Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $154.5 million, a decrease of $34.5 million compared to the same quarter last year [15] - Gross margin improved to 35%, up from 19% in the prior year's quarter, reflecting operational efficiency [16] - Net income for Q2 2025 was $28.9 million, compared to $30.6 million in the same quarter last year [16] - Cash and cash equivalents stood at $833 million as of June 30, 2025, indicating strong liquidity [16][23] Business Line Data and Key Metrics Changes - The LEU business generated $125.7 million in revenue, a decrease of $43.9 million compared to the same quarter last year, primarily due to reduced SWU sales volume [17] - Technical Solutions segment revenue totaled $28.8 million, an increase of 48% from the prior year, driven by LEU feedstock and cylinder costs [19] - Gross profit for the Technical Solutions segment was $3.2 million, a decrease of $0.3 million compared to the prior year's quarter [20] Market Data and Key Metrics Changes - The company reported a total backlog of approximately $3.6 billion, with the LEU segment backlog at about $2.7 billion [21] - The LEU segment backlog includes $600 million in future SWU and uranium deliveries, primarily under medium and long-term contracts [21] - The Technical Solutions segment backlog was approximately $900 million, including funded and unfunded amounts [22] Company Strategy and Development Direction - The company aims to secure sufficient public and private capital to expand its enrichment capacity, emphasizing a fully American technology and supply chain [11] - Centrus is positioned to meet the growing demand for nuclear fuel, driven by government actions and private investments [8] - The company is actively pursuing investments in manufacturing capabilities while awaiting the DOE's decision on funding [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear industry's growth, supported by government actions and private sector investments [7][8] - The company is optimistic about the DOE's decision regarding the allocation of $3.4 billion for domestic nuclear fuel production [10] - There is a strong consensus among customers and policymakers on the need for more competition in the enrichment market [14] Other Important Information - The company achieved a production milestone of 900 kilograms for Phase two of the HALEU operation contract [13] - The DOE extended the HALEU operation contract through June 30, 2026, with a target cost and fee for the first option period set at approximately $99.3 million and $8.7 million respectively [21] - The company has invested $60 million in supply chain readiness to support large-scale deployment of its technology [12] Q&A Session Summary Question: Expectations for federal programs stemming from May's executive orders - Management indicated no specific information on incremental federal programs but acknowledged strong support from the executive orders for the nuclear fuel industry [32][33] Question: Progress on the $60 million investment in centrifuge manufacturing - Management reported that the investment is progressing well, with efforts focused on ordering long lead items and preparing for a large centrifuge build [34] Question: Opportunities for additional customer commitments in LEU production - Management emphasized the importance of customer commitments for sizing up the plant and building out enrichment capabilities [41][42] Question: Continuation of HALEU production rate until DOE decisions are made - Management confirmed that operations would continue at the current enrichment rate [43] Question: Potential for smaller build-out of a low enriched facility - Management stated that they continually evaluate opportunities based on DOE decisions and customer conversations [47][49] Question: Target cash balance for the next year - Management did not disclose specific target amounts but emphasized the importance of maintaining financial flexibility [55][56] Question: Profitability of the entire portfolio given current pricing - Management indicated that while margins are strong, variability in quarterly results is expected, and they do not provide future earnings guidance [59][60] Question: Expectations for uranium sales in the next quarters - Management reiterated that they do not provide guidance on individual shipments but believe they are on track with internal projections [64] Question: Insights on HALEU processing capabilities and CapEx plans - Management confirmed they are the only Western HALEU producer and are working under the DOE contract, but did not provide specific insights into future CapEx [66][67] Question: Government intervention in setting market structure for LEU - Management acknowledged the relevance of the question but did not speculate on future government actions [107][108]