Core Viewpoint - Centrus Energy Corp. (LEU) has shown a significant price increase of 46% over the past four weeks, with a mean price target of $148.33 indicating a potential upside of 56.6% from the current price of $94.71 [1] Price Targets and Analyst Consensus - The average price target for LEU includes six short-term estimates, ranging from a low of $69 to a high of $300, with a standard deviation of $79.84, indicating variability in analyst estimates [2] - The lowest estimate suggests a decline of 27.2%, while the highest points to a potential upside of 216.8% [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Optimism - Analysts are optimistic about LEU's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has shown a 9.9% increase in the Zacks Consensus Estimate over the past month [11][12] - The company currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after by investors, they can be misleading and should not be the sole basis for investment decisions [3][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Risks and Challenges - The company faces significant risks related to geopolitical conflicts, particularly the war in Ukraine, which may impact its financial position and ability to conduct business [15]. - The company is dependent on TENEX for the delivery of LEU under the TENEX Supply Contract, with risks including potential sanctions and delivery prohibitions [15]. - The company may experience difficulties securing additional U.S. government waivers from the Import Ban Act, affecting its ability to import Russian LEU [15]. - The company is exposed to risks from increasing LEU imports from China, which could impact future sales and financing for enrichment capacity [17]. - The company faces risks related to operational factors, including potential delays in government task orders and funding for contracts [19]. - The company must navigate risks associated with financial market conditions that could affect liquidity and operational results [21]. - The company is subject to legal and compliance risks, including potential changes in government regulations and policies that could impact operations [25]. - The company may encounter challenges related to cybersecurity incidents that could disrupt business operations [19]. - The company is currently involved in multiple legal proceedings related to environmental claims, but does not expect these to have a material adverse effect on its financial condition [107]. - The company has provided notifications to the DOE to invoke indemnification under the Price-Anderson Act in relation to ongoing legal claims [104]. - The company believes its operations at the Portsmouth GDP site were fully compliant with NRC regulations, and any potential liabilities should be indemnified under the Price-Anderson Act [106]. Financial Performance - Total revenue for Q1 2025 was $73.1 million, a 67.3% increase from $43.7 million in Q1 2024 [27]. - Gross profit for Q1 2025 was $32.9 million, compared to $4.3 million in Q1 2024, reflecting a significant improvement [27]. - Net income for Q1 2025 was $27.2 million, compared to a net loss of $6.1 million in Q1 2024 [27]. - Cash provided by operating activities in Q1 2025 was $36.5 million, up from $5.3 million in Q1 2024 [29]. - Revenue for the three months ended March 31, 2025, was $51.3 million, a significant increase from $23.6 million in the same period of 2024, representing a growth of 117.4% [38]. - The LEU segment generated revenue of $51.3 million in Q1 2025, compared to $23.6 million in Q1 2024, indicating a growth of 117.4% [109]. - The Technical Solutions segment reported revenue of $21.8 million in Q1 2025, up from $20.1 million in Q1 2024, reflecting a growth of 8.5% [109]. - The gross profit for the Company in Q1 2025 was $32.9 million, compared to $4.3 million in Q1 2024, marking an increase of 664.0% [109]. - The LEU segment's gross profit was $31.2 million in Q1 2025, a substantial rise from $0.5 million in Q1 2024 [109]. - The Company reported a net income before income taxes of $35.2 million for Q1 2025, compared to a loss of $8.4 million in Q1 2024 [109]. Assets and Liabilities - Total current assets increased to $1,222.7 million as of March 31, 2025, from $1,015.2 million as of December 31, 2024 [26]. - Total assets reached $1,293.9 million as of March 31, 2025, compared to $1,093.4 million at the end of 2024 [26]. - Total liabilities increased to $1,080.0 million as of March 31, 2025, from $932.0 million as of December 31, 2024 [26]. - Stockholders' equity rose to $213.9 million as of March 31, 2025, up from $161.4 million at the end of 2024 [26]. - Cash and cash equivalents decreased to $653.0 million as of March 31, 2025, from $671.4 million as of December 31, 2024, a decline of 2.6% [53]. - Accounts receivable as of March 31, 2025, totaled $38.7 million, down from $80.0 million as of December 31, 2024, indicating