Press Release: Terrestrial Energy Announces Fourth Quarter and Full Year 2025 Results

Dow Jones03-30

Texas A&M University selected commercial IMSR plant for deployment at RELLIS campus

U.S. Department of Energy selected both Terrestrial Energy reactor pilot and fuel-line pilot projects for advanced reactor programs

NRC Accepted IMSR Principal Design Criteria Including Inherent Reactor Control Mechanisms

Completed business combination, raising approximately $292 million in gross proceeds

CHARLOTTE, N.C., March 30, 2026 (GLOBE NEWSWIRE) -- Terrestrial Energy Inc. (NASDAQ: IMSR) ("Terrestrial Energy" or "the Company"), a developer of small modular nuclear power plants using its Generation IV Integral Molten Salt Reactor (IMSR) technology, today announced its financial results for the fourth quarter and full year ended December 31, 2025.

"The Company made strong progress in 2025 in key areas, regulatory readiness, fuel supply development, and IMSR plant project development from engagements with deployment partners and government stakeholders," said Simon Irish, CEO of Terrestrial Energy. "We continue into 2026 with the objective to advance with clearly defined development steps and milestones, and from aligning key program elements into a coordinated pathway to deploy IMSR plants at scale and delivering reliable, clean, firm energy to industrial markets."

Fourth Quarter and Full Year 2025 Highlights:

   -- Texas A&M University, supported by expertise in its nuclear engineering 
      faculty, selected Terrestrial Energy to site a full-sized commercial IMSR 
      Plant at its RELLIS campus following a competitive and sector-wide 
      evaluation process. This selection positions the RELLIS campus project 
      among the first commercial Generation IV reactor deployments on the ERCOT 
      grid and provides an impressive platform to accelerate IMSR Plant 
      development to commercial operations. 
 
   -- The Company expanded commercial reach and ability to execute at greater 
      scale across the United States from collaboration with Ameresco, Inc., a 
      leading energy solutions provider with strong federal procurement 
      capabilities. This collaboration expands access to new opportunities, 
      supports site identification and IMSR Plant project development, 
      particularly projects benefiting from the IMSR Plant's customization 
      capabilities. These include integration with other energy systems, such 
      as natural gas, for early commercial operation and improved supply 
      resilience, which strengthens Terrestrial Energy's ability to deliver 
      competitive solutions for data center energy supply. 
 
   -- The U.S. Nuclear Regulatory Commission $(NRC)$ completed its safety 
      evaluation and accepts Terrestrial Energy's Topical Report submission on 
      IMSR Principal Design Criteria, which includes its mechanism for inherent 
      reactor power control, important for load following commercial 
      applications. This is an important step forward in licensing readiness 
      for IMSR plant construction and operation. 
 
   -- IMSR technology and the Company's fuel strategy for commercial use 
      received strong validation from the U.S. Department of Energy (DOE) when 
      Terrestrial Energy received two "OTA" awards, one from each of its pilot 
      programs. The first from the DOE's Advanced Reactor Pilot Program, which 
      supports quick execution of the TETRA project -- the Terrestrial Energy 
      Test Reactor Assembly project. The second was from the DOE's Fuel Line 
      Pilot Program, which supports the Company's schedule for completion of 
      Fuel Line Assembly project, TEFLA, the antecedent to Terrestrial Energy's 
      commercial plant for IMSR Plant fuel supply. Together, these two projects 
      provide an accelerated pathway for IMSR Plant licensing, commercial 
      operation and fuel supply. 
   -- Terrestrial Energy entered the concluding phase of its reactor graphite 
      irradiation and supplier selection program at NRG PALLAS' High Flux 
      Reactor in Petten, the Netherlands. These irradiation tests, conducted in 
      one of the world's most powerful test reactors, represent a key step in 
      supplier selection and graphite grade qualification required for IMSR 
      Plant licensing and operation. 
 
