IMSR

Download the Complete Report Here Key Takeaways: 2Q26 reinforced IMSR’s milestone-driven commercialization roadmap; the more important development was a material improvement in the long-term economics of the business. Terrestrial Energy advanced across all three execution pillars, engineering and regulation, supply chain, and commercial development, with Texas A&M moving into site execution, NRC and DOE programs progressing, and Riot advancing toward first-site selection. At the same time, management raised estimated lifetime revenue per IMSR Plant to approximately $2.7 billion from $2.1 billion and blended gross margin to 33% from 22%, with 79% of revenue expected after construction through Core-unit and Fuel Salt supply. Commercial and regulatory execution improved visibility into IMSR’s next phase of development. Site control and development agreements moved the flagship RELLIS project into active site-level work, while NRC approval of the PIE methodology added a second reusable foundational element to the IMSR licensing basis and continued TETRA/TEFLA progress further advanced the licensing and fuel-readiness pathway. We view these developments as strengthening the quality of IMSR’s flagship project while further de-risking the path toward commercial deployment. Liquidity remains a meaningful strategic advantage as IMSR moves into a more execution-intensive phase. The company ended 2Q26 with approximately $283.4 million of cash and investments, while quarterly burn declined to $6.4 million, or approximately $2.2 million per month, from $7.9 million in 1Q26. With spending expected to increase in 2H26 as site work, testing and program activity ramp, the balance sheet and absence of financial debt provide substantial flexibility to fund near-term de-risking without creating near-term financing pressure. Texas A&M-RELLIS made the most important project-level progression during the quarter, moving from commercial project selection toward site-specific execution. Terrestrial Energy signed ground-lease and research agreements covering approximately 77 acres at RELLIS, securing site control and enabling characterization and environmental work required for a future NRC construction permit application. The company subsequently engaged Zachry Nuclear to support site characterization and data collection, adding established nuclear engineering capability to the development effort. We view this as a meaningful step beyond the original project announcement, as RELLIS is now progressing from commercial intent toward a controlled development site with work underway to support permit preparation. The next phase should be measured by progress through site characterization, environmental review and construction-permit preparation. These activities are contributing to the expected 2H26 spending ramp, but successful execution would further reduce project risk and improve readiness for licensing, financing and eventual construction. The unit-economics reset meaningfully improves the revenue and gross-profit potential embedded in each successful IMSR deployment. Following roughly 12 to 18 months of additional engineering work, management increased estimated cumulative revenue per IMSR Plant to approximately $2.7 billion from $2.1 billion, or roughly 29%, while blended gross margin rose to 33% from 22%. The revision reflects refinement of the underlying economics rather than a change in the plant design or business model. The revised model includes approximately $98 million of pre-construction revenue at a 23% margin, $477 million of construction services and component supply at 26%, $1.58 billion of Core-unit supply at 33%, and $583 million of Fuel Salt supply at 40%. Fuel strategy remains a core IMSR differentiator, combining a simpler supply-chain pathway with a meaningful recurring revenue opportunity. Management estimates approximately $583 million of Fuel Salt revenue over the life of an IMSR Plant, representing 21% of lifetime revenue at a 40% gross margin. IMSR uses standard-assay LEU enriched below 5% U-235, avoiding the HALEU supply constraints facing many advanced-reactor designs, while Westinghouse is working with Terrestrial Energy on the supply of enriched uranium tetrafluoride and TEFLA is developing the downstream process required to produce commercial IMSR Fuel Salt. Because IMSR is liquid-fueled, the production chain eliminates a separate physical fabrication step involving fuel pins, assemblies or TRISO particles, while qualification is focused on establishing the thermophysical characteristics of the liquid fuel chemistry rather than demonstrating the structural performance of physical fuel elements and cladding. While commercial Fuel Salt production and qualification still need to be completed, the combination of standard enrichment and fewer fabrication steps could reduce an important source of fuel supply complexity and support a high-margin, long-duration revenue stream. Liquid fuel qualification remains less familiar to regulators, however, and still represents an execution requirement. NRC approval of the PIE methodology adds a second reusable element to the IMSR licensing basis. The broader regulatory program is now shifting toward the technical data required for plant licensing and commercial readiness. The approval follows the earlier Principal Design Criteria report, with both analyses able to be referenced in future applications without repeating the underlying regulatory review, an important feature for standardized fleet deployment. Management expects at least two additional Topical Report submissions during the remainder of 2026, while TETRA continues to generate reactor data for a future NRC operating license application, TEFLA advances the commercial Fuel Salt production process, and expanded graphite irradiation testing at NRG Petten supports materials qualification and supplier selection. Supply chain execution is also progressing through continued procurement of fuel, components and services for TETRA and TEFLA, alongside Westinghouse engagement on enriched uranium tetrafluoride supply. We view progress across these programs as continuing to reduce the key regulatory, technical and supply chain dependencies ahead of commercial deployment. The Riot collaboration remains IMSR’s largest incremental data-center opportunity, but the next meaningful milestone is conversion of the 4GW framework into an identifiable first project. Riot and Terrestrial Energy are evaluating multiple IMSR Plants representing up to 4GW of potential nuclear capacity within the broader 7.8GW commercial pipeline, with management now focused on down-selecting an initial site. We believe the opportunity should increasingly be measured by progress toward site control, development scope, financing and offtake rather than aggregate GW, as first-site selection would begin converting a broad commercial framework into a site-specific development opportunity. Project financing should become an increasingly important measure of commercial de-risking as IMSR’s project pipeline advances, particularly given Terrestrial Energy’s capital-light role. Management does not expect first-of-a-kind projects to rely solely on conventional non-recourse project finance, with early deployments more likely to require a combination of strategic customer capital, infrastructure partners and government support. Importantly, Terrestrial Energy intends to direct corporate capital toward engineering, licensing, Core-unit manufacturing and Fuel Salt production rather than owning and funding multibillion-dollar generating assets. We therefore view evidence of third-party capital formation around Texas A&M, Riot and other projects as an increasingly important commercial KPI, as it would validate the ability to advance deployments while preserving the company’s capital-light business model. Leadership additions are increasingly aligned with the next phase of licensing and project execution. Pamela Cowan joined as EVP of Engineering in July with more than 35 years of nuclear-sector experience, while Kathryn McCarthy joined the Board following senior nuclear-project roles at Idaho National Laboratory and Oak Ridge National Laboratory. The organizational buildout is also beginning to show in the cost base, with 2Q26 G&A expense rising approximately $0.7 million sequentially to $8.0 million, including roughly $0.5 million of higher stock-based compensation. We view the increase as primarily supporting execution capacity as RELLIS enters site work, additional NRC submissions are prepared, and TETRA/TEFLA activity advances. Financial performance remained consistent with IMSR’s pre-revenue development stage, with sequential loss improvement primarily reflecting testing timing and higher investment income rather than a change in underlying spending requirements. Net loss narrowed to $9.4 million from $10.5 million in 1Q26, while R&D declined approximately $1.1 million sequentially to $3.5 million as certain testing expenditures shifted between periods and G&A increased to $8.0 million from approximately $7.3 million. Other income improved to approximately $2.35 million, supported by $2.48 million of interest and dividend income and minimal interest expense. We continue to view GAAP earnings as a secondary KPI at this stage, with the more relevant measure being whether development spending translates into licensing, technical and commercial milestones. Liquidity remains a meaningful strategic advantage as IMSR enters a more execution-intensive phase of commercialization and project development. Terrestrial Energy ended June with approximately $283.4 million of cash and investments, compared with $289.9 million at the end of 1Q26, while quarterly cash burn declined to $6.4 million, or approximately $2.2 million per month, from $7.9 million in 1Q26. The improvement largely reflected timing and scope changes across testing activities, including the expanded graphite irradiation program, while management expects spending to increase through the second half as RELLIS site characterization, testing, DOE-backed TETRA/TEFLA programs and organizational capacity ramp. Working-capital requirements remain modest, with accounts payable and accrued expenses of approximately $4.3 million and total current liabilities of only $6.2 million at quarter end. With more than $280 million of liquidity and no financial debt, IMSR retains substantial flexibility to fund this higher level of activity without near-term financing pressure. A key monitorable is whether the 2H26 spending ramp converts into tangible regulatory, technical and project milestones that further de-risk commercialization. 2H26 should be defined by higher investment and additional de-risking across licensing, project development and the two principal supply businesses. Management continues to expect at least two additional NRC Topical Report submissions during the remainder of 2026, while work at the approximately 77-acre Texas A&M-RELLIS site should progress through characterization, environmental evaluation and preparation for a future construction permit application. TETRA and TEFLA remain central to generating licensing-quality reactor data and developing the commercial Fuel Salt production process, while additional graphite irradiation cycles support materials qualification and supplier down-selection. Commercially, the next steps include advancing Riot toward first-site selection within the previously announced up-to-4GW framework and developing the Core-unit and Fuel Salt production capabilities that underpin 79% of estimated lifetime plant revenue and the revised ~$2.7 billion per-plant economics. With spending expected to rise from the $6.4 million 2Q26 burn, we believe 2H26 execution should be judged less on near-term earnings and more on whether incremental investment converts into tangible licensing, site, fuel and manufacturing milestones that support the targeted 2034 first commercial operation. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. IMSR’s current valuation assigns a relatively modest enterprise value to the technology and development platform despite substantial liquidity and improving commercial economics. At $5.81 per share, Terrestrial Energy carries a market capitalization of roughly $616 million and adjusted enterprise value of approximately $332 million after netting $283.4 million of cash and investments at 2Q26 end, with no meaningful financial debt. Liquidity therefore represents approximately 46% of current equity value, while the remaining enterprise value reflects the company’s reactor technology and IP, two approved foundational NRC analyses, Texas A&M-RELLIS development site, DOE-supported TETRA and TEFLA programs, and commercial project pipeline. The valuation discount has widened despite continued regulatory, commercial and economic de-risking. At approximately $5.81 per share, IMSR trades well below the current Street target mean of $13.50. The shares also remain more than 40% below the $10.00 SPAC transaction price. More recently, adjusted EV has declined approximately 31% from the ~$482 million level at our May earnings update to ~$332 million currently, despite subsequent progress across Texas A&M site development, continued NRC and DOE execution, and the increase in estimated lifetime revenue per plant to ~$2.7 billion from $2.1 billion with blended gross margin rising to 33% from 22%. IMSR remains pre-revenue and meaningful licensing, engineering and project execution risks remain, but continued progress across NRC submissions, RELLIS development, Fuel Salt and Core-unit manufacturing, Riot first-site selection and project financing should incrementally reduce the probability discount applied to future deployments. Relative valuation provides additional context for the re-rating opportunity. Established Gen III operators command substantially higher EVs supported by operating assets and cash flows, while pre-revenue Gen IV developers trade primarily on regulatory progress, project visibility, fuel readiness and execution credibility. Within the advanced-reactor group, IMSR’s ~$332 million adjusted enterprise value remains toward the lower end of the peer range, despite substantial liquidity and continued progress across licensing, site development and commercial readiness. Given material differences in reactor technology, licensing maturity and business model, peer EVs are not directly comparable, but the current discount reinforces the extent to which commercialization timing and execution risk remain embedded in IMSR’s valuation. Successful delivery against upcoming regulatory, fuel, project and financing milestones provides the clearest pathway toward narrowing that gap. Read Exec Edge’s Initiation on Terrestrial Energy Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Terrestrial Energy’s Lifetime Revenue Up 29%, Advancing in Texas A&M, DOE Fuel Program – Quarterly Update Report appeared first on ExecEdge.