Thematic Stock Exposures_ The ecosystem of nuclear energypdf
Thematic Stock Exposures_ The ecosystem of nuclear energypdf
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  1. Thematic Stock Exposures_ The ecosystem of nuclear energy.pdf
    In this special edition of Thematic Stock Exposures, we tap into the research ofequity analysts across the globe to highlight companies our teams believe areexposed to the global resurgence in nuclear energy. The rise in power demandfueled by data center growth coupled with strengthening policy support for nuclearis shining a spotlight on investment opportunities across the nuclear value chain,from the firms building cutting-edge reactors to those operating and servicingnuclear plants. The focus in this ecosystem is on companies currently covered by GSResearch, and the list is not exhaustive. We encourage you to explore the dedicatedpage for more coverage from our analyst teams.Note: While this report will discuss specific stocks in relation to this theme, it doesnot recommend any individual security or investment strategy, and should not berelied upon in making investment decisions with respect to individual companies orsecurities. All of the views relating to specific stocks, including the ratings identifiedbelow, are those of the analysts covering those stocks and are included solely foryour convenience. Please click on the links below to read the research associatedwith the individual stocks.Aleksandra Gjorgievska+44(20)7552-5797 |aleksandra.gjorgievska@gs.comGoldman Sachs InternationalBrian Rooney+1(212)902-3935 | brian.rooney@gs.comGoldman Sachs & Co. LLCThematic Stock ExposuresThe ecosystem of nuclear energy31 July 2025 | 3:55PM BSTInvestors should consider this report as only a single factor in making their investment decision. For Reg ACcertification and other important disclosures, see the Disclosure Appendix, or go towww.gs.com/research/hedge.html.
  2. Thematic Stock Exposures_ The ecosystem of nuclear energy.pdf
    The Ecosystem GS Research-covered stocks exposed to nuclear energyCamecoLeading uranium producer set to ride rising fuel demand with earnings boost from nuclear tech stakeGE VernovaElectricity giant with nuclear exposure in early stages of uplift from power demand inflectionNuscale PowerLong-term opportunity from early move in small modular reactors balanced by execution riskMirion TechnologiesRadiation tech specialist with end markets from nuclear to medicine ridingpower demandmegatrendFlowserveFlow equipment OEM and services provider with nuclear bookings momentum*Please note this is not an exhaustive list. For more information about the stocks, including the current GS Research ratings, see inside the report.Also see: Fuji Electric, Sumitomo Electric IndustriesDuke EnergyAttractive load growth and capexopportunitiesat a valuationdiscount to peersSouthernUprate opportunities onexistingfleet for owner of largest US nuclear plantVistraHigh-quality assets reflected in valuation with data center updates in focusNextEra EnergyUpside from potential nuclear plant restartPublic Service Enterprise GroupData center potential balanced by customer affordability concernsDominion EnergyExposure to data center-driven demand in VirginiaTC EnergyPipeline operator acrossnatural gas and power with potential upside from nuclear expansionCamecoLeading uranium producer set to ride rising fuel demand withearnings boost from nuclear tech stakeAlso see: Endesa, Tata PowerAlso see: BHPAMERICASMitsubishi Heavy IndustriesGrowth potential fromincreased investment ingas turbines and nuclear for Japan machinery leaderHitachiJapanese power and AI infra beneficiary with nuclear kickerMitsubishi ElectricIndustrial electronics player with growing data center exposure and nuclear fusion expertiseIHIJapan civil aircraft and defense player withsteady nuclear exposureFujikuraOptical fiber leader serving hyperscalerswith plans to developnuclear fusion products TorayIndustriesVersatile materials supplier with upside from carbon fiber use in nuclear plantsFurukawa ElectricSlower-than-peers shift to opticalfiber productswithnuclear fusion optionalityWorleyAustraliaenergy transitionbeneficiarywith capabilities to support nuclear projectsLarsen & ToubroLocal construction leader set to ride India's energy transitionASIA& AUSTRALIASiemens EnergyAttractivelyvalued energy value chain playwith nuclear tech expertise and Rolls-Royce partnershipEiffageNuclear adds to upside across energy and infra for French construction firmEUROPEAMERICASCentricaNuclear adds value to investment case amid long-term shift to higher-growth businessesFortumLong-term power demand beneficiary with nuclear optionality exposed to weakerpricesEnel Electrification compounderwith potential upside from re-leveraging and supportive regulationIberdrolaPotential upside from regulatory support adds to grid opportunitiesASIAEUROPENTPCPower giant leading India's renewablespush with upside from nuclear