   -- The Company successfully completed its business combination with HCM II 
      Acquisition Corp, raising more than $292 million in gross proceeds, and 
      began trading with a strengthened balance sheet on the Nasdaq under the 
      ticker symbol IMSR. 
 
   -- Terrestrial Energy announced a manufacturing and supply contract with 
      Westinghouse, strengthening supply-chain readiness, and the company 
      enhanced its senior leadership team to support U.S. commercialization 
      efforts and deepen engagement with federal stakeholders. 

Performance, Liquidity and Capital Structure:

   -- The Company reports a $28 million Net Loss for 2025, representing a $17 
      million increase from the prior year. The increase is attributable to: 
 
          -- A $5 million increase in R&D as the Company expanded materials 
             testing and progressed graphite qualification work. 
 
          -- A $10 million increase in G&A due to increased legal and 
             accounting fees, personnel-related expenses and stock-based 
             compensation. 
 
          -- A $2 million increase in interest expense due to higher debt 
             balances and amortization of debt discount. 
 
   -- As of December 31, 2025, the Company held approximately $298 million in 
      cash and short-term investments. 
 
   -- As of December 31, 2025, 105.8 million shares were issued and 
      outstanding. This consisted of approximately 81.8 million common shares 
      and 24.0 million exchangeable shares, exchangeable into common shares on 
      a one-for-one basis at the option of the holder. 

2026 Outlook:

   -- The Company will provide an update on expected 2026 milestones, including 
      commercial, regulatory and development progress, during the earnings 
      call. 

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) 407-0779 (domestic) or +1 (201) 389-0914 (international) and requesting the Terrestrial Energy Fourth-Quarter 2025 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 (844) 512-2921 or (412) 317-6671. The access code for the replay is 13759061. The replay will be available until 11:59 PM ET on April 13(th) , 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 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 press release 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.

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.

The Company and its affiliates, officers, employees and agents make no representation or warranty, express or implied, as to the accuracy, completeness, or reliability of the information contained in this press release and expressly disclaim any liability for any errors, omissions, or reliance on such information.

This press release may contain references to trademarks, service marks and trade names belonging to the Company or other entities. Solely for convenience, such trademarks, service marks and trade names may appear in this press release without the $(R)$, $(TM)$, or SM symbols, but such references are not intended to indicate, in any way, that the Company or applicable licensor will not assert, to the fullest extent under applicable law, its rights to these marks.

Terrestrial Energy Investor Center:

https://www.terrestrialenergy.com/investors

Terrestrial Energy Media & Investor Contact:

media@terrestrialenergy.com

investor@terrestrialenergy.com

 
Terrestrial Energy Inc. 
 Consolidated Balance Sheets 
 (Expressed in U.S. Dollars) 
 
                                              December 31, 
                                         2025            2024 
ASSETS 
Current assets 
Cash and cash equivalents            $  97,164,391   $  3,021,795 
Short-term investments                 200,626,281             -- 
Prepaid expenses and other current 
 assets                                  1,769,264        270,091 
  Total current assets                 299,559,936      3,291,886 
 
Property and equipment, net                834,795        770,548 
Intangible assets, net                     707,749        616,972 
Right-of-use assets                      1,814,333        622,450 
Other assets                                63,611         29,748 
Total Assets                         $ 302,980,424   $  5,331,604 
 
LIABILITIES AND STOCKHOLDERS' 
EQUITY (DEFICIT) 
Current liabilities 
Accounts payable and accrued 
 expenses                            $   5,500,946   $    748,867 
Operating lease liabilities, 
 current                                   383,223        114,507 
Finance lease liabilities, current          33,362        140,796 
Related party advance                           --        100,000 
  Total current liabilities              5,917,531      1,104,170 
 
Convertible notes, net of debt 
 discount                                       --     13,708,832 
Accrued interest on convertible 
 notes                                          --        266,554 
Convertible notes, net of debt 
 discount -- related parties                    --      2,371,994 
Accrued interest on convertible 
 notes -- related parties                       --         57,116 
Operating lease liabilities, 
 noncurrent                              1,600,672        598,493 
Finance lease liabilities, 
 noncurrent                                 55,979         49,044 
Deferred tax liabilities, net                   --        665,953 
  Total liabilities                      7,574,182     18,822,156 
 