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 28.5% increase in estimated lifetime revenue per unit to $2.7 billion to refined engineering work and the development of the TEFLA fuel line pilot project. The company is pivoting toward a capital-light business model, focusing on high-margin proprietary IP in core unit manufacturing and fuel salt supply rather than plant ownership or operation. Strategic positioning is centered on a 'dual-threaded' energy strategy, allowing the non-nuclear back end of the plant to run on natural gas initially to meet urgent power demands from data centers. The IMSR design is differentiated by its use of standard LEU fuel (less than 5% enrichment), intentionally avoiding the supply chain risks and regulatory complexities associated with HALEU. Operational progress was marked by the NRC's approval of the safety evaluation report for postulated initiating events, establishing a foundational licensing basis that can be reused in future applications. The commercial pipeline grew to 7.8 gigawatts of indicative capacity, driven largely by a 4-gigawatt partnership with Riot Platforms for data center operations. Guidance for the remainder of 2026 assumes an increase in cash burn as the company scales testing programs, project activities, and organizational capacity. Management expects to submit at least two additional topical reports to the NRC in the coming quarters to further solidify the IMSR licensing framework. The 'speed to power' strategy for data centers assumes a 5-year timeline to bring natural gas-driven power online, followed by a transition to nuclear systems in the 2030s. Future value creation is expected to be driven by long-dated supply contracts, with 79% of total unit revenues occurring post-construction through core unit and fuel salt replacement. The company anticipates that capital formation for initial commercial plants will rely on strategic equity from consortium partners rather than traditional project finance. The NRG Petten testing program was adjusted to add more irradiation cycles, causing a sequential variance in R&D expenditures but strengthening the in-house materials knowledge base. The company faces the execution risk of building a first-of-a-kind fuel production facility to complete 'Step 2' (chemical form) of its simplified fuel supply chain. A ground lease for a 77-acre site at Texas A&M's RELLIS campus was secured to begin critical site characterization and environmental evaluations for the first commercial IMSR plant. Recent executive appointments, including a new EVP of Engineering and a new Board member from national labs, are intended to scale organizational capacity for upcoming regulatory milestones. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained the increase was triggered by 18 months of engineering work, particularly on the TEFLA fuel line pilot, which provided more precise cost and revenue estimates. The updated model reflects higher blended gross profit margins of 33%, up from 22%, due to the dominance of high-margin core unit and fuel supply businesses. The IMSR design allows the non-nuclear thermal facility to be customized, enabling natural gas to drive steam systems before nuclear reactors are operational. This approach targets the 'speed to power' requirements of AI data center operators who are currently less price-sensitive but require immediate capacity. Terrestrial Energy eliminates the third step of fuel production (physical form factor) because the IMSR uses liquid fuel, avoiding the cost and complexity of solid fuel assemblies. The strategy relies on commercially available LEU and a partnership with Westinghouse for the chemical conversion to uranium tetrafluoride. Management expects initial projects to be financed through strategic consortiums where partners contribute equity to secure a foothold in the $2.3 trillion addressable market. The company anticipates vigorous support from federal and state agencies to assist in capital formation for these strategic energy projects.

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:30 a.m. ET Vice President of Investor Relations and Public Relations - Tyler Gronbach Chief Executive Officer - Simon Irish Chief Financial Officer - Brian Thrasher Need a quote from a Motley Fool analyst? Email [email protected] Operator: Greetings, and welcome to the Terrestrial Energy's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Tyler Gronbach, VP, Investor Relations and Public Relations. Please go ahead. Tyler Gronbach: Thank you, Operator. Good morning, everyone, and welcome to Terrestrial Energy's Second Quarter 2026 Earnings Conference Call. I'm Tyler Gronbach, Vice President of Investor Relations and Public Relations. Joining me today are Simon Irish, Chief Executive Officer, and Brian Thrasher, Chief Financial Officer. Simon will begin with a review of our strategic and operational progress during the quarter, and Brian will follow with a discussion of our financial results. We will then open the call for questions. Before we begin, I'd like to remind you that we have posted the quarterly results press release and summary slides to the Investor Relations section of our website at terrestrialenergy.com. I'd also like to remind you that today's discussion will include forward-looking statements about our business, operations, and financial outlook. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. We encourage you to review the risk factors described in our SEC filings for a more complete discussion of those risks. With that, I'll turn the call over to Simon. Simon Irish: Thank you, Tyler, and good morning, everyone. When we last spoke in May, I reported progress against the 3-pillar framework of business plan execution that we set out in March guidance. Today, I will do the same for the second quarter and then spend the greater part of my time on our business model and our recent update to unit economics. Brian, then, will follow with our financial results. Over the past several months, we've been in front of investors more than at any point in the company's history, and that was deliberate. The nuclear tech sector is in a period of secular development. It is still a young and expanding sector for portfolio allocation as the market recognizes the structural long-term bull case for SMRs and nuclear energy supply. In this context, we're hearing a strong desire to understand the factors that differentiate nuclear plant designs, nuclear technology, regulatory and supply chain strategies, and business models. We understand the importance of this to investors' analysis for nuclear tech stocks, and during this call, we'll be discussing some of the unique factors that strongly position Terrestrial Energy. I will summarize the five nuclear plant design factors that differentiate the IMSR plant, talk further on our business model, and then our differentiated dual-threaded energy strategy. All this differentiation is in pursuit of one aim, the mission set by the company at its founding in 2013: to use nuclear innovation to solve the only problem worth solving with private capital, the affordability and capital efficiency of nuclear plants, and by extension, the cost of nuclear power, and solve that problem quickly and at scale. We are differentiated as everything we do, every decision we have made, points back to that founding problem statement in a clear and logically compelling way. This goal is the first point of differentiation. First, let me now talk through second quarter progress across the three pillars of business plan execution, referring to slides 4 and 5 of this quarter's investor update. And I will start with our engineering and regulatory programs. Project TETRA and Project TEFLA are test reactor and fuel line pilot projects, both in partnership with DOE, advanced in the quarter. TETRA will support the data collection required for the NRC operating license application for the IMSR plant. Project TEFLA will develop the fuel production processes for IMSR fuel salt commercial supply. On the regulatory side, on May 12, the NRC issued its safety evaluation report, approving our topical report on postulated initiating events methodology. This follows the previously issued safety evaluation report on IMSR principal design criteria, an early development and a point of differentiation. As I described during our first quarter earnings call, these approved NRC analyses form foundational elements of the IMSR plant's licensing basis and can be referenced in future applications without re-evaluation. Our graphite irradiation testing continued at NRG Petten, one of the world's most powerful test reactors. This work is essential for Terrestrial Energy's reactor materials qualification, licensing readiness, as well as supplier down selection. Over the quarter, we adjusted our NRG testing program, adding further irradiation cycles, which is also evident in quarter-on-quarter variances with R&D expenditures. Turning to the second pillar, supply chain developments. Procurement of fuel components and services continues for both the TETRA and TEFLA projects. This quarter, we announced an engineering service agreement with Zachry Nuclear, which supports the development of projects at the Texas A&M RELLIS site, and importantly, the site characterization and data collection work to assemble an NRC construction permit application for the planned commercial IMSR plant on that site. Turning to the third pillar, our commercial pipeline of IMSR plant projects. In June, we signed a ground lease and research agreements with Texas A&M for exclusive use of a 77-acre site at the RELLIS campus. This development provides the path to complete site characterization work and environmental evaluations for the IMSR plant and other facilities on the Texas A&M site in advance of construction. In May, we announced the relationship with Riot Platforms to supply electric power for data center operation. The parties' intention is to develop a best-in-class pairing of a small modular reactor plant with a large data center, taking advantage of the competitive operating characteristics of the IMSR plant, notably its capacity to use natural gas as a bridge fuel, initially to deliver fast commercial operation and power supply and then longer term as a backup after nuclear systems are in operation. This arrangement would take advantage of a differentiating feature of the IMSR plant design, namely the ability for its non-nuclear thermal and electric facility to be customized. This is not possible with the balance of plant systems tied to light water reactors. Our next step with Riot will be to down select to a first site, part of the program targeting 4 gigawatts of IMSR plant generation in support of Riot data center operations. With the Riot Platforms development, the indicative generating capacity of our pipeline of commercial projects grows to 7.8 gigawatts. Given these and other characteristics of the IMSR plant design, our commercial opportunities cover 3 large market verticals: data centers, industrial process heat, and the replacement of retiring coal plant capacity. I would like now to turn to our updates on unit economics and start with a brief recap of our business model. Referring to slide 6 of this quarter's investor update. Terrestrial Energy does not plan to build, own, or operate IMSR plants. We will leave these activities to others with long-established and recognized industry capabilities in construction and operation. In this respect, our business model is relatively conventional for a reactor developer. From this position, we can operate a capital-light business model, allocating capital efficiently to build high-margin businesses where we have a competitive and defendable advantage, and typically based on proprietary IP concentration and production capabilities. With additional engineering work over the last 12 months and directed at projects such as TEFLA, we have updated and re-estimated our IMSR plant unit economics and, by extension, our serviceable addressable market. Our business is to manufacture and supply to operating plants IMSR core units, a major reactor component, designed to be replaced every 7 years over the plant's 56-year design life. This