X-Energy (NASDAQ:XE) reported second-quarter 2026 revenue and grant income of $54.6 million, up 154% from a year earlier, as engineering activity increased under the U.S. Department of Energy’s Advanced Reactor Demonstration Program, or ARDP.
CEO Clay Sell also said the Department of Energy formally notified the company that its ARDP cooperative agreement could receive up to an additional $1 billion, subject to the program’s 50/50 public-private cost-sharing requirements. The potential increase would bring the DOE’s contribution to as much as $2.115 billion.
Fuel Supply Agreements and Manufacturing Expansion
During the quarter, X-Energy signed long-term agreements with Centrus Energy and General Atomics for high-assay low-enriched uranium, or HALEU, enrichment services. Sell said the arrangements, combined with approximately 7.6 metric tons of material secured from the Department of Energy for Dow’s first core loads, provide firm supply support for initial and replacement core loads at the company’s announced Xe-100 projects and beyond.
The company did not disclose contract pricing, delivery timing, quantities or financial commitments. Sell said the agreements are binding and that X-Energy expects to ultimately transfer the fuel-procurement obligations to customers as projects mature.
Sell clarified that the Dow plant will begin with low-enriched uranium fuel as part of the reactor’s planned startup sequence, rather than because of HALEU availability. Subsequent core loads are expected to use HALEU fuel.
X-Energy also announced an agreement with SGL Carbon to expand medium-grain nuclear graphite capacity at SGL’s facility in Chedde, France. X-Energy plans to invest up to $8 million through milestone-based payments for new facilities and equipment upgrades. If fully implemented, the initiative is expected to double SGL’s medium-grain graphite manufacturing capacity by 2030 and support graphite billets for as many as eight new Xe-100 reactors annually.
The company said these arrangements are part of a strategy to use a portion of its initial public offering proceeds to secure supply-chain capacity, reduce schedule risk and support early investments by suppliers. Sell added that X-Energy is also focused on large steel components, other graphite products and additional long-lead equipment.
TRISO-X Progress and Project Milestones
X-Energy’s TRISO-X fuel unit is constructing its first commercial fuel fabrication facility, TX-1, in Oak Ridge, Tennessee. The facility received a Nuclear Regulatory Commission Part 70 commercial license in February, which Sell described as the first such license issued for a new commercial fuel fabrication facility in more than 50 years.
Vertical construction of TX-1’s shell was about 80% complete and remained on schedule, according to Sell. The company expects to complete vertical construction and begin interior work during the third quarter, including construction of a graphite matrix powder building, utility installation and equipment installation.
The company said TX-1 is designed to support fuel production for approximately 11 Xe-100 reactors. Its proposed TX-2 facility, which remains in the design phase, is anticipated to have four times TX-1’s capacity. Sell said X-Energy expects it will need to bring TX-2 online sometime in the early 2030s, but has not announced construction or financing plans.
X-Energy acquired 70 adjacent acres in July, expanding its Oak Ridge campus to approximately 180 acres. The company also cited an $11 million Tennessee economic development grant for TX-2 and its planned TXL research and development center, as well as an extension of its research agreement with Oak Ridge National Laboratory.
On licensing, X-Energy expects NRC staff to close all safety questions related to the Dow construction permit by the end of August. It continues to expect final NRC review in late 2026 and permit issuance in the first quarter of 2027. Energy Northwest, which is developing a Washington State project associated with Amazon’s planned 5 gigawatts of new power projects, is targeting a construction-permit submission in the first half of 2027.
Sell said the company is in the final stages of an agreement with a major investor-owned utility for its next 1-gigawatt project. He declined to provide further details, saying an announcement would come after appropriate engagement with local communities.
Quarterly Financial Results and Liquidity
CFO Daniel Gross said second-quarter services revenue was $50.1 million, primarily from Xe-100 design work under ARDP, while grant income was $4.5 million, mainly tied to the Dow demonstration reactor. As of June 30, DOE had reimbursed X-Energy $547 million under the ARDP program.
- Total operating expenses were $164.6 million, including $86.7 million of direct costs and $77.7 million of selling, general and administrative expense.
- SG&A included $33.5 million of non-cash equity-based compensation, largely related to options granted at the IPO.
- Operating activities used $97.3 million of cash during the quarter, reflecting increased ARDP work, staffing, contractors and vendor prepayments for long-lead materials.
- Capital expenditures totaled $63.3 million, including TX-1 construction. ARDP reimbursed $23.5 million in cash for capital expenditures during the quarter.
X-Energy ended June with $1.9 billion in cash and investments, including $1.1 billion of cash and cash equivalents, $490 million of short-term investments and $265 million of long-term investments. Gross said liquidity roughly doubled from three months earlier following $1.1 billion in net IPO proceeds. The company had no debt outstanding at quarter-end.
Gross noted that X-Energy’s reported market capitalization on some financial websites may exclude Class B shares under its Up-C corporate structure. The company cited a non-GAAP fully diluted share count of 414 million shares, consisting of Class A and Class B shares as well as outstanding options, restricted stock awards and restricted stock units.
About X-Energy (NASDAQ:XE)
X-Energy (NASDAQ: XE) is a U.S.-based advanced nuclear technology company focused on the development and commercialization of small modular reactors (SMRs) and advanced nuclear fuel. Its flagship reactor design, the Xe-100, is a high-temperature gas-cooled reactor intended to provide low-carbon electricity and process heat for industrial applications. X-Energy’s technology centers on TRISO fuel, a robust, particle-based fuel form that the company promotes for enhanced safety and high-temperature operation.
The company’s activities include reactor design and engineering, fuel development and manufacturing, regulatory engagement, and project delivery support for utility and industrial customers.