Commitments and Contingencies 
 
Stockholders' Equity (Deficit) 
Common shares, $0.0001 par value; 
 500,000,000 authorized shares; 
 81,771,422 and 39,159,901 shares 
 issued and outstanding as of 
 December 31, 2025 and 2024, 
 respectively                                8,177          3,916 
Exchangeable shares, $0.0001 par 
 value; 24,011,017 shares issued 
 and outstanding as of December 31, 
 2025 and December 31, 2024                  2,401          2,401 
Additional paid-in-capital             418,814,641     82,774,184 
Accumulated deficit                   (124,624,883)   (96,608,242) 
Accumulated other comprehensive 
 income                                  1,205,906        337,189 
  Total stockholders' equity 
   (deficit)                           295,406,242    (13,490,552) 
Total liabilities and stockholders' 
 equity (deficit)                    $ 302,980,424   $  5,331,604 
 
 
Terrestrial Energy Inc. 
 Consolidated Statements of Operations and Comprehensive 
 Loss 
 For the years ended December 31, 2025 and 2024 
 (Expressed in U.S. Dollars) 
 
                                          2025           2024 
REVENUE 
   Engineering services revenue       $         --   $    248,357 
TOTAL REVENUE                                   --        248,357 
 
OPERATING EXPENSES 
   Research and development costs        9,767,996      5,176,932 
   General and administrative           14,266,775      4,168,576 
   Depreciation and amortization         1,161,704      1,256,391 
   Total Operating Expenses             25,196,475     10,601,899 
OPERATING LOSS                         (25,196,475)   (10,353,542) 
 
OTHER (EXPENSE) INCOME 
   Government grants                       323,496        708,004 
   Interest expense                     (3,900,997)    (1,223,929) 
   Interest expense -- related party      (438,214)       (88,906) 
   Loss on extinguishment of debt               --     (1,183,289) 
   Interest and dividend income          1,270,713         59,860 
   Foreign exchange gain (loss)            (57,214)       617,357 
   OTHER (EXPENSE) INCOME               (2,802,216)    (1,110,903) 
 
Net loss before income tax             (27,998,691)   (11,464,445) 
   Income tax expense                      (17,950)       (20,965) 
Net loss                               (28,016,641)   (11,485,410) 
 
Loss per common share, basic and 
 diluted                              $      (0.39)  $      (0.19) 
Weighted-Average Shares of Common 
 Shares Outstanding, Basic and 
 diluted                                71,646,985     60,414,175 
 
Net loss                              $(28,016,641)  $(11,485,410) 
Other comprehensive (loss) income 
net of tax: 
   Foreign currency translation 
    adjustments                           (260,731)       395,525 
   Change in unrealized gains on 
   short-term investments                1,129,448             -- 
Comprehensive loss                    $(27,147,924)  $(11,089,885) 
 
 
Terrestrial Energy Inc. 
 Consolidated Statements of Changes in Stockholders' 
 Equity (Deficit) 
 For the years ended December 31, 2025 and 2024 
 (Expressed in U.S. Dollars) 
 
