Huge cost overruns at America's last big nuclear power project bankrupted Westinghouse Electric and soured investors on the industry.
Now, almost a decade later, U.S. government support and an AI-driven surge in electricity demand have Westinghouse's turnaround in full swing and an IPO on the horizon.
The company, best known as the manufacturer of a U.S. flagship reactor, is riding years of trends that favor nuclear power: rising interest in reliable electricity, a global focus on energy security, and a scramble to build electricity-hungry data centers.
"There really is no credible path to the AI build-out and energy security without nuclear," Chief Executive Dan Sumner said in an interview.
The company confidentially filed in July for an initial public offering. Although the timing and size of the deal haven't yet been determined, a powerful ally has incentive for the company to succeed: Uncle Sam.
Under an $80 billion federal push for new Westinghouse reactors, the U.S. government holds an option to take a 20% stake in the company, assuming orders come through by 2029 and Westinghouse's market valuation hits $30 billion.
Since reaching that agreement last year, the U.S. has offered low-interest loans to utilities to finance equipment orders-and signed a landmark nuclear deal with Saudi Arabia from which Westinghouse would likely benefit.
The company's reversal of fortune follows a high-profile implosion in 2017. Then owned by Toshiba, it incurred billions of dollars in cost overruns related to the planned construction of four nuclear reactors in the southeastern U.S. Two were ultimately completed; two were halted.
Westinghouse has since focused more on its core business-making nuclear fuel, refueling reactors and maintaining many of the world's nuclear power plants-while insulating itself from civil construction risks.
The company has said it won't act as general contractor or assume the risk of building an entire power plant. Its signature AP1000 reactor generates enough electricity to power a city such as San Francisco, while a smaller version, the AP300, is under development.
The Pennsylvania-based company is owned by Canadian companies Brookfield Asset Management and uranium miner Cameco. They bought it for about $8 billion in 2023. At the time, they assigned no value to the possibility of building new reactors but liked Westinghouse's fuel fabrication and services business.
Since then, nuclear power has come back in vogue.
President Trump has called for quadrupling nuclear power output by 2050. Japanese financing secured through a trade deal could help back the U.S. government's push for new reactors-and see the U.S. become a large shareholder in Westinghouse.
The pact is yet another example of the Trump administration's willingness to intervene in corporate America. Last year, the U.S. government converted about $9 billion in federal grants into a 10% stake in Intel. It also took a "golden share" in U.S. Steel that gives it sweeping veto power over corporate decisions.
David Nicholas, president of Xfunds, which has a nuclear income exchange-traded fund, said that Westinghouse could reasonably command a valuation of $15 billion to $20 billion and "I wouldn't rule out a number north of $20 billion if investors give it credit for the AP1000 pipeline."
Yet utilities remain wary about the cost of building new reactors. Westinghouse estimates an "overnight cost" of roughly $10 billion per reactor-a sum that omits financing charges and assumes that reactors could theoretically be built overnight.
When recently asked about new reactors, Southern CEO Chris Womack told analysts he is supportive of new nuclear construction, but: "Southern's not going to be next. Let me be clear about that."
The company operates Vogtle, the Georgia plant that is home to the only two AP1000 reactors in the U.S. The reactors were projected to cost $14 billion but ultimately rose to about $35 billion. They came online seven years behind schedule.
Duke Energy CEO Harry Sideris told analysts this month that the utility is "keeping our options open" for nuclear power, but its main focus is "how do we offset the financial risks for our customers and our investors?"
The industry has spent years analyzing what went wrong last time. That list includes everything from design changes during construction to supply-chain challenges that at times idled a huge on-site labor force.
"It's not just the number on the paper," said Adam Stein, director of nuclear energy innovation at the Breakthrough Institute. "Does the CEO or the public utility commission have confidence? The numbers could look perfect, and they might still say no."
The Trump administration is trying to sweeten the pot by offering utilities low-interest loans from the Energy Department. The $17.5 billion pool would allow five projects, each featuring two reactors, to begin manufacturing while working through permits and final investment decisions.
"This lets them purchase something, get some confidence, see how much negative feedback they get and test a lot of things before signing up for a $20 billion project," Stein said.
Westinghouse's Sumner called figuring out how to share risks among different companies "real roll-up-your-sleeves-type work."
"We've been sitting here for the last 35 years while, by the way, other countries are rapidly expanding their domestic nuclear fleets," Sumner said. "As an industry we needed the shot in the arm.'"
China is home to the other four AP1000 reactors that are currently operational and now builds its own version. It has 14 under construction.
In July, the U.S. agreed to provide Saudi Arabia with a civilian nuclear program under a 30-year, multibillion-dollar deal that could give Westinghouse a central role in developing infrastructure. Though not named in the pact, Westinghouse is the only U.S. company marketing large-scale reactors.
Nuclear reactors sold overseas create decadeslong commercial ties because of refueling and servicing agreements. The deal has proved controversial because it would potentially open the door for uranium enrichment on Saudi territory.