NuScale Power (NYSE: SMR) could be on the verge of a significant commercial milestone, with CEO John Hopkins implying the company will secure a power purchase agreement by the end of 2026.
The anticipated agreement is tied to a 6-gigawatt small modular reactor system being developed for the Tennessee Valley Authority, a major utility operator.
A signed power purchase agreement would lock in revenue for NuScale from a utility company for years or even decades to come, providing long-sought financial stability.
The potential deal arrives after a turbulent stretch for the company, which has faced a series of setbacks that have weighed heavily on investor sentiment throughout the year.
Among the most significant blows was the exit of NuScale’s largest shareholder, Fluor, which removed a key pillar of institutional backing from the company’s capital structure.
NuScale also faces a $507.4 million milestone payment obligation to commercialization partner ENTRA1 Energy, adding further pressure to its financial position.
A class action lawsuit was filed against NuScale, alleging the company misled investors regarding ENTRA1’s capabilities and experience, compounding the reputational damage from other recent developments.
Despite these headwinds, NuScale retains a meaningful structural advantage, as its small modular reactor design was the first to receive full approval from the U.S. Nuclear Regulatory Commission.
Surging AI-related power demand has renewed broad investor interest in nuclear energy, and NuScale’s first-mover status in a competitive and capital-intensive sector remains a differentiating factor.
The stock has plummeted 81% over the past 12 months, and shares were trading near their 52-week low at just under $9 per share as of late July 2026.
For risk-tolerant investors with a long-term view on the nuclear energy renaissance, the current valuation and the prospect of a positive update in the upcoming earnings release may represent a compelling entry point.
The combination of a potential power purchase agreement, NuScale’s regulatory head start, and growing utility demand for clean baseload power means the downside risk and the upside potential are both substantial.