 
                                                                                                                                                 Accumulated 
                                                                      Preferred                                                                     Other 
                         Preferred               Common              Exchangeable      Common Exchangeable      Exchangeable      Additional    Comprehensive 
                           Shares                Shares                 Shares                Shares               Shares          Paid-In-     Income (Loss) 
                                                                                                                                                                                    Total 
                                                                                                                                                                                 Terrestrial    Attributable 
                                                                                                                                                                                 Energy Inc.         to 
                                                                                                                                                                                Stockholders'       Non- 
                                                                                                                                                                 Accumulated       Equity        Controlling 
                     Shares*    Amount*    Shares*     Amount*   Shares*    Amount*     Shares*    Amount*     Shares    Amount    Capital                          Deficit       (Deficit)       Interest          Total 
                                                                                                                                                                                -------------  -------------- 
Balance, January 
 1, 2024, as 
 previously 
 reported            137,672        138      675,281        675   6,200         6       530,924        531           --      --   79,769,519          (58,336)    (85,122,832)    (5,410,299)        534,611     (4,875,688) 
Retrospective 
 application of 
 recapitalization 
 (Note 3)           (137,672)      (138)  35,666,101      2,959  (6,200)       (6)     (530,924)      (531)  24,011,017   2,401       (4,685)              --              --             --              --             -- 
Adjusted balance - 
 January 1, 2024          --    $    --   36,341,382   $  3,634      --    $   --            --    $    --   24,011,017  $2,401   79,764,834    $     (58,336)  $ (85,122,832)  $ (5,410,299)   $    534,611   $ (4,875,688) 
Stock-based 
 compensation             --         --           --         --      --        --            --         --           --      --      670,243               --              --        670,243              --        670,243 
Acquisition of 
 non-controlling 
 interest                 --         --    2,818,520        282      --        --            --         --           --      --      534,329               --              --        534,611        (534,611)            -- 
Issuance of 
 warrants in 
 connection with 
 convertible 
 notes, net of 
 tax                      --         --           --         --      --        --            --         --           --      --    2,006,982               --              --      2,006,982              --      2,006,982 
Loss on 
 extinguishment of 
 debt from related 
 parties                  --         --           --         --      --        --            --         --           --      --     (202,204)              --              --       (202,204)             --       (202,204) 
Currency 
 translation 
 adjustments              --         --           --         --      --        --            --         --           --      --           --          395,525              --        395,525              --        395,525 
Net loss                  --         --           --         --      --        --            --         --           --      --           --               --     (11,485,410)   (11,485,410)             --    (11,485,410) 
Balance, December 
 31, 2024                 --    $    --   39,159,901   $  3,916      --    $   --            --    $    --   24,011,017  $2,401   82,774,184    $     337,189   $ (96,608,242)  $(13,490,552)   $         --   $(13,490,552) 
Stock-based 
 compensation             --         --           --         --      --        --            --         --           --      --    3,103,702               --              --      3,103,702              --      3,103,702 
Issuance of Series 
 A-1 preferred 
 shares for cash*         --         --    2,812,708        282      --        --            --         --           --      --   25,796,919               --              --     25,797,201              --     25,797,201 
Issuance of 
 warrants in 
 connection with 
 convertible 
 notes, net of 
 tax                      --         --           --         --      --        --            --         --           --      --    2,594,531               --              --      2,594,531              --      2,594,531 
Shares issued upon 
 exercise of 
 warrants                 --         --    2,011,632        201      --        --            --         --           --      --    4,499,799               --              --      4,500,000              --      4,500,000 
Shares issued upon 
 exercise of 
 options                  --         --       67,054          7      --        --            --         --           --      --          129               --              --            136              --            136 
Merger financing          --         --   28,742,610      2,874      --        --            --         --           --      --  243,064,103               --              --    243,066,977              --    243,066,977 
Transaction costs         --         --           --         --      --        --            --         --           --      --  (22,305,729)              --              --    (22,305,729)             --    (22,305,729) 
Conversion of 
 convertible notes 
 to Common Shares         --         --    3,977,517        397      --        --            --         --           --      --   29,787,503               --              --     29,787,900              --     29,787,900 
Issuance of shares 
 to PIPE 
 investors                --         --    5,000,000        500      --        --            --         --           --      --   49,499,500               --              --     49,500,000              --     49,500,000 
Currency 
 translation 
 adjustments              --         --           --         --      --        --            --         --           --      --           --         (260,731)             --       (260,731)             --       (260,731) 
Change in 
 unrealized gains 
 on short-term 
 investments                         --           --         --      --        --            --         --           --      --           --        1,129,448              --      1,129,448              --      1,129,448 
Net loss                  --         --           --         --      --        --            --         --           --      --           --               --     (28,016,641)   (28,016,641)             --    (28,016,641) 
Balance, December 
 31, 2025                  -    $    --   81,771,422   $  8,177      --    $   --            --    $    --   24,011,017  $2,401  418,814,641    $   1,205,906   $(124,624,883)  $295,406,242    $         --   $295,406,242 
 

* Share amounts have been retroactively restated to give effect to the Business Combination.

