Centrus Energy Corp. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue was $176.1 million for the three months ended June 30, 2026, compared to $154.5 million in Q2 2025, an increase of 14%.
• GAAP net income was $16.8 million ($0.85 basic, $0.77 diluted per share) for Q2 2026, compared to $28.9 million ($1.63 basic, $1.59 diluted per share) in Q2 2025, a decrease of 42%.
• Non-GAAP adjusted net income was $38.7 million ($1.95 basic, $1.77 diluted per share) for Q2 2026, compared to $34.5 million ($1.95 basic, $1.90 diluted per share) in Q2 2025.
• Gross profit was $49.9 million for Q2 2026, compared to $53.9 million in Q2 2025, a decrease of 7%.
• LEU segment revenue was $153.4 million for Q2 2026, up 22% from $125.7 million in Q2 2025; LEU gross profit was $51.6 million, up 2% from $50.7 million.
• Technical Solutions segment revenue was $22.7 million for Q2 2026, down 21% from $28.8 million in Q2 2025; this segment reported a gross loss of $1.7 million compared to a profit of $3.2 million in Q2 2025.
• Uranium revenue was $53.4 million for Q2 2026; SWU revenue decreased by $25.7 million due to a 23% volume decrease, partially offset by a 3% price increase.
• Selling, general, and administrative (SG&A) expenses increased to $26.2 million in Q2 2026 from $13.4 million in Q2 2025, driven by a $17.2 million increase in stock-compensation expense related to non-employee tax withholdings of RSUs.
• Advanced technology costs increased to $10.8 million in Q2 2026 from $3.3 million in Q2 2025.
• Cash used in operating activities was $16.7 million for the six months ended June 30, 2026, compared to cash provided by operating activities of $89.3 million in the same period in 2025.
• Capital expenditures were $94.8 million for the six months ended June 30, 2026, compared to $5.7 million in the same period in 2025.
• Cash, cash equivalents, and restricted cash were $1,901.9 million as of June 30, 2026, compared to $1,960.1 million at the beginning of the period.
• Long-term debt was $1,177.5 million as of June 30, 2026, compared to $1,174.8 million as of December 31, 2025.

Guidance and Future Outlook

• Full-year 2026 total revenue guidance is updated to a range of $450 million to $500 million.
• Full-year 2026 total capital deployment guidance is updated to a range of $350 million to $500 million, driven by investment in centrifuge manufacturing industrial build-out.
• The Company expects to finalize contracts with all partners critical to its industrial build-out in 2026.
• Hiring guidance for 2026 was raised to at least 175 net new employees for the Piketon, Ohio facility (up from 100 previously) and at least 100 net new employees for the Oak Ridge, Tennessee facility.
• The Company expects to release a Certified for Construction package in 2026.
• The Company expects to complete its first new centrifuge in Oak Ridge, Tennessee, by year-end 2026.
• Guidance assumes no significant change in restrictions on receiving/selling Russian LEU, no significant economic disruptions, successful implementation of expansion projects, and ongoing business operations.

Business Segments and Product Lines

• The Company signed a $900 million High-Assay, Low-Enriched Uranium (HALEU) Enrichment award contract with the U.S. Department of Energy.
• The Company signed a first-of-a-kind, large-scale commercial HALEU supply agreement that potentially includes prepayments.
• Geiger Brothers was selected as the construction contractor for a major uranium enrichment plant expansion.
• The Company grew its contingent LEU and HALEU enrichment backlog to $3.0 billion.
• Total backlog across both segments is $4.5 billion as of June 30, 2026, extending to 2040.
• LEU segment backlog is approximately $3.7 billion, including $3.0 billion in contingent LEU and HALEU sales commitments ($2.4 billion under definitive agreements) supporting potential construction at the Piketon facility.
• Technical Solutions segment backlog is approximately $0.8 billion, which includes the HALEU Operation Contract with the DOE; the FY 2027 DOE budget proposal does not include further funding for the operation of the HALEU cascade under this contract.
• The DOE has communicated it does not currently intend to exercise further options under the HALEU Operation Contract.

Market and Competitive Landscape

• Management reports healthy demand momentum with consistent constrained supply, resulting in upward pressure on SWU prices.
• Centrus is positioned as the only publicly-traded, proven enricher in the market.
• The Company notes strong demand signals across all end-markets contributing to backlog growth.

Risks and Challenges

• Risks include geopolitical conflicts (e.g., war in Ukraine), resulting bans, tariffs, or sanctions impacting the ability to obtain, deliver, or sell LEU/SWU.
• Reliance on third-party suppliers for essential products and services.
• Restrictions on imports and exports, including those under the RSA and international trade legislation.
• Risks related to the Piketon lease, government contracts, potential government shutdowns, and changes in appropriated funding levels for HALEU.
• Uncertainty regarding the timing and level of government demand for HALEU or LEU.
• Potential extended duration of supply/demand imbalances in the LEU market.
• Significant competition from major LEU producers, including foreign competitors who may be less cost-sensitive.
• Risks associated with successfully implementing expansion projects in Piketon and Oak Ridge, including capital raising.
• Long-term liabilities including postretirement health/life benefit obligations and 0% and 2.25% Convertible Notes.
• Cybersecurity breaches and failures of information technology systems.

Management Commentary and Tone

• CEO Amir Vexler described the quarter as "another strong quarter of financial and operational progress" with "commercial wins for our future enrichment business."
• Management stated they are in "full-execution mode" for centrifuge manufacturing and expansion programs.
• The Company is implementing risk-reducing measures by locking in critical suppliers with larger commitments to insulate projects from price fluctuations.
• Management highlighted progress in strengthening the financial position by signing the HALEU award and securing possible prepayments from offtakers.
• The tone reflects confidence in capitalizing on operational momentum and industry tailwinds.

Other Key Points

• The Company raised full-year 2026 hiring guidance for its Piketon, Ohio facility.
• Proceeds from the issuance of common stock, net, were $53.9 million for the six months ended June 30, 2026.
• Common stock withheld for tax obligations under stock-based compensation plans was $0.4 million for the six months ended June 30, 2026.
• Inventory increased to $377.1 million as of June 30, 2026, from $322.9 million as of December 31, 2025.
• Property, plant, and equipment increased to $142.5 million as of June 30, 2026, from $29.5 million as of December 31, 2025.
• Deferred revenue and advances from customers decreased to $85.0 million as of June 30, 2026, from $131.1 million as of December 31, 2025.