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 [13] - Gross profit increased to $53.9 million, up from $36.5 million in the same quarter last year, reflecting improved gross margin of 35%, up from 19% [14] - Net income for Q2 2025 was $28.9 million, compared to $30.6 million in the same quarter last year [14] - Cash and cash equivalents stood at $833 million as of June 30, 2025, highlighting strong liquidity [15] 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 a reduction in SWU sales volume [16] - Cost of sales for the LEU segment was $75 million, a 45% decrease from $136.6 million in the same quarter last year [17] - In the Technical Solutions segment, revenue totaled $28.8 million, an increase of 48% from $19.4 million in the same quarter last year [18] Market Data and Key Metrics Changes - The company reported a total backlog of approximately $3.6 billion, with the LEU segment backlog at approximately $2.7 billion [20] - The LEU segment backlog includes $600 million in future SWU and uranium deliveries, primarily under medium and long-term contracts [20] - The Technical Solutions segment backlog was approximately $900 million, including funded amounts and unexercised options [21] 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 [9] - A $60 million investment in supply chain readiness was launched to prepare for large-scale deployment of technology [10] - The company is focused on reducing dependence on foreign nations and increasing competition in the nuclear fuel market [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for nuclear fuel driven by government actions and private investments [6] - The company remains optimistic about the DOE's decision regarding the allocation of $3.4 billion appropriated for domestic nuclear fuel production [8] - There is a strong consensus among customers and policymakers on the need for additional enrichment capacity to meet future demand [12] Other Important Information - The company achieved a production milestone of 900 kilograms for Phase two of the HALO operation contract [11] - The Department of Energy extended the HALO 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 [20] - The company is actively pursuing initiatives to strengthen its capital structure and enhance financial flexibility [22] 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 [31][32] 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 [33][34] Question: Opportunities for additional customer commitments in LEU production - Management emphasized the importance of customer commitments for sizing up plant capabilities and indicated ongoing discussions with potential customers [40] Question: Expectations for uranium sales in the next two quarters - Management refrained from providing specific guidance on uranium sales but reiterated confidence in meeting internal revenue projections [63] Question: Insights on the HALEU operations contract and future processing capabilities - Management confirmed ongoing work with the Department of Energy and highlighted the company's unique position as the only Western HALEU producer [66] Question: Thoughts on government intervention in setting market structure for LEU - Management expressed uncertainty about potential government actions but acknowledged the relevance of the question regarding market influence [104][106]

Core Viewpoint - Centrus Energy Corp. reported strong operational performance in Q2 2025, achieving a net income of $28.9 million despite a decrease in total revenue compared to the previous year, highlighting the company's successful execution of contracts and strategic initiatives in the nuclear energy sector [1][11]. Financial Results - The company generated total revenue of $154.5 million for Q2 2025, down from $189.0 million in Q2 2024, representing an 18% decrease [3]. - Revenue from the LEU segment was $125.7 million, a decrease of 26% from $169.6 million in the same quarter last year, primarily due to reduced uranium sales volume [4]. - The Technical Solutions segment saw revenue increase to $28.8 million, up 48% from $19.4 million, driven by the HALEU production contract with the Department of Energy [5]. Cost and Profitability - Cost of sales for the LEU segment decreased to $75.0 million, down 45% from $136.6 million, attributed to lower sales volume and reduced average unit costs [6]. - The company recognized a gross profit of $53.9 million, an increase of 48% from $36.5 million in Q2 2024, with the LEU segment gross profit rising by 54% [7][8]. Operational Milestones - Centrus successfully delivered 900 kilograms of HALEU to the Department of Energy, achieving a key operational milestone and confirming the effectiveness of its technology [2][11]. - The Department of Energy exercised an option to extend the HALEU Operation Contract, valued at approximately $110.0 million through June 30, 2026, indicating strong government support for the company's initiatives [11][12]. Backlog and Future Commitments - The company's backlog stands at $3.6 billion as of June 30, 2025, with the LEU segment backlog approximately $2.7 billion, reflecting strong future revenue potential [14]. - An additional $0.1 billion LEU contingent sales commitment was secured in July 2025, further supporting potential construction at the Piketon, Ohio facility [15]. Balance Sheet Strength - Centrus raised approximately $114.0 million in net proceeds from an equity offering, enhancing its balance sheet for general corporate purposes [10]. - As of June 30, 2025, the consolidated cash balance was $833.0 million, up from $671.4 million at the end of 2024, indicating improved liquidity [25].

