Terrestrial Energy Inc. (IMSR)
NASDAQ:IMSR
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Terrestrial Energy
(NASDAQ:IMSR)
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Rating:53Neutral
Price Target:
$9.50
▲(25.00% Upside)
Action:Reiterated
Date:05/30/26
The score is held down primarily by weak financial performance (minimal revenue, sizable losses, and rising cash burn), partially offset by a much stronger balance sheet. Technicals are moderately constructive (price above key shorter-term averages and positive MACD), and the latest earnings call added support via clear regulatory/DOE milestones and pipeline progress, though higher expected burn and execution/timeline risks remain. Valuation is constrained by negative earnings and no dividend support.
Positive Factors
Balance Sheet Strength
A materially stronger capital base and minimal debt provide runway and financial flexibility to fund multi‑year licensing, testing and supplier development cycles. Low leverage reduces refinancing risk and preserves optionality to execute milestone-driven commercialization without near-term creditor constraints.
Negative Factors
Negative Cash Flow / Rising Burn
Persistent negative operating and free cash flow, and rising quarterly burn, mean the company will rely on its cash reserves or external capital until commercial revenues emerge. This elevates dilution or financing risk if licensing, fuel or project milestones take longer than forecast.
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Positive Factors
Negative Factors
Balance Sheet Strength
A materially stronger capital base and minimal debt provide runway and financial flexibility to fund multi‑year licensing, testing and supplier development cycles. Low leverage reduces refinancing risk and preserves optionality to execute milestone-driven commercialization without near-term creditor constraints.
Read all positive factors
Terrestrial Energy (IMSR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$967.19M
Dividend YieldN/A
Average Volume (3M)3.43M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue GrowthN/A
EPS Growth-313.00%
CountryUS
Employees143
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)-0.40
Shares Outstanding105,935,260
10 Day Avg. Volume3,415,015
30 Day Avg. Volume3,427,003
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)1.48
Price to Sales (P/S)0.00
P/FCF Ratio-24.85
Enterprise Value/Market Cap0.70
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-556.43
Enterprise Value/Ebitda-17.89
Forecast
1Y Price Target
$15.00Price Target Upside97.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.96
Revenue Forecast (FY)N/A
Terrestrial Energy Business Overview & Revenue Model
Company Description
A developer of advanced nuclear power solutions, specifically small modular molten salt reactors (their “IMSR” technology)–designed to provide low-carbon, high-temperature industrial heat and electricity. It recently completed a business combinati...
How the Company Makes Money
Terrestrial Energy’s business model is centered on monetizing its IMSR reactor technology through commercialization activities tied to deploying IMSR plants. The primary ways the company expects to generate revenue are: (1) technology licensing an...
Terrestrial Energy Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 05, 2027
Earnings Call Sentiment Positive
The call demonstrated clear technical and regulatory progress — notably DOE OTA awards, ongoing materials qualification, supplier engagement and an NRC Safety Evaluation Report approving the PIE methodology — and advanced commercial outreach via a Riot MOU and a 7.8 GW indicative pipeline. Financially, the company maintains a clean balance sheet with $289.9 million in cash and no debt, but sequential increases in cash burn and operating expenses and continued uncertainty around pilot-to-commercial fuel fabrication (TEFLA) and full licensing remain key near-term execution risks. On balance, the positive regulatory and commercial milestones materially outweigh the near-term cost and timing headwinds.Positive Updates
NRC Regulatory Milestone — PIE Topical Report Approved
Company completed final submissions for the Postulated Initiating Events (PIE) Topical Report and the NRC issued a Safety Evaluation Report approving the methodology. This approval, combined with the NRC's 2025 Safety Evaluation Report for principal design criteria, establishes foundational elements of the IMSR plant licensing basis and should reduce scope and predictability risk for subsequent licensing.
Negative Updates
Quarterly Cash Burn and Sequential Increase
Cash burn for the quarter was $7.9 million, an increase of $1.8 million sequentially (≈29.5% increase versus the prior quarter). Management attributes most of the increase to a $600k payment for 2025 discretionary bonuses and a $1.0M paydown of vendor accounts payable, with the remaining $200k due to higher R&D payments.
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Q1-2026 Updates
Positive
Negative
NRC Regulatory Milestone — PIE Topical Report Approved
Company completed final submissions for the Postulated Initiating Events (PIE) Topical Report and the NRC issued a Safety Evaluation Report approving the methodology. This approval, combined with the NRC's 2025 Safety Evaluation Report for principal design criteria, establishes foundational elements of the IMSR plant licensing basis and should reduce scope and predictability risk for subsequent licensing.
Read all positive updates
Company Guidance
The company reiterated forward-looking guidance to execute milestone-by-milestone through 2026 and beyond, expecting cash burn to increase throughout 2026 as it scales organization, material testing and supplier selection (Q1 cash burn was $7.9M, up $1.8M sequentially driven by a $600K discretionary bonus payment, $1.0M paydown of accounts payable and ~$200K higher R&D spend); quarter-end cash and cash investments were $289.9M (vs. $297.8M at year-end 2025) with no debt and modest liabilities/lease obligations, and share count rose by ~100,000 from option exercises. Operational/regulatory guidance includes continued execution of Project TETRA (test reactor) and Project TEFLA (fuel line) under an OTA with DOE, ongoing graphite irradiation at NRG Petten, and leveraging NRC approvals (PIE Topical Report Safety Evaluation Report following the 2025 SER) to shorten future licensing reviews. Commercial guidance: a pipeline of ~10 IMSR Plant projects representing ~7.8 GW of indicative capacity, a reiterated target to announce 1–3 additional projects this year (the Riot MOU adds a hyperscale data‑center channel), and a fleet-scale deployment objective into the 2030s while retaining standard-assay LEU (<5% U‑235) fuel strategy (vs. HALEU 15–20%) and emphasizing IMSR’s 1/6 conventional-plant footprint and ~50% higher turbine efficiency as competitive advantages.Terrestrial Energy Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
48
Neutral
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 0.00 | 0.00 | 248.36K | 18.61K |
| Gross Profit | -1.22M | 0.00 | 248.36K | 18.61K |
| EBITDA | -38.03M | -22.50M | -8.90M | -11.90M |
| Net Income | -46.06M | -28.02M | -11.49M | -13.91M |
Balance Sheet | ||||
| Total Assets | 295.17M | 302.98M | 5.33M | 7.89M |
| Cash, Cash Equivalents and Short-Term Investments | 274.96M | 297.79M | 3.02M | 4.60M |
| Total Debt | 2.08M | 2.07M | 16.98M | 10.97M |
| Total Liabilities | 6.57M | 7.57M | 18.82M | 12.77M |
| Stockholders Equity | 288.60M | 295.41M | -13.49M | -5.41M |
Cash Flow | ||||
| Free Cash Flow | -30.62M | -17.61M | -8.87M | -10.27M |
| Operating Cash Flow | -29.15M | -16.47M | -8.20M | -9.16M |
| Investing Cash Flow | -212.51M | -200.64M | -662.27K | -1.10M |
| Financing Cash Flow | 337.29M | 311.39M | 7.25M | 10.13M |
Terrestrial Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
Terrestrial Energy Corporate Events
Executive/Board Changes
Terrestrial Energy Announces Resignation of Long-Serving Director
Neutral
May 8, 2026
On May 5, 2026, Terrestrial Energy Inc. announced that David Hill had informed the company of his decision to resign from its Board of Directors, effective July 1, 2026. Hill, who has served on the board since 2014, is stepping down for reasons th...
Business Operations and StrategyExecutive/Board Changes
Terrestrial Energy Standardizes Executive Contracts and Incentive Structure
Neutral
Apr 16, 2026
On April 16, 2026, Terrestrial Energy Inc., through its subsidiaries, executed new employment agreements for its chief financial officer, chief operating officer, and chief technology officer, replacing prior contracts and standardizing compensati...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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