Guggenheim Securities analysts have criticised NuScale Power (SMR), describing NuScale’s partner, ENTRA1, as an inexperienced firm with minimal staff. The report, highlighting risks in NuScale’s commercialisation strategy, caused a 12.4% drop in SMR stock ($32.46 to $28.43) in November 2025, sparking class-action lawsuits. NuScale had faced a similar spate of class-action lawsuits in August 2024.
On 6 November, NuScale had disclosed that its general and administrative expenses had increased more than 3,000%, to $519m during its third fiscal quarter compared with $17m the previous year. This was largely due to the Company’s payment of $495m to ENTRA1 Energy LLC for its agreement with Tennessee Valley Authority (TVA). As a results, NuScale’s quarterly net loss rose to $532m from $46m the year before.
Following NuScale’s earning announcements, analysts at Guggenheim Securities published a report stating the ENTRA1 was a “3-year old company that has never built, financed or operated anything” and that its available information revealed nothing “regarding the company’s history, management team, size or capitalisation”. The report further stated that a “more accurate description” of ENTRA1 would be “that it is an entity supporting the activities of a single individual, specifically [its CEO and Chairman, Wadie Habboush].”
In September 2022, NuScale and Habboush Group (HG) entered into an agreement forming a strategic alliance to establish a “one-stop-shop” for the financing, investment, development, execution and management of NuScale-powered projects and opportunities. The new alliance, along with energy transition platform ENTRA1, based in London and New York, aimed to provide integrated capabilities for financing, investment, development, management and execution of large-scale assets and projects for NuScale’s Power Module (NPM).
The NPM is a small pressurised water reactor that can generate 77MWe and can be scaled to meet customer needs. NuScale’s 12-module VOYGR-12 power plant is capable of generating 924MWe. NuScale also offers four-module VOYGR-4 (308 MWe) and six-module VOYGR-6 (462 MWe) power plants. It is the only small modular reactor (SMR) technology to receive Standard Design Approval from the US Nuclear Regulatory Commission.
ENTRA1 Energy is NuScale’s strategic partner, and the two companies have an existing 50/50 joint venture company – ENTRA1 NuScale LLC. ENTRA1 holds the global exclusive rights to the commercialisation, distribution, and deployment of NuScale’s products and services.
In September 2025, US power utility TVA signed an agreement with ENTRA1 to provide up to 6 GWe of new nuclear power generation on sites in TVA’s seven-state region through the deployment of six ENTRA1 Energy Plants using NuScale technology.
On 24 February, securities law firm Bleichmar Fonti & Auld LLP announced that a class action lawsuit has been filed against NuScale and certain NuScale senior executives for securities fraud after the significant stock drop “resulting from the potential violations of the federal securities laws”. Investors have until 20 April to ask the Court to be appointed to lead the case. The case is pending in the US District Court for the District of Oregon and is captioned Truedson v. NuScale Power Corporation, et al., No. 3:26-cv-00328.
The Law Offices of Frank R Cruz, the Law Offices of Howard G Smith and Robbins Geller Rudman & Dowd LLP also filed a securities fraud class action against NuScale.
The core allegations focus on:
- Misrepresentation of ENTRA1 Energy: The lawsuit claims NuScale misled investors by describing ENTRA1 as an experienced commercialisation partner when it was a three-year-old entity with no prior history of building, financing, or operating nuclear power projects.
- Concealment of Risk: Plaintiffs allege that the qualifications NuScale attributed to ENTRA1 actually belonged to principals of the Habboush Group, a separate entity that also lacked significant nuclear experience.
- Milestone Payment Disclosure: NuScale reportedly failed to disclose the scale of its milestone payment exposure, which includes a $495m payment in Q3 2025 and potential future payments exceeding $3bn.
- Operational Risk: Entrusting its core technology commercialisation to an inexperienced partner exposed the company to material risks of failure and regulatory challenges.
Long-standing backer Fluor Corp is significantly reducing its stake in NuScale, aiming to fully exit its position by mid-2026, which adds further uncertainty for current investors.
On 26 February, NuScale, announced its fourth quarter and full year financial results, making no mention of the ongoing legal action. John Hopkins, NuScale President &CEO said: “For NuScale, 2025 was a breakthrough year, in which we further solidified our position as the SMR industry’s first mover. We made meaningful progress toward commercialisation, with our exclusive global commercialisation partner, ENTRA1, reaching a non-binding collaborative agreement with TVA to deploy up to 6 gigawatts of NuScale SMR capacity across TVA’s seven-state service region.”
He added: “As we move into 2026, our primary focus will be on the commercialization of our SMR technology, including ensuring full readiness for the manufacturing of our first NPM.”
NuScale reported revenue of $31.5m for the year ended 31 December 2025, compared with $37m for the previous year ended December 31, 2024. This decrease “was primarily due to a reduction in revenue recognised from the RoPower technology licence agreement executed in 2024” It was “partially offset by substantially higher Fluor FEED Phase 2 engineering services revenue in support of the RoPower project that started in 2024 and began winding down in late 2025”.
[NuScale Power is currently transitioning from the design phase to the implementation of its first European SMR plant at the site of a former coal-fired power plant in Doicești, Romania. The project is managed by RoPower Nuclear, a 50/50 joint venture between Nuclearelectrica and Nova Power & Gas. Fluor served as the lead contractor, providing comprehensive design and engineering services to RoPower Nuclear. The project has completed Phase 2 of the Front-End Engineering and Design (FEED) agreement during which NuScale undertook engineering work as a subcontractor for Fluor, recognising roughly $63m in revenue.]NuScale reported cost of sales of $20m for 2025, compared with $4.9m for 2024. This increase was also attributed to the engineering services required by Fluor under their FEED Phase 2 contract with RoPower. NuScale reported general and administrative expenses of $609.8m for 2025, compared with $75.9m for 2024. “This increase was primarily due to (i) the recognition of Milestone Contribution 1 of $507.4m under NuScale’s Partnership Milestone Agreement with ENTRA1, (ii) higher strategic business development costs of $14.6m and (iii) $11.8m in advisory, legal and accounting fees.”
In its Forward Looking Statements, NuScale said: “Actual results may differ materially as a result of a number of factors, including, among other things… competition from other nuclear reactor technologies; delays in the development and manufacturing of NPMs and related technology; the possibility that we may incur losses in the future and may not be able to achieve or maintain profitability; the cost of electricity generated from nuclear sources or our NPMs may not be cost competitive;… our dependence on our relationships with ENTRA1, Fluor and other strategic partners; risks related to the Partnership Milestones Agreement with ENTRA1;… our dependence on senior management and other highly skilled personnel; … existing or future litigation and regulatory proceedings; …the price of our Class A common stock may be volatile; additional sales of our common stock or exercise of our options could result in dilution to our stockholders.”
