XE – Game 1 in the books; First earnings print

Research evidence excerpt

XE – Game 1 in the books; First earnings print

June 5, 2026

Investment Conclusion

We are Peer Perform-rated on XE. We like the company's potential as a small modular reactor (SMR) nuclear

developer to serve a massive need for 24x7 dispatchable clean energy to meet ramping data center demand globally.

The company is still pre-revenue, with multiple competing technologies, and long-runway to commercializing at scale.

However, we view XE's current order book (DOW, AMZN, Centrica), as proof of customer interest in their technology,

and expect to see their order book continue to grow. Their high-temperature gas-cooled reactor (HTGR) design

screens high on efficiency and safety, while XE's TRISO-X fuel pebble is a proprietary fabrication process, where

they have the first commercial license to provide it. Support from the federal government both in terms of expediting

permitting and sizable funding (DoE loans/grants and tax credits like ITCs) are key tailwinds to the nuclear industry

right now. We see the biggest constraint for XE on the fuel procurement side (which they aren't responsible for),

particularly for HALEU (high-assay low-enriched uranium) where the supply chain hasn't been built out domestically

and the cost profile remains variable.

We like XE's capital-light business model, where they sell the IP of a reactor design, provide lifecycle/engineering

services, and sell fuel. This reduces capital and construction risk, while resulting in higher margins at 40-45% on

average. The company starts with a sizable cash position and no pre-existing debt, which results in a strong balance

sheet to accommodate growth and strategic M&A. We see XE turning EBITDA and FCF neutral around 2030, with

a steep ramp from there out to 2040.

Valuation.