Core Viewpoint - Centrus Energy Corp reported strong financial results for Q1 2025, with significant revenue growth and a return to profitability, positioning itself favorably for future expansion in the domestic nuclear fuel market [1][2][11]. Financial Results - The company generated total revenue of $73.1 million in Q1 2025, a 67% increase from $43.7 million in Q1 2024 [3]. - Revenue from the LEU segment rose to $51.3 million, up 117% from $23.6 million in the previous year, driven by a 46% increase in the average price and a 49% increase in volume of SWU sold [3]. - The Technical Solutions segment saw revenue increase to $21.8 million, an 8% rise from $20.1 million, primarily due to a $2.0 million increase from the HALEU Operation Contract [4]. - Cost of sales for the LEU segment decreased by 13% to $20.1 million, while costs for the Technical Solutions segment increased by 23% to $20.1 million [5][6]. - Gross profit surged to $32.9 million, a 665% increase from $4.3 million in Q1 2024, with the LEU segment contributing $31.2 million [7][8]. Operational Highlights - Centrus continues to produce HALEU at its American Centrifuge Plant in Piketon, Ohio, achieving cumulative deliveries of approximately 670 kilograms of HALEU UF6 to the DOE as of March 31, 2025 [10]. - The company has a backlog of $3.8 billion as of March 31, 2025, with $2.8 billion in the LEU segment and $0.9 billion in Technical Solutions [16]. Debt Management - The company redeemed its 8.25% Notes at a total cost of $74.3 million, resulting in a gain of $11.8 million in Q1 2025 [11][15]. Funding and Contracts - Centrus is well-positioned to leverage $3.4 billion in federal funding for domestic nuclear fuel production, emphasizing the importance of U.S.-owned technology and supply chains [2][14]. - The DOE has increased the Phase 2 contract value for the HALEU Operation Contract to $152.3 million, extending the performance period to June 30, 2025 [12]. Company Overview - Centrus Energy Corp is a supplier of nuclear fuel components and services, focusing on restoring America's uranium enrichment capabilities to meet clean energy and national security needs [17].

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved $442 million in revenue, a year-over-year increase of nearly 40% compared to 2023, which was $321.2 million [23][24] - The gross profit for 2024 was $111.5 million, slightly down from $112.1 million in the prior year [24][26] - Net income for 2024 was $73.2 million, compared to $84.4 million in 2023 [23][24] - The company ended the year with an unrestricted cash balance of $671.4 million, bolstered by strategic initiatives and capital raises [28] Business Line Data and Key Metrics Changes - The Low Enriched Uranium (LEU) segment generated $349.9 million in revenue, an increase of $80.9 million compared to 2023, driven by growth in uranium and Separative Work Unit (SWU) revenue [24][26] - The Technical Solutions segment reported $92.1 million in revenue, an increase of $40.9 million compared to the previous year, with a gross profit of $17.6 million, up by $10.6 million [26][27] - The cost of sales in the LEU segment increased from $163.9 million in 2023 to $256 million in 2024, primarily due to higher average SWU and uranium costs [25][26] Market Data and Key Metrics Changes - The company’s total backlog reached $3.7 billion, with the LEU segment backlog at approximately $2.8 billion, including $800 million of future SWU and uranium deliveries [27] - The Technical Solutions segment backlog was approximately $900 million, which includes funded amounts, unfunded amounts, and unexercised options [27] Company Strategy and Development Direction - The company aims to restore America's ability to enrich uranium, focusing on domestic production to meet energy and national security needs [6][13] - Recent contract awards from the Department of Energy (DOE) are expected to support the restart of American uranium enrichment, reducing dependence on foreign sources [11][12] - The company is investing $60 million to resume centrifuge manufacturing and expand capacity at its Oak Ridge facility, reinforcing its first mover advantage [18][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing bipartisan support for nuclear energy and significant federal investments in domestic nuclear fuel production [30][33] - The company is positioned to capitalize on the growing demand for enriched uranium, especially with the upcoming ban on imports from Russia starting in 2028 [19][20] - Management emphasized the importance of public-private partnerships to support domestic enrichment capabilities and job creation [16][32] Other Important Information - The company has secured approximately $2 billion in customer contingent LEU sales commitments, indicating strong market demand [21] - The company has received approval for $62.4 million in investment tax credits for its manufacturing facility, contingent on meeting certain requirements [29] Q&A Session Summary Question: Follow-up on DOE contracts and task orders - Management indicated that while there is forward movement on task orders, they cannot speculate on timing [35][36] Question: Details on the $60 million investment - The investment is aimed at readiness and preparation for upcoming task orders, ensuring the company can respond quickly [39][40] Question: High uranium sales in Q4 - The high revenue was attributed to taking advantage of market opportunities rather than selling inventory [46] Question: Timeline for the first commercial cascade - The $60 million investment officially starts the 42-month timeline for bringing on the first commercial cascade [51] Question: Investment tax credit details - The company explained that the investment tax credit can be realized over approximately four years, contingent on meeting specific conditions [57]