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    Fueling nuclear power plantsCameco | CCJ | BuyLeading uranium producer set to ride rising fuel demand with earnings boost fromnuclear tech stakeThe world’s largest non-state owned, publicly-traded uranium mining company. Throughits stakes in some of the largest uranium mines globally, including Cigar Lake andMcArthur River in Canada and Inkai in Kazakhstan, Cameco in effect manages ~15% oftotal uranium production. Cameco also operates conversion and fuel fabricationfacilities, sourcing 85% of its core sales from uranium and 15% from fuel services in2024. In our team’s view, President Trump’s recent executive orders aimed atquadrupling the US’s nuclear power output by 2050 underscore a growing need to fuelnew projects that should boost demand for physical uranium and conversion servicesover time, setting Cameco’s uranium mining business on course for longer-term growth.Our analysts believe Cameco should see a nearer-term uplift through its 49% stake inWestinghouse, a US-based nuclear reactor tech and services leader (for more on theupside from this exposure, see the Tech, infrastructure and services category lowerdown). nCameco Corp. (CCJ): First Take: Strong 2Q25 results; focus on realized pricing andWestinghouse on call (31 July 2025)nAmericas Clean Energy: Nuclear: Trump signs executive orders expected toaccelerate adoption of nuclear power within the US (26 May 2025)nAmericas Clean Energy: Nuclear: Focus on upstream establishment vs. technology;assume CCJ/CCO.TO at Buy, initiate SMR at Neutral (19 May 2025)nClean Energy: Nuclear: The Nuclear Playbook for Energy Transition (19 May 2025)ALSO SEE: BHP (BHP.AX)Building and supporting nuclear energy AmericasCameco | CCJ | BuyLeading uranium producer set to ride rising fuel demand with earnings boost fromnuclear tech stake31 July 20253Goldman SachsThematic Stock Exposures
  4. Thematic Stock Exposures_ The ecosystem of nuclear energy.pdf
    Cameco’s stake in Westinghouse — which offers nuclear reactor technology that’samong the most advanced in the world and holds a dominant position in the market forboosting the output of existing nuclear plants, or power uprating — deepens thecompany’s exposure to the nuclear value chain. For one, the US’s push for 5GW worthof nuclear uprates by the end of the decade could contribute to a roughly 50bps-150bpsincrease in Cameco’s adj. EBITDA CAGR for the Westinghouse business over that timehorizon, our team’s scenario analysis shows. Our team expects additional meaningfulupside to revenue and adj. EBITDA from new reactor builds in the US, where recentreports indicate Westinghouse is in talks with industry partners about deploying ten newreactors expected to break ground by 2030.The revenues from ~10 reactors in theAmericas add to the uplift our team expects from four reactors in EMEA and tworeactors in Asia (ex. China) that should begin construction over the same timespan,making for a potential adj. EBITDA contribution to Cameco from Westinghouse newbuilds of more than C$1bn through 2030. This would roughly double the projected adj.EBITDA CAGR over the next five years from ~9% to ~19%, our team says.Westinghouse, which also services up to 200 reactors globally, should see an additionalearnings uplift from the need for more maintenance and engineering support. The firmcontributed ~30% of Cameco’s EBITDA in 2024.nAmericas Clean Energy: Nuclear: Power uprates a potential driver of near- tomedium-term upside for the nuclear value chain; Buy CCJ (25 June 2025)nCameco Corp. (CCJ): A new(er) revenue driver as Westinghouse poised to benefitfrom new reactor builds; raise estimates, PT; reiterate Buy (10 June 2025)GE Vernova | GEV | Buy, on CLElectricity giant with nuclear exposure in early stages of uplift from powerdemand inflectionA global leader in the electric power industry whose installed base generates nearly aquarter of the world’s electricity. The company operates the nuclear power arm of itspower franchise, which comprised ~5% of the revenues of the power segment in FY24,through a joint venture with Japan’s Hitachi. GE Hitachi Nuclear Energy is a leadingglobal provider of advanced nuclear reactors (including a boiling water small modularreactor that should reduce capital cost per MW and is targeted for deployment in 2029),fuel, and nuclear services. Our team notes that ~65 nuclear plants across ten countriescurrently leverage GEV’s technology, and GEV has said it sees an opportunity to addnearly 3-5 GW of nuclear power in the US through the end of the decade. The companyexpects nuclear to contribute to services growth this decade and become a morematerial contributor to equipment revenue growth in the next decade. Our teamrecently raised its earnings estimates through FY27 and 12-month target price for theshares, noting that the uplift from a longer-term power market inflection is still in theearly stages. 31 July 20254Goldman SachsThematic Stock Exposures