implies the supply of 16 IMSR core units, or cumulative revenues of approximately $1.6 billion. The IMSR core unit contains the foundational IP of our company, an innovation that unleashes the extraordinary industrial potential of molten salt reactor technology. Our IMSR fuel salt supply business will capture proprietary expertise enabled now by TEFLA and other innovations. Both qualify as principal businesses because each combines concentrated proprietary IP with proprietary production capabilities. On slide 6, you will note that estimated cumulative lifetime revenues per unit are now $2.7 billion, up from $2.1 billion, with a blended gross profit margin of 33%, up from 22% in our prior model. Of those revenues, 79% occur following the construction of the plant and will be secured through long-dated supply contracts for the periodic replacement of the core units and regular fuel salt supply. The dominant activity at 58% of total revenues is core unit supply, with fuel salt supply being 21%. These businesses will drive most of the value creation in our future business. Our review of unit economics included a re-estimation of gross profit margins for the core unit and fuel supply businesses to 33% and 40%, respectively, higher than the margins for pre-construction and construction services. And this further points to the dominance of these two principal businesses. We expect to announce developments in the coming quarters as we move forward with our programs to build these two important supply businesses with their production facilities. Referring to slide 7, the updated unit revenue estimates have increased our serviceable addressable market to $2.3 trillion by 2050, up from $1.9 trillion, a $400 billion increase. This reflects the market that our plant design and supply businesses are built to serve at scale. I want to spend a few moments on our fuel strategy and development of IMSR fuel salt supply. As in our view, this is one of the most differentiated and underappreciated parts of the IMSR plant story. Referring to slide 8, conventional nuclear fuel production can be represented as a 3-step process. First, the production of the isotopic form of the fuel, whether LEU, HALEU, or even plutonium. Second, the production of the chemical form of the fuel, whether oxide, fluoride, or metallic forms. Third, the production of the physical form of the fuel, whether complex fuel in reactor assemblies or complex TRISO fuel elements. Each of these 3 steps requires a physical and discrete plant. It has to be built, licensed, and operated. For many novel fuel forms today, this requires the construction and operation of 3 new plants, 1 for each step. In contrast to virtually all other SMRs in the nuclear tech sector today, whether those using Generation III or IV technologies, IMSR fuel salt production stops at step 2. This is an important point of differentiation. As the IMSR is a molten salt reactor, a liquid-fueled reactor, rather than a solid-fueled reactor, its fuel does not have a physical form factor, so no step 3. The reactor fuel feed to IMSR plants is in the form of powdered output from the chemical production process from step 2, which in our case involves the fluorinated form of uranium and the addition of fluoride carrier salts under a tightly confined production process to create the IMSR fuel salt powder. This approach therefore avoids the very considerable risk, cost, and complexity of step 3 and further points to a strong, scalable, and relatively capital-light, inexpensive dual supply chain to support IMSR plant operation at fleet scale. I would like to draw attention again to the first step, the isotopic step, where we chose many years ago to use the long-established isotopic standard for civilian reactor fuel, LEU, enriched to less than 5%. This avoids the costs, uncertainties, and complexity of HALEU chosen by other Generation IV reactor developers, and the more complex and costly regulatory requirements that cascade sequentially into steps 2 and 3 of the fuel production process. While we rely on the industry's common isotopic form for our fuel, we've been working with Westinghouse on supply of the required chemical form, enriched uranium tetrafluoride. With this arrangement, Terrestrial Energy has 1 plant to build, a plant to complete step 2. The production process now catalyzed by TEFLA, our fuel pilot project in partnership with the DOE and supported by Westinghouse supply. We are heavily differentiated with this fuel supply strategy. In addition to our fuel supply differentiator unmatched in the nuclear tech sector of advanced reactors, we have 5 foundational nuclear plant and reactor technology differentiators, referring now to slide 10. First, our plant is small and right-sized at 390 megawatts electric. The market opportunity for financeable and near and co-located power generation. The IMSR plant is one-sixth the size of a conventional nuclear plant. Next, the IMSR plant's nuclear systems operate with a high energy density, enabling the design to capture the benefits of modular construction that are not possible with other Generation IV reactor technologies. This facilitates the powerful efficiencies of factory production of modular components for swift on-site assembly. However, our differentiation does not stop here. Referring now to slide 11. The heart of our plant is a nuclear technology that offers a triple operating advantage for economic performance and capital efficiency that we seek to deliver. IMSR plant supplies thermal energy at a best-in-class temperature of 585 degrees Celsius. Its nuclear systems operate at low pressure and with a high level of inherent safety that can only be delivered using molten salt reactor technology. These are powerful economic virtues that must not be ignored. This triple operating advantage differentiates our reactor technology and nuclear tech sector. Together, these 5 factors are what allow us to achieve our mission and bring to the market the most capital-efficient plant in the SMR sector, and with our fuel supply strategy to do it quickly and at scale, as shown on slide 12. To close, in March we set guidance for the year and across the 3 pillars of business plan execution. We're pleased with our progress this quarter against our benchmark. We have observed high sector and factor volatility in equity markets over recent months. However, our experiences are that the structural bull market for nuclear power with SMR innovations is solid, secular, and is growing. Against this demand, we'll be deploying the most capital-efficient plant in the SMR sector today. We recognize that the road ahead is one of program execution and traveled through the development of competitive skills and capabilities. Referring now to slide 14, during the quarter we continued to expand our organization. On the 29th of July, we announced the addition of Pam Cowan as Executive Vice President of Engineering. Pam joined us with more than 35 years experience in the commercial nuclear sector, including senior leadership positions at Westinghouse and Holtec. Concurrently, Kathryn McCarthy joined our Board of Directors. Kathryn has a career in major projects in nuclear technology development at Idaho National Lab, Oak Ridge National Lab, and other world-leading national labs. Most recently, she was Associate Lab Director of Fusion and Fission Energy at Oak Ridge. And currently, she is responsible for the overall management of the United States participation in ITER, a 27-nation international and benchmark fusion reactor project in France. We're pleased to be reporting this progress over the quarter and to be providing these updates. With that, I will turn the call over to Brian Thrasher, our Chief Financial Officer, to review our financial results. Brian Thrasher: Thank you, Simon, and good morning, everyone. Turning to the financials, and consistent with last quarter, I will present on a sequential basis comparing to the first quarter of 2026, as this comparison is more informative given the transformation in the business in 2025. The theme this quarter continues to be disciplined spend, aligned to our programs, and a clean balance sheet. As summarized on slide 16, at quarter end, we have total cash, cash equivalents, and short and long-term investments of $283.4 million. This compares to $289.9 million at the end of the first quarter. Cash burn for the quarter was $6.4 million, or approximately $2.2 million per month. This compares to cash burn of $7.9 million for the first quarter of 2026, approximately $2.6 million per month. The decline largely reflects a shift in the timing of some testing activities, and I will provide additional color during my update. Spend will increase during the second half of the year. Our agreement with Texas A&M for the RELLIS land leases has allowed us to work on the final stages of site analysis and characterization work. And that spend is now underway. This is consistent with the guidance we gave in the first quarter. Cash burn would increase through calendar 2026 as we scale testing programs, project activities, and expand our organizational capabilities. I'll now turn to operating expenses. Research and development expenses were down approximately $1.1 million quarter-on-quarter. This is related to timing and scope variances on some key tests, notably the addition of 3 graphite irradiation cycles at the NRG Petten test reactor. We have also elected to build a greater irradiation and materials knowledge base in-house, which contributed to the decreased spending sequentially. General and administrative expenses were up approximately $700,000 quarter-on-quarter. The majority of this increase was from stock-based compensation, which increased by $500,000. These increases were driven by headcount growth as we scale organizational capacity to support our programs. Turning to our capitalization table as shown on slide 17. The issued and outstanding share count was unchanged during the second quarter of 2026. The fully diluted share count increased modestly by approximately 300,000 shares in the quarter due to stock option grants I previously mentioned. In summary, cash, cash equivalents, and cash investments make up the vast majority of our assets. We have modest current liabilities and lease obligations combined with no debts. Our balance sheet remains simple and clean. With that, Operator, please open the line for questions. Operator: [Operator Instructions] Our first question will come from Jeff Grampp with Northland Capital Markets. Jeffrey Grampp: Simon, I wanted to spend a minute here on the change in the economics, the increase there. I know you covered it a bit in the prepared remarks, but I want to make sure I understood that. Is that more of a function of, I guess, shall we say, fine-tuning some of the estimates? Has anything fundamentally changed about the approach, your scope, or any other details we should be aware of to better contextualize that? Simon Irish: Well, good question, Jeff. Well, from this model perspective, nothing has changed. It is an iteration in our estimates of unit economics. And the catalyst here has been the engineering work that we've undertaken over the last 18 months. And in particular, the engineering work that's going into TEFLA, which is the fuel line pilot. Perhaps that's the catalyst and the trigger for us to reissue the entire set of unit economics. It's also an opportunity for us to talk further about our principal businesses and why we believe that they are attractive businesses and will provide the drivers of value creation going forward. Jeffrey Grampp: Got it. I appreciate those details. For my follow-up, on the DOE projects, TETRA and TEFLA, can you cover what kind of would be the near-medium-term milestones to just track progress towards any potential, I guess, initiation of construction activities or anything else we can be keeping an eye out for? Simon Irish: Yes. We haven't provided further guidance on exactly what those future milestones are, but other than to say that we are continuing to execute on both projects. Both projects continue to be very important for us, not least because of the support of the DOE in project execution. TETRA deals with some of the data collection activities that we need to complete to support the license application, and TEFLA, as I mentioned earlier, TEFLA is the opportunity for us at pilot scale to define precisely the fuel production processes that we will be looking to scale up into the commercial plant for IMSR fuel salt supply. But we haven't provided details on exactly what milestones, precisely when to expect those on TETRA and TEFLA, simply to say that those projects continue to be very much the focus of attention on our end, important projects, and we're working on continuing to execute on them. Jeffrey Grampp: Understood. We'll stay tuned. Operator: [Operator Instructions] We'll go next to Alex Fuhrman with Lucid Capital Markets. Alex Fuhrman: I wanted to ask you about the use of natural gas as a bridge fuel. Can you tell us how long you expect your plants to be using that gas as a bridge fuel, and what do the unit economics of your plants look like during that interim period? Simon Irish: Yes, so Alex, this is -- I think, you're speaking to a very interesting characteristic of our plant. So we can use natural gas in the back end because the back end of our plant sits outside, we believe to sit outside the nuclear regulatory envelope. You can do this with certain Generation IV systems. So, in terms of the use of natural gas, I will -- I've given guidance previously on