X-energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues and grant income for the three months ended September 30, 2026, reached $66.3 million, a 118% increase from $30.4 million in the prior-year period; for the nine months ended September 30, 2026, the figure was $164.4 million, a 126% increase from $72.7 million.
• Revenue composition for the three months included $51.5 million in services revenue and $14.8 million in grant income; for the nine months, it included $141.6 million in services revenue and $22.8 million in grant income.
• Increases in revenue and grant income were primarily driven by $29.3 million (three months) and $85.0 million (nine months) from the Department of Energy's Advanced Reactor Demonstration Program (ARDP) agreement.
• Total operating expenses were $169.9 million for the three months ended September 30, 2026 (up 139% year-over-year) and $444.1 million for the nine months ended September 30, 2026 (up 143% year-over-year).
• Direct costs were $93.6 million for the three months and $245.6 million for the nine months; increases were driven by expanded ARDP activity, including higher subcontracting, materials, and compensation costs.
• Selling, general, and administrative expenses increased due to non-cash equity-based compensation ($18.4 million for three months, $49.2 million for nine months), higher headcount, and infrastructure costs.
• Net cash used in operating activities was $51.2 million for the three months and $215.8 million for the nine months, compared to $30.8 million and $92.7 million in the respective prior-year periods.
• Net cash used in investing activities was $49.9 million for the three months and $289.5 million for the nine months, driven by capital expenditures and investments in held-to-maturity securities.
• Net cash provided by financing activities was $0.1 million for the three months and $1.1 billion for the nine months, primarily due to proceeds from the initial public offering (IPO).
• As of September 30, 2026, the Company reported $1.8 billion in total liquidity, consisting of $1.0 billion in cash and cash equivalents, $0.5 billion in short-term investments, and $0.3 billion in long-term investments.
• The Company had zero debt outstanding as of September 30, 2026.
• Total operating loss was $103.6 million for the three months and $279.7 million for the nine months; net loss attributable to X-Energy, Inc. was $59.4 million for the three months and $118.5 million for the nine months.
• Adjusted net loss for the nine months ended September 30, 2026, was $169.951 million, compared to $84.461 million in the prior-year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $(207.723) million, compared to $(97.883) million in the prior-year period.

Business Segments and Product Lines:

• The Company selected Fluor Corporation to provide engineering, design development, and project controls services for the nuclear island of Energy Northwest's Cascade Advanced Energy Facility in Washington, marking their second commercial contract for nuclear island design.
• Executed the first procurement order for steam generator components with Alleima and Doosan Enerbility for the Xe-100 SMR, involving specialized steel tubing and helical coils capable of producing high-temperature steam up to 565°C.
• Completed vertical construction of the TX-1 fuel fabrication facility in Oak Ridge, Tennessee, advancing to interior buildout and equipment installation; the facility is expected to produce 700,000 TRISO-X fuel pebbles annually (5 metric tons of uranium) once operational.
• Received a 40-year Special Nuclear Material License from the U.S. NRC for the TX-1 facility, the first-ever NRC Category 2 fuel fabrication license for high-assay low-enriched uranium processing.
• Announced a Joint Development Agreement with American Electric Power (AEP) to advance feasibility work for a proposed 960 MW Xe-100 SMR project in Indiana, with Amazon providing project development funding.
• The Xe-100 SMR was accepted into the United Kingdom's Generic Design Assessment (GDA) process, a step expected to take approximately three years, aimed at deploying up to 6 GW of new nuclear capacity in the U.K. with Centrica.

Market and Competitive Landscape:

• The Company's project pipeline consists of 144 reactors with four announced commercial projects (three in the U.S. and one in the U.K.) totaling approximately 11.5 gigawatts electric, assuming full exercise of contingent rights.
• Partners include Dow, Amazon/Energy Northwest, Centrica, and Amazon/American Electric Power, who are expected to underpin the deployment of the initial fleet of Xe-100 reactors.
• The NRC issued the first construction permit for an advanced nuclear industrial deployment in the U.S. for Dow's Long Mott project in Texas, the first NRC CPA approval of a high-temperature gas-cooled reactor in nearly 60 years.
• The Company aims to bring more than 5 GW of new nuclear capacity to the U.S. grid by 2039 through its collaboration with Amazon.

Risks and Challenges:

• Forward-looking statements highlight risks including the ability to achieve final investment decisions from customers, delays or setbacks in project delivery, and the risk that customers may not exercise contingent rights in full.
• Potential risks include changes in government support, delays in receiving licenses or approvals, inflation impacting costs and schedules, and supply chain constraints regarding key materials like HALEU, tubing, and graphite.
• The Company faces risks related to reliance on a limited number of specialized suppliers, labor availability, first-of-a-kind risks, and the nascent market adoption of SMRs.
• Risks also include safety, security, and cybersecurity incidents, shifts in public perception, and changes in laws, regulations, or energy market rules.

Management Commentary and Tone:

• CEO J. Clay Sell stated that third-quarter results and project developments reflect meaningful progress in executing strategy and advancing technology toward commercial deployment.
• Management highlighted the NRC construction permit for Dow's Long Mott project as a major milestone, noting it was received over a month ahead of schedule.
• Sell expressed excitement regarding the collaboration with AEP and Amazon, viewing the Indiana project as a second commercial deployment opportunity that provides visibility toward deployment.
• Management described the Company as being in a "differentiated position of strength" supported by a strong balance sheet, significant funding, and regulatory progress.
• The tone emphasized building momentum through deepening relationships with energy and industrial companies and advancing opportunities across the pipeline.

Other Key Points:

• The Company completed its initial public offering (IPO) in April 2026, generating $1.1 billion in net proceeds included in financing activities for the nine months ended September 30, 2026.
• The Company will participate in upcoming investor conferences including the UBS Global Technology and AI Conference (November 30, 2026), Truist Virtual Nuclear Summit (December 10, 2026), Stifel Frontier Tech 2.0 Energy Summit (December 10, 2026), and Jefferies Power, Energy, Utilities, Clean & Pipes Conference (March 2, 2027).
• A conference call to discuss results was hosted on November 12, 2026, at 8:00 a.m. ET.
• The Company's balance sheet reflects a significant increase in total assets to $2.22 billion as of September 30, 2026, compared to $1.21 billion as of December 31, 2025.
• Non-controlling interests in total stockholders' equity and members' deficit were $552.6 million as of September 30, 2026.
• The Company has a warrant outstanding exercisable for 14.1 million shares, which was not included in the fully diluted share count as it was not deemed probable of vesting as of September 30, 2026.