Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $371 million or $0.56 per unit, a 10% increase year over year, driven by strong hydro generation and growth initiatives [19][21] - FFO per unit is expected to continue growing at a target of over 10% for the year [10] - The company ended the quarter with $4.7 billion of available liquidity, indicating strong financial flexibility [21][22] Business Line Data and Key Metrics Changes - The hydroelectric segment saw FFO increase by over 50% from the prior year, benefiting from strong performance in the U.S. and Colombian fleets [19][20] - The Distributed Energy, Storage, and Sustainable Solutions segments delivered FFO growth of almost 40% year over year, driven by Westinghouse's performance [21] - Wind and solar segments reported flat FFO compared to the prior year due to asset dispositions and gains from the previous year [20] Market Data and Key Metrics Changes - The company has a robust pipeline of over 230 gigawatts of projects, including significant battery storage solutions [9] - The demand for energy is described as exceptionally strong, with a significant supply-demand imbalance across regions [8][9] - The company anticipates bringing on approximately 8 gigawatts of new renewable energy capacity in 2025, which would be a record for the business [10] Company Strategy and Development Direction - The company is focusing on expanding its capabilities in low-cost wind and solar generation while emphasizing critical technologies like hydro, nuclear, and batteries [15][16] - A recent Hydro Framework Agreement with Google aims to deliver up to 3 gigawatts of hydroelectric capacity, reflecting the company's strategic partnerships with major power buyers [13][14] - The company plans to continue investing in critical technologies to support growing energy demand and grid reliability [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in securing tax credit eligibility for nearly all U.S. projects through 2029, despite potential regulatory changes [7][36] - The outlook for the business remains robust, driven by strong demand for power and the need for diverse energy generation solutions [11][12] - Management highlighted the increasing sophistication of large tech companies in their energy procurement strategies, seeking reliable baseload power [31][32] Other Important Information - The company successfully completed $19 billion of financings year to date, optimizing its capital structure [22][23] - The acquisition of a 15% stake in the Colombian hydro platform Isahen is expected to be approximately 2% accretive to FFO in 2026 [16] Q&A Session Summary Question: Can you accelerate the pace of development in light of the recent PJM auction results? - Management indicated that the results reflect a supply-demand imbalance and they are pulling projects forward as quickly as possible while leveraging M&A capabilities [26][27] Question: What is the hydro M&A environment in the U.S.? - Management noted that the hydro market is becoming more liquid, and they are well-positioned to pursue opportunities that fit their framework agreements [40][41] Question: How are you adapting to challenges in the U.S. market? - Management emphasized the importance of interconnection speed in development activities and their ongoing strategy to prioritize regions with better procurement capabilities [46][47] Question: What are the key milestones for nuclear development? - Management highlighted the focus on new build nuclear projects in the U.S. and the significant demand expected from both government and corporate sectors [68][70] Question: How have discussions with tech companies changed regarding new facilities? - Management noted an increased appetite for diverse energy solutions beyond wind and solar, with a focus on broader relationships with tech companies [78][79] Question: Has the M&A market for renewable developers changed due to tax credit changes? - Management observed subdued M&A activity due to market uncertainty but expects significant increases in the coming year due to high demand for power [82][83]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $371 million or $0.56 per unit, representing a 10% year-over-year increase driven by strong hydro generation and growth initiatives [16] - FFO per unit is expected to continue growing at a target rate of over 10% for the year [6] - The company ended the quarter with $4.7 billion of available liquidity, indicating strong financial flexibility [18] Business Line Data and Key Metrics Changes - The hydroelectric segment saw FFO increase by over 50% from the prior year, attributed to strong performance from U.S. and Colombian fleets [16] - The Distributed Energy, Storage, and Sustainable Solutions segments delivered FFO growth of almost 40% year-over-year, driven by Westinghouse's performance in the nuclear sector [18] - Wind and solar segments experienced flat FFO compared to the prior year due to asset dispositions and gains from the previous year [17] Market Data and Key Metrics Changes - The company has commissioned 2.1 gigawatts of new renewable energy capacity in the quarter and anticipates bringing on approximately 8 gigawatts in 2025, a record for the business [7] - The company is witnessing a significant supply-demand imbalance for energy across its operational regions, necessitating substantial expansion in energy generation [5] Company Strategy and Development Direction - The company is focusing on a safe harboring strategy to secure tax credit eligibility for nearly all U.S. projects through 2029 [5] - The company aims to deepen relationships with large power buyers, leveraging its diversified portfolio across hydro, wind, solar, nuclear, and battery storage [8] - The company is actively pursuing M&A opportunities to enhance its hydro capabilities and meet growing energy demand [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust demand for power, which is expected to drive the development of all forms of energy [8] - The company is well-positioned to meet exponential energy demand with a pipeline of over 230 gigawatts of projects, including significant battery storage solutions [6] - Management highlighted the increasing sophistication of large tech companies in seeking baseload power solutions, indicating a shift in procurement strategies [30] Other Important Information - The company successfully executed its largest project financing, raising EUR 6.3 billion for an offshore wind development project in Poland [19] - The