Investment Rating - The report recommends the industry [5] Core Insights - In Q2 2025, Centrus reported total revenue of $154.5 million, a year-on-year decrease of 18% but a quarter-on-quarter increase of 111% [1] - The gross profit for Q2 2025 was $53.9 million, reflecting a year-on-year increase of 48% and a quarter-on-quarter increase of 64% [1] - The net profit for Q2 2025 was $28.9 million, a year-on-year decrease of 6% but a quarter-on-quarter increase of 6% [1] Financial Performance Summary Overall Financial Performance - Total revenue for Q2 2025 was $154.5 million, down 18% year-on-year but up 111% quarter-on-quarter [1] - Gross profit was $53.9 million, up 48% year-on-year and up 64% quarter-on-quarter [1] - Net profit was $28.9 million, down 6% year-on-year but up 6% quarter-on-quarter [1] Business Segment Performance 1. Low-Enriched Uranium Segment - Revenue for Q2 2025 was $125.7 million, down 26% year-on-year but up 145% quarter-on-quarter [2] - Gross profit for this segment was $50.7 million, up 54% year-on-year and up 63% quarter-on-quarter [2] - Sales costs decreased by 45% year-on-year to $75 million [2] 2. Technical Solutions Segment - Revenue for Q2 2025 was $28.8 million, up 48% year-on-year and up 32% quarter-on-quarter [3] - Gross profit for this segment was $3.2 million, down 9% year-on-year but up 2% quarter-on-quarter [6] Order Backlog - As of June 30, 2025, the company had an order backlog of $3.6 billion, extending to 2040 [8] - The low-enriched uranium segment accounted for approximately $2.7 billion of this backlog [8] - The technical solutions segment had an order backlog of about $900 million [8]

Core Insights - Centrus Energy (LEU) has successfully delivered 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy (DOE), completing Phase II of its three-phase contract [1][9] - Centrus Energy is the only source of HALEU enrichment in the Western world, which is crucial for powering existing and advanced reactors to meet the demand for carbon-free electricity [2][4] - The HALEU market is projected to grow significantly, from $0.26 billion in 2025 to $6.2 billion by 2035, highlighting a substantial market opportunity for Centrus Energy [4] Company Developments - Centrus Energy signed a contract with the DOE in 2022 to produce HALEU at its Piketon, OH facility, having delivered a total of 920 kilograms in Phases I and II, and is now moving into Phase III [3][9] - The DOE has extended Centrus Energy's contract through June 30, 2026, with the possibility of up to eight additional years of production based on federal appropriations [3][9] - The company plans to expand its production capacity in Ohio to meet domestic demand for both HALEU and low-enriched uranium [4] Competitive Landscape - Centrus Energy competes with major producers of low-enriched uranium, which are primarily government-owned entities, including Orano (France), Rosatom/TENEX (Russia), Urenco (Netherlands, UK, and Germany), and CNEIC (China) [5] - In the uranium mining sector, Energy Fuels is ramping up production and aims to produce up to 6 million pounds of uranium annually, while Ur Energy operates the Lost Creek project with an annual capacity of 1.2 million pounds [6][7] Market Performance - Centrus Energy shares have increased by 161% this year, significantly outperforming the industry average growth of 9.8% [8]