Centrus Energy's Revenues Slip 2% in 1H25: Recovery Ahead?

Core Insights - Centrus Energy (LEU) reported total revenues of $227.6 million in the first half of 2025, reflecting a 2% decline year over year, primarily due to lower results in its Low-Enriched Uranium segment, which experienced no uranium sales during this period. This decline offset a 66% increase in revenues from the Technical segment [1][10]. Low-Enriched Uranium Segment - The Low-Enriched Uranium segment generated revenues of $177 million in the first half of 2025, an 8% decline year over year. This was mainly due to the absence of uranium sales, which were $29.9 million in the first half of 2024. The SWU revenues were $177 million, an 8% increase from $163 million in the same period of 2024, driven by a 24% increase in average price, despite a 12% decrease in sales volume [2][10]. Technical Segment Performance - The Technical segment's revenues surged by 66%, contributing significantly to the overall revenue despite the decline in the Low-Enriched Uranium segment. This growth indicates strong demand and performance in technical services [1][10]. Market Dynamics - Uranium prices have been under pressure earlier in the year but surged to $83.50 per pound in September, the highest in nearly a year, driven by expectations of expanded nuclear power capacity and strategic reserve boosts by the U.S. and India [4][5]. - The U.S. and U.K. governments signed the Technology Prosperity Deal to accelerate reactor approvals and reduce dependency on Russian nuclear fuel by 2028, which may further influence uranium demand and pricing [5]. Future Revenue Projections - Centrus Energy's revenues for 2025 are projected to reach $454 million, indicating a 2.75% increase year over year, supported by anticipated strength in the SWU and Technical segments, as well as expected uranium sales in the latter half of the year [6][10]. Peer Comparison - Energy Fuels Inc. reported a 38% decline in revenues to $21 million in the first half of 2025, primarily due to lower uranium sales. In contrast, Cameco's revenues increased by 35% year over year to CAD 1,666 million ($1,184 million), with uranium revenues up 27% [7][9].