what a typical SMR project would look like, which is 5 plus 5 years. We would expect to be able to -- in that first 5 years, to put into commercial operation the back end of our plant where the steam systems will be driven by natural gas combustion. Now this would be a capital-efficient way of doing it. It wouldn't be a combined cycle plant. That would be an operationally very efficient way of using natural gas. This would be a capital-efficient way of doing it. Namely, you'll be using all the CapEx you'd be deploying. The systems you'd be deploying would be dual-purpose systems. They can be driven by natural gas, and they can be driven by thermal energy from nuclear systems. So you will see, if you're simply using natural gas to create steam, you'll see the type of thermal efficiency that you'll get with a coal plant. You wouldn't see the thermal efficiency you'll get with a combined cycle plant. But nonetheless, it is a capital-efficient way of building a dual-fuel back end to our plants. Dual-fuel namely nuclear systems and natural gas systems. We would anticipate because the back end of that plant would consist of standard industrial equipment, being able to bring power online commercially within 5 years. And we believe that's deeply relevant to many, particularly in the AI data center sector, where you hear the requirements there end, speed to power. Namely, what is super important to them is get access to power quickly, and they're not, for the moment, price sensitive. Over the long run, I expect them to be deeply price sensitive, but perhaps not in the short run. So this allows us to -- for a data center operator -- and others in the industrial world as well, it's not just data centers. This allows us to say we're able to deliver your requirement tactically in the near term, which is power, and we're also able to deliver what you need strategically in the 2030s in the long run, where you have clean, firm, cost-competitive nuclear power, and that's the advantage of this dual-fuel approach. Alex Fuhrman: Okay, that's really helpful. And then I appreciated the description of the various stages of the nuclear fuel supply chain. Can you just kind of summarize for us a little bit? Is the takeaway there that your design can run on fuel that is commercially available today, or are you depending on some new fuel that's going to come online in the future? Simon Irish: Well, the -- firstly, the neutronic form of it is commercially available today, that's step 1. Step 2, we require a chemical form of our fuel which is uranium tetrafluoride. Now fluorination as a chemical process, both conversion and deconversion, has been baked into the nuclear supply chain for decades and decades. The nuance here is that we require uranium tetrafluoride where the uranium is enriched to 5%. Uranium tetrafluoride typically exists in the nuclear fuel supply chain on the other side of the enrichment process, namely the tetrafluoride is using natural uranium. But nonetheless, fluorination is -- the chemical process is very well understood. We're working with Westinghouse on uranium tetrafluoride supply and that's the piece that we need to work on from the supply chain perspective. But it's a much, much smaller, much, much more straightforward step compared to the various steps that need to be brought to the table if you're using HALEU and using HALEU in physical fuel form, namely maybe metallic uranium used in physical reactor assemblies or a TRISO fuel. So we think it's a much, much simpler process. And it requires just 1 plant, namely a plant which will produce uranium tetrafluoride enriched to less than 5%. And our product from that plant will be the IMSR fuel salt, where we'll be taking uranium tetrafluoride enriched to no more than 5% and in carrier salts, which are standard industrial chemicals, fluoride form as well. The production process would naturally because it's producing a nuclear regulated product fuel. That production process would have a very tight set of production requirements and would be regulated as such. Alex Fuhrman: Okay, that's really helpful. Simon Irish: Thanks, Alex. Operator: And we'll go next to Derek Soderberg with Cantor Fitzgerald. Drew Nordquist: Hi, this is Drew Nordquist calling for Derek. Congrats on the quarter and thank you guys for taking our questions. Now that the PDC and PIE are approved, what are the additional topical reports that are going to be needed? And then just wondering if you guys can provide an update on where you are in fuel qualification. Simon Irish: Okay. Fuel qualification. So Drew, good question. And firstly with respect to the two topical reports, yes, we've completed two of them. Last year, the principal design criteria and this year it was postulated initiating events. In March, we gave guidance on three topical reports this year, guidance that we would be submitting the topical reports to the NRC where we have clearly with the postulated initiating event methodology, we have achieved one of those three. We still expect to be submitting the full three. So you can expect from the company over the coming quarters this year to be submitting two further -- at least two further topical reports. And Drew, could you repeat the second question please? Drew Nordquist: I was wondering if you could provide an update on where you are at with fuel qualification. Simon Irish: So, fuel qualification is different with a liquid fuel reactor system. Fuel qualification typically is a long pole in the regulatory tent for solid fuel reactors because you have to prove the performance of that fuel pin in all operating conditions in the reactor core. It's notoriously long and complex for solid fuel reactor systems. That's not the case for us. Fuel qualification for us is to demonstrate that we understand all the technothermal characteristics of our salt. Namely we can present to the NRC what the specific heat capacity is of the salt. And those characteristics allow us to define the heat transport properties of the fuel. So a different process, I would argue, a more straightforward process than the very complicated process associated with fuel qualification for physical fuel. Recall that fuel qualification of physical fuel, when you're talking about the performance of that cladding for physical fuel, that's the first containment boundary. So fuel qualification is about proving that they perform their containment boundary. We don't have that fuel qualification requirement, so it's a very different process. Not so well understood because we're talking about a liquid fuel, but the qualification process is largely ensuring that we collect all the data in a compliant way to demonstrate to the regulator that we understand the heat transport properties of our fuel. Operator: And moving on to Craig Irwin with ROTH Capital Partners. Craig Irwin: So Simon, I wanted to ask a little bit about your MOU with Riot. This seems like a really exciting customer. I was wondering if there was maybe more color or more detail you might be able to share with us. So, for example, have you been discussing with them potential initial sites, and timeline for development of those sites? Has there been work done on the evaluation of subsidies or government support, low-cost financing for your first units? And do you have any color on how those units are likely to be financed, other than through government support? Simon Irish: Yes, so the -- we have given guidance on our relationship with Riot in the form of the parties at this point are doing some preliminary site characterization work. The intention would be, again, to down select to a target candidate for a site. We haven't disclosed what that site is. And probably at this point in time, I wouldn't want to give any further guidance. Probably that would include on timelines as well. In terms of how this type of project is going to be financed, I think this type of project would be financed, clearly it would be state interest in financing this type of project. And I think that's true -- very much true, at the federal level as well. But in terms of the broad mechanisms of capital formation around this type of project. The capital formation, in my view, is not going to be associated with a classic project finance. These are highly strategic projects for everyone who's going to be involved. They're obviously very strategic for us, because these represent, our project Riot represents a project which is sort of the first 1, 2, 3, 4, 5 for Terrestrial Energy. So a very important project. That's also very true for Riot as well. Success with their first project with us provides the pathway for Riot to that 4 gigawatts, highly strategic 4 gigawatts in the 2030s. That's true also for the suppliers. Success for the first project is going to be highly strategic for the suppliers. It's going to be true for the constructor as well, and it's going to be true for the operator. So I see capital formation associated with these projects, particularly with equity capital formation associated with the participation in that consortium. We are part of that consortium, but we're not looking to build and operate the plant. But capital formation for those first plants is going to be associated with the strategic value that they represent to everyone who's going to be involved. And do recall the strategic values associated with our pursuit of an opportunity in a serviceable addressable market, which is running past $2 trillion. So getting it right with plants 1, 2, 3, 4, 5, gives you -- that's table stakes into a massive market for SMR deployment in the 2030s. That is going to be the mechanism in my opinion for capital formation. It's going to be supported and I think vigorously it's going to be supported by various agencies and policy initiatives at the federal government level I think for where some of them are and it's also going to be supported at the state level as well so that's how I see that the financing developing with these projects. Craig Irwin: Thank you for that. If I could revisit the IMSR fuel salt supply approach. The conventional approach, 3 steps, 3 plants. The way that you're going to approach things for your fuel, 2 steps, 1 plant. Can you maybe unpack the economics a little bit for us? Do you have potential line of sight on maybe better than 50% lower costs on an energetically similar fuel type versus conventional plants? Simon Irish: Well, we've given guidance on total revenues for that fuel business, Craig, and we've given guidance that 40% gross profit margin, which is, that's middle of the park. We don't want to stretch this point too much. We think that 40% is very reasonable when you're looking across the market and you say, what are the typical gross profit margins on fuel supply. But certainly, the whole fuel supply process our end is -- consists of far fewer steps, fewer plants associated with the fuel supply business than you typically see with solid fuel reactors. There's going to be from a cost perspective to the customer, the owner operator of the nuclear plant, there's going to be a tremendous advantage because per gigawatt year, our fuel is going to be from the schematic representation on that slide, our fuel is going to be significantly less expensive than the fuel you would have from solid fuel reactors, and particularly from Generation IV systems, where you have to, from a standing start, you have to set up potentially 3 new plants. That's going to be costly, and it's going to be represented in the fuel. Craig Irwin: Understood, understood. Well, congratulations on the progress. We look forward to your success. Operator: And this now concludes our question and answer session. I would like to turn the floor back over to Simon Irish for closing comments. Simon Irish: Thank you for joining us today and for your interest in the company. We set clear expectations earlier in the year and we continue to meet them. We have a small modular reactor plant design of exceptional potential, and we look forward to demonstrating progress milestone by milestone through 2026 and beyond. Thank you. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day. Before you buy stock in Terrestrial Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Terrestrial Energy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. 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Terrestrial Energy (IMSR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Terrestrial Energy Inc.? Here are five stocks we like better. Regulatory and site-development progress advanced: The NRC approved Terrestrial Energy’s methodology report, while the company expanded testing programs and secured agreements with Texas A&M and Zachry Nuclear to evaluate a potential IMSR site at the RELLIS campus. Commercial pipeline grew to 7.8 GW: A relationship with Riot Platforms targets up to 4 GW of IMSR capacity for data centers, potentially using natural-gas systems initially before transitioning to nuclear generation. Updated economics improved, but spending is expected to rise: Estimated lifetime revenue per unit increased to $2.7 billion and gross margin to 33%; the company held $283.4 million in cash and investments, with second-half cash burn expected to increase as development activities accelerate. Terrestrial Energy (NASDAQ:IMSR) reported second-quarter progress across its engineering, regulatory, supply-chain and commercial-development programs, while outlining updated unit economics for its IMSR small modular reactor plant design. Chief Executive Officer Simon Irish said the company continues to execute against the three pillars of guidance it established in March: engineering and regulation, supply-chain development, and commercial-project development. He also emphasized the company’s capital-light business model, under which it does not plan to build, own or operate IMSR plants itself. