Negative Points

• X-Energy Inc ( NASDAQ:XE ) reported a net loss for Q2 2026, with operating expenses up 156% year-over-year, driven by increased ARDP work and non-cash equity compensation.

• The company's operating cash flow used $97.3 million in Q2 2026, a significant increase from $20 million in Q2 2025, reflecting higher costs and vendor prepayments.

• X-Energy Inc ( NASDAQ:XE ) faces ongoing uncertainty regarding the total cost of the Dow project and the need for additional DOE funding to meet the 50/50 cost-share requirement.

• The company's HALEU supply agreements are subject to contractual confidentiality, limiting transparency on quantities, timing, and pricing, which may concern investors.

• X-Energy Inc ( NASDAQ:XE ) is still in early stages of development, with no revenue from reactor sales yet, and relies heavily on government grants and IPO proceeds for funding.

• The company's TX-2 fuel facility is only in the design phase, with no construction timeline or financing secured, indicating long lead times for capacity expansion.

• X-Energy Inc ( NASDAQ:XE ) faces potential delays in NRC construction permit issuance for the Dow project, with final approval expected only by Q1 2027.

• The company's participation in Project Prometheus requires a $10 million capital commitment, which may not yield immediate returns.

• X-Energy Inc ( NASDAQ:XE ) is exposed to market risks from its investment portfolio, though it maintains a conservative approach, and recorded a $5.6 million non-cash mark-to-market loss on a warrant.

• The company's business model relies on transferring supply chain obligations to customers, which may not materialize as planned, potentially increasing financial burden.

Q & A Highlights

Q: How much more funding is needed to reach the 50% cost share for the Dow project under the ARDP, and is the total share amount finalized? A: CEO Clay Sell stated that the full cost of the program has not been disclosed, but the 50/50 cost share covers three major scopes: the XE-100 reference plant design, the TX-1 fuel plant, and the total project cost of the Dow deployment in Seadrift, Texas. He expressed confidence that the Department of Energy and Congress will remain committed to providing additional funds if needed, citing the strong return on investment demonstrated by partnerships with Amazon and Centrica.

Q: Can you clarify the initial fuel load configuration and whether the new HALEU supply agreements change the plan to start with LEU? A: CEO Clay Sell confirmed that the standard startup configuration for every XE-100 plant begins with LEU pebbles, followed by HALEU for the second and subsequent cores. This is a neutronics and reactivity requirement, not a fuel supply issue. He noted that the new contracts with Centrus and General Matter secure sufficient HALEU for the first HALEU core loads of announced projects and beyond, though specific quantities and pricing are contractually confidential.

Q: Are the new fuel supply agreements with Centrus and General Matter binding, and what are the financial commitments and liquidity implications? A: CEO Clay Sell confirmed the agreements are binding but declined to disclose specific timing, quantities, or pricing due to contractual confidentiality. He explained that X-Energy is securing capacity early to help create a functioning HALEU market and accelerate supplier investment. The company intends to transfer these contractual obligations to customers at the appropriate project stage, meaning the financial commitments are expected to be assumed by customers on a go-forward basis.

Q: Regarding the imminent 1-gigawatt project announcement with a major investor-owned utility, do they have a hyperscaler lined up or is it for rate base? A: CEO Clay Sell declined to provide additional details, stating that real projects require appropriate early community engagement, and communities deserve to hear first before the investor community. He indicated that full details on the "when, where, who, and other details" will be announced in the near future, emphasizing that the announcement is imminent.

Q: What is the timeline and plan for the TX-2 fuel facility, given the recent land acquisition and design phase progress? A: CEO Clay Sell stated that TX-1 provides enough throughput capacity for approximately 11 XE-100 reactors. TX-2, which is expected to have four times the capacity of TX-1, is needed in the early 2030s. The company is currently completing design work, cost estimates, and the early phases of a financing business plan for TX-2, but no announcements have been made regarding construction initiation or final financing.

Q: What areas of the supply chain will X-Energy focus on next to further de-risk long lead materials and equipment? A: CEO Clay Sell highlighted ongoing efforts on large steel components in the nuclear steam supply system, primarily produced by Doosan, and mentioned agreements on steam generator tubes. He noted a disciplined approach by the supply chain team to identify areas where early capacity securing agreements can provide a competitive advantage, with further announcements expected as agreements are finalized.

Q: Can you provide color on the level of activity and conversations with other potential customers beyond the imminent 1-gigawatt announcement? A: CEO Clay Sell indicated a robust level of discussions across the full range of target customers, including IPPs, investor-owned utilities, industrial customers, hyperscalers, and foreign utilities. Some discussions are in advanced phases involving site feasibility and review. He expressed confidence in a robust set of opportunities and "multiple shots on goal" for the remainder of the year.

Q: Is X-Energy actively pursuing the DOD's Project Janus opportunity, and could there be an announcement later this year? A: CEO Clay Sell redirected focus to the core business opportunity of deploying XE-100s and manufacturing TRISO-X fuel, which he described as the primary economic opportunity and total addressable market of $2.3 trillion. He stated that no specific announcements regarding the Janus program have been made, and the company's focus remains on the XE-100.

Q: Are there any differences in pebble manufacturing or materials handling between LEU and HALEU fuel? A: CEO Clay Sell confirmed that the same TX-1 facility will be used for both LEU and HALEU production. While there are different considerations based largely on criticality factors between the two fuel types, the facility is designed to produce both cores.

Q: Are there any additional DOE funding opportunities outside of ARDP, such as loans, that X-Energy is pursuing? A: CEO Clay Sell noted ongoing dialogues with the full suite of U.S. government financing entities, including the Energy Dominance Financing Group, the Strategic Capital Office, Exim Bank, and DFC. He expects to access these debt financing entities for projects and indicated that announcements will be made as discussions progress. He also commented that while AP1000s may make sense in some locations, SMRs offer advantages in functionality, safety, geographic siting, and financial risk.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .