Centrus Reports Third Quarter 2025 Results (Form 8-K)

Centrus Reports Third Quarter 2025 Results

•Net income of $3.9 million on $74.9 million in revenue, compared to net loss of $5.0 million on $57.7 million in revenue in Q3 2024

•Strengthened balance sheet and increased unrestricted cash balance to $1.6 billion by closing upsized and oversubscribed $805 million convertible senior notes offering

•Secured U.S. government waivers for 2026 and 2027 Russian committed deliveries

•Strengthened leadership team, including naming Todd Tinelli as Chief Financial Officer

•Signed agreement with KHNP and POSCO International for potential investment to support Piketon, Ohio, uranium enrichment plant expansion

•Announced job hiring ahead of planned expansion of enrichment plant

BETHESDA, Md. - Centrus Energy Corp. (NYSE American: LEU) ("Centrus" or the "Company") today reported third quarter 2025 results. The Company reported net income of $3.9 million for the three months ended September 30, 2025, which is $0.21 (basic) and $0.19 (diluted) per common share.

"Centrus continued to build on its strong year-to-date financial results in the third quarter while making significant progress in preparation for our enrichment build-out," said Centrus President and CEO Amir Vexler.

"We de-risked and strengthened our business across a number of initiatives, including securing U.S. government import waivers for our 2026 and 2027 committed deliveries, significantly expanding our cash balance, beginning to hire across our operations, and signing an agreement with KHNP and POSCO International to support our planned expansion.

"With LEU SWU prices near historic highs, there is clear, accelerating market demand for a new U.S.-owned enrichment supply to service the domestic and global markets. Centrus is proud to offer a publicly-traded, American source of enrichment that can meet both the commercial and national security needs."

Financial Results

Centrus generated total revenue of $74.9 million and $57.7 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $17.2 million (or 30%).

Revenue from the LEU segment was $44.8 million and $34.8 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $10.0 million (or 29%). The Company had uranium revenue of $34.1 million for the three months ended September 30, 2025. SWU revenue decreased by $24.1 million as a result of a 69% decrease in the average price of SWU sold.

Revenue from the Technical Solutions segment was $30.1 million and $22.9 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $7.2 million (or 31%). The increase in revenue is primarily attributable to a $7.3 million increase in revenue generated by the HALEU production contract with the Department of Energy ("DOE") signed in 2022 ("HALEU Operation Contract"), while the remaining change is related to other contracts. Revenue from the HALEU Operation Contract is recorded on a cost-plus-incentive-fee basis and includes a target fee for Phases 2 and 3 of the contract.

Cost of sales for the LEU segment was $52.6 million and $29.6 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $23.0 million (or 78%). Uranium costs increased primarily as a result of an increase in the volume of uranium sold. SWU costs decreased as a result of a 41% decrease in the average unit cost of SWU sold.

Cost of sales for the Technical Solutions segment was $26.6 million and $19.2 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $7.4 million (or 39%). The increase is primarily attributable to an $8.5 million increase in costs incurred under the HALEU Operation Contract.

The Company recognized a gross loss of $4.3 million and a gross profit of $8.9 million for the three months ended September 30, 2025 and 2024, respectively, a change of $13.2 million (or 148%).

Gross profit (loss) for the LEU segment netted to a loss of $7.8 million and profit of $5.2 million for the three months ended September 30, 2025 and 2024, respectively, a change of $13.0 million (or 250%). LEU customers generally have multi-year contracts that carry annual purchase commitments, not quarterly commitments. The gross profit in our LEU business varies based upon the timing of those contracts. The pricing applied to deliveries varies depending upon the market conditions at the time the contract was signed. The increase for the three months ended September 30, 2025 was due to the composition of contracts in the current quarter, compared to the prior quarter.

Gross profit for the Technical Solutions segment was $3.5 million and $3.7 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of $0.2 million (or 5%). Because of the delay in completing Phase 2 of the HALEU Operation Contract, DOE extended the Phase 2 period of performance through October 31, 2025. Costs incurred subsequent to November 2024 have not yet been subject to a fee as this portion of Phase 2 remains undefinitized and is subject to negotiation.

0% Convertible Senior Notes

On August 18, 2025, Centrus issued $805.0 million of 0% convertible senior notes due August 2032. The net proceeds were approximately $782.4 million. The Company intends to use the net proceeds from the offering for general working capital and corporate purposes, which may include investment in technology development or deployment, repayment or repurchase of outstanding debt, capital expenditures, potential acquisitions and other business opportunities and purposes.

Backlog

The Company's backlog is $3.9 billion as of September 30, 2025 and extends to 2040. Our LEU segment backlog as of September 30, 2025 is approximately $3.0 billion. The LEU backlog is the estimated aggregate dollar amount of revenue for future SWU and uranium deliveries primarily under medium and long-term contracts with fixed commitments and approximately $2.3 billion in contingent LEU sales commitments, with $2.1 billion of the total under definitive agreements and $0.2 billion of the total subject to entering into definitive agreements, in support of potential construction of LEU production capacity at the Piketon, Ohio facility. The contingent LEU sales commitments also depend on our ability to secure substantial public and private investment. Our Technical Solutions segment backlog is approximately $0.9 billion as of September 30, 2025, and includes both funded amounts (services for which funding has been both authorized and appropriated by the customer), unfunded amounts (services for which funding has not been appropriated), and unexercised options.

About Centrus Energy

Centrus Energy is a trusted American supplier of nuclear fuel and services for the nuclear power industry, helping meet the growing need for clean, affordable, carbon-free energy. Since 1998, the Company has provided its utility customers with more than 1,850 reactor years of fuel, which is equivalent to more than 7 billion tons of coal.

With world-class technical and engineering capabilities, Centrus is pioneering production of High-Assay, Low-Enriched Uranium and is leading the effort to restore America's uranium enrichment capabilities at scale so that we can meet our clean energy, energy security, and national security needs. Find out more at www.centrusenergy.com.

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