Is XE Building the Infrastructure Needed for Advanced Nuclear Scale-Up?

X-Energy, Inc. XE is building more than an advanced nuclear reactor as it works to commercialize its Xe-100 small modular reactor. The company is developing infrastructure across several parts of the nuclear value chain, including reactor technology, fuel manufacturing and critical material supply. Recently, X-Energy advanced construction of its TX-1 fuel fabrication facility in Oak Ridge, TN, while continuing to develop its commercial reactor projects. This approach could help the company address some of the infrastructure requirements that may become increasingly important as advanced nuclear moves toward deployment.

The TX-1 facility is key part of this strategy. TRISO-X has advanced the project into its next phase of construction, with vertical construction nearing completion and interior build-out, auxiliary structures and equipment installation beginning. The approximately 214,000-square-foot facility is designed to produce around 700,000 TRISO-X fuel pebbles annually, enough fuel for up to 11 Xe-100 reactors. Developing this capability alongside its reactor portfolio could give X-Energy greater control over fuel production as it moves toward commercial deployment.

X-Energy is strengthening its supply chain by securing HALEU enrichment agreements with Centrus Energy and General Matter and expanding its nuclear-grade graphite relationship with SGL Carbon. These partnerships support key Xe-100 material needs and improve supply visibility. The company also extended its DOE program through March 2027 to support Xe-100, the Dow project in Texas, and the TX-1 fuel facility.

If TX-1 and the broader Oak Ridge expansion progress as planned, X-Energy could have a more integrated platform for supporting future Xe-100 deployments and potentially scaling its presence in the emerging advanced nuclear market.

Companies Benefiting From the Trend

The broader advanced nuclear buildout could create opportunities across the nuclear supply chain. Centrus Energy LEU is particularly well positioned because it is expanding uranium enrichment capabilities and providing HALEU enrichment services, a critical input for advanced reactor technologies. SGL Carbon also provides exposure to the trend through its nuclear-grade graphite business and relationship with X-Energy. NuScale Power SMR offers another way to participate in the development and commercialization of small modular reactors as demand grows for reliable, low-carbon power.

XE Stock’s Earnings Estimates

The Zacks Consensus Estimate for 2027 earnings per share indicates an increase of 31.91% 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 10.97X compared with the industry average of 4.75X.

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XE Stock’s Price Performance

In the past three months, the company’s shares have lost 34.9% compared with the industry’s 13.2% 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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