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    nGE Vernova (GEV): Still early stages of a Power market inflection, raising estimates(23 July 2025)nGE Vernova (GEV): Takeaways from our investor lunch (9 June 2025)NuscalePower | SMR | NeutralLong-term opportunity from early move in small modular reactors balanced byexecution riskPure-play nuclear tech manufacturer Nuscale Power builds small modular reactors(SMRs), an emerging type of technology designed to be built in a factory and assembledon-site to make nuclear power cheaper and easier to deploy. The recent rise inpartnerships between SMR companies and hyperscalers to power AI data centers addsto evidence the technology looks on course for broader adoption. Nuscale, which ownsthe only SMR technology in the US for which a design application has been submitted tothe US Nuclear Regulatory Commission (NRC), recently received approval for the 77MW version of its SMR. Our team says this development underscores Nuscale’sposition as the company closest to deploying the technology, adding that Nuscale’slicensing progress, supply chain partnerships, and ability to leverage a fuel type alreadyin use in the majority of nuclear reactors reinforce its edge over peers. While ouranalysts view the approval as a significant milestone on the path towardscommercialization of Nuscale’s tech, they note that the next step requires a jointapplication with a customer, with Nuscale yet to sign a customer in the US. Our analystswill look for updates on that front over the coming months, noting that lingeringuncertainty over the pace and costs of execution (Nuscale had a customer cancel a dealin 2023 after a 75% increase in projected costs) adds to their balanced view on thestock. nNuscale Power Corp. (SMR): A positive step toward commercialization and customeradoption; larger 77MW design receives NRC approval (29 May 2025)nAmericas Clean Energy: Nuclear: Focus on upstream establishment vs. technology;assume CCJ/CCO.TO at Buy, initiate SMR at Neutral (19 May 2025)MirionTechnologies | MIR | BuyRadiation tech specialist with end markets from nuclear to medicine riding powerdemand megatrendMIR sells radiation detection, measurement, analysis, and monitoring solutions for thenuclear, defense, medical, and research end markets. Commercial nuclear powercomprises 38% of company revenues, and MIR expects the nuclear power business togrow +HSD (high-single digits) in FY25. The company said 1Q orders were up 11.5%31 July 20255Goldman SachsThematic Stock Exposures
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    with particular strength in nuclear, where our analysts expect momentum to continue. nMirion Technologies Inc. (MIR): 1Q beat, FY25 guide held despite tariffs (30 Apr2025)Flowserve | FLS | NeutralFlow equipment OEM and services provider with nuclear bookings momentumA global manufacturer of precision-engineered flow control systems, Flowserve sellspumps, valves, and related services to customers in critical infra markets ranging fromoil & gas and chemicals to power generation and water management. Our team believesthe company stands to benefit from the global energy transition and rising investmentsin decarbonization infrastructure, noting nuclear should prove a high-margin, long-cyclegrowth driver. Flowserve, which supports both new construction and life extensionprojects across Europe, Asia, and North America with its portfolio of nuclear-gradecomponents, saw three consecutive quarters of nuclear bookings to the tune of>$100mn through 1Q25 and booked ~$60mn in nuclear orders in the latest quarter. Thegrowing need to service and upgrade aging nuclear reactors should help enhancerecurring revenue visibility, the company has said. Our analysts recognize theopportunity but see better risk/reward elsewhere in their coverage.nFlowserve Corp. (FLS): Solid 2Q beat, raising estimates (30 July 2025)nFlowserve Corp. (FLS): 1Q beat, 2025 framework seems reasonable (6 May 2025)Asia & Australia Mitsubishi Heavy Industries | 7011.T | BuyGrowth potential from increased investment in gas turbines and nuclear for Japanmachinery leaderHeavy industries firm MHI, which has a long track record supporting large-scale energyinfrastructure projects in Japan and around the world, is