Classification of NuWays AG to Emerald Horizon AG

Company Name:	Emerald Horizon AG
ISIN:	AT0000A3UZE1
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 1,300
Target price on sight of:	12 months
Last rating change:
Analyst:	Jorge Gonzalez

ADES Test Loop with VDL moves into execution

First project-specific ADES agreement strengthens industrialisation path. Emerald Horizon (SMRX) yesterday officially kicked off the Test Loop programme for ADES, Emerald's accelerator-driven subcritical SMR, together with industrial partner VDL Groep at its LaboraTHorium in Graz. Importantly, the parties signed a project-specific agreement for the Test Loop under their long-term framework covering the development of ADES and TESS, marking the first project-specific agreement for an ADES Loop under the broader cooperation framework. The megawatt-scale Loop will now be developed with VDL in Eindhoven as a further step towards the fully integrated ADES prototype targeted for 2029.

Testing and industrial design now progress in parallel. Following four previous Loop generations developed and tested by Emerald in Graz, the new megawatt-scale Loop represents the first Loop programme undertaken together with industrial partner VDL. Building on the results of the previous iterations, the programme will further validate the interaction of key fluid-thermodynamic components and systems, including the pump, molten-salt circulation, piping, heat exchanger, instrumentation and controls, while VDL incorporates the resulting engineering findings into the design. The objective is therefore not only further system validation, but also to translate Emerald's development work into an industrially manufacturable and scalable design.

VDL involvement extends into co-development and industrialisation. While Emerald retains system leadership and reactor-physics development in Graz, VDL will contribute engineering, manufacturing, assembly and supply-chain expertise in Eindhoven. According to management, VDL will also commit its own resources to the programme, reflecting its involvement from the development stage. Importantly, involving VDL's manufacturing specialists already during design should incorporate manufacturability and scalability from the outset, while using VDL's existing industrial infrastructure supports Emerald's asset-light industrialisation strategy.

Roadmap unchanged; execution now key. The current Test Loop is expected to run for c. 12–18 months (eNuW), with a further Loop expected ahead of the fully integrated ADES prototype targeted for 2029, followed by industrial serial production from 2031. Hence, yesterday's kick-off does not change our financial estimates or ADES deployment assumptions. However, the transition from the broader VDL cooperation framework into project-specific execution represents an important development and industrialisation milestone, with successful Loop validation expected to further de-risk the development path.

We reiterate BUY with an unchanged €1,300 PT. ADES remains the main source of SMRX's long-term value potential. In our view, successful execution of the Test Loop should progressively increase confidence in the development roadmap towards the fully integrated prototype and subsequent industrialisation.

You can download the research here: emerald-horizon-ag-2026-09-09-update-en-3689e
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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