Centrus Energy — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $55.5 million, a 26% decrease from $74.9 million in Q3 2025.
• GAAP net income was $31.6 million for Q3 2026, compared to $3.9 million in Q3 2025, representing a 710% increase.
• Non-GAAP adjusted net loss was $9.4 million for Q3 2026, compared to non-GAAP adjusted net income of $5.2 million in Q3 2025.
• GAAP net income per share was $1.53 (basic) and $1.41 (diluted) for Q3 2026, compared to $0.21 (basic) and $0.19 (diluted) in Q3 2025.
• Non-GAAP adjusted net loss per share was $0.46 (basic and diluted) for Q3 2026.
• Gross loss was $10.6 million for Q3 2026, an increase of 147% from a gross loss of $4.3 million in Q3 2025.
• LEU segment revenue decreased 29% to $31.8 million (from $44.8 million), driven by a 19% increase in SWU volume and a 10% increase in average SWU price, partially offset by a decrease in uranium sales volume.
• Technical Solutions segment revenue decreased 21% to $23.7 million (from $30.1 million), primarily due to a $10.2 million decrease in revenue from the DOE HALEU Operation Contract.
• Gross loss for the LEU segment decreased 12% to $6.9 million (from $7.8 million).
• Gross margin for the Technical Solutions segment shifted from a $3.5 million profit in Q3 2025 to a $3.7 million loss in Q3 2026.
• Operating loss was $29.7 million for Q3 2026, compared to an operating loss of $16.6 million in Q3 2025.
• The increase in GAAP net income was primarily driven by a $46.4 million gain from the fair value adjustment of warrant liabilities and a $4.0 million increase in investment income.
• Cash used in operating activities was $11.1 million for the nine months ended September 30, 2026, compared to cash provided by operating activities of $99.4 million in the same period in 2025.
• Capital expenditures were $226.4 million for the nine months ended September 30, 2026, compared to $10.1 million in the prior year period.
• Cash provided by financing activities was $547.0 million for the nine months ended September 30, 2026, compared to $841.4 million in the prior year period.
• Cash and cash equivalents were $2,236.1 million as of September 30, 2026, compared to $1,957.2 million as of December 31, 2025.
• Long-term debt was $1,178.8 million as of September 30, 2026, compared to $1,174.8 million as of December 31, 2025.
• Total assets were $2,871.6 million as of September 30, 2026, compared to $2,445.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 total revenue is expected to be in the range of $450 million to $500 million.
• Full-year 2026 total capital deployment is expected to be in the range of $350 million to $500 million.
• The Company expects to hire at least 100 net new employees for its Oak Ridge, Tennessee, facility in 2026.
• The Company expects to hire at least 175 net new employees for its Piketon, Ohio, facility in 2026, up from 100 net new employee hires.
• Guidance assumes no significant change in restrictions on receiving and selling Russian LEU or other uranium products, no significant economic disruptions, successful implementation of expansion projects, and ongoing business operations.

Business Segments and Product Lines:

• The LEU segment backlog was approximately $6.2 billion as of September 30, 2026, consisting of estimated aggregate revenue for future SWU and uranium deliveries under medium and long-term contracts.
• The LEU backlog includes approximately $5.4 billion in contingent LEU and HALEU sales commitments, $5.1 billion of which are under definitive agreements for potential construction of production capacity at the Piketon facility.
• The Technical Solutions segment backlog was approximately $0.8 billion as of September 30, 2026, including funded amounts, unfunded amounts, and unexercised options.
• The current DOE budget for fiscal year 2027 does not include further funding for the operation of the HALEU cascade under the HALEU Operation Contract, representing approximately $0.8 billion of the Technical Solutions backlog.
• The Company completed manufacturing and began shipping centrifuges from Oak Ridge, Tennessee, ahead of the year-end target.
• The Company finalized contracts with all supply-chain deemed critical ahead of the year-end target.
• The Company completed the first certified-for-construction package ahead of the year-end target.
• The Company is enriching HALEU for the commercial market from an existing 16-centrifuge cascade.
• The Company grew its contingent LEU and HALEU enrichment backlog to $5.4 billion.

Market and Competitive Landscape:

• The Company stated that completing its manufacturing supply chain ahead of schedule puts it "far ahead of the competition."
• The Company serves both national security and commercial markets using its unobligated supply chain.
• The Company noted significant competition from major LEU producers, including foreign competitors, who may be less cost-sensitive.
• The Company highlighted the potential for limited supply and dependence on others for deliveries of LEU as a market factor.

Risks and Challenges:

• Risks include the ability to obtain a long-term extension of the Piketon lease from the DOE on acceptable terms or at all, potentially requiring delays, scaling back, or abandonment of expansion plans.
• Geopolitical conflicts, including the war in Ukraine, could impact the ability to obtain, deliver, transport, sell, or collect payment for LEU and related components.
• Reliance on third-party suppliers for essential products and services.
• Restrictions on imports and exports, including those under the RSA and international trade legislation.
• Government contract risks, including government shutdowns, changes to appropriated funding levels for HALEU, and the government's inability to satisfy obligations.
• Uncertainty regarding the timing and level of government demand for HALEU or LEU for government or commercial uses.
• Risks associated with the acquisition of Westerman, including integration difficulties, unknown liabilities, and additional costs.
• Long-term liabilities, including postretirement health and life benefit obligations and convertible notes.
• Cybersecurity breaches and failures of information technology systems.

Management Commentary and Tone:

• CEO Amir Vexler stated that the third quarter's execution primed the Company to achieve a critical milestone: shipping the first new centrifuge to support commercial-scale expansion.
• Management expressed confidence that the achievement of a complete manufacturing supply chain two months ahead of schedule demonstrates a competitive advantage.
• Management noted that the recent acquisition of Westerman helps derisk the build-out and business model, driving growth through synergies and diversification.
• Management indicated a focus on scaling up the supply chain to begin manufacturing and shipping more centrifuges from Oak Ridge to Piketon.

Other Key Points:

• The Company acquired Westerman to derisk its build-out and business model.
• The Company recognized a $46.4 million gain from the fair value adjustment of warrant liabilities during the period.
• The Company issued proceeds from the issuance of common stock, pre-funded warrants, and common warrants, net of $493.8 million for the nine months ended September 30, 2026.
• The Company's backlog across both segments is $7.0 billion as of September 30, 2026, extending to 2040.
• The Company has provided utility customers with more than 1,850 reactor years of fuel since 1998.