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Irish said the company’s DOE-partnered Project TETRA test reactor and Project TEFLA fuel-line pilot project advanced during the quarter. TETRA is intended to support data collection for a Nuclear Regulatory Commission operating license application for the IMSR plant, while TEFLA is focused on developing commercial production processes for IMSR Fuel Salt. On the regulatory front, the NRC issued a Safety Evaluation Report on May 12 approving Terrestrial Energy’s Topical Report covering its Postulated Initiating Events methodology. Irish said the approval followed a previous Safety Evaluation Report on the company’s principal design criteria. Both analyses can be referenced in future applications without reevaluation, according to the company. → 3 Dividend Champion Utilities for a Market That Can't Sit Still The company continued graphite irradiation testing at the NRG Petten test reactor in the Netherlands. During the quarter, Terrestrial Energy expanded the testing program by adding irradiation cycles, which contributed to changes in research and development spending. Terrestrial Energy also announced an engineering service agreement with Zachry Nuclear to support development activities at Texas A&M University’s RELLIS campus. The work includes site characterization and data collection for a potential NRC construction permit application for a commercial IMSR plant at the site. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War In June, Terrestrial Energy signed ground lease and research agreements with Texas A&M for exclusive use of a 77-acre RELLIS site. Irish said the agreements create a path for site characterization and environmental evaluations ahead of potential construction. In May, Terrestrial Energy announced a relationship with Riot Platforms involving the potential supply of electricity for data-center operations. The companies intend to identify an initial site as part of a program targeting 4 gigawatts of IMSR generation capacity to support Riot’s data-center operations. Irish said the relationship would use a feature of the IMSR design allowing the non-nuclear thermal and electric portions of the facility to be customized. The company expects the plant’s non-nuclear “back end” could initially use natural gas to produce steam and supply commercial power before nuclear systems enter service. He characterized the approach as a capital-efficient dual-fuel arrangement, rather than a combined-cycle gas plant. Terrestrial Energy expects that standard industrial equipment used in the non-nuclear portion could allow power generation to begin within five years, while nuclear generation would provide longer-term clean, firm power. Following the Riot relationship, Terrestrial Energy said the indicative capacity of its commercial-project pipeline rose to 7.8 GW. The company identified data centers, industrial process heat and replacement of retiring coal capacity as its primary commercial market verticals. Terrestrial Energy updated its estimated lifetime economics for each IMSR unit following engineering work conducted over the past year, including work related to TEFLA. Irish said the revised model does not reflect a change in the company’s business approach, but rather an iteration of its estimates. Estimated cumulative lifetime revenue per unit increased to approximately $2.7 billion from $2.1 billion. Blended gross profit margin increased to 33% from 22% in the prior model. The company estimates 79% of unit revenue would occur after plant construction through long-term supply contracts. Core-unit supply is expected to represent 58% of revenue, while fuel-salt supply would account for 21%. The estimated serviceable addressable market through 2050 increased to $2.3 trillion from $1.9 trillion. The company plans to manufacture and supply IMSR Core-units and major reactor components that are designed for replacement every seven years over a plant’s 56-year design life. Irish said this would imply 16 Core-units and about $1.6 billion in cumulative revenue from that activity. The company estimated gross margins of 33% for Core-unit supply and 40% for fuel supply. Irish also highlighted the IMSR’s liquid-fuel approach. He said the company’s fuel-production process does not require the third manufacturing step needed to create physical fuel assemblies or TRISO fuel elements for solid-fuel reactors. Terrestrial Energy plans to use low-enriched uranium, or LEU enriched to less than 5%, rather than high-assay low-enriched uranium, or HALEU. The company is working with Westinghouse on supply of enriched uranium tetrafluoride, which would be combined with fluoride carrier salts to produce IMSR Fuel Salt. Irish said the approach requires one fuel-production plant for the company’s process and avoids certain cost and complexity associated with physical fuel manufacturing. Chief Financial Officer Brian Thrasher said Terrestrial Energy ended the quarter with $283.4 million of cash equivalents and short- and long-term investments, compared with $289.9 million at the end of the first quarter. Quarterly cash burn was $6.4 million, or roughly $2.2 million per month, down from $7.9 million, or $2.6 million per month, in the first quarter. Thrasher attributed the decline largely to the timing of testing activities. Research and development expense declined by about $1.1 million sequentially, reflecting timing and scope changes in testing programs. General and administrative expense rose about $700,000, primarily due to a $500,000 increase in stock-based compensation associated with expanding headcount. Thrasher said the company expects cash burn to increase in the second half as it advances RELLIS site analysis, testing programs, project activities and organizational development. The company reported no change in its issued and outstanding share count during the quarter, though its fully diluted share count increased by about 300,000 shares due to stock-option grants. Thrasher said Terrestrial Energy had no debt and modest current liabilities and lease obligations. Terrestrial Energy Inc produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Terrestrial Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

~ NRC Approves PIE Methodology Topical Report, Advancing the IMSR Licensing Basis ~ ~ Texas A&M Agreements Signed Covering Development Activities and Ground Leases Providing Site Control for Completion of Characterization Work at RELLIS ~ ~ Updates to Estimated Unit Economics Raises Lifetime Revenue Per Plant to $2.7 Billion from $2.1 Billion with Blended Gross Margin Raised to 33% ~ ~ Expands Serviceable Addressable Market Estimate to $2.3 Trillion by 2050 ~ CHARLOTTE, N.C., August 11, 2026--(BUSINESS WIRE)--Terrestrial Energy Inc. (NASDAQ: IMSR) ("Terrestrial Energy" or "the Company"), a developer of small modular nuclear plants using its Generation IV Integral Molten Salt Reactor (IMSR), today announced its financial results for the second quarter ended June 30, 2026. "This quarter we reported developments across all three pillars of our business plan. We secured site control at the Texas A&M-RELLIS site, advanced projects TETRA and TEFLA, and received NRC approval of our Postulated Initiating Events methodology," said Simon Irish, Chief Executive Officer of Terrestrial Energy. "Engineering progress has allowed us to re-estimate our unit economics, particularly for our two principal businesses of IMSR Core-unit and Fuel Salt supply. We now estimate $2.7 billion of cumulative lifetime revenue per IMSR Plant, up from $2.1 billion, with a blended gross margin of 33%. This lifts our serviceable addressable market to $2.3 trillion by 2050. These economics achieved with a capital-light business model, illustrate the value of IMSR Core-unit and Fuel Salt supply." Engineering and Regulatory Highlights: U.S. Nuclear Regulatory Commission (NRC) approved the Company's Postulated Initiating Events (PIE) methodology Topical Report, following its earlier approval of the IMSR Principal Design Criteria (PDC) Topical Report. Together these Topical Reports establish foundational elements of the IMSR licensing basis and can be referenced in future applications without re-evaluation. Continued to advance Project TETRA, the Company’s test reactor pilot project, and Project TEFLA, its fuel line pilot project, both partnership projects with the U.S. Department of Energy. Added irradiation cycles to the Company’s graphite testing and qualification program at NRG Petten, supporting materials’ qualification, licensing readiness and supplier down-selection. Appointed Kathy McCarthy to the Board of Directors, who has a career in nuclear technology and major project development at leading national laboratories. Concurrently, Pamela Cowan joined as EVP of Engineering, with more than 35 years of nuclear industry engineering experience, including senior leadership roles at Westinghouse and Holtec. Supply Chain Developments: Continued Westinghouse engagement for the supply of uranium tetrafluoride (UF4) at standard enrichment, a key component in IMSR Fuel Salt supply. Signed an engineering service agreement with Zachry Nuclear to support site characterization and data-collection at the Texas A&M-RELLIS site. Commercial Pipeline of IMSR Plant Projects: Signed ground lease and research agreements with Texas A&M University System for use of 77 acres at the Texas A&M-RELLIS site, securing site control and the path to complete site characterization work and environmental evaluation work for the IMSR Plant and other facilities. Executed a Memorandum of Understanding with Riot Platforms, Inc. (NASDAQ: RIOT) to co-locate IMSR Plants with Riot data centers. The parties are evaluating a natural gas fuel bridge for early electricity supply and added resiliency during full plant operation. Unit Economics Update: Estimate of cumulative lifetime revenue per IMSR Plant increased to $2.7 billion from $2.1 billion on a blended gross margin of 33%. 79% of lifetime revenues occurs after construction of the IMSR Plant from Core-unit and Fuel Salt supply under long term contract. Gross margins for the Core-unit and Fuel Salt supply businesses estimated to be 33% and 40%, respectively. Updated 2050 serviceable addressable market to $2.3 trillion. Performance, Liquidity and Capital Structure: Reported a net loss of $9.4 million for second quarter, compared to a net loss of $10.5 million for first quarter. This change was primarily driven by: Ended second quarter with $283.4 million in cash, cash equivalents and investments. Reported cash burn of $6.4 million, a decrease of $1.5 million compared to first quarter. The decrease largely from a shift in the timing of certain testing activities. Ended second quarter with 105.9 million shares issued and outstanding and unchanged from first quarter end, consisting of 82.7 million common shares and 23.2 million exchangeable shares. Conference Call and Webcast Terrestrial Energy will host a conference call today at 8:30 a.m. Eastern Time to discuss the Company’s financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Terrestrial Energy’s website at ir.terrestrialenergy.com. For those unable to access the webcast, the conference call can be accessed by dialing (877) 407-4019 (domestic) or +1 (201) 689-8337 (international) and requesting the Terrestrial Energy Second-Quarter 2026 Earnings Conference Call. For those unable to listen to the live conference call, a replay will be available after the call through the archived webcast in the Events section of Terrestrial Energy’s investor relations website or by dialing (877) 660-6853 or (201) 612-7415. The access code for the replay is 13761804. The replay will be available until 11:59 PM ET on August 25, 2026. About Terrestrial Energy Terrestrial Energy is a developer of Generation IV nuclear plants that use its proprietary Integral Molten Salt Reactor (IMSR). The IMSR captures the transformative operating benefits of molten salt reactor technology in a plant design that represents true innovation in capital efficiency, cost reduction, versatility and functionality of nuclear energy supply. IMSR plants are designed to be small and modular for distributed supply of low-cost, reliable, dispatchable, clean, high-temperature industrial heat and electricity, and to be customized for a dual-use energy role relevant to many industrial applications, such as petrochemical and chemical synthesis, and data center operation. In so doing, IMSR plants extend the application of nuclear energy far beyond electric power markets. Their deployment will support the rapid growth of clean firm heat and power, delivering energy self-reliance, grid reliability and economic growth. Terrestrial Energy uses an innovative plant design together with proven and demonstrated molten salt reactor technology and readily-available and inexpensive standard-assay low-enriched uranium in its fuel for a nuclear plant with a unique set of operating characteristics and compelling transformative commercial potential. Terrestrial Energy is engaged with regulators, suppliers, industrial partners and energy end-users to build, license and commission the first IMSR plants in the early 2030s. Forward-Looking Statements The statements contained in this press release that are not purely historical