CENTRUS ENERGY CORP Q1 FY2025 earnings call

• Strong financial performance in Q1 2025 with $73.1 million revenue, $32.9 million gross profit, $20.5 million operating income; ended Q1 with $653 million cash balance.
• Strengthened balance sheet by redeeming 8.25% notes using convertible debt proceeds.
• Launched a $60 million investment to restart centrifuge manufacturing, expand Oak Ridge facility, rebuild supply chain, and complete engineering work.
• Successfully operated HALEU cascade at Piketon, Ohio, with cumulative deliveries to DOE of ~670 kg of HALEU.
• Worked with local and federal officials to advocate for keeping US taxpayer dollars in the US to support American jobs, with bipartisan support from Ohio leaders.

LEU Segment: Generated $51.3 million in SWU revenue, a $27.7 million increase from Q1 2024. Cost of sales for SWU decreased from $23.1 million in Q1 2024 to $20.1 million in Q1 2025, resulting in a gross profit of $31.2 million in Q1 2025 compared to $0.5 million in Q1 2024. Technical Solutions Segment: Generated $21.8 million in revenue, a $1.7 million increase from Q1 2024. Cost of sales increased by $3.8 million, resulting in a gross profit of $1.7 million, a slight decrease from Q1 2024.

• DOE is reviewing funding allocation for $3.4 billion to jump-start US nuclear fuel production; awaiting DOE's decision on fund allocation, structure, and awardees.
• Pursuing four readiness initiatives: strengthening balance sheet, centrifuge manufacturing readiness, successful HALEU operations, and advocacy for US funding.

• Uncertainty in global trade environment and potential impacts on supply chain and shipments.
• Dependence on DOE funding decisions and ability to secure public/private capital for expansion.

Q: Update on DOE activity and next steps A: DOE is moving quickly to award $2.7 billion, with momentum in funding allocation Q: Russian shipment activity A: Requires specific authorizations, but no impediment to commitments so far Q: Time for another entity to pursue HALEU license A: Years and tens of millions of dollars needed, as it's a strict process Q: Inventory increase A: Driven by in-transit shipments of SWU and UF6 from Russia, indicative of near-term deliveries Q: Tariffs and supply chain A: No impact on Centrus, as supply chain is fully domestic Q: SWU cost decrease A: Due to delayed Q4 deliveries pushing increased volume to Q1, affecting margin realization Q: 5B cylinders status A: Steady flow with no impact on production Q: Competitive landscape for HALEU A: Centrus is the only US licensee with CAT two license, others face significant barriers