Inquired about changes in buyer behavior given the impending Russian import ban, potential financial impacts on inventory/working capital, and if customers are willing to sign at current market levels for SWU.

Amir Vexler noted increasing tightness on the supply side towards the end of the decade, leading to strong customer interest and order momentum for SWU. He reiterated that LEU pricing has seen a strong run-up, reinforcing investment, and that the market dynamics favor sellers due to added demand and limited new supply. “So we're seeing very strong order momentum. And as I mentioned on the earnings call, the LEU pricing has had a very strong run-up until this point, which is very helpful to our business and further reinforces the investment that we're preparing to make here.”

Asked for an idea of future cost savings potential throughout the expansion project, particularly in magnitude comparable to achievements thus far, and specific areas of focus.

Amir Vexler emphasized cost savings and efficiencies as a top priority, citing efforts with Palantir, EPC partners, and supply chain initiatives. He explained that larger order books and customer clarity enable leverage buys and savings. Internal efforts focus on lean manufacturing processes. While numerical targets were not disclosed, he stressed that locking in long-term agreements leads to significant cost savings. “The fact that we're able to lock in larger order books, the fact that we now have more clarity into customer base about the ordering allows us to make more leverage buys and realize savings on the supply side of our build.”

Sought a comparison between the Oklo and X-energy HALEU contracts regarding similarities or differences in size, timing, milestone structure, definitiveness, and take-or-pay commitments.

Amir Vexler stated that specific details are confidential but highlighted similarities: OEMs committing to legally binding agreements, maturing SMR market, Centrus leading as the HALEU supplier, and the preference for prepayments as non-dilutive capital. He clarified that an LOI precedes a definitive contract. “The third similarity that we're seeing is prepayments. We're seeing the willingness, the ability and our sort of strong preference for a prepayment, which adds significantly to the nondilutive capital that we're able to invest.”

LEU

Centrus Energy (LEU) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 6, 2026

Source: earnings call transcript

Executive summary

Centrus Energy Q2 FY26 — Strong Demand & Centrifuge Build-Out Progress

Centrus Energy reported strong Q2 FY26 results, driven by robust demand across commercial LEU, national security, and HALEU markets. The company made significant progress on its centrifuge build-out program, including securing DOE funding and meeting financing contingencies for customer contracts, while also expanding its HALEU offtake agreements. Management remains focused on restoring America's nuclear fuel supply chain and expects continued market tightness.

Highlights

Total revenue for Q2 FY26 was $176.1 million, an increase of 14% year-over-year.
Commercial backlog grew to $4.5 billion, extending through 2040, driven by an approximate $600 million increase in LEU and HALEU enrichment sales.
Financing contingency for over $3 billion of customer contracts for LEU and HALEU purchase has been met.
Raised 2026 annual guidance for Piketon workforce additions from over 100 to over 175 net new employees.
First centrifuge expected to be completed at the Oak Ridge facility in 2026.

Concerns

SWU costs increased 13% year-over-year in Q2 FY26, partially offsetting a 3% increase in the average price of SWU sold.
Net income decreased to $16.8 million in Q2 FY26 from $28.9 million in Q2 FY25.
SG&A costs increased by $12.8 million year-over-year, primarily due to stock compensation costs.
Advanced technology costs increased by $7.5 million year-over-year in Q2 FY26.

Guidance & targets

Category	Target	Timeline	Confidence
Total company revenue	$450 million to $500 million high materiality	FY26	High
Total capital spend	$350 million to $500 million high materiality	FY26	High
Critical supplier contracts finalized	100% medium materiality	FY26	High
Certified for construction package release	Release of a certified for construction package medium materiality	FY26	High
Oak Ridge net new employees hired	at least 100 net new employees low materiality	FY26	High
Piketon workforce additions	over 175 net new employees medium materiality	FY26	High
First centrifuge completion	completed at our Oak Ridge facility high materiality	FY26	High
First new capacity online	by 2029 high materiality	CY29	High
Commercial production commencement at Piketon	in 2029 high materiality	CY29	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
LEU Revenue increased significantly year-over-year. SWU revenue decreased due to lower volumes, partially offset by higher average prices. Cost of sales increased primarily due to higher uranium sales volume, while SWU costs decreased with lower volumes but faced increased average costs. SWU revenue decrease: $25.7 millionSWU volume decrease: 23%Average price of SWU sold increase: 3%Uranium sales: $53.4 millionCost of sales: $101.8 millionCost of sales increase YoY: 36%SWU costs decrease: 23%Average cost of SWU sold increase: 13%	$153.4 million	22%	—	—
Technical Solutions Revenue decreased year-over-year, primarily driven by a reduction in revenue from the HALEU operations contract. Cost of sales also decreased proportionally. Revenue decrease: $6.1 millionRevenue decrease from HALEU operations contract: $5.9 millionCost of sales: $24.4 millionCost of sales decrease: $1.2 millionCost of sales decrease YoY: 5%	$22.7 million	-21%	—	—