are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our expectations, milestones, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements speak only as of the date of this press release and involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) risks related to the development, manufacturing and construction of IMSR Plants and key components, including potential delays, cost overruns and contractor performance issues; (2) the Company’s ability to obtain applicable regulatory approvals and licenses on a timely basis or at all; (3) the possibility that our estimates regarding lifetime revenue and gross margin of IMSR Plants and our serviceable addressable market or the underlying assumptions may prove to be incorrect; (4) the ability of management to manage growth; (5) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors, including from alternative energy technologies, energy price volatility, and competition from other advanced reactor developers; (6) potential supply chain constraints and cost inflation for specialized nuclear-grade materials and components; (7) any failure to comply with the laws and regulations governing the use, transportation, and disposal of toxic, hazardous and/or radioactive materials; (8) changes in domestic and foreign business, market, financial and political conditions, and in applicable laws and regulations, including tariffs; (9) the ability to raise additional funding in the future; (10) the outcome of any legal proceedings that may be instituted against the Company; and (11) other risk factors described herein as well as the risk factors and uncertainties described in the documents filed by the Company from time to time with the U.S. Securities and Exchange Commission (the "SEC"). The foregoing list of risk factors is not exhaustive. You should carefully consider the foregoing risk factors and the other risks and uncertainties described in the documents filed by the Company from time to time with the SEC. In addition, there may be additional risks that the Company presently knows, or that it currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should be regarded as a representation or warranty, either express or implied, by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. In addition, the information contained in this press release is provided as of the date hereof and may change, and the Company and its representatives and affiliates specifically disclaim any obligation to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, inaccuracies, future events or otherwise, except as may be required under applicable securities laws. Information contained on our website is not a part of or incorporated into this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811278185/en/ Contacts Terrestrial Energy Investor Center: https://www.terrestrialenergy.com/investors Terrestrial Energy Media & Contact: [email protected] [email protected]

CHARLOTTE, N.C., July 28, 2026--(BUSINESS WIRE)--Terrestrial Energy Inc. (NASDAQ: IMSR), a developer of small modular nuclear power plants using its Generation IV Integral Molten Salt Reactor (IMSR), today announced that industry veteran Kathryn McCarthy has been appointed to the Board of Directors. "Kathy has decades of leadership in major nuclear science and technology projects at the nation's leading national laboratories. Her experience with the delivery of large-scale projects brings further expertise to the Company as it moves ahead with project execution and IMSR plant commercial deployment," said Simon Irish, Terrestrial Energy CEO. "We welcome Kathy to the Company and look forward to her playing an important role." "Terrestrial Energy is at the forefront of the nuclear sector at a time when nuclear plant innovations and developments can deliver exceptional improvements in the performance and application of nuclear energy supply. I look forward to drawing on my many years in nuclear technology development to assist in moving the Company's IMSR plant to commercial markets," said McCarthy. McCarthy led U.S. participation in the international ITER project, the world's leading fusion energy project, as Director of the US ITER Project Office at Oak Ridge National Laboratory, where she also served as Associate Laboratory Director for the Fusion and Fission Energy and Science Directorate. Previously, she served as Vice-President, Science & Technology and Laboratory Director at Canadian Nuclear Laboratories. Over a 25-year career at Idaho National Laboratory, the nation's leading reactor laboratory, she held senior leadership positions including Director of Domestic Programs for Nuclear Science and Technology, Deputy Associate Laboratory Director for Nuclear Science and Technology, and Chair of the INL Science & Technology Council. Since 2026, McCarthy has served as Senior Advisor at Oak Ridge National Laboratory, supporting strategic decisions in the US ITER Project and fusion research and development. McCarthy is a member of the National Academy of Engineering and a Fellow of the American Nuclear Society. She holds a Ph.D. in nuclear engineering from UCLA. Second Quarter 2026 Earnings Call The Company will report its second quarter 2026 earnings before the market opens on Tuesday, August 11, 2026, and will host a conference call at 8:30 a.m. Eastern Time. Simon Irish, Chief Executive Officer, and Brian Thrasher, Chief Financial Officer, will participate on the call. Q2 Webcast Details: Date: Tuesday, August 11, 2026Time: 8:30 a.m., Eastern Time, 5:30 a.m. Pacific TimeWebcast: https://edge.media-server.com/mmc/p/x2uj9km3 North American Toll-Free: 877-407-4019International Toll: +1 201-689-8337 The webcast will be broadcast live and available for replay. The earnings release and presentation will also be posted to the Company's investor relations website at https://ir.terrestrialenergy.com/. About Terrestrial Energy Terrestrial Energy is a developer of Generation IV nuclear plants that use its proprietary Integral Molten Salt Reactor (IMSR). The IMSR captures the transformative operating benefits of molten salt reactor technology in a plant design that represents true innovation in capital efficiency, cost reduction, versatility and functionality of nuclear energy supply. IMSR Plants are designed to be small and modular for distributed supply of low-cost, reliable, dispatchable, clean, high-temperature industrial heat and electricity and to be customized for a dual-use energy role relevant to many industrial applications, such as petrochemical and chemical synthesis and data center operation. In so doing, IMSR Plants extend the application of nuclear energy far beyond electric power markets. Their deployment will support the rapid growth of clean firm heat and power, delivering energy self-reliance, grid reliability and economic growth. Terrestrial Energy uses an innovative plant design together with proven and demonstrated molten salt reactor technology and readily available and inexpensive standard-assay low-enriched uranium in its fuel for a nuclear plant with a unique set of operating characteristics and compelling transformative commercial potential. Terrestrial Energy is engaged with regulators, suppliers, industrial partners and energy end users to build, license and commission the first IMSR Plants in the early 2030s. Forward-Looking Statements The statements contained in this press release that are not purely historical are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our expectations, milestones, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements speak only as of the date of this press release and involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) risks related to the development, manufacturing and construction of IMSR Plants and key components, including potential delays, cost overruns and contractor performance issues; (2) the Company’s ability to obtain applicable regulatory approvals and licenses on a timely basis or at all; (3) the ability of management to manage growth; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors, including from alternative energy technologies, energy price volatility, and competition from other advanced reactor developers; (5) potential supply chain constraints and cost inflation for specialized nuclear-grade materials and components; (6) any failure to comply with the laws and regulations governing the use, transportation, and disposal of toxic, hazardous and/or radioactive materials; (7) changes in domestic and foreign business, market, financial and political conditions, and in applicable laws and regulations, including tariffs; (8) the ability to raise additional funding in the future; (9) the outcome of any legal proceedings that may be instituted against the Company; and (10) other risk factors described herein as well as the risk factors and uncertainties described in the documents filed by the Company from time to time with the U.S. Securities and Exchange Commission (the "SEC"). The foregoing list of risk factors is not exhaustive. You should carefully consider the foregoing risk factors and the other risks and uncertainties described in the documents filed by the Company from time to time with the SEC. In addition, there may be additional risks that the Company presently knows, or that it currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should be regarded as a representation or warranty, either express or implied, by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. In addition, the information contained in this press release is provided as of the date hereof and may change, and the Company and its representatives and affiliates specifically disclaim any obligation to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, inaccuracies, future events or otherwise, except as may be required under applicable securities laws. Information contained on our website is not a part of or incorporated into this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260728723888/en/ Contacts Terrestrial Energy Investor Center: https://www.terrestrialenergy.com/investors Terrestrial Energy Media & Contact: [email protected]

Download the Complete Report Here Key Takeaways: 1Q26 showed progress across IMSR’s key commercialization vectors, with regulatory, DOE program, supply-chain, commercial pipeline, and liquidity milestones collectively advancing the de-risking narrative. IMSR continues to execute against a milestone-driven roadmap that is more appropriately measured by regulatory progress, project pipeline development, fuel readiness, supply-chain qualification, and cash runway than by near-term revenue. The quarter advanced all three of management’s stated pillars: IMSR engineering and regulatory programs, including DOE-backed TETRA and TEFLA projects; supply-chain development, including materials testing and supplier execution; and commercial pipeline expansion, led by the Riot Platforms collaboration. The company reported a 1Q26 net loss of $10.5 million, ended the quarter with $289.9 million of cash and investments, and reported quarterly cash burn of $7.9 million, while expanding its commercial pipeline to ~10 IMSR Plant projects representing 7.8GW of indicative power capacity. NRC approval of the PIE Topical Report adds another foundational element to IMSR’s licensing basis. In May, the NRC issued its Safety Evaluation Report approving IMSR’s Postulated Initiating Events methodology, following acceptance of the company’s final submission in April 2026. The approval validates IMSR’s framework for identifying and evaluating events that could challenge safe plant operation, making it a core safety-analysis milestone rather than a process update. Importantly, approved Topical Reports can be referenced in future operating license applications without repetitive re-evaluation, reducing review scope and supporting standardized outcomes across multiple IMSR deployments. The PIE approval builds on the NRC’s September 2025 approval of IMSR’s Principal Design Criteria, which addressed foundational safety and design requirements, including inherent safety, reactor power control, and load-following capability. The regulatory pathway is increasingly defined around operating-license readiness and repeat deployment. Construction permits enable large-scale plant construction and address major environmental requirements, while operating-license preparedness determines whether the nuclear systems satisfy safety standards for commercial operation. IMSR’s Topical Reports are most relevant to the latter because they resolve foundational safety analyses that can be reused in future applications. The company remains primarily focused on NRC Part 53 as the more practical pathway for initial IMSR deployment and fleet-scale licensing, while Part 57 appears more relevant to microreactors, with only limited potential applicability around waste-related provisions. DOE-backed TETRA and TEFLA advance two critical workstreams: reactor validation and fuel readiness. During the quarter, IMSR completed OTA contracts with the U.S. Department of Energy for Project TETRA, its reactor pilot project, and Project TEFLA, its fuel line pilot project. TETRA supports engineering and regulatory work for future IMSR Plant commercial operation, while TEFLA supports the infrastructure needed for IMSR fuel supply. Together, the programs address two gating items for advanced nuclear commercialization: licensing-quality reactor data and scalable fuel production capability. While traction is still programmatic rather than revenue-generating, successful execution should reduce schedule risk, strengthen NRC engagement, improve