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.--(BUSINESS WIRE)--August 11, 2026--
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:
-- $1.1 million decrease in R&D, reflecting timing and scope
variances on key tests, including additional graphite irradiation
cycles at NRG Petten.
-- $0.7 million increase in G&A due to increased personnel-related
expenses and stock-based compensation.
-- $0.9 million increase in Other Income (Expense) due to decreased
Interest Expense and an increase in Interest and Dividend Income.
-- 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.
Terrestrial Energy Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)
June 30, December 31,
2026 2025
---------- ----------------
ASSETS
Current assets
Cash and cash equivalents $ 130,737 $ 97,164
Short-term investments 142,781 200,626
Prepaid expenses and other current
assets 1,274 1,769
-------- ---------
Total current assets 274,792 299,559
Property and equipment, net 806 835
Long-term investments 9,911 --
Intangible assets, net 688 708
Right-of-use assets 3,595 1,814
Other assets 76 64
-------- ---------
Total Assets $ 289,868 $ 302,980
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 4,335 $ 5,501
Operating lease liabilities, current 1,803 383
Finance lease liabilities, current 33 33
-------- ---------
Total current liabilities 6,171 5,917
Operating lease liabilities, noncurrent 2,006 1,601
Finance lease liabilities, noncurrent 37 56
-------- ---------
Total liabilities 8,214 7,574
Commitments and Contingencies (Note 11)
Stockholders' Equity
Common shares, $0.0001 par value;
500,000,000 authorized shares;
82,718,567 and 81,771,422 shares issued
and outstanding as of June 30, 2026 and
December 31, 2025, respectively 8 8
Exchangeable shares, $0.0001 par value;
23,216,687 and 24,011,017 shares issued
and outstanding as of June 30, 2026 and
December 31, 2025, respectively 2 2
Additional paid-in-capital 424,620 418,815
Accumulated deficit (144,527) (124,625)
Accumulated other comprehensive income 1,551 1,206
-------- ---------
Total stockholders' equity 281,654 295,406
-------- ---------
Total liabilities and stockholders'
equity $ 289,868 $ 302,980
======== =========
Terrestrial Energy Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
--------------------------- -----------------------------
2026 2025 2026 2025
------------- ------------ ------------- --------------
OPERATING EXPENSES
Research and
development
costs $ 3,498 $ 1,441 $ 8,064 $ 2,849
General and
administrative 8,029 3,531 15,333 6,820
Depreciation and
amortization 145 198 206 379
----------- ---------- ----------- ----------
Total Operating
Expenses 11,672 5,170 23,603 10,048
----------- ---------- ----------- ----------
OPERATING LOSS (11,672) (5,170) (23,603) (10,048)
----------- ---------- ----------- ----------
OTHER INCOME
(EXPENSE)
Government
grants 40 145 88 168
Interest expense -- (1,238) (2) (2,537)
Interest expense
-- related
party -- (91) -- (162)
Interest and
dividend
income 2,481 8 3,934 11
Foreign exchange
(loss) gain (170) 97 (204) 67
----------- ---------- ----------- ----------
OTHER INCOME
(EXPENSE) 2,351 (1,079) 3,816 (2,453)
----------- ---------- ----------- ----------
Net loss before
income tax (9,321) (6,249) (19,787) (12,501)
Income tax
expense (78) -- (115) --
----------- ---------- ----------- ----------
Net loss (9,399) (6,249) (19,902) (12,501)
Loss per common
share, basic and
diluted $ (0.09) $ (0.10) $ (0.19) $ (0.20)
Weighted-Average
Shares of Common
Shares Outstanding,
Basic and diluted 105,935,254 63,170,918 105,899,684 63,170,918
Net loss $ (9,399) $ (6,249) $ (19,902) $ (12,501)
Other comprehensive
(loss) income net
of tax:
Foreign currency
translation
adjustments (289) 562 (353) (265)
Change in net
unrealized
gains on
short-term and
long-term
investments (140) -- 698 --
----------- ---------- ----------- ----------
Comprehensive loss $ (9,828) $ (5,687) $ (19,557) $ (12,766)
=========== ========== =========== ==========
Terrestrial Energy Inc.