coupling its attractive exposureto gas turbines used to power data centers with a rising focus on its nuclear business, akey area of growth for the company. MHI recently said that nuclear orders increased toaround ¥390bn in FY3/25, with contributions from projects related to the restart ofboiling water reactor (BWR) nuclear power plants, the nuclear fuel cycle (including mixedoxide fuel), and R&D for novel reactor technologies. More than 80% of the company’ssales in the nuclear segment are currently tied to the aftermarket business, whichincludes specialized safety facilities (SSF) — a newer requirement for Japanese nuclearpower plants mandated after the Fukushima Daiichi accident in 2011 where MHI’sexpertise stands out among peers. This part of the business generally offers high profitmargins, the company has said, adding it expects the nuclear power franchise tounderpin a margin improvement for the energy systems segment as a whole for theforeseeable future. What’s more, our team notes MHI stands to benefit as more31 July 20256Goldman SachsThematic Stock Exposures
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    Japanese power utility companies, MHI’s main customers, take initial steps towardsbuilding new nuclear reactors. Our team has estimated the potential value of orders fornew builds at ~¥350bn, roughly half the cost of construction of a new reactor.nMitsubishi Heavy Industries (7011.T): Kansai EP announces on-site survey forMihama successor plant; potential positive for MHI (22 July 2025)nJapan Aerospace & Defense: Raising TPs on higher earnings outlooks and globalpeers’ multiple expansion; reiterate Buy on KHI (on CL)/MHI/IHI (18 June 2025)nMitsubishi Heavy Industries (7011.T): Beyond the Cycle: Gas turbine/nuclear poweroutlook more positive than expected; Buy (12 June 2025)nMitsubishi Heavy Industries (7011.T): Kobe plant tour: Nuclear business marginscould remain high for extended period; Buy (20 Mar 2025)nMitsubishi Heavy Industries (7011.T): Kyushu Electric considering new reactors,would be positive for MHI if plans materialize; Buy (19 May 2025)Hitachi | 6501.T | BuyJapanesepower and AI infra beneficiary with nuclear kickerJapan’s Hitachi is exposed to nuclear power generation through its joint venture with GEVernova (GE Hitachi Nuclear Energy), which sits within Hitachi’s green energy & mobilitysegment. Sales in this business constituted 2% of total company sales in FY3/24. Ourteam notes Hitachi currently conducts maintenance on operational nuclear plants, butwould likely get involved in engineering work in a scenario where Japan restarts moredomestic sites. While the extent of Hitachi’s involvement in the construction of next-gennuclear reactors, including small modular reactors, is unclear, our team notes thepossibility of cooperation in the areas of technical expertise and patents. nClean Energy: Nuclear: The Nuclear Playbook for Energy Transition (19 May 2025)nJapan Technology: Hardware - Industrial Electronics: GEV 1Q results read-across:Demand for HVDC remains strong, positive for Hitachi (24 Apr 2025)nJapan Technology: Hardware - Industrial Electronics: Spotlight nuclear andfusion-related stocks as US hyperscalers may expand use of nuclear power for datacenters (3 Oct 2024)Mitsubishi Electric | 6503.T | BuyIndustrial electronics player with growing data center exposure and nuclear fusionexpertiseMitsubishi Electric (MELCO), whose diverse end markets span factory automation, datacenters, and defense, manufactures a wide range of core products for nuclear powerplants, ranging from cooling pump motors and control rod drive coils used in reactorcontainment vessels to central control panels that allow operators to monitor various31 July 20257Goldman SachsThematic Stock Exposures
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    plant systems. Our analysts estimate that MELCO’s nuclear-related business accountedfor a low-single-digit percentage of sales in FY3/24, adding that the company couldbenefit if domestic nuclear power plants are restarted. MELCO also has exposure to theemerging field of nuclear fusion, a technology that aims to generate energy bycombining two nuclei vs. the conventional fission method used across nuclear plantstoday that relies on splitting an atom’s nucleus. Nuclear fusion holds the potential torelease more energy and create less radioactive waste than fission, but the technologyis still years away from commercial deployment. Mitsubishi Electric has helped supplytoroidal field coils (TF coils) for the ITER (a large-scale nuclear fusion research project),as well as central solenoid coils (CS coils) and equilibrium field coils (EF coils) for a jointfusion project between Japan and the EU. Attention on