a decrease of 51.6% [40]. - The Company's total remaining performance obligations were $0.7 billion as of March 31, 2025, down from $0.8 billion as of December 31, 2024 [50]. - Deferred revenue - current as of March 31, 2025, was $183.7 million, slightly up from $183.6 million as of December 31, 2024 [42]. - The Company recorded a $2.1 million increase in liabilities related to long-term inventory loans for the three months ended March 31, 2025 [60]. Stock and Financing - The Company issued common stock worth $25.2 million in Q1 2025, compared to $7.1 million in Q1 2024 [29]. - Average number of common shares outstanding increased to 16,982 thousand in Q1 2025 from 15,906 thousand in Q1 2024 [27]. - The Company sold 258,197 shares of Class A Common Stock for $26.1 million in the three months ended March 31, 2025, and 176,628 shares for $7.4 million in the same period of 2024 [85]. - The Company filed a shelf registration statement allowing it to offer and sell up to $200.0 million in securities, effective July 10, 2023 [84]. - The Company issued $402.5 million in 2.25% Convertible Notes on November 7, 2024, with no required principal payments prior to maturity [65]. - The carrying amount of the 2.25% Convertible Notes as of March 31, 2025, was $389.5 million, net of unamortized debt discounts and issuance costs [66]. - The Company had $74.3 million in 8.25% Notes, which were fully redeemed on March 26, 2025, resulting in a gain of $11.8 million [63]. - The carrying value of the 8.25% Notes is $0 due to redemption, while the carrying value of the 2.25% Convertible Notes is $389.5 million, net of $13.0 million in unamortized debt issuance costs [76]. Contracts and Agreements - The HALEU Operation Contract has a modified Phase 2 contract value of approximately $152.3 million, with a target fee estimated at $7.7 million [47]. - The Company recorded aggregate cash payments of $145.8 million under the HALEU Operation Contract through March 31, 2025 [48]. - The HALEU Demonstration Contract has been funded by the DOE up to $173.0 million, with cash payments received totaling $171.2 million through March 31, 2025 [45]. - The Technical Solutions segment's remaining performance obligations were approximately $23.4 million as of March 31, 2025, down from $28.0 million as of December 31, 2024 [52]. - The TENEX Supply Contract allows the Company to purchase SWU with commitments that could extend to 2028, subject to market-related pricing adjustments [95][96]. - The Orano Supply Agreement for SWU runs through 2030, providing flexibility to adjust purchase volumes with pricing determined by a market-related formula [99]. - The Company has entered into a Sixth Amendment to the Section 382 Rights Agreement, extending the Final Expiration Date to June 30, 2026 [90]. Employee and Operational Factors - The company’s ability to attract and retain qualified personnel is critical for potential operational expansion [21].

Financial Data and Key Metrics Changes - Centrus Energy reported revenue of $73.1 million for Q1 2025, an increase of $29.4 million compared to Q1 2024 [19][20] - The company achieved a net income of $27.2 million, a significant improvement from a net loss of $6.1 million in the same quarter last year [19][20] - Gross profit for the quarter was $32.9 million, compared to $4.3 million in Q1 2024 [19][20] - The cash balance at the end of Q1 2025 was $685.7 million, including $32.7 million of restricted cash [24] Business Line Data and Key Metrics Changes - The LEU segment generated $51.3 million in SWU revenue, an increase of $27.7 million year-over-year, driven by higher volume and average price per SWU sold [20] - The LEU cost of sales for SWU decreased from $23.1 million in Q1 2024 to $20.1 million in Q1 2025, reflecting a 48% decrease in average unit cost [20] - The Technical Solutions segment reported revenue of $21.8 million, up $1.7 million from the previous year, but gross profit decreased to $1.7 million due to delays in obtaining storage cylinders [21][22] Market Data and Key Metrics Changes - The total company backlog was $3.8 billion as of March 31, 2025, with the LEU segment backlog at approximately $2.8 billion [22] - The LEU segment backlog includes $700 million of future SWU and uranium deliveries and $2.1 billion in contingent LEU sales commitments [22] Company Strategy and Development Direction - Centrus aims to secure sufficient public and private capital to expand its enrichment capacity and restore America's uranium enrichment capability [11][19] - The company is pursuing four parallel readiness initiatives, including strengthening its balance sheet and expanding centrifuge manufacturing capacity [12][13] - Centrus emphasizes the importance of reducing dependency on foreign nations and increasing competition in the market for enriched uranium [26][28] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty in the global trade environment but reported no impact on operations from tariffs [8][10] - The company is optimistic about the Department of Energy's plans to award $2.7 billion for fuel awards, indicating a positive momentum [31][32] - There is a clear market demand for enriched uranium, particularly for national security purposes and the upcoming advanced reactor markets [18][19] Other Important Information - Centrus is the only company currently enriching uranium with U.S.