 
Terrestrial Energy Inc. 
 Consolidated Statements of Cash Flows 
 For the years ended December 31, 2025 and 2024 
 (Expressed in U.S. Dollars) 
 
                                         2025            2024 
Cash flows from operating 
activities 
  Net loss                           $ (28,016,641)  $(11,485,410) 
Adjustments to reconcile net loss 
to net cash used in operating 
activities: 
   Depreciation and amortization         1,161,704      1,256,391 
   Loss on extinguishment of debt               --      1,183,289 
   Amortization of debt discount         2,137,984        802,573 
   Stock-based compensation              3,103,702        670,243 
   Unrealized foreign currency 
    transaction gain                      (807,193)      (812,849) 
   Noncash lease expense                   471,362        152,086 
   Deferred income taxes                    15,401        (15,401) 
  Changes in operating assets and 
  liabilities 
   Accounts receivable                          --         19,163 
   Prepaid expenses and other 
    current assets                      (1,750,631)       166,315 
   Accounts payable and accrued 
    expenses                             5,366,309       (196,299) 
   Accrued interest                      1,847,554        152,571 
   Accrued interest - related party        326,047         37,848 
   Operating lease payments               (328,510)      (133,454) 
Net cash used in operating 
 activities                            (16,472,912)    (8,202,934) 
 
Cash flows from investing 
activities 
   Purchases of intangible assets          (86,150)       (54,404) 
   Purchases of property and 
    equipment                           (1,055,307)      (607,866) 
   Purchase of short-term 
    investments                       (199,496,832)            -- 
Net cash used in investing 
 activities                           (200,638,289)      (662,270) 
 
Cash flows from financing 
activities 
   Proceeds from issuance of 
    convertible notes                    9,335,000      6,563,000 
   Proceeds from issuance of 
    convertible notes -- related 
    parties                              1,650,000        650,000 
   Proceeds from Series A-1 
   preferred shares issuance            25,797,201             -- 
   Proceeds from the exercise of 
   stock options for common 
   shares                                      136             -- 
   Proceeds from warrant exercise 
   for common shares                     4,500,000             -- 
   Proceeds from issuance of 
   shares to PIPE investors             49,500,000             -- 
   Proceeds from merger financing      243,066,977             -- 
   Payment of merger and 
    recapitalization related 
    transaction costs                  (22,305,729)            -- 
   Proceeds from related party 
    advances                                    --        100,000 
   Repayment of finance lease 
    liabilities                           (149,138)       (58,732) 
Net cash provided by financing 
 activities                            311,394,447      7,254,268 
 
Effect of exchange rate changes on 
 cash and cash equivalents                (140,650)        32,201 
 
Increase (decrease) in cash and 
 cash equivalents during the year       94,142,596     (1,578,735) 
Cash and cash equivalents, 
 beginning of year                       3,021,795      4,600,530 
Cash and cash equivalents, end of 
 year                                $  97,164,391   $  3,021,795 
 
Supplemental cash flow information 
  Interest paid                      $          --   $    514,431 
 
Supplemental noncash investing and 
financing activities 
Conversion of convertible notes to 
 common shares                       $  29,787,900   $         -- 
Initial recognition of finance 
 leases                              $      42,590   $         -- 
Recognition of warrants in 
 connection with convertible notes, 
 net of tax                          $   2,594,531   $  2,006,982 
Related party debt extinguishment    $          --   $    202,204 
Acquisition of non-controlling 
 interest                            $          --   $    534,611 
 

(END) Dow Jones Newswires

March 30, 2026 07:00 ET (11:00 GMT)

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