customer confidence, and support future fleet economics. Riot partnership creates a scalable data-center channel and expands IMSR’s commercial pipeline. In May, Terrestrial Energy and Riot Platforms announced a collaboration to develop co-located IMSR nuclear plants and hyperscale data centers for AI and high-performance compute applications. The partnership contemplates multiple 390MW IMSR Plants representing up to 4GW of nuclear capacity across U.S. candidate sites, including existing Riot facilities in Texas and Kentucky. The structure combines Riot’s hyperscale data-center development, operations, marketing, and leasing expertise with IMSR’s reactor design and licensing capabilities, creating a repeatable nuclear-plus-data-center template rather than a single-site project. IMSR’s physically separated non-nuclear energy conversion systems also enable hybrid configurations, including natural gas as a bridge fuel, which could accelerate commercial power availability and improve resiliency during project development. Collectively, 1Q26 strengthened the case that IMSR is moving from technology validation toward commercial deployment. The quarter connected regulatory progress, DOE-backed reactor and fuel programs, supply-chain qualification, and commercial origination into a clearer execution path. This matters because demand for clean, firm power continues to rise from AI infrastructure, reshoring, manufacturing electrification, and energy security needs. IMSR’s differentiated design directly addresses those use cases: the plant is roughly one-sixth the size of a conventional nuclear plant, uses turbines operating at nearly 50% greater efficiency than light-water-reactor-driven turbines, operates at low pressure, and relies on standard-assay uranium enriched to less than 5% U-235 rather than HALEU. These attributes support the core customer and financing proposition: lower deployment complexity, stronger fuel availability, improved affordability, and a more scalable path to repeat deployment. Additional IMSR project announcements remain an important 2026 commercialization catalyst. IMSR reaffirmed its expectation to announce 1-3 additional IMSR projects during 2026, with the Riot MOU representing progress against that target. Further site or strategic partner disclosures would help validate demand beyond a single data-center channel, increase visibility into pipeline quality, and provide investors with clearer evidence that IMSR’s commercial origination efforts are moving from broad market interest toward specific deployment opportunities. Fuel strategy remains a core IMSR differentiator, with TEFLA converting standard-fuel availability into a practical commercial supply pathway. IMSR uses standard-assay LEU enriched to less than 5% U-235, avoiding the HALEU enrichment levels of 15–20% required by many Generation IV peers and reducing exposure to commercial-scale HALEU supply constraints. TEFLA is therefore strategically important because enrichment is only the first step in IMSR’s fuel chain; the final reactor feed is IMSR fuel salt, requiring deconversion into uranium tetrafluoride and additional chemical production steps to meet licensed purity requirements. By developing this fuel-line process at pilot scale, TEFLA supports first-plant readiness, reduces fuel-supply execution risk, and strengthens the long-term recurring revenue opportunity tied to fuel supply and Core-unit services. Financial performance reflected planned execution spending, with sequential comparisons more useful given IMSR’s 2025 business transformation. IMSR reported a 1Q26 net loss of $10.5 million, compared with a $6.2 million net loss in 4Q25, as the company continued scaling fuel development, graphite testing, public-company infrastructure, and commercialization resources. On a sequential basis, R&D increased by $1.0 million, driven by fuel development and graphite testing programs, while G&A increased by $4.6 million, primarily reflecting headcount and stock-based compensation as IMSR builds out its public-company team. On a y/y basis, R&D increased by $3.2 million and G&A increased by $4.0 million, while other income and expense improved by $2.8 million due to lower interest expense and higher interest and dividend income. The spending ramp appears intentional and milestone-linked rather than reflective of operating inefficiency, with incremental investment directed toward the workstreams that matter most for commercialization: NRC engagement, fuel development, graphite testing, supplier qualification, and project origination. Cash burn remained controlled, and the balance sheet provides runway for milestone execution. IMSR ended 1Q26 with $289.9 million of cash and short-term investments, compared with $297.8 million at year-end, implying quarterly cash burn of $7.9 million. Burn increased $1.8 million sequentially after adjusting for one-time merger-related transaction costs, driven by a $0.6 million discretionary bonus payment, a $1.0 million accounts payable paydown to vendors offering extended credit terms, and $0.2 million of higher R&D payments. Share count increased by only ~100,000 shares from stock option exercises, leaving dilution minimal, while the balance sheet remains clean with limited liabilities, modest lease obligations, and no debt. Long-term unit economics remain compelling despite IMSR’s current pre-revenue stage. Management estimates that each IMSR Plant represents approximately $2.1 billion of cumulative revenue opportunity over a 60+ year plant life, including pre-construction services ($75 million), construction services and component procurement ($486 million), IMSR Core-unit supply and services ($1.148 billion), and IMSR fuel supply and services ($389 million). The model generates $774 million during the approximately four-year construction and commissioning phase, followed by $1.324 billion during the 56-year operating life, creating both upfront project revenue and long-duration recurring revenue after commercial operation begins. Revenue mix supports an annuity-like model anchored in Core-unit and fuel services. Management estimates a blended gross margin of approximately 22%, with pre-construction engineering services at 31%, construction services and component procurement at 27%, and Core-unit supply and fuel services each at 20%. Core-unit and fuel services together represent 74% of total plant-life revenue, or approximately $1.537 billion, with $1.324 billion generated over the operating life. This shifts IMSR’s model from episodic construction revenue toward recurring, multi-decade cash flows tied to fuel supply and Core-unit replacement cycles. IMSR’s current valuation reflects limited pricing of long-term commercialization potential relative to its business combination with HCM II Acquisition Corp. The following analysis is illustrative and not intended as a price target or investment recommendation but highlights the disconnect between current valuation and potential value creation as key milestones are achieved. IMSR currently trades at a material discount to the valuation implied at the time of its October 2025 business combination. At closing, the transaction implied a pro forma equity value of approximately $1.06 billion, based on ~105.8 million shares outstanding at $10.00 per share. As of May 15, 2026, IMSR’s equity market capitalization stands at approximately $772 million, representing a ~27% discount from the transaction reference value. Enterprise value provides a more appropriate basis for valuation at this stage of development. Adjusting for ~$290 million of cash and short-term investments, IMSR’s current enterprise value is approximately $482 million. In effect, the market is attributing less than $500 million of value to IMSR’s operating platform, intellectual property, regulatory progress, fuel strategy, and project pipeline, despite more than a decade of development and recent progress across NRC approval of the PIE Topical Report, completed DOE OTA contracts for TETRA and TEFLA, and the Riot data-center collaboration. Current valuation reflects execution and timeline risk despite a capital-light model supporting more efficient long-term value creation. This valuation primarily reflects a discount for time-to-commercialization and execution risk rather than a reassessment of the long-term addressable opportunity. IMSR’s capital-light model, focused on design, component supply, and fuel provision rather than plant ownership, should enable more efficient capital deployment than traditional nuclear developers. IMSR remains pre-revenue, with first commercial plant operations targeted for 2034, and near-term financials are expected to reflect elevated R&D and public company costs. However, the company has differentiated itself within the Generation IV nuclear landscape through commercially available SALEU fuel, completion of the Canadian Nuclear Safety Commission’s Vendor Design Review, advancing NRC engagement, and DOE-supported programs addressing licensing, reactor validation, and fuel readiness. Relative valuation comparisons underscore this dynamic. Established Generation III nuclear operators trade at significantly higher enterprise values supported by operating fleets and stable cash flows, while Generation IV developers trade at materially lower valuations reflecting pre-revenue status and development risk. As advanced nuclear technologies progress toward commercialization, valuation outcomes are likely to increasingly differentiate based on regulatory readiness, fuel availability, and execution credibility. In this context, IMSR’s valuation can be viewed as a long-duration option on regulatory and project execution, supported by a substantial cash balance providing multi-year runway. Bottomline: At $482 million of enterprise value, IMSR reflects significant execution and timeline risk while offering asymmetric upside to regulatory and commercialization milestones, supported by a multi-year cash runway. 2026 remains milestone-driven, with progress across NRC licensing, TETRA, TEFLA, fuel readiness, Riot/data-center origination, and flagship project development as key drivers of potential re-rating. Download the Complete Report Here Read Exec Edge’s Initiation on Terrestrial Energy Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

This article first appeared on GuruFocus. Total Cash and Cash Investments: $289.9 million at quarter end. Cash Burn: $7.9 million for the quarter, an increase of $1.8 million from the prior quarter. Research and Development Expenses: Increased by $1 million sequentially. General and Administrative Expenses: Increased by $4.6 million sequentially. Issued and Outstanding Shares: Increased by approximately 100,000 shares due to stock option exercises. Warning! GuruFocus has detected 2 Warning Signs with IMSR. Is IMSR fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Terrestrial Energy Inc (NASDAQ:IMSR) has achieved significant regulatory milestones, including the approval of the PIE Safety Evaluation Report by the Nuclear Regulatory Commission, which enhances the predictability and confidence in the licensing pathway. The company has a strong capital position with $289.9 million in cash and cash investments, providing a solid foundation for executing its business plan. Terrestrial Energy Inc (NASDAQ:IMSR) has strategically chosen to use standard nuclear fuel, avoiding the challenges associated with HALEU fuel supply, which simplifies regulatory processes and reduces costs. The company has executed an MOU with RIOT platforms, creating opportunities for co-locating IMSR plants with data centers, which underscores the demand for their plant design. Terrestrial Energy Inc (NASDAQ:IMSR) has a commercial pipeline consisting of approximately 10 IMSR plant projects, representing 7.8 gigawatts of indicative power capacity, showcasing strong market interest. The company expects cash burn to increase throughout 2026 as it scales its organization and resources, which could impact financial stability if not managed carefully. Research and development expenses have increased by $1 million sequentially, driven by fuel development and graphite testing programs, indicating rising operational costs. General and administrative expenses rose by $4.6 million sequentially, primarily due to increased headcount and stock-based compensation, which could pressure profitability. The company faces challenges in establishing a commercial-scale fuel production timeline, which could be a constraint on the deployment schedule of IMSR plants. There is uncertainty regarding the regulatory pathway for construction permits and operating licenses, which could delay project timelines if not navigated effectively. Q: Can you walk us through the TEFLA pilot plant timeline and when you expect commercial scale fuel production to be online relative to the first plant deployment? Is fuel fabrication a constraint to the deployment schedule? A: Simon Irish, CEO: Our fuel supply program is focused on achieving fleet-level supply of HALEU fuel. The TEFLA project is crucial for developing the processes needed to create the final fuel form, IMSR fuel salt. This project will help us industrialize these processes, which are essential for our business plan. Fuel fabrication is not a constraint, as we are principal in fuel supply and IMSR core unit supply. Q: With the PIE topical report approved by the NRC, what are the next regulatory submissions we should watch for as you prepare for formal site licensing and construction? A: Simon Irish, CEO: There are two main branches: preparing for the operating license and the construction permit. The operating license is crucial as it allows commercial operation. Our progress with topical reports and safety analysis positions us well for submitting the operating license, which is the ultimate goal. Q: Have you explored the use of LEU+ in your reactor design? A: Simon Irish, CEO: We decided to use standard nuclear fuel a decade ago. LEU+ could offer technical benefits, but its commercial impact would be marginal. Our design is flexible enough to accommodate various fuels, including LEU+, if it becomes broadly available. Q: What are your thoughts on Part 57 and its potential leverage for accelerating your pathway? A: Simon Irish, CEO: Part 57 is more focused on microreactors, which is not directly relevant to us. However, Part 53 offers a potential alternative licensing pathway for both the first plant and fleet, which we are considering. Q: Will the executed OTA agreements with the DOE help with capital expenditures for the TETRA and TEFLA programs? A: Simon Irish, CEO: Indirectly, yes. The OTA contract with the DOE provides regulatory clarity, which is attractive to capital and helps achieve project goals for TETRA and TEFLA. