romania securing financing for pre-EPC work; until then, the investment thesis is unchanged. The company's large cash position from equity issuance provides runway but does not protect against dilution or the possibility that commercialization slips further. A prudent approach is to wait for a binding off-take announcement or a valuation reset toward the attractive entry of $8 before considering a position.

Thesis delta

The agreement with Doosan is a positive supply chain development but does not shift the core thesis that NuScale's value is contingent on converting regulatory lead into binding customer contracts. It reinforces the view that the company is preparing for orders, yet the absence of a definitive PPA or module purchase agreement means the WAIT rating remains appropriate. Investors should not interpret this as a commercial breakthrough; it is an operational step that does not address the primary bottleneck of project financing and off-take.