Oklo Stock Rises After Nuclear Start-Up Posts Earnings. What’s Driving the Gains.

A rendering of Oklo’s Aurora powerhouse, which is set to be constructed at Idaho National Laboratory. (Courtesy Oklo)

Nuclear start-up Oklo is emerging as an industry darling. An announcement by the Department of Energy on Tuesday only drives that point home.

The Santa Clara, Calif.-based company posted second-quarter earnings after the closing bell Monday. Oklo reported a net loss of $24.7 million, or 18 cents a share, in the second quarter, narrower than a loss of $27.3 million, or 27 cents, reported a year earlier.

Management noted that second-quarter cash burn was in line with expectations, and reiterated that Oklo was targeting commercial operations between late 2027 and early 2028.

“There’s a growing consensus that nuclear power is fundamental to the country’s energy future, but historically, costs and time delays have held it back,” CEO Jacob DeWitte said on the earnings call, echoing sentiment from an earlier interview with Barron’s. “One of the reasons we’re in a strong position today is the disciplined approach we’ve taken to design and cost engineering from the outset.”

Shares fell after the latest report as investors awaited clarity on the timeline for deployment of Oklo’s first nuclear power plant. However, the stock reversed course and rose 5.4% to $75.75 on Tuesday after the Department of Energy named it among 11 companies selected to participate in a nuclear reactor pilot program.

The program—the creation of which was directed by an executive order in May—aims to have at least three reactors up and running at national laboratories by July 2026. This timeline is at least a year ahead of Oklo’s own targets.

Wedbush analysts reiterated an Outperform rating on Oklo shares while raising their price target to $80 from $75. The analysts, led by Dan Ives, asserted that Oklo stands to benefit from the Trump administration’s outward support of nuclear energy, noting that the start-up has “key allies in the White House.”

Oklo’s ties to the Trump administration run deep. Former board member Chris Wright stepped down in February to accept the role of Energy Secretary, and DeWitte himself appeared in the Oval Office alongside several other CEOs as the president signed a string of executive orders meant to kick-start the domestic production of nuclear energy.

Wedbush has long been enthusiastic about Oklo’s business model, which will allow the start-up to build, own, and operate its own nuclear power plants. The analysts aren’t alone—of 14 firms polled by FactSet, 10 rate Oklo at Buy or the equivalent, while three rate it at Hold and one at Sell.

While the sentiment on Wall Street is genuinely positive, a lack of salient developments has weighed on investors. The company has yet to turn a profit and is still making its way through the approval process for its first nuclear power plant at Idaho National Laboratory.

Oklo said last month that it had finished its pre-application readiness assessment for Phase 1 of its combined license application with the U.S. Nuclear Regulatory Commission. This brings the start-up one step closer to the submission of its final license application later this year.

It seems no amount of skepticism can keep Oklo down. Shares have surged nearly 260% this year.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com