Can X-Energy's Fuel Strategy Accelerate SMR Commercialization?

X-Energy, Inc. XE is positioning its fuel and supply-chain capabilities as key competitive advantages as it works to commercialize its Xe-100 small modular reactor. During second-quarter 2026, the company secured long-term agreements for high-assay low-enriched uranium (HALEU) enrichment services from Centrus Energy and General Matter and expanded its graphite supply relationship with SGL Carbon. These agreements address some of the key material requirements for scaling advanced nuclear reactors.

The company is also developing its TRISO-X fuel manufacturing campus in Oak Ridge, TN. Building fuel production capacity alongside its reactor technology could give X-Energy greater visibility over a critical component of its future projects. The strategy is particularly important because advanced nuclear developers face limited supplier capacity for specialized materials and HALEU.

X-Energy received approval to extend its DOE Advanced Reactor Demonstration Program budget period through March 2027, supporting continued work on the Xe-100 design, the first commercial advanced nuclear plant with Dow in Seadrift, TX, and the TX-1 fuel facility. However, X-Energy's filing notes that changes in government funding, tax incentives or energy policy could affect the economics and demand for its technology.

XE ended the quarter with approximately $1.9 billion of liquidity and no debt, giving it the financial flexibility to continue funding reactor development, fuel manufacturing, and commercial projects. Its reported pipeline comprises 144 reactors, representing approximately 11.5 gigawatts (GW) of potential capacity.

Overall, X-Energy's progress suggests that controlling fuel and critical materials could be as important as reactor design itself as the SMR industry moves toward commercialization.

Companies Benefiting From the Trend

The broader nuclear renaissance is creating opportunities across multiple parts of the nuclear value chain. Centrus Energy LEU is particularly well positioned because it is expanding uranium enrichment capabilities and developing HALEU production, a specialized fuel required by many advanced reactor designs, including X-Energy’s technology. NuScale Power SMR provides exposure to the development and commercialization of advanced small modular reactors, targeting growing demand for reliable, low-carbon electricity.

XE Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2027 earnings per share indicates an increase of 27.46% year over year.

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XE Stock Trading at a Premium

XE is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 12.43X compared with the industry average of 5.14X.

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XE Stock’s Price Performance

In the past three months, the company’s shares have lost 34.2% compared with the industry’s 9.1% decline.

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XE’s Zacks Rank

The company currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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