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit)
(in thousands, except share data)
(Unaudited)
Accumulated
Additional Other Total
Common Shares Exchangeable Shares Paid-In- Comprehensive Accumulated Stockholders'
-------------------- ------------------------
Shares Amount Shares Amount Capital Income Deficit Equity
---------- -------- -------------- -------- ------------ ----------------- ------------- -----------------
Balance as of
January 1,
2026 81,771,422 $ 8 24,011,017 $ 2 $ 418,815 $ 1,206 $ (124,625) $ 295,406
Stock-based
compensation -- -- -- -- 2,761 -- -- 2,761
Shares issued
upon exercise
of options 140,815 -- -- -- 158 -- -- 158
Conversion of
exchangeable
shares to
common
shares 318,197 -- (318,197) -- -- -- -- --
Issuance of
shares for
private
placement 12,000 -- -- -- -- -- -- --
Currency
translation
adjustments -- -- -- -- -- (64) -- (64)
Change in
unrealized
gains on
short-term
and long-term
investments -- -- -- -- -- 838 -- 838
Net loss -- -- -- -- -- -- (10,503) (10,503)
---------- ---- ---------- ---- -------- --- ------- --- -------- --------
Balance, March
31, 2026 82,242,434 $ 8 23,692,820 $ 2 $ 421,734 $ 1,980 $ (135,128) $ 288,596
========== ==== ========== ==== ======== === ======= === ======== ======== ===
Stock-based
compensation -- -- -- -- 2,886 -- -- 2,886
Conversion of
exchangeable
shares to
common
shares 476,133 -- (476,133) -- -- -- -- --
Currency
translation
adjustments -- -- -- -- -- (289) -- (289)
Change in
unrealized
gains on
short-term
and long-term
investments -- -- -- -- -- (140) -- (140)
Net loss -- -- -- -- -- -- (9,399) (9,399)
---------- ---- ---------- ---- -------- --- ------- --- -------- --------
Balance, June
30, 2026 82,718,567 $ 8 23,216,687 $ 2 $ 424,620 $ 1,551 $ (144,527) $ 281,654
========== ==== ========== ==== ======== === ======= === ======== ======== ===
Accumulated
Additional Other Total
Common Shares Exchangeable Shares Paid-In- Comprehensive Accumulated Stockholders'
-------------------- --------------------
Shares* Amount Shares* Amount Capital Income (Loss) Deficit Deficit
---------- -------- ---------- -------- ------------ ----------------- ------------- -----------------
Balance as of
January 1,
2025, as
recast 39,159,901 $ 4 24,011,017 $ 2 $ 82,774 $ 337 $ (96,608) $ (13,491)
Stock-based
compensation -- -- -- -- 180 -- -- 180
Issuance of
warrants in
connection
with
convertible
notes, net of
tax -- -- -- -- 2,595 -- -- 2,595
Currency
translation
adjustments -- -- -- -- -- (827) -- (827)
Net loss -- -- -- -- -- -- (6,252) (6,252)
---------- ---- ---------- ---- -------- --- ------ ---- -------- --------
Balance, March
31, 2025 39,159,901 $ 4 24,011,017 $ 2 $ 85,549 $ (490) $ (102,860) $ (17,795)
========== ==== ========== ==== ======== === ====== === ======== ========
Stock-based
compensation -- -- -- -- 214 -- -- 214
Currency
translation
adjustments -- -- -- -- -- 562 -- 562
Net loss -- -- -- -- -- -- (6,249) (6,249)
---------- ---- ---------- ---- -------- --- ------ ---- -------- --------
Balance, June
30, 2025 39,159,901 $ 4 24,011,017 $ 2 $ 85,763 $ 72 $ (109,109) $ (23,268)
========== ==== ========== ==== ======== === ====== ==== ======== ========
* The shares of the Company's common stock prior to the
Recapitalization have been retrospectively recast to reflect the
change in the capital structure as a result of the Recapitalization.
Terrestrial Energy Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Six months ended
June 30,
----------------------
2026 2025
--------- -----------
Cash flows from operating activities
Net loss $(19,902) $(12,501)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 206 379
Amortization of debt discount -- 1,216
Interest income and accretion of
discount on investments, net (98) --
Stock-based compensation 5,647 394
Unrealized foreign currency
transaction gains (236) (298)
Noncash lease expense 298 136
Changes in operating assets and
liabilities
Prepaid expenses and other current
assets 572 (267)
Accounts payable and accrued expenses (1,020) 2,735
Accrued interest -- 1,149
Accrued interest - related party -- 234
Operating lease payments (261) (62)
------- -------
Net cash used in operating activities (14,794) (6,885)
------- -------
Cash flows from investing activities
Purchases of intangible assets (20) (26)
Purchases of property and equipment (161) (526)
Purchase of investments (92,511) --
Proceeds from redemptions of
investments 141,142 --
------- -------
Net cash provided by (used in) investing
activities 48,450 (552)
------- -------
Cash flows from financing activities
Proceeds from issuance of convertible
notes -- 9,335
Proceeds from issuance of convertible
notes -- related parties -- 1,650
Proceeds from preferred stock
subscription payable -- 25,797
Proceeds from the exercise of stock
options for common shares 158 --
Repayment of finance lease liabilities (18) (87)
------- -------
Net cash provided by financing activities 140 36,695
------- -------
Effect of exchange rate changes on cash and
cash equivalents (223) 103
------- -------
Increase in cash and cash equivalents during
the period 33,573 29,361
Cash and cash equivalents, beginning of
period 97,164 3,022
------- -------
Cash and cash equivalents, end of period $130,737 $ 32,383
======= =======
Supplemental noncash investing and
financing activities
Recognition of warrants in connection with
convertible notes, net of tax $ -- $ 2,595
Operating lease liabilities obtained in
exchange for operating lease assets $ 2,125 $ --
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CONTACT: Terrestrial Energy Investor Center:
https://www.terrestrialenergy.com/investors
Terrestrial Energy Media & Contact:
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media@terrestrialenergy.com
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