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes their competitive advantage to a decade-old decision to use standard-assay low-enriched uranium (SALEU) rather than HALEU fuel, bypassing current industry-wide enrichment supply constraints. The IMSR plant design is positioned as a 'diesel engine' of reactors, capable of utilizing various fuels including spent nuclear fuel or plutonium, though the current focus remains on affordability via standard fuel. Operational efficiency is driven by a plant design that is 1/6 the size of conventional nuclear plants with steam turbines operating at near 50% greater efficiency than light water reactors. The company completed the OTA contract with the DOE to advance Project TETRA and Project TEFLA, which are critical for testing reactor assembly and establishing fuel line infrastructure. Recent NRC approval of the Postulated Initiating Events (PIE) Topical Report establishes a foundational safety methodology that can be referenced in future licensing without reevaluation. Strategic positioning is focused on high-value industrial applications, specifically targeting the rising electricity demand from AI infrastructure and data center reshoring. The commercial pipeline now consists of approximately 10 IMSR projects representing 7.8 gigawatts of capacity, following a new MOU with Riot Platforms for data center co-location. Management expects cash burn to increase throughout 2026 as the organization scales for material testing, supplier selection, and project-related engineering work. The company is tracking toward its previous guidance of declaring 1 to 3 additional projects within the current calendar year. Future regulatory efforts are shifting toward the operating license as the 'end game,' which allows for commercial operation, rather than just construction permits. Strategic planning assumes a transition from first-plant deployment to a broader fleet operating in the 2030s, leveraging repeatable safety frameworks approved by the NRC. The company maintains a clean balance sheet with $289.9 million in cash and no debt, providing a strong capital position for milestone execution. First quarter cash burn was $7.9 million, which included a $1 million paydown of accounts payable to vendors offering extended credit terms. General and administrative expenses increased by $4.6 million sequentially, primarily due to headcount expansion and stock-based compensation for the public company team. Management highlighted that HALEU-dependent competitors face significant fuel supply timeline risks and infrastructure costs that Terrestrial Energy has already resolved. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that because the IMSR uses liquid fuel, fabrication is a chemical production process rather than the complex manufacturing of solid fuel bundles. Project TEFLA serves as the pilot plant to industrialize the production of IMSR fuel salts, which is the final reactor feed. Simon Irish noted that while the design can accommodate LEU+ or spent fuel, the current commercial focus is on standard fuel to prioritize affordability and cost of power. The design's flexibility allows for future pivots to 'exotic' fuels if market or policy circumstances dictate. Management is specifically focused on Part 53 as a practical licensing pathway for both the first plant and the subsequent fleet. The CEO expressed skepticism regarding the relevance of Part 57, noting it appears more focused on microreactors rather than the IMSR scale.

Interested in Terrestrial Energy Inc.? Here are five stocks we like better. Terrestrial Energy said it advanced key engineering, regulatory, supply chain and commercial milestones in Q1 2026, with management framing AI data centers, manufacturing reshoring and electrification as major demand drivers for its IMSR nuclear plant strategy. The company highlighted a major regulatory win after the NRC approved its PIE Topical Report and issued a Safety Evaluation Report, which management said strengthens the licensing basis for future IMSR plants and could streamline later reviews. Terrestrial Energy also unveiled a memorandum of understanding with Riot Platforms to explore co-locating IMSR plants with AI and high-performance computing data centers, expanding its commercial pipeline to about 10 projects representing 7.8 gigawatts of indicative capacity. Terrestrial Energy (NASDAQ:IMSR) said it advanced engineering, regulatory, supply chain and commercial milestones in the first quarter of 2026, as management emphasized rising electricity demand from artificial intelligence infrastructure, manufacturing reshoring and broader electrification as key drivers for its IMSR nuclear plant strategy. Chief Executive Officer Simon Irish told investors that the company is executing against a three-pillar framework: IMSR engineering and regulatory development, supply chain development and the commercial pipeline for IMSR plants. He said the company remains focused on “disciplined execution against clear milestones” and is looking beyond a first deployment toward a fleet of IMSR plants operating in the 2030s. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Irish said the IMSR plant is designed to be one-sixth the size of a conventional nuclear plant and uses steam turbines that operate at nearly 50% greater efficiency than those driven by a light-water reactor. He also pointed to the system’s low-pressure nuclear operations and inherent safety characteristics as factors that he said improve affordability, financeability and social license for deployment. A major focus of the call was fuel strategy. Irish said the IMSR plant uses standard nuclear fuel with uranium enriched to less than 5% U-235, rather than high-assay low-enriched uranium, or HALEU, which is used by some other advanced reactor designs. → MP Materials Is Quietly Building a Rare Earth Powerhouse Irish said the company made that decision more than a decade ago, and argued that it removes “considerable challenges, costs, and uncertainty” associated with commercial-scale HALEU supply. He also said the approach reduces regulatory complexity and cost for both first plant deployment and future fleet deployment. During the quarter, Terrestrial Energy completed an other transaction authority contract with the U.S. Department of Energy to advance Project TETRA, its test reactor assembly, and Project TEFLA, its fuel line assembly. Irish said the projects support engineering and regulatory programs for commercial IMSR plant operations, as well as infrastructure development for IMSR fuel supply. → Micron Investors Face a High-Stakes Moment After the Latest Rally The company also continued graphite irradiation testing and supply activities at NRG Petten, which Irish described as one of the world’s most powerful test reactors. He said that work is essential for reactor materials qualification, supply selection and licensing readiness. After the quarter ended, Terrestrial Energy completed final submissions to the Nuclear Regulatory Commission supporting its postulated initiating events methodology, or PIE Topical Report. Irish said the NRC subsequently approved the report and issued a Safety Evaluation Report. Irish said the Safety Evaluation Report establishes an important methodology for IMSR safety analysis and can be referenced in future licensing applications without re-evaluation. He said topical reports can reduce the scope of later regulatory reviews, improve predictability by resolving safety analyses early and support repeated use of agreed safety frameworks for multiple IMSR plants. The approval follows a 2025 NRC Safety Evaluation Report for the IMSR’s Principal Design Criteria. Irish said the two approved analyses establish foundational elements of the IMSR plant’s licensing basis. On the commercial side, Terrestrial Energy said it executed a memorandum of understanding with Riot Platforms after quarter-end. Irish said the agreement creates “the opportunity for a best-in-class pairing of data center and nuclear plant.” The agreement contemplates co-locating IMSR plants with Riot-developed data centers serving artificial intelligence and high-performance computing applications. Irish said it covers multiple project opportunities across the United States and includes the use of natural gas as a bridge fuel to accelerate commercial power supply and enhance resilience during full plant operations. Irish said the relationship establishes a hyperscale data center commercial channel for IMSR plants. He said the company’s commercial pipeline consists of approximately 10 IMSR plant projects, representing 7.8 gigawatts of indicative power capacity with the Riot relationship included. In the financial review, the company said it ended the quarter with CAD 289.9 million in total cash and cash investments, compared with CAD 297.8 million at the end of 2025. Cash burn for the quarter was CAD 7.9 million, up CAD 1.8 million from the prior quarter after consideration of one-time transaction costs associated with the 2025 merger. The company said two items drove most of the increase: a $600,000 payment for 2025 discretionary bonuses and a $1 million paydown of accounts payable for vendors offering extended credit terms. The remaining $200,000 increase was attributed to higher sequential payments for research and development costs. Management said it expects cash burn to increase throughout 2026 as Terrestrial Energy scales its organization and resources, material testing and qualification, supplier selection activities and project-related work. Research and development expenses rose $1 million sequentially, driven by fuel development and graphite testing programs. General and administrative expenses increased CAD 4.6 million sequentially, primarily reflecting headcount and stock-based compensation as the company builds out its public company team. The company also noted that the fourth quarter of 2025 included a credit of about CAD 2.7 million from legal and accounting expenses capitalized in connection with merger accounting. Terrestrial Energy said its issued and outstanding shares rose by approximately 100,000 shares during the quarter due to stock option exercises, leaving share count effectively unchanged from year-end 2025. The company said it has no debt, limited liabilities and a balance sheet made up largely of cash and short-term investments. During the question-and-answer session, Cantor Fitzgerald analyst Derek Soderberg asked about the TEFLA pilot plant and the fuel supply chain. Irish said Project TEFLA is intended to develop the final steps needed to produce IMSR fuel salt, including processes to create the required chemical and physical form for licensed reactor feed. Asked about the next regulatory submissions following the PIE Topical Report approval, Irish distinguished between construction permits and operating licenses. He said topical reports are important because they discharge elements of safety analysis that ultimately support an operating license, which he described as “the end game” because it allows commercial operation of a nuclear plant. Canaccord Genuity analyst George Gianarikas asked whether Terrestrial Energy has explored LEU+ fuel. Irish said the company would examine it if it becomes broadly available, but described the potential commercial benefit as “quite marginal.” He also said the IMSR design could accommodate a wide range of fuel types, including spent nuclear fuel, plutonium and thorium, but that the company’s current commercial focus remains on standard-assay LEU to prioritize affordability, capital efficiency and power cost. Soderberg also asked whether the DOE OTA agreements could help with capital expenditures for TETRA and TEFLA. Irish said the benefit would be indirect, noting that capital “likes regulatory clarity” and that the DOE agreement provides clarity needed for those projects. Asked whether Terrestrial Energy remains on track to disclose one to three additional projects this year, Irish said the company was reiterating the guidance it issued in March and identified the Riot announcement as part of that progress. Terrestrial Energy Inc produces carbon free nuclear energy in North Carolina and internationally. The company was founded in 2013 and is headquartered in Charlotte, North Carolina. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Terrestrial Energy Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.