Centrus Energy Corp - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did LEU Beat Earnings? Q1 2025 Results
Centrus Energy posted a blowout first quarter, reporting earnings per share of $1.60 against a consensus estimate of negative $0.08, a beat of more than 2,164%, while revenue climbed 67.3% year-over-year to $73.10 million, topping estimates of $68.12 million by 7.31%. The primary engine behind the quarter was a surge in the company's LEU segment, where revenue more than doubled to $51.30 million on a 46% rise in average SWU selling prices and a 49% increase in SWU volume sold, swinging segment gross profit from just $500,000 a year ago to $31.20 million. The company also swung to net income of $27.20 million from a net loss of $6.10 million in Q1 2024. Looking ahead, Centrus carries a backlog of approximately $3.80 billion extending to 2040, though a key uncertainty remains around over $3.40 billion in IRA-appropriated federal funds backing its HALEU and LEU production contracts, which are subject to an executive order pause whose timing and outcome remain unresolved.
- 46% increase in average SWU selling price and 49% increase in SWU volume sold driving LEU segment revenue growth of 117%
- 48% decrease in average unit cost of SWU sold improving LEU segment margins
- Favorable contract timing and composition in the current quarter
- $11.8 million gain on extinguishment of 8.25% Notes
- Investment income of $7.3 million from substantial cash balances
“This was a strong first quarter for Centrus as we delivered robust financial results. Our operations have not been impacted by tariffs, and we are well positioned to execute on our expansion plans once federal funding decisions are made. We are confident in our compelling investment case for the $3.4 billion in funding that Congress has provided to jumpstart domestic nuclear fuel production. Centrus is the only company currently enriching uranium with U.S.-owned, U.S.-origin technology backed by an American supply chain and powered by American workers that can meet national security needs. This is not the time to send hard-earned U.S. taxpayer dollars overseas and reinforce the monopoly of the foreign, state-owned companies that already dominate the market.”
Centrus Energy CEO, on the earnings call
Forward Guidance & Outlook
Centrus is well positioned to execute on expansion plans once federal funding decisions are made, with over $3.4 billion in Congressional appropriations backing HALEU and LEU production contracts. However, IRA-appropriated funds are subject to a pause and review under Executive Order 14154, with uncertain timing and outcome. The company expects to recover the HALEU Operation Contract Phase 2 extension fee later in 2025 once the extension is definitized. The HALEU Operation Contract Phase 2 has been extended to June 30, 2025, with DOE increasing the contract value to $152.3 million. Centrus has a total backlog of approximately $3.8 billion extending to 2040, including approximately $2.1 billion in contingent LEU sales commitments dependent on securing substantial public and private investment for production capacity expansion.
LEU YoY Financials
LEU Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.