-owned technology and has a domestic supply chain [7][26] - The company has received political support for its initiatives, with bipartisan backing from local and federal officials [16][17] Q&A Session Summary Question: Update on Department of Energy activity - Management indicated that the DOE is moving quickly and plans to award $2.7 billion, with a lot of activity and momentum observed [31][32] Question: Status of Russian shipment activity - Management confirmed that the process for Russian shipments remains unchanged, with normal business operations continuing [33] Question: Licensing for HALEU production - Management explained that obtaining a HALEU license is a lengthy and costly process, taking years and requiring significant investment [36][37] Question: Timing of SWU and uranium sales - Management noted that customer reloads typically occur every 18 to 24 months, which drives revenue timing [67] Question: Impact of tariffs on customer discussions - Management stated that there have been no disruptions from tariffs, and their supply chain is fully domesticated, reducing exposure compared to competitors [57][58] Question: Dynamics of SWU cost decrease - Management clarified that the 48% decrease in SWU costs was influenced by increased volume and average costing practices [75][77] Question: Competitive landscape for HALEU production - Management highlighted that Centrus is the only facility with a CAT II license for HALEU enrichment, emphasizing their first-mover advantage [80][82]

Financial Data and Key Metrics Changes - Centrus reported revenue of $73.1 million for Q1 2025, an increase of $29.4 million compared to Q1 2024 [18] - The company achieved a net income of $27.2 million, compared to a net loss of $6.1 million in the same quarter last year [18] - Gross profit for the quarter was $32.9 million, significantly up from $4.3 million in Q1 2024 [19] - The cash balance at the end of Q1 2025 was $685.7 million, including $32.7 million of restricted cash [23] Business Line Data and Key Metrics Changes - The LEU segment generated $51.3 million in SWU revenue, an increase of $27.7 million year-over-year [19] - The LEU cost of sales for SWU decreased from $23.1 million in Q1 2024 to $20.1 million in Q1 2025, driven by a 48% decrease in the average unit cost of SWU sold [19][20] - The Technical Solutions segment reported revenue of $21.8 million, up $1.7 million from the previous year, but gross profit decreased to $1.7 million due to delays in obtaining storage cylinders [20][21] Market Data and Key Metrics Changes - The total company backlog was $3.8 billion as of March 31, 2025, with the LEU segment backlog at approximately $2.8 billion [21] - The LEU segment backlog includes $700 million of future SWU and uranium deliveries and $2.1 billion in contingent LEU sales commitments [21] Company Strategy and Development Direction - Centrus aims to secure sufficient public and private capital to expand its enrichment capacity and restore America's uranium enrichment capability [11][24] - The company is pursuing four parallel readiness initiatives, including strengthening its balance sheet and expanding centrifuge manufacturing capacity [12][13] - Centrus emphasizes the importance of reducing dependency on foreign nations and increasing competition in the nuclear energy market [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty in the global trade environment but reported no impact on operations from tariffs [7][10] - The company is confident in its investment case as the only publicly traded enricher capable of meeting commercial and national security needs [11][24] - There is a growing market for enriched uranium, particularly for national security purposes and advanced reactor markets [17] Other Important Information - Centrus has received political support for its initiatives, with bipartisan advocacy for funding to support American jobs and technology [15][16] - The company has a strong first mover advantage in domestic centrifuge production, with all manufacturing conducted in the U.S. [25] Q&A Session Summary Question: Update on Department of Energy activity - Management reported that the DOE is moving quickly and planning to award $2.7 billion, indicating positive momentum [31] Question: Status of Russian shipment activity - There have been no changes in the process, and shipments are proceeding normally without impediments [32] Question: Licensing for HALEU production - Obtaining a HALEU license is a lengthy and costly process, taking years and requiring significant investment [36] Question: Timing of SWU and uranium sales - Management indicated that customer reloads typically occur every 18 to 24 months, which drives revenue timing [68] Question: Impact of tariffs on customer discussions - To date, there have been no impacts from tariffs, and the supply chain remains fully domesticated [57] Question: Competitive landscape for HALEU production - Centrus is currently the only facility with a CAT II license for HALEU enrichment, providing a significant competitive advantage [84]

