X-Energy (NASDAQ:XE) used its first earnings call as a public company to outline progress on its advanced nuclear reactor and fuel businesses, while reporting higher first-quarter revenue and grant income tied to its federal cost-share program.
The company began trading on the Nasdaq on April 24 and closed its initial public offering on April 27. CEO Clay Sell said the IPO generated approximately $1.1 billion in net proceeds, strengthening the company’s liquidity as it works to commercialize its Xe-100 small modular reactor and TRISO-X nuclear fuel.
Revenue and expenses rise as ARDP activity ramps
CFO Daniel Gross said first-quarter total revenues and grant income were $43.4 million, up 109% from the prior-year period. That included $39.9 million of services revenue, primarily related to Xe-100 design activities under the U.S. Department of Energy’s Advanced Reactor Demonstration Program, and $3.5 million of grant income associated with Dow’s demonstration reactor project under the same program.
X-Energy was awarded $1.2 billion in 2021 under the ARDP, which provides a 50/50 public-private cost-sharing framework for finalizing and licensing the Xe-100 design, building the TX-1 fuel fabrication facility in Oak Ridge, Tennessee, and executing the company’s first project with Dow in Seadrift, Texas. Gross said X-Energy had been reimbursed $508 million in federal cost share as of March 31, 2026.
Total operating expenses in the quarter were $109.5 million, up 133% year over year. Gross attributed the increase mainly to higher ARDP activity, employee headcount growth, contractor costs and professional fees. The quarter also included a $100.8 million non-cash mark-to-market loss related to the exercise of a warrant issued in 2024 to an investor.
Net cash used in operating activities was $67.3 million, up 61% from the prior year. Gross said investors should not simply annualize first-quarter cash use because the company is accelerating construction activity and adding engineering headcount, though he did not provide forward-looking expense guidance.
As of March 31, X-Energy had total liquidity of $944 million, consisting of $224 million in cash and cash equivalents, $450 million of short-term investments and $270 million of long-term investments. Gross said the company had no debt outstanding at the end of the quarter. Adjusted for IPO proceeds, total liquidity was approximately $2 billion.
Dow project advances through NRC review
Sell said X-Energy is advancing the first deployment of the Xe-100 reactor at Dow’s Seadrift manufacturing site in Texas. The project is expected to provide both electricity and high-temperature industrial steam to Dow’s operations.
The Nuclear Regulatory Commission has completed the environmental assessment for the Dow construction permit application ahead of schedule, concluding with a finding of no significant impact. Sell said the NRC has also completed its draft safety evaluation report, with the next safety review milestone expected by August.
X-Energy expects final review of the Dow construction permit to be complete in the fourth quarter of 2026, with issuance anticipated by the first quarter of 2027. Sell said the project is expected to be among the first grid-scale advanced nuclear power plants in North America and the first to provide industrial steam.
Fuel facility construction reaches 56% completion
Sell highlighted progress on the company’s TX-1 fuel fabrication facility in Oak Ridge, which he said is expected to be North America’s first purpose-built commercial advanced nuclear fuel fabrication facility. Full vertical construction began last September and is approximately 56% complete, with interior buildout expected to begin in the third quarter of 2026. X-Energy anticipates operations commencing in the first half of 2028.
The NRC granted X-Energy a Part 70 commercial fuel fabrication license under an initial 40-year license. Sell said that establishes TX-1 and the planned TX-2 facility as the first new commercial fuel fabrication facilities licensed by the NRC in more than 50 years.
In response to an analyst question, Sell said TX-1 is expected to support 11 reactors at steady state. He said TX-2, planned for the same Oak Ridge site, would have four times the capacity of TX-1 and could bring total steady-state support to 55 reactors after full buildout.
Sell also said X-Energy has secured the first core of fuel material for the Dow project through a Department of Energy commitment for 7.6 tons of HALEU material. He said the company is engaged with enrichers in the U.K. and U.S. and expressed confidence that future enrichment supplies would be available in the early 2030s for subsequent cores and new projects.
Company targets additional 1-gigawatt project announcement
Sell said X-Energy’s existing commercial pipeline exceeds 11 gigawatts, including projects with Dow, Amazon and Centrica. The company also recently agreed to explore deployment of the Xe-100 with subsidiaries of PPL Corporation in Kentucky and with Talen Energy in the PJM market.
During the Q&A portion of the call, Sell said X-Energy expects to announce its next 1-gigawatt project sometime in 2026 once a site is identified and a development agreement is in place with a customer. He said the company has multiple conversations underway and is not relying on a single potential project.
Sell said customer discussions include hyperscalers, independent power producers supporting Amazon or other users, utilities and industrial heat customers. He said the company is initially focused on the U.S., Canada and the U.K.
On the Energy Northwest project, which Sell described as X-Energy’s “fast follower” project, he said the construction permit application is now expected in the first half of 2027. He said that timing is controlled by the customer and that regulatory review is not on the critical path for the overall project schedule.
U.K. process begins with Centrica
X-Energy also submitted an application to enter the United Kingdom’s Generic Design Assessment process for the Xe-100 power plant as part of its commercial partnership with Centrica. Sell said the first phase of the process is expected to be completed by the end of the year.
Sell said X-Energy and Centrica submitted a proposal in March under the U.K. government’s alternative route to market process, which was announced in February. He said the companies have received support from the U.K. government and are in discussions about potential support before final investment decision and construction financing.
Gross said X-Energy’s business model is structured so customers take on the balance sheet risk associated with constructing power plants using X-Energy technology. He said the company’s balance sheet exposure is limited to its fuel manufacturing facilities and testing facilities needed before the first Seadrift reactor enters service.
About X-Energy (NASDAQ:XE)
X-Energy (NASDAQ: XE) is a U.S.-based advanced nuclear technology company focused on the development and commercialization of small modular reactors (SMRs) and advanced nuclear fuel. Its flagship reactor design, the Xe-100, is a high-temperature gas-cooled reactor intended to provide low-carbon electricity and process heat for industrial applications. X-Energy’s technology centers on TRISO fuel, a robust, particle-based fuel form that the company promotes for enhanced safety and high-temperature operation.
The company’s activities include reactor design and engineering, fuel development and manufacturing, regulatory engagement, and project delivery support for utility and industrial customers.
