Terrestrial Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $11.0 million for the quarter ended September 30, 2026, compared to a net loss of $9.4 million in the second quarter of 2026.
• Net loss for the nine months ended September 30, 2026, was $30.9 million, compared to $21.8 million for the same period in 2025.
• Research and development expenses increased to $4.4 million in Q3 2026 from $3.4 million in Q3 2025, and to $12.5 million for the nine months ended September 30, 2026, from $6.2 million in the prior year period.
• General and administrative expenses rose to $8.5 million in Q3 2026 from $4.7 million in Q3 2025, and to $23.9 million for the nine months ended September 30, 2026, from $11.6 million in the prior year period.
• Cash and cash equivalents plus short-term investments totaled $276.3 million at September 30, 2026, down from $283.4 million at the end of the second quarter.
• Cash burn was $7.1 million in the third quarter, an increase of $0.7 million compared to the second quarter.
• Total liabilities were $8.6 million at September 30, 2026, with no debt outstanding.
• Loss per common share (basic and diluted) was $(0.10) for the three months ended September 30, 2026, compared to $(0.14) in the same period in 2025.

Guidance and Future Outlook:

• The Company completed its 2026 guidance to submit at least three Topical Reports to the NRC.
• Management expects cash burn to increase in future quarters as the Company ramps up projects, including TETRA and TEFLA.
• The Company aims to achieve fleet deployment of IMSR Plants across multiple U.S. sites in the 2030s.

Business Segments and Product Lines:

• Selected as the advanced nuclear technology supplier for Ameresco's power project at the U.S. Army's Aberdeen Proving Ground, the second IMSR Plant project disclosed in 2026.
• Submitted the Graphite Topical Report to the NRC regarding qualification methodology for the IMSR Core-unit.
• Submitted the Thermal and Electric Facility (TEF) Topical Report after the quarter end to seek NRC confirmation that the TEF is a non-nuclear part of the IMSR Plant.
• Commenced engineering work with Zachry Nuclear under an Engineering Services Agreement for site characterization and NRC Construction Permit application work at the Texas A&M-RELLIS site.
• Developed fuel, component, and services supply for Projects TETRA and TEFLA.
• Appointed David Williams as Chief Commercial Officer effective October 19, 2026.

Market and Competitive Landscape:

• The selection for the Aberdeen Proving Ground project extends the commercial pipeline into the federal government and defense sectors.
• The Army selected Ameresco through a competitive process under its Strategic Capital Initiatives program.
• The Company faces competition from other advanced reactor developers and alternative energy technologies.

Risks and Challenges:

• Risks include delays, cost overruns, and contractor performance issues related to the development, manufacture, and construction of IMSR Plants.
• Potential risks involve the ability to obtain regulatory approvals and licenses on a timely basis.
• Supply chain constraints and cost inflation for specialized nuclear-grade materials and components are identified risks.
• Risks include the accuracy of estimates regarding lifetime revenue and gross margin of IMSR Plants.

Management Commentary and Tone:

• CEO Simon Irish stated the selection extends the commercial pipeline and that the Company delivered on its 2026 guidance for NRC submissions.
• Management emphasized a focus on the race to fleet deployment and delivering nuclear power at fleet scale.
• The Company noted that fundamentals supporting its business plan continue to strengthen.

Other Key Points:

• Authorized a share repurchase program of up to $25 million of the Company's common stock, funded with existing cash on hand, subsequent to the quarter end.
• Ended the third quarter with 105.9 million shares issued and outstanding (82.7 million common shares and 23.2 million exchangeable shares), unchanged from the second quarter.
• Reported $1.9 million in interest and dividend income for the quarter, compared to $0.2 million in the same period in 2025.
• Received $168,000 in government grants for the quarter, down from $268,000 in the same period in 2025.