these products, which thecompany already has a track record of delivering, should increase in the case ofadvances in practical applications of nuclear fusion, our team says. nClean Energy: Nuclear: The Nuclear Playbook for Energy Transition (19 May 2025)nJapan Technology: Hardware - Industrial Electronics: Spotlight nuclear andfusion-related stocks as US hyperscalers may expand use of nuclear power for datacenters (3 Oct 2024)IHI | 7013.T | BuyJapan civil aircraft and defense player with steady nuclear exposureA Japanese heavy industries company whose main profit drivers are civil aircraft enginesand defense products. Revenue contribution from the nuclear energy business has heldat around 5% over the past couple of years. The company has contributed tocontainment and pressure vessels for nuclear reactors and related maintenance works.It invested in NuScale Power in 2021 and has participated in the development of smallnuclear reactors. nJapan Aerospace & Defense: Raising TPs on higher earnings outlooks and globalpeers’ multiple expansion; reiterate Buy on KHI (on CL)/MHI/IHI (18 June 2025)Fujikura | 5803.T | BuyOptical fiber leader serving hyperscalers with plans to develop nuclear fusionproductsJapanese power cable and optical fiber provider Fujikura has been focusing on growingits optical fiber cable business to tap rising demand for higher-speed connectivitybetween data center facilities and buildings. Our team notes its optical products aremore advanced and efficient versus those of peers, with their particularly low31 July 20258Goldman SachsThematic Stock Exposures
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    transmission losses winning favor with several hyperscalers. Fujikura is also weighingadditional investment in superconducting wire materials to support nuclear fusion, anarea with medium- to long-term growth potential for which the company has beenfielding strong inquiries. Fujikura possesses the technical expertise to support bothtypes of power generation using nuclear fusion: plasma (which uses superconductingwire materials) and laser (which can use fiber laser technology). While practicalapplications are not expected until the next decade, Fujikura plans to start developingthe business this fiscal year.nJapan Technology: Hardware - Industrial Electronics: Era of Optics: Beneficiaries oftechnological changes; SEI up to Buy, Furukawa Electric up to Neutral (7 July 2025)nFujikura (5803.T): Beyond the Cycle: Affirms strong DC demand, technological edge;potential to expand capacity for ferrules; Buy (23 May 2025)nFujikura (5803.T): Sustainability briefing: Demand for optical components forgenerative AI data centers to rise as tech evolves; Buy (13 Feb 2025)Toray Industries | 3402.T | BuyVersatile materials supplier with upside from carbon fiber use in nuclear plantsAdd nuclear plants to the long list of applications (aeroplanes, wind turbines, hydrogentanks, rockets...) that require the lightweight but durable carbon materials provided byJapan materials supplier Toray Industries. Earnings within the company’s carbon fibercomposite materials business, whose performance is highly correlated with Toray’sshare price given profits tend to fluctuate based on demand for high-margin commercialaviation applications, should benefit from a recovery in Boeing 787 production as well ashigher demand for defense equipment and nuclear power, our team says. In nuclearplants, carbon fiber is mainly used in uranium rotating cylinders. Our analysts see Toray,which already holds high market share in this area, as a long-term beneficiary fromfurther increases in nuclear power generation capacity globally. nToray Industries (3402.T): Alcantara plant visit: Technological prowess, craftsmanship,strong brand as differentiators (8 July 2025)nToray Industries (3402.T): Strong Boeing 787 June deliveries present positiveread-across for Toray (3 July 2025)nJapan Top Picks: Further evolution, further delivery; 22 Buys (7 Jan 2025)Furukawa Electric | 5801.T | NeutralSlower-than-peers shift to optical fiber products with nuclear fusion optionality31 July 20259Goldman SachsThematic Stock Exposures
