X-energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues and grant income reached $54.6 million for the three months ended June 30, 2026, a 154% increase from $21.5 million in the prior-year period; for the six months ended June 30, 2026, total revenues and grant income were $98.0 million, a 132% increase from $42.3 million.
• Revenue composition for the three months included $50.1 million in services revenue and $4.5 million in grant income; for the six months, $90.0 million in services revenue and $8.0 million in grant income.
• Total operating expenses were $164.6 million for the three months ended June 30, 2026 (156% increase year-over-year) and $274.2 million for the six months ended June 30, 2026 (146% increase year-over-year).
• Direct costs were $86.7 million for the three months and $152.0 million for the six months, driven by expanded ARDP agreement activity, including $23.5 million and $32.0 million in increased subcontracting costs, respectively.
• Selling, general, and administrative expenses increased by $50.4 million for the three months and $76.5 million for the six months, primarily due to non-cash equity-based compensation ($28.1 million and $30.9 million, respectively) and higher employee headcount.
• Net cash used in operating activities was $97.3 million for the three months and $164.6 million for the six months ended June 30, 2026, compared to $20.0 million and $61.8 million in the prior-year periods.
• Net cash used in investing activities was $73.6 million for the three months and $239.6 million for the six months, driven by $316.5 million in purchases of fixed-income securities and $70.7 million in increased capital expenditures.
• Net cash provided by financing activities was $1,092.3 million for the three months and $1,091.2 million for the six months, primarily resulting from the IPO net proceeds of approximately $1.1 billion.
• Cash and cash equivalents totaled $1.1 billion as of June 30, 2026, with total liquidity (including short-term and long-term investments) of $1,899.8 million.
• The Company reported no debt outstanding as of June 30, 2026.
• Long-term deferred revenue with related parties increased to $17.5 million as of June 30, 2026, from $2.4 million as of December 31, 2025.
• Net loss attributable to X-Energy, Inc. was $59.1 million for the three months and $59.1 million for the six months ended June 30, 2026.
• Adjusted net loss for the six months ended June 30, 2026 was $113.2 million, compared to $51.7 million in the prior-year period.
• Adjusted EBITDA for the six months ended June 30, 2026 was a loss of $132.0 million, compared to a loss of $61.2 million in the prior-year period.

Guidance and Future Outlook

• The ARDP budget period has been extended through March 2027, supporting design, licensing, commercialization, and construction of the first-of-a-kind commercial advanced nuclear plant in Seadrift, Texas.
• Vertical construction for the TX-1 fuel facility shell is on schedule, with support building and interior build-out scheduled to begin in the third quarter of 2026.
• The Company aims to double European manufacturing capacity for NBG-18 graphite by 2030, enabling production of graphite billets for up to 8 new Xe-100 reactors per year.
• Project pipeline consists of 144 reactors across the U.S. and U.K. for approximately 11.5 gigawatts electric, assuming all customers exercise contingent rights.

Business Segments and Product Lines

• Executed long-term supply agreements with Centrus Energy Corp. and General Matter for high-assay low-enriched uranium (HALEU) enrichment services to support the Xe-100 SMR commercial pipeline.
• Announced an agreement with SGL Carbon to invest up to $8 million in milestone-based payments to double European production capacity for medium-grain isotropic graphite (NBG-18) at its Chedde, France facility.
• TRISO-X, the fuel fabrication subsidiary, received an $11 million economic development grant from the State of Tennessee to support the Oak Ridge campus, including the development of the TX-2 facility and an R&D center.
• Acquired approximately 70 acres of land adjacent to the Oak Ridge fuel campus, increasing the total footprint to approximately 180 acres under the NRC's Part 70 fuel fabrication license.
• Extended the cooperative research and development agreement with Oak Ridge National Laboratory (ORNL) for 30 months to optimize fuel fabrication processes.
• Joined the DOE's Project Prometheus as a founding member, committing $10 million in private capital to collaborate with Idaho National Laboratory, NVIDIA, and AWS on AI-driven nuclear deployment.

Market and Competitive Landscape

• Key customers expected to underpin initial Xe-100 reactor deployment include Dow, Amazon, and Centrica.
• Management stated the company is building a "moat" between itself and competitors through technology delivery platform development and supply chain security.
• The Company is leveraging AI partnerships to integrate frontier-class models into reactor design, licensing, manufacturing, and operation workflows.

Risks and Challenges

• Forward-looking statements highlight risks including potential delays in final investment decisions, regulatory approvals, and construction timelines.
• Risks include supply chain constraints for HALEU and graphite, reliance on limited specialized suppliers, and potential inflation impacts on costs.
• Challenges involve first-of-a-kind risks, latent design or operational issues, and the nascent market adoption of SMRs.
• Potential risks include changes in government support, shifts in public perception, and the ability to hire and retain key talent.

Management Commentary and Tone

• CEO J. Clay Sell stated that Q2 progress reflects a continued focus on execution and investing in capabilities to position the company for commercial scale.
• Management highlighted that HALEU agreements and the SGL Carbon contract de-risk deployment and secure critical components.
• Sell expressed confidence that the company's momentum reinforces its ability to deliver for customers and build a competitive moat.

Other Key Points

• The Company closed its Initial Public Offering (IPO) on April 27, 2026, raising approximately $1.1 billion in net proceeds.
• The IPO resulted in the reorganization of the capital structure, with Class A and Class B common stock issued and mezzanine equity converted or redeemed.
• The Company will participate in the Wolfe Research Utilities, Midstream & Clean Energy Conference (September 30), Investing in Advanced Nuclear Energy (October 1), and the TD Cowen 11th Annual Nuclear Roundtable (October 8).
• The Company holds a 50/50 cost share agreement with the DOE under the ARDP for the Seadrift, Texas commercial plant project.