Core Viewpoint - Centrus Energy Corp. reported quarterly earnings of $0.91 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.10 per share, marking an earnings surprise of 1,010% [1] - The company also posted revenues of $73.1 million for the quarter, surpassing the Zacks Consensus Estimate by 11.66% and showing a year-over-year increase from $43.7 million [2] Financial Performance - The earnings report indicates that Centrus Energy has surpassed consensus EPS estimates three times over the last four quarters [2] - The company’s previous quarter earnings were $3.20 per share, against an expectation of $1.06, resulting in a surprise of 201.89% [1] - The current consensus EPS estimate for the upcoming quarter is $0.85, with projected revenues of $124.68 million, and for the current fiscal year, the estimate is $2.31 on revenues of $426.5 million [7] Market Position - Centrus Energy shares have increased by approximately 11.8% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] - The Mining - Non Ferrous industry, to which Centrus Energy belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current estimate revisions trend for Centrus Energy is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - Centrus reported a net income of $27.2 million for Q1 2025, compared to a net loss of $6.1 million in Q1 2024, representing a significant turnaround [5]. - Total revenue for Q1 2025 was $73.1 million, an increase of $29.4 million (or 67%) from $43.7 million in Q1 2024 [4]. - The gross profit for Q1 2025 was $32.9 million, a substantial increase of $28.6 million (or 665%) from $4.3 million in Q1 2024 [9]. - Operating income for Q1 2025 was $20.5 million, a turnaround from an operating loss of $10.6 million in Q1 2024 [24]. - Net income for Q1 2025 was $27.2 million, compared to a net loss of $6.1 million in Q1 2024, reflecting a strong recovery [24]. - The company reported earnings per share of $1.60 for Q1 2025, compared to a loss per share of $0.38 in Q1 2024 [24]. - Cash provided by operating activities increased to $36.5 million in Q1 2025, compared to $5.3 million in Q1 2024 [25]. Revenue Segments - Revenue from the LEU segment increased by $27.7 million (or 117%) to $51.3 million in Q1 2025, driven by a 46% increase in the average price and a 49% increase in volume of SWU sold [4]. - Separative work units revenue increased to $51.3 million in Q1 2025 from $23.6 million in Q1 2024, showing strong demand [24]. - Technical solutions revenue rose to $21.8 million in Q1 2025, slightly up from $20.1 million in Q1 2024 [24]. Financial Position - The company maintains a consolidated cash balance of $653.0 million as of March 31, 2025, providing a solid financial foundation for future operations [5]. - Total current assets rose to $1,222.7 million as of March 31, 2025, up from $1,015.2 million at the end of 2024, reflecting a growth of approximately 20.5% [26]. - Total liabilities increased to $1,080.0 million as of March 31, 2025, up from $932.0 million at the end of 2024, representing a growth of 15.9% [26]. - Stockholders' equity improved to $213.9 million in Q1 2025, compared to $161.4 million at the end of 2024, an increase of 32.5% [26]. Debt Management - The company retired $74.3 million of higher-interest rate debt, resulting in a gain of $11.8 million in Q1 2025 [5]. - Long-term debt decreased to $389.5 million as of March 31, 2025, down from $472.5 million at the end of 2024, a reduction of 17.6% [26]. Inventory and Receivables - Inventories increased significantly to $429.6 million in Q1 2025, compared to $161.6 million in Q4 2024, marking a rise of 165.2% [26]. - The company reported a significant increase in accounts receivable, which rose to $38.7 million in Q1 2025 from $80.0 million in Q4 2024 [26]. Future Prospects - Centrus has been awarded contracts with a maximum aggregate value of $2.7 billion for HALEU production, indicating strong future revenue potential [13]. - Centrus is positioned to expand domestic nuclear fuel production with $3.4 billion in federal funding, emphasizing the importance of U.S.-owned technology and supply chains [3]. - The backlog for Centrus stood at $3.8 billion as of March 31, 2025, with the LEU segment backlog approximately $2.8 billion [16].

