Centrus Energy (US:LEU)2025-11-05 22:05Financial Performance - Centrus reported a net income of $3.9 million for Q3 2025, compared to a net loss of $5.0 million in Q3 2024, marking a significant turnaround [2][5]. - Total revenue for Q3 2025 was $74.9 million, an increase of $17.2 million (or 30%) from $57.7 million in Q3 2024 [4][5]. - Revenue from the LEU segment increased to $44.8 million, up $10.0 million (or 29%) from $34.8 million in Q3 2024 [6]. - Revenue from the Technical Solutions segment rose to $30.1 million, an increase of $7.2 million (or 31%) primarily due to the HALEU production contract with the DOE [7]. - Total revenue for Q3 2025 was $74.9 million, a 29.9% increase from $57.7 million in Q3 2024 [23]. - Revenue from separative work units decreased to $10.7 million in Q3 2025 from $34.8 million in Q3 2024, representing a 69.3% decline [23]. - Technical solutions revenue increased to $30.1 million in Q3 2025, up 31.4% from $22.9 million in Q3 2024 [23]. - Gross loss for Q3 2025 was $4.3 million compared to a gross profit of $8.9 million in Q3 2024 [23]. - Operating loss for the nine months ended September 30, 2025, was $16.6 million, compared to a loss of $7.6 million for the same period in 2024 [23]. - Net income for the nine months ended September 30, 2025, was $60.0 million, significantly up from $19.5 million in the same period of 2024 [23]. - Basic net income per share for Q3 2025 was $0.21, compared to a loss of $0.30 per share in Q3 2024 [23]. Cash and Assets - The company's unrestricted cash balance increased to $1.6 billion following a successful $805 million convertible senior notes offering [5][12]. - Cash provided by operating activities was $99.4 million, compared to cash used in operating activities of $20.9 million in the prior year, indicating a positive turnaround [24]. - Total assets increased to $2,244.9 million as of September 30, 2025, up from $1,093.4 million at the end of 2024, reflecting a growth of 105.3% [25]. - Cash and cash equivalents rose to $1,631.8 million, compared to $671.4 million at the end of 2024, marking an increase of 142.7% [25]. - Inventories increased to $416.3 million as of September 30, 2025, compared to $161.6 million at the end of 2024, reflecting a growth of 157.5% [25]. Costs and Expenses - Cost of sales for the LEU segment increased to $52.6 million, up $23.0 million (or 78%) from $29.6 million in Q3 2024, primarily due to higher uranium sales volume [8]. - Total cost of sales for Q3 2025 was $79.2 million, up from $48.8 million in Q3 2024, reflecting a 62.3% increase [23]. - The gross profit for the LEU segment resulted in a loss of $7.8 million, a change of $13.0 million (or 250%) compared to a profit of $5.2 million in Q3 2024 [10]. Debt and Equity - Long-term debt increased to $1,173.5 million from $472.5 million, indicating a rise of 148.1% [25]. - Total stockholders' equity improved to $363.1 million, up from $161.4 million, representing an increase of 125.0% [25]. - Proceeds from the issuance of common stock, net, were $139.7 million, significantly higher than $23.4 million in the previous year [24]. - The company reported a gain on extinguishment of 8.25% Notes amounting to $11.8 million [24]. Operational Developments - Centrus secured U.S. government waivers for 2026 and 2027 Russian committed deliveries, enhancing its operational stability [5][3]. - The company's backlog reached $3.9 billion as of September 30, 2025, with the LEU segment backlog approximately $3.0 billion [13]. - Centrus announced plans for job hiring ahead of the planned expansion of its enrichment plant, indicating growth initiatives [5]. - Capital expenditures for the nine months ended September 30, 2025, were $10.1 million, compared to $3.4 million in the same period of 2024 [24].