Financial Data and Key Metrics Changes - For the full year 2025, the company achieved revenue of $448.7 million, a gross profit of $117.5 million, and a net income of $77.8 million, marking a $6.7 million or 1.5% increase in revenue compared to 2024 [5][14] - The LEU segment generated $346.2 million in 2025, relatively flat compared to $349.9 million in 2024, while uranium revenue decreased by 54% year-over-year to $55.6 million [14][15] - SWU revenue increased by 21% year-over-year, amounting to $51.9 million, driven by a 23% increase in the volume of SWU sold [14] - The technical solutions segment delivered $102.5 million in 2025, an increase of $10.4 million or 11% over 2024 levels [15] Business Line Data and Key Metrics Changes - The LEU segment's cost of sales decreased by $21.3 million or 8% to $234.7 million, resulting in a gross profit increase of $17.6 million or roughly 19% to $111.5 million [15] - The technical solutions segment's cost of sales increased by $22 million or 30% to $96.5 million, leading to a gross profit decrease of $11.6 million or 66% to $6 million [16] Market Data and Key Metrics Changes - Near-term domestic LEU demand is set to increase by approximately 6.5 million SWUs due to Russia exiting the market and additional demand from restarts, upgrades, and new pledged reactors [7] - The LEU pricing curve has experienced a 24% compound annual growth rate from 2019 to 2025, indicating a constrained market and pent-up demand [7] Company Strategy and Development Direction - The company is focused on building both LEU and HALEU capacity to meet future enrichment needs, positioning itself as a key player in the market [22] - The company aims to capitalize on its first mover advantage in the global HALEU market and is actively pursuing additional low-cost capital [10][23] - The company plans to have HALEU production online before the end of the decade, producing 12 metric tons of HALEU per year thereafter [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the projected gap between supply and demand for both domestic and foreign utilities continues to widen, with increasing demand expected as the U.S. seeks to enhance energy security [22] - The company is optimistic about the future, citing strong engagement from potential customers and the importance of the $900 million HALEU Enrichment Award [19][23] Other Important Information - The total company backlog stood at $3.8 billion as of December 31, 2025, with the LEU segment backlog approximately $2.9 billion [17] - The company ended the year with an unrestricted cash balance of approximately $2 billion, providing flexibility for future investments [18] Q&A Session Summary Question: Timeline for improving the 42-month forecast - Management emphasized the importance of execution and continuous improvement to reduce unit costs and improve timelines, with dedicated resources working on this [25][26] Question: Commercialization timeline for LEU and HALEU - Management indicated that the backlog of LEU commitments is crucial and they are progressing towards fulfilling these commitments [29][31] Question: CapEx guidance and linearity throughout the year - Management explained that the initial year of CapEx includes long lead procurement and prepayments, and future years are expected to be more linear [39] Question: Achieving End-of-a-Kind costs - Management clarified that End-of-a-Kind costs will be achieved before reaching 3 million SWUs, which is a significant milestone [43][44] Question: Government discussions on Russian imports - Management noted that while there is significant demand anticipated, there are no current updates from the government regarding the January 1, 2028 cutoff for Russian imports [49][50] Question: Contract dynamics for long-term supply arrangements - Management stated that while the guidance is flat, there is potential upside due to improving market conditions and contracted supply from foreign sources [54][55] Question: Timeline for initial enrichment capacity and de-risking - Management highlighted that they are actively working on lead times and supply chain configurations to expedite production timelines [59][60] Question: HALEU production target and market demand - Management confirmed that the HALEU production target aligns with market demand and DOE task orders, with ongoing discussions with OEMs [65][66] Question: Sourcing strategy for LEU feed for HALEU - Management indicated that they aim to maximize the capacity of their facility and optimize contracts to provide both LEU and HALEU enrichment [92][94]

Industry Trend - The Trump Administration aims to recover and regain control over the nuclear and energy sectors, viewing energy as a catalyst for economic activity [1] - The US has lost its competitive advantage in nuclear enrichment due to regulatory actions over the past 50 years [1] Risk Assessment - The US now possesses virtually no commercial enrichment capacity [1] - Without investment in nuclear enrichment, US AI dominance and energy independence are at risk, according to ARK Invest [1]

Geopolitical Assessment - A new US assessment indicates that American strikes on Iran last month only destroyed one of three nuclear sites [1] - The other two sites were not as badly damaged and nuclear enrichment could resume there in the next several months [1] US Response & Strategy - US Central Command developed a more comprehensive plan to strike Iran, but President Trump rejected it [2] - The rejected plan would have lasted weeks and involved hitting three additional sites [2] Official Statements - A Pentagon spokesperson stated that Iran's nuclear facilities at the three sites were "completely obliterated" [2]

Geopolitical Implications - US military strikes on Iran's nuclear facilities were declared a complete success by President Trump, aiming to destroy Iran's nuclear enrichment capacity and stop the nuclear threat [1] - The US actions have been criticized by Chinese and Russian envoys to the UN as a violation of the UN Charter, international law, and Iran's sovereignty, exacerbating tensions in the Middle East [4] - There are potential repercussions and unknown catastrophes resulting from the attacks on Iran's nuclear sites [5] Nuclear Program Impact - Iran's key nuclear enrichment facilities have been claimed to be completely obliterated, though independent analysis is pending confirmation [2] - The Iranian nuclear weapons program has suffered a major blow, potentially setting it back by months or years [8] - Prior Israeli actions significantly damaged Iran's key weapons building capabilities, including facilities, equipment, documentation, and scientists [8][9] Damage Assessment - Satellite images show new craters, possible collapsed tunnel entrances, and holes at the Fordo nuclear site [2] - A large support building, potentially used for ventilation of underground enrichment halls, appears undamaged [3] - The IAEA has detected no release of radiation from the site [3]

Geopolitical Risks - US bombers struck Iran's three main nuclear sites, escalating the conflict with Israel [1] - President Trump announced the obliteration of Iran's key nuclear enrichment facilities and threatened further attacks [1] - Iran's foreign minister warned of everlasting consequences following the US strike [2] - The US strike raises the possibility of a broader regional conflict, with potential impact on US assets [2] - Iran retaliated by firing more missiles towards Israel [3] Military and Security - The US has approximately 50,000 service members stationed across the region [2] - The US State Department began evacuating US citizens from Israel prior to the attack [3] Nuclear Safety and Regulation - Iran's nuclear regulatory agency reported no signs of radiation contamination at the targeted sites [1] - The IAEA nuclear watchdog reported no increase in off-site radiation levels [1]

Geopolitical Actions - Israel targeted the heart of Iran's nuclear enrichment program [1] - Israel targeted the heart of Iran's nuclear weaponization program [1] - Israel targeted Iran's main enrichment facility in Natanz [2] - Israel targeted Iran's leading nuclear scientists working on the Iranian bomb [2] - Israel also struck at the heart of Iran's ballistic missile program [2] Stated Policy - Israel will never allow those who call for its annihilation to develop the means to achieve that goal [1] - Israel backs those words with action [1]