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    While power cable and optical fiber company Furukawa Electric has been reaping thebenefits from rising demand for its optical fiber products for generative AI and datacenter use cases, it has proved slower to withdraw from commodity components andshift to higher-value-add businesses relative to some peers, our team notes. Ouranalysts add that Furukawa is among the companies that hold deep expertise in nuclearfusion. The company has a track record supplying low-temperature superconductingcables and stranded cables to large-scale nuclear fusion R&D projects, and has notedplans to develop and mass-produce low-temperature superconducting cables for nuclearreactors and high-temperature superconducting cables for small fusion reactors. It alsoannounced an investment of approximately £10mn in Tokamak Energy, a UK-basedfusion startup, last year.nJapan Technology: Hardware - Industrial Electronics: Era of Optics: Beneficiaries oftechnological changes; SEI up to Buy, Furukawa Electric up to Neutral (7 July 2025)nJapan Technology: Hardware - Industrial Electronics: Investment horizons likely toplay a major role in stock selection; Fuji Electric down to Neutral (23 Jan 2025)nJapan Technology: Hardware - Industrial Electronics: Spotlight nuclear andfusion-related stocks as US hyperscalers may expand use of nuclear power for datacenters (3 Oct 2024)ALSO SEE: Fuji Electric (6504.T), Sumitomo Electric Industries (5802.T)Worley | WOR.AX | Buy, on CLAustralia energy transition beneficiary with capabilities to support nuclearprojectsAustralia’s Worley, which provides a range of engineering and construction solutions forend markets in energy, chemicals, and resources, could benefit in a scenario where thecountry adds nuclear to its energy mix amid the broader decarbonization push, in ourteam’s view. The company provides services covering all phases of nuclear projectdevelopment and execution, and has participated in over 370 nuclear projects globally. nGS SUSTAIN & Australia Energy: Decarbonising Australia’s power grid and theproposed Nuclear push (3 Sept 2024)Larsen & Toubro | LART.BO | NeutralLocal construction leader set to ride India’s energy transitionIndia’s largest engineering, procurement and construction (EPC) company could benefitfrom the growth of nuclear in the country over the medium to long term as a prime31 July 202510Goldman SachsThematic Stock Exposures
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    candidate to receive technology licenses to manufacture and sell nuclear reactors, ourteam says. As part of its FY26 budget, India committed Rs200bn to small nuclearreactors R&D with the aim to hit a 100GW nuclear power target by 2047. Our teamnotes that a typical large-scale 1.65GW nuclear power plant developed by foreign playerscosts Rs650mn-Rs700mn/MW (or $130bn-$140bn in total), which L&T could reduce by25-30%. While our team believes small and medium nuclear reactors can be explored inIndia, they note the need to assess execution and operational risks, adding thatpolicy-making will likely require more time.nLarsen & Toubro (LART.BO): 1QFY26 Review: Good quarter overall; margin recoverystill elusive; Neutral (29 July 2025)nGlobal Energy: The Great India Energy Climb (16 June 2025)nIndia Industrials: Budget takeaways: Capex moderates; durables/Airlines/mallsbenefit (2 Feb 2025)nLarsen & Toubro (LART.BO): CIO Tour: Key Takeaways from L&T session (17 Sept2024)nIndia Clean Energy: India New Energy Tour - Nuclear expert meeting key takeaways(2 Sept 2024)EuropeSiemens Energy | ENR1n.DE | BuyAttractively valued energy value chain play with nuclear tech expertise andRolls-Royce partnership Given Siemens Energy’s diverse portfolio that spans the full energy value chain, fromconventional generation to renewables, the company looks well-positioned to ride thepower demand and decarbonization megatrends over the longer run, our team says.Siemens Energy provides steam turbines and generators for nuclear power plants, withnearly a quarter of all nuclear power plants worldwide running with Siemens Energyinstrumentation and control systems. The company struck a partnership withRolls-Royce to supply tech for its planned small modular reactors earlier this year. In ourteam’s view, Siemens Energy’s performance continues to progress meaningfully relativeto peer GE Vernova, which supports the case for the relative valuation gap to narrow on2028E EV/EBITDA (Siemens Energy is at a c.47% discount), in our team’s view. Animproving gas & power business coupled with stronger top-line growth in wind shouldhelp pave the way for >30% EBITA growth in FY2028-30 and higher cash returns,according to our analysts’ estimates.nSiemens Energy (ENR1n.DE): GE Vernova raises guidance at 2Q, strong trendscontinue to support (23 July 2025)nSiemens Energy (ENR1n.DE): Growth beyond FY 28 with higher cash returns tocome (June 24, 2025)31 July 202511Goldman SachsThematic Stock Exposures
