Centrus Energy Corp. Q3 FY2025 earnings call

• Hired Todd Tinelli as Chief Financial Officer to strengthen balance sheet and partnership network. - Broker trader segment received DOE waivers for 2026-2027 LEU deliveries. - Future commercial enrichment business: Pursuing public-private partnership, readiness initiative including closing $805 million convertible note transaction, supply chain readiness program, HALEU cascade milestone (2 full years of continuous uranium enrichment), and engagements with stakeholders like KHNP and POSCO. - Announcements: Ohio jobs plan and $1 billion at-the-market offering to support industrial expansion.

In the third quarter, Centrus Energy achieved $74.9 million in revenue. The LEU segment generated $44.8 million, a 29% increase ($10 million) compared to the same quarter last year, driven by higher uranium sales volume offset by lower average SWU price. The technical solutions segment delivered $30.1 million in revenue, a 31% increase ($7.2 million) over Q3 2024, driven by LEU sales to the DOE. Gross loss was $4.3 million, operating loss $16.6 million, and net income $3.9 million. YTD 2025 net income was $60 million vs $19.5 million same period last year. Total backlog stood at $3.9 billion as of September 30, 2025, with LEU segment backlog ~$3 billion and technical solutions segment backlog ~$0.9 billion.

• Issued $805 million of 0% convertible senior notes and launched $1 billion ATM program for general corporate purposes. - Anticipate growing demand for nuclear enrichment due to U.S. utility expansions, new market demand (e.g., data centers), and SMR developments. - Focus on positioning balance sheet and partnership network to capitalize for future needs.

• Uncertainty around government funding decisions and potential delays in DOE awards. - Market dynamics and competition affecting enrichment capacity and pricing, potentially impacting ability to meet demand.

Q: Ryan of B. Riley Securities on national security opportunity and NNSA sole-source contract A: Amir Vexler noted NNSA's notice of intent to sole-source and award ACO for AC100 deployment, emphasizing market demand reinforcement for enrichment Q: Rob Brown of Lake Street on Piketon readiness efforts A: Amir Vexler discussed readiness initiatives like production cycle time analysis and hiring plans in Ohio ahead of plant build-out Q: Joseph Reagor on Russia import deadline and late 2020s business outlook A: Amir Vexler stated no official reconsideration of Russia import deadline, highlighting growing nuclear build announcements reinforcing enrichment demand Q: Nicholas Amicucci on SWU pricing and NNSA sole-source opportunity A: Amir Vexler said SWU prices likely to rise due to growing demand outpacing new capacity, and discussed potential synergies for expediting first cascade build Q: Jonathan Dorsheimer on government shutdown impact and private sector discussions A: Amir Vexler mentioned uncertainty on government shutdown impact, and discussed ongoing private sector discussions with various parties including hyperscalers Q: Vikram Bagri on expansion signals and SWU pricing for expansion A: Amir Vexler said expansion signals would come from enhanced commitments, and SWU pricing is proprietary but current levels support investor case Q: Nehima on strategic investors and balance sheet derisking A: Todd Tinelli stated objective is to well capitalize balance sheet for future expansion Q: Jeffrey Grampp on third-party private capital investment A: Amir Vexler discussed win-win negotiations for private investment, grounded in maximizing shareholder value Q: Luke on HALEU demand and enrichment mix A: Amir Vexler said enrichment mix driven by customer demand, with HALEU demand becoming more realistic due to advanced reactor developments Q: Luke on HALEU demand and enrichment mix A: Amir Vexler said enrichment mix driven by customer demand, with HALEU demand becoming more realistic due to advanced reactor developments Q: Eric Stine's team on HALEU vs LEU mix A: Amir Vexler stated mix driven by customer commitments