Centrus Energy’s Earnings Call Highlights Growth and Strategic Moves

Centrus Energy ((LEU)) has held its Q3 earnings call. Read on for the main highlights of the call.

Centrus Energy’s recent earnings call conveyed a predominantly positive sentiment, driven by notable revenue growth and increased net income year-to-date. The company has successfully leveraged strategic partnerships and capital raises to bolster its financial position. Despite facing operating and gross losses for the quarter, the strong backlog, DOE waivers, and record SWU pricing suggest promising long-term prospects, with highlights significantly outweighing the lowlights.

Revenue Growth

Centrus Energy reported a substantial increase in total revenue for the third quarter, reaching $74.9 million. This marks a 30% rise, or $17.2 million, compared to the same quarter last year, showcasing the company’s robust financial performance.

Increased Net Income

The company achieved a year-to-date net income of $60 million, a significant improvement from $19.5 million during the same period last year, highlighting Centrus Energy’s enhanced profitability.

Successful Capital Raise

Centrus Energy successfully closed an oversubscribed and upsized convertible senior note transaction, boosting its unrestricted cash balance to over $1.6 billion, which strengthens its financial flexibility.

SWU Pricing Surge

The spot price for LEU SWU surged to $220, nearing historic levels. This indicates a high demand for U.S.-owned enrichment capacity, underscoring the strategic importance of Centrus Energy’s operations.

Partnership with KHNP and POSCO

Centrus Energy signed an agreement with KHNP and POSCO International, aiming for a potential investment in enrichment capacity. This partnership could enhance the company’s operational capabilities and market reach.

Strong Backlog

As of September 30, 2025, Centrus Energy’s backlog stood at $3.9 billion, extending to 2040. This strong backlog provides a solid foundation for future revenue streams and operational stability.

DOE Waivers

The company received waivers from the Department of Energy, allowing it to continue importing LEU for all currently committed deliveries to U.S. customers in 2026 and 2027, ensuring uninterrupted operations.

Operating and Gross Losses

Centrus Energy reported an operating loss of $16.6 million and a gross loss of $4.3 million for the third quarter. These losses reflect the challenges faced in the current operational environment.

Increased Costs

The cost of sales in the CTS segment grew by $7.4 million to $26.6 million, primarily due to cost increases under the HALEU operations contract, impacting the company’s profitability.

Forward-Looking Guidance

Centrus Energy’s forward-looking guidance emphasizes a strategic focus on expansion and market demand. The company announced a significant $1 billion at-the-market capital raise to support its growth plans. Despite quarterly losses, the cumulative net income of $60 million for the year-to-date highlights its financial resilience. The company is preparing for industrial expansion, supported by a strong backlog and a $805 million convertible senior note transaction.

In summary, Centrus Energy’s earnings call reflects a positive outlook, driven by revenue growth, increased net income, and strategic partnerships. While operating and gross losses present challenges, the company’s strong backlog, DOE waivers, and high SWU pricing position it well for future success.