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    nClean Energy: Nuclear: The Nuclear Playbook for Energy Transition (19 May 2025)Eiffage | FOUG.PA | BuyNuclear adds to upside across energy and infra for French construction firmOur team is encouraged by French engineering and construction firm Eiffage’s exposureto megatrends including defense spending, grid upgrades, and nuclear growth. Thecompany earlier this year posted a record backlog at its energy division, which supportsthe development of grids, nuclear, and renewables, and through its infra division hasbeen involved in the construction of two nuclear reactors in France.nEiffage (FOUG.PA): Q1 revenues & orderbook slightly ahead (13 May 2025)nEiffage (FOUG.PA): Energy transition underpins upgrade cycle, dividend increasecould drive a re-rating - up to Buy (3 June 2024)Nuclear energy providers, from vertically integrated utilities to independent powerproducersAmericasDuke Energy | DUK | Buy, on CLAttractive load growth and capex opportunities at a valuation discount to peersDUK, a pure-play regulated utility that invests in power generation, transmission, anddistribution serving the Carolinas, Florida, Indiana, Ohio, Kentucky, and Tennessee, ownsplants with a combined nuclear capacity of ~9 GW+. Nuclear is the company’ssecond-largest source of owned capacity, accounting for ~28% of DUK’s generation in2024. The company has stated it plans to invest $3.9bn of its $83bn capital plan over2025-2029 on nuclear fuel, setting an intention to expand initiatives in advanced nuclear.What’s more, our team sees DUK as well-positioned to participate in new nucleargeneration over the longer term amid opportunities in its small modular reactor pipeline.In our team’s view, nuclear adds to DUK’s attractive exposure to load growthopportunities from gas, where the company has partnered with GE Vernova to build gasgeneration more quickly and cost-effectively than peers.nAmericas Utilities: Follow the EPS growth in large cap utilities; DUK to Buy, WEC toSell, AEE up to Neutral (25 June 2025)nClean Energy: Nuclear: The Nuclear Playbook for Energy Transition (19 May 2025)31 July 202512Goldman SachsThematic Stock Exposures
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    Southern | SO | BuyUprate opportunities on existing fleet for owner of largest US nuclear plantSouthern, a large-cap regulated utility operating in the southeastern US with a diverseportfolio that spans electricity, gas, power, and tech and communications, has ~4.8 GWof regulated nuclear generation. Nuclear made up roughly 19% of the company’s energymix in 2024. In addition to other assets, Southern’s subsidiary GA Power is the partialowner of the Vogtle nuclear power plant, the largest nuclear plant in the US. SO broughtonline Vogtle Unit 4, which was originally expected to become operational in 2017, lastyear, marking the end of a decade plus-long overhang on the stock. In the near term, thecompany is focused on an identified 300 MW of uprate opportunities on its existingnuclear fleet versus new builds. nSouthern Co. (SO): Takeaways from management meetings; load growth in focus (15May 2025)Vistra| VST| NeutralHigh-quality assets reflected in valuation with data center updates in focusVistra, a Texas-based independent power producer that sells power into the wholesalemarket as well as directly to consumers, has a nuclear fleet with capacity amounting to~6.5 GWs. Vistra’s nuclear fleet, which is unregulated, is split between ~4 GW in thePJM (the wholesale electricity market and transmission system for a large part of theMid-Atlantic region and beyond) and ~2.4 GWs in ERCOT (Electric Reliability Council ofTexas, the entity responsible for managing the Texas power grid). The largest source ofpotential upside for these assets is the possibility of signing a power purchaseagreement (PPA) with a data center or other large load customer at an elevated price.Our team recognizes Vistra’s quality asset base and strong core business, but notes thecurrent valuation prices in some of this opportunity. Our analysts also see the companyas more exposed to headline risks around AI/data center demand. nAmericas Utilities: Power - IPPs: Updating estimates into 2Q and see downside toconsensus for VST; data center deal updates in focus (24 July 2025)nAmericas Utilities: Power - IPPs: Updating estimates for NRG and VST following 1Q;next catalysts Texas legislation and FERC processes (22 May 2025)nEnergy Primer: Frequently Asked Questions About the Sector We Cover (21 Apr2025)nAmericas Utilities: Initiate on Texas IPPs: ERCOT Outlook Strengthening (4 Apr 2025)NextEra Energy | NEE | BuyUpside from potential nuclear plant restart Diversified utility NextEra added ~3.2 GW of renewables and storage to the backlog atNEER (its resources subsidiary) this quarter, marking the sixth time in the past eightquarters that the company added more than 3 GW to its backlog. Management noted 1GW worth of additions in the quarter were tied to demand from hyperscalers, where31 July 202513Goldman SachsThematic Stock Exposures