Centrus Reports Second Quarter 2024 Results

Financial Performance - The company reported a net income of $30.6 million for Q2 2024, compared to $12.7 million in Q2 2023, reflecting a significant increase in profitability [1][22] - Total revenue for Q2 2024 was $189.0 million, up from $98.4 million in Q2 2023, marking an increase of $90.6 million [3][21] - Gross profit for the company increased to $36.5 million in Q2 2024 from $28.0 million in Q2 2023, driven by higher sales volume and favorable contract pricing [8][21] Segment Performance - Revenue from the LEU segment was $169.6 million in Q2 2024, up from $87.6 million in Q2 2023, an increase of $82.0 million [4] - The Technical Solutions segment generated $19.4 million in revenue for Q2 2024, compared to $10.8 million in Q2 2023, reflecting an increase of $8.6 million [5] Cost Structure - Cost of sales for the LEU segment rose to $136.6 million in Q2 2024 from $60.8 million in Q2 2023, primarily due to increased sales volume and higher average unit costs [6] - The Technical Solutions segment's cost of sales increased to $15.9 million in Q2 2024 from $9.6 million in Q2 2023, attributed to the transition from Phase 1 to Phase 2 of the HALEU Operation Contract [7] Operational Developments - The company secured a waiver from the U.S. Department of Energy under the Prohibiting Russian Imports Act, allowing it to cover U.S. customer deliveries under a Russian supply contract for 2024 and 2025 [1][12] - Centrus began enrichment operations at its American Centrifuge Plant in October 2023 and completed Phase 1 of the HALEU Operation Contract ahead of schedule [9] Backlog and Future Opportunities - The company's backlog stood at $2.7 billion as of June 30, 2024, with the LEU segment backlog approximately $1.7 billion and the Technical Solutions segment backlog around $1.0 billion [15] - The U.S. Department of Energy has issued RFPs for domestic nuclear fuel production, with over $3.4 billion in appropriations, presenting a significant opportunity for the company [2][11] Pension and Financial Position - The company annuitized $234 million of pension plan obligations, resulting in a $16.6 million settlement gain and a 79% reduction in pension liabilities [13][14] - As of June 30, 2024, the consolidated cash balance was $227.0 million, reflecting a strong liquidity position [1][26]