NNE Truist Secureities Jul 13 2026 Hold, 22PT

Equity Research Report July 13, 2026

ENERGY: Clean Energy NANO Nuclear Energy Inc. (NNE) Christopher Souther NNE - Initiating Coverage with a Hold; $22 PT We view NNE as a potential longer term investment opportunity contingent on successful commercialization of its KRONOS micro modular reactor platform. However, we believe the Patrick Hussey current risk-reward is balanced by regulatory progress but significant execution uncertainty, a long-dated revenue profile, and expected equity dilution required to fund projects beyond UIUC. We view the shares as appropriately positioned at current levels, with greater conviction likely to depend on evidence of investment grade customers, commercialization Ellen Page progress and improved funding visibility. We rate the shares Hold with $22 PT. See our full Clean Energy coverage launch note here.

Investment Thesis Highlights Stock Rating HOLD • KRONOS deployment in the early 2030s supports a pathway to ~1.5 GW of capacity Initiate by 2040, below peer expectations as we wait for larger customer commitments. • The acquisition of Secure Transportation Services provides exposure to nuclear Price Target $22.00 fuel logistics, with modest near-term revenue, with HALEU-related infrastructure Initiate optionality not reflected in current estimates. • NNE is advancing additional reactor concepts (ZEUS, LOKI, ODIN) not included in base case forecasts and represent potential upside with improved TR to Target 16.6% commercialization visibility. Price (Jul. 7, 2026) $18.88 Company Background 52-Wk Range $56.63-$18.88 Nano Nuclear Energy Inc. is a U.S.-based, pre-revenue nuclear technology company Market Cap ($M) $975 focused on the design and commercialization of micro modular reactors and supporting fuel ADTV 1,919,145 infrastructure. The company acquired the KRONOS platform in January 2025, incorporating a program with approximately $120M of prior R&D investment. Initial deployment is centered Shares Out (M) 52 on prototype reactors at the University of Illinois Urbana-Champaign and Chalk River, Short Interest Ratio/% Of Float 26.8% with targeted commercialization between 2030 and 2033. NNE employs a hybrid model of Enterprise Value ($M) $406 reactor module sales and long-term electricity generation. The company is headquartered Cash & Equivalents ($M) $569 in New York and had 36 full-time employees and 26 independent contractors at fiscal YE25, Total Debt ($M) $0 reporting a net loss of ($40M), improving to net profit of $84M in 2032E, based on our model.

Consensus vs Estimates 34 Page Document We establish FY2027E and FY2028E EBITDA estimates of ($86M) and ($97M), respectively, with positive cash flow projected in 2032E. We assume the first commercial KRONOS MMR is commercially operational in 2033 after the UIUC and Chalk River prototypes begin Reasons for this report operating in 2031-32. We assume 75% of commercial sales are sold as modules and 25% are monetized through electricity. We assume EBITDA turns positive in 2032E at an ✓ Initiation of Coverage 8.3% margin, rising to 18.0% by 2040E. Our estimates are more conservative than the limited consensus from the Street. We assume meaningful revenue begins in 2032 following KRONOS commercialization, excluding contributions from ZEUS, LOKI, ODIN, and HALEU processing due to limited visibility. We assume equity issuance of $900M in 2026-29E.

Valuation We value NNE at $22 based on a DCF with an 15.5% discount rate and 20x terminal EV/ EBITDA multiple at $18/sh, blended with peer average 2027-33 EV/EBITDA of $26/sh. We assume the first MMR is completed in 2031E and the first commercial sale is in 2032E. We take 2030-33 adj EBITDA and discount it back to 2027-29 at Nuclear peer average EV/ EBITDA and, also use Next Gen peer average multiples on 2030-33 estimates. Risks Key upside and downside risks to our rating and price target include: potential delays in KRONOS licensing, construction, or commercialization timelines; greater-than-expected reliance on equity financing resulting in shareholder dilution; regulatory approval timing and outcomes across the DOE, NRC, and international agencies; execution challenges in scaling reactor manufacturing and…