Core Viewpoint - Centrus Energy Corp reported strong financial results for Q1 2025, with significant revenue growth and a return to profitability, positioning itself favorably for future expansion in the domestic nuclear fuel market [1][2][11]. Financial Results - The company generated total revenue of $73.1 million in Q1 2025, a 67% increase from $43.7 million in Q1 2024 [3]. - Revenue from the LEU segment rose to $51.3 million, up 117% from $23.6 million in the previous year, driven by a 46% increase in the average price and a 49% increase in volume of SWU sold [3]. - The Technical Solutions segment saw revenue increase to $21.8 million, an 8% rise from $20.1 million, primarily due to a $2.0 million increase from the HALEU Operation Contract [4]. - Cost of sales for the LEU segment decreased by 13% to $20.1 million, while costs for the Technical Solutions segment increased by 23% to $20.1 million [5][6]. - Gross profit surged to $32.9 million, a 665% increase from $4.3 million in Q1 2024, with the LEU segment contributing $31.2 million [7][8]. Operational Highlights - Centrus continues to produce HALEU at its American Centrifuge Plant in Piketon, Ohio, achieving cumulative deliveries of approximately 670 kilograms of HALEU UF6 to the DOE as of March 31, 2025 [10]. - The company has a backlog of $3.8 billion as of March 31, 2025, with $2.8 billion in the LEU segment and $0.9 billion in Technical Solutions [16]. Debt Management - The company redeemed its 8.25% Notes at a total cost of $74.3 million, resulting in a gain of $11.8 million in Q1 2025 [11][15]. Funding and Contracts - Centrus is well-positioned to leverage $3.4 billion in federal funding for domestic nuclear fuel production, emphasizing the importance of U.S.-owned technology and supply chains [2][14]. - The DOE has increased the Phase 2 contract value for the HALEU Operation Contract to $152.3 million, extending the performance period to June 30, 2025 [12]. Company Overview - Centrus Energy Corp is a supplier of nuclear fuel components and services, focusing on restoring America's uranium enrichment capabilities to meet clean energy and national security needs [17].

Core Insights - The nuclear energy sector has shown positive momentum in 2025, highlighted by a 13% year-to-date increase in the VanEck Uranium and Nuclear Energy ETF (NLR) as of early February [2] Group 1: Industry Performance - The nuclear energy sector is experiencing growth, as indicated by the significant rise in the NLR ETF [2] Group 2: Key Personnel - The analysis is led by Manika Premsingh, a macroeconomist with over 20 years of experience in investment management, stock broking, and investment banking [2]

Group 1 - Centrus Energy Corp. is participating in several upcoming investor conferences, including the Morgan Stanley Energy & Power Conference, UBS Nuclear Virtual Conference, Roth Conference, and UBS Global Energy and Utilities Conference [1][5] - The company is a trusted supplier of nuclear fuel and services, having provided over 1,850 reactor years of fuel since 1998, equivalent to more than 7 billion tons of coal [2] - Centrus is focused on producing High-Assay, Low-Enriched Uranium and aims to restore America's uranium enrichment capabilities to meet clean energy and national security needs [3]

Core Insights - Centrus Energy is experiencing significant revenue growth, an increasing backlog, and strategic partnerships that position the company to benefit from the nuclear revolution [1] - The company reported a strong earnings beat, resulting in a stock price increase of over 30% [1] Company Performance - Centrus Energy's recent earnings report showed a substantial performance improvement, contributing to its stock surge [1] - The company is part of a diversified portfolio aimed at securing reliable investments in various market conditions [1] Strategic Positioning - The strategic partnerships formed by Centrus Energy are expected to enhance its market position within the nuclear industry [1] - The company's growth trajectory aligns with the broader trend of increasing interest in nuclear energy solutions [1]