Centrus Energy (LEU) - 2025 Q2 - Quarterly Results

Centrus Second Quarter 2025 Results Financial & Operational Highlights The company reported a net income of $28.9 million on revenues of $154.5 million and completed a key HALEU delivery to the DOE Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $154.5 million | $189.0 million | | Net Income | $28.9 million | $30.6 million | | EPS (Basic) | $1.63 | $1.89 | | EPS (Diluted) | $1.59 | $1.89 | | Cash Balance (as of June 30) | $833.0 million | N/A | - Successfully completed Phase 2 of the HALEU Operation Contract by delivering 900 kilograms of HALEU to the Department of Energy[3][5] - The DOE exercised a portion of Phase 3 of the HALEU Operation Contract, valued at approximately $110.0 million, with a performance period through June 30, 2026[3][5] - CEO Amir Vexler highlighted the company's strong revenue and margins and the successful preparations for future enrichment build-out[2] Detailed Financial Performance Total revenue decreased 18% due to a decline in the LEU segment, but gross profit significantly increased by 48% to $53.9 million Overall Financial Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $154.5M | $189.0M | -18% | | Gross Profit | $53.9M | $36.5M | +48% | LEU Segment Performance LEU segment revenue fell 26% due to lower sales volumes, but gross profit rose 54% driven by favorable contract composition LEU Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $125.7M | $169.6M | -26% | | Cost of Sales | $75.0M | $136.6M | -45% | | Gross Profit | $50.7M | $33.0M | +54% | - The decrease in revenue was driven by lower volumes of uranium sold and a 27% decrease in SWU volume, partially offset by a 24% increase in the average SWU price[6] Technical Solutions Segment Performance Technical Solutions revenue grew 48% to $28.8 million, primarily driven by the HALEU Operation Contract with the DOE Technical Solutions Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $28.8M | $19.4M | +48% | | Cost of Sales | $25.6M | $15.9M | +61% | | Gross Profit | $3.2M | $3.5M | -9% | - The increase in revenue and costs is primarily attributable to the HALEU Operation Contract with the Department of Energy[7][9] Business Updates & Outlook The company raised $114.0 million from an equity offering and reported a total order backlog of $3.6 billion as of June 30, 2025 - Raised approximately $114.0 million in net proceeds from an at-the-market equity offering for general corporate purposes[12] Domestic Enrichment (HALEU) Update Centrus met its Phase 2 HALEU delivery target, triggering the DOE to exercise a contract option extending performance to June 2026 - Achieved the production target for Phase 2 of the HALEU Operation Contract by delivering 900 kilograms of HALEU to the DOE[14] - The DOE exercised Option 1a of the contract, extending the period of performance to June 30, 2026, valued at approximately $108 million[13] Order Backlog The company's total order backlog stood at $3.6 billion, with the LEU segment comprising $2.7 billion of the total Backlog as of June 30, 2025 | Segment | Backlog Value | | :--- | :--- | | LEU Segment | ~$2.7 billion | | Technical Solutions Segment | ~$0.9 billion | | Total Backlog | $3.6 billion | - The LEU backlog includes approximately $2.1 billion in contingent sales commitments to support potential LEU production capacity construction, which depends on securing substantial investment[15] - In July 2025, the company secured an additional $0.1 billion LEU contingent sales commitment[16] Consolidated Financial Statements The statements show a net income of $28.9 million for Q2 2025 and a significant increase in cash to $833.0 million Consolidated Statements of Operations Q2 2025 revenue decreased to $154.5 million, but gross profit and operating income increased significantly year-over-year Q2 Statement of Operations Highlights (in millions) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $154.5 | $189.0 | | Gross profit | $53.9 | $36.5 | | Operating income | $33.5 | $21.1 | | Net income | $28.9 | $30.6 | Consolidated Statements of Cash Flows Net cash from operations for the first six months was $89.3 million, contributing to a total net cash increase of $143.0 million Six-Month Cash Flow Summary (in millions) | Cash Flow Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $89.3 | $12.3 | | Cash from Investing Activities | $(5.7) | $(2.4) | | Cash from Financing Activities | $59.6 | $16.0 | | Net Increase in Cash | $143.0 | $25.8 | Consolidated Balance Sheets Total assets grew to $1,314.8 million, and stockholders' equity more than doubled to $359.1 million as of June 30, 2025 Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $833.0 | $671.4 | | Total current assets | $1,250.6 | $1,015.2 | | Total assets | $1,314.8 | $1,093.4 | | Total current liabilities | $482.2 | $346.8 | | Total liabilities | $955.7 | $932.0 | | Total stockholders' equity | $359.1 | $161.4 | Forward-Looking Statements & Risk Factors The company outlines numerous risks including geopolitical conflicts, sanctions on Russian LEU, and reliance on government contracts - The report contains forward-looking statements that are not guarantees of future performance and involve known and unknown risks[20] - Significant risks include geopolitical conflicts, sanctions, and laws like the "Prohibiting Russian Uranium Imports Act" that could impact the ability to import LEU under the TENEX supply contract[21] - The company faces risks related to securing government funding and demand for HALEU, performing under the HALEU Operation Contract, and the potential inability to operate the HALEU facility after the contract's completion[22]