company is committed to delivering long-term total returns of 12% to 15% for investors while maintaining disciplined capital allocation [20] Q&A Session Summary Question: Can you accelerate the pace of development in light of recent capacity auction results? - Management indicated that the supply-demand imbalance is a persistent issue and they are pulling forward projects as quickly as possible while leveraging M&A capabilities and partnerships with large power buyers [23][25] Question: What is the hydro M&A environment in the U.S.? - Management noted that the hydro market is becoming more liquid and they are positioned to pursue opportunities that fit their framework agreements with confidence [36][37] Question: How are discussions with tech companies changing regarding new facilities? - Management observed an increased appetite for diverse energy solutions beyond wind and solar, with a focus on integrated relationships that span multiple energy sources [77][78] Question: What are the key milestones for nuclear development? - Management highlighted the U.S. government's intention to start construction on 10 new reactors by the end of the decade, positioning Westinghouse as a key player in this initiative [70][73]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $371 million or $0.56 per unit, representing a 10% year-over-year increase driven by strong hydro generation and growth initiatives [18][20] - FFO per unit is expected to continue growing at a target rate of over 10% for the year [8] - The company has $4.7 billion of available liquidity, indicating strong financial flexibility [20] Business Line Data and Key Metrics Changes - The hydroelectric segment saw FFO increase by over 50% year-over-year, attributed to strong performance from U.S. and Colombian fleets [18][19] - The Distributed Energy, Storage, and Sustainable Solutions segments delivered nearly 40% year-over-year FFO growth, driven by Westinghouse's performance in the nuclear sector [20] - Wind and solar segments reported flat FFO compared to the prior year due to asset dispositions and gains from the previous year [19] Market Data and Key Metrics Changes - The company has commissioned 2.1 gigawatts of new renewable energy capacity in the quarter and anticipates bringing on approximately 8 gigawatts in 2025, a record for the business [8][9] - The company is experiencing a significant supply-demand imbalance for energy across its operating regions, necessitating substantial expansion of energy generation [7] Company Strategy and Development Direction - The company is focusing on a safe harboring strategy to secure tax credit eligibility for nearly all U.S. projects through 2029 [6][39] - The recent Hydro Framework Agreement with Google aims to deliver up to 3 gigawatts of hydroelectric capacity, reflecting a shift in procurement strategies among large tech companies [11][12] - The company is actively investing in critical technologies, including hydro, nuclear, and battery storage, to support growing energy demand and grid reliability [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate changes in tax credit eligibility and maintain development margins [37][39] - The outlook for the business remains robust, driven by strong demand for power and the need for diverse energy solutions [9][20] - Management highlighted the increasing sophistication of large tech companies in their energy procurement strategies, emphasizing the importance of long-term partnerships [79] Other Important Information - The company has successfully completed $19 billion of financings year-to-date, optimizing its capital structure and extending maturities [21][23] - The company is well-positioned to benefit from the growing nuclear capacity in the U.S. and globally, with Westinghouse playing a leadership role [70][74] Q&A Session Summary Question: Can the company accelerate development in light of recent capacity auction results? - Management noted that the supply-demand imbalance is evident and they are pulling projects forward as quickly as possible while leveraging M&A capabilities and partnerships with large power buyers [26][28] Question: What is the outlook for the hydro M&A environment in the U.S.? - Management indicated that the hydro market is becoming more liquid, and they are well-positioned to pursue opportunities that fit their framework agreements [40][41] Question: How is the company adapting to challenges in the U.S. market? - Management emphasized the importance of interconnection speed in development activities and has been prioritizing regions with better connection capabilities [46][48] Question: What are the key milestones for nuclear development in the Westinghouse business? - Management highlighted the focus on new build nuclear projects in the U.S. and Europe, with significant government interest in expanding nuclear capacity [72][74] Question: How have discussions with tech companies changed regarding new facilities? - Management noted an increased appetite for diverse energy solutions beyond wind and solar, with a focus on broader relationships with tech companies [78][79]

Company Overview and Financial Performance - Centrus's market capitalization is $1 billion[19] - The company's 2024 revenue was $442 million[19], with a net income of $73.2 million[19] - The LEU segment accounts for 79% of the 2024 revenue, while the Technical Solutions segment contributes 21%[21] Market Position and Opportunities - Centrus has a significant LEU segment backlog of approximately $2.8 billion, contributing to a total backlog of $3.8 billion extending to 2040[18, 52] - The company estimates a total addressable market (TAM) for HALEU of $6.2 billion per year by 2035[31, 45] - The LEU market opportunity is estimated at $2.4 billion per year for global utilities and $1.9 billion per year for U S reactors[45] HALEU Production and Government Contracts - Centrus has delivered approximately 670 kilograms of HALEU to the Department of Energy as of March 2025[18, 43, 62] - The company won a HALEU Operations Contract with the DOE, potentially worth up to $1.1 billion over 11 years if all options are exercised[64] Impact of Russian Uranium Imports Ban - U S utilities purchased approximately 3.9 million SWU of Russian-origin in 2023, representing 24% of U S demand[38, 39, 68] - The Prohibiting Russian Uranium Imports Act effectively eliminates Russia as a competitor for enriched uranium in the U S post-2027 and released $2.7 billion in funding to promote domestic uranium enrichment[68]