#USA #Centrus Energy #Bethesda #LEU #HALEU

Centrus Energy Reports First Quarter 2025 Results

On May 7, 2025, Centrus Energy Corp. (NYSE American: LEU) reported its financial results for the first quarter of 2025, highlighting a remarkable turnaround and solid performance. The company achieved a net income of $27.2 million, equivalent to $1.60 per share. This marks a significant improvement from a net loss of $6.1 million in the first quarter of 2024 when revenues totaled $43.7 million.

Financial Highlights

During this quarter, Centrus generated a total revenue of $73.1 million, reflecting a substantial increase of $29.4 million, or 67%, from the previous year. Revenue specifically from the Low-Enriched Uranium (LEU) segment stood at $51.3 million, representing a staggering 117% rise compared to $23.6 million the year before.

The increase in revenues was driven primarily by a 46% rise in the average price and a 49% rise in the sold volume of Separative Work Units (SWUs). Additionally, revenue from the Technical Solutions segment grew slightly to $21.8 million from $20.1 million year-over-year.

Cost Management and Profitability

Centrus managed to decrease its cost of sales for the LEU segment to $20.1 million from $23.1 million, achieving a gross profit of $32.9 million this quarter, a jump from just $4.3 million in Q1 2024. This reflects a 665% topline increase that solidifies the company's operational effectiveness.

President and CEO Amir Vexler attributed the strong performance to uninterrupted operations and a solid plan to execute upcoming expansion initiatives once federal funding decisions materialize. “We are confident in our compelling investment case for the $3.4 billion in funding that Congress has allocated to boost domestic nuclear fuel production,” he stated.

Debt Management and Strategic Moves

One of the significant financial maneuvers this quarter included redeeming $74.3 million of higher-interest rate debt (8.25% Notes) at a principal redemption price. This resulted in a gain of $11.8 million for the quarter, allowing Centrus to streamline its financial structure significantly.

As of March 31, 2025, Centrus reported a consolidated cash balance of $653.0 million, showcasing its liquidity strength and capacity for future investments.

Domestic Enrichment and Future International Operations

Centrus continues to play a vital role in the context of U.S. energy security. It is the only firm currently enriching uranium utilizing U.S.-owned technology and an American supply chain. The company is actively producing High-Assay, Low-Enriched Uranium (HALEU) at its American Centrifuge Plant in Piketon, Ohio, under a contract with the U.S. Department of Energy (DOE). As of the end of March 2025, approximately 670 kilograms of HALEU UF6 had been delivered under this contract.

The DOE has extended the Phase 2 period of the HALEU Operation Contract until June 30, 2025, substantiating the need for a robust domestic uranium supply chain. Centrus believes that the investments and contracts totaling over $3.4 billion backed by Congress will restore America’s ability to enrich uranium significantly, supporting more than just energy needs but also national security considerations.

Conclusion

As Centrus Energy Corp. concludes Q1 2025 on a positive note, it not only celebrates robust financial recovery but also positions itself strategically for future growth in domestic uranium enrichment capabilities. With strong backing from federal initiatives and a clear vision, Centrus aims to meet rising demands for clean energy, highlighting its pivotal role in the nuclear power industry.