Orderbook & backlog

Total commercial backlog $4.5 billion Q2 FY26 end

Extends through 2040.

LEU segment backlog $3.7 billion Q2 FY26 end

Comprised of $0.7 billion broker-dealer backlog and $3 billion contingent LEU and HALEU enrichment sales.

Contingent LEU and HALEU enrichment sales (definitive agreements) $2.4 billion Q2 FY26 end

Portion of the $3 billion contingent sales that are under definitive agreements. All financial contingencies have been removed for the total $3 billion.

Technical Solutions segment backlog $0.8 billion Q2 FY26 end

Increase in LEU and HALEU enrichment sales approximate $600 million Q2 FY26

Drove the growth in total backlog.

Deals & partnerships

Oklo Letter of Intent (LOI) to supply HALEU multiple years

Centrus to supply HALEU to power up to 5 Aurora powerhouses, starting in 2029. LOI is a step preceding a definitive contract.

X-energy Offtake contract for HALEU supply

Marks an important step towards ensuring reliable HALEU supply for next-generation reactors and validates Centrus' first-mover advantage in the HALEU market.

Capital programs

DOE $900 million task order underway $900 million

Funding: DOE (non-dilutive, non-debt)

Start: Q2 FY26

Benefit:Deployment of large-scale production capacity for LEU and HALEU

Award received earlier this year, supports multibillion-dollar LEU and HALEU capacity expansion. Marks transition from technology demonstration to commercial scale production.

Risks & headwinds

Quarter-to-quarter variability in financial results Ongoing

Not quantified, but noted as typical for the business.

Mitigation:Focus on annual results as more indicative of progress; strong order book and market maturity.

Market tightness due to constrained supply Near and midterm

SWU prices escalating, average cost of SWU sold up 13% YoY.

Mitigation:Centrus is well-positioned to benefit as a proven enricher in a seller's market; focus on increasing enrichment capacity.

Increased operating costs impacting net income Q2 FY26

Net income decreased to $16.8 million from $28.9 million YoY. SG&A costs increased $12.8 million YoY. Advanced technology costs increased $7.5 million YoY.

Mitigation:These costs are associated with manufacturer readiness and security training ahead of the build-out; partially offset by $8.3 million increase in investment net income.

What to watch in Q3 FY26

First centrifuge completion in Oak Ridge

sometime in 2026

Current Underway

Target Completed

Why it matters

This is a key milestone demonstrating the integration of the supply chain and progress towards manufacturing capabilities, crucial for future enrichment capacity.

And finally, we are excited to announce that we plan to have our first centrifuge completed at our Oak Ridge facility sometime in 2026, an important accomplishment and milestone that demonstrates that our supply chain has come together.

Find out whether LEU delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked for details on the cadence of deliveries for the X-energy partnership, noting X-energy's first facility target in H1 2028, and if volumes would come from the commercial conversion of the demonstration cascade.

Amir Vexler highlighted the X-energy agreement as evidence of Centrus becoming a trailblazer for HALEU and noted that HALEU agreements include prepayments. He stated that specific details on deliveries and contract terms could not be provided due to confidentiality.

“I'd like to just in generally frame it up as another great evidence and another data point to show that Centrus is quickly becoming a trailblazer and the go-to for HALEU.”

asked by David Choe · answered by Amir Vexler

2 min read 5 chapters

Detailed narrative

Strong Demand Across All Markets

Centrus is experiencing robust demand tailwinds in its primary market, global commercial LEU, driven by baseline electricity growth and new reactor developments. The U.S. NRC's proposed regulatory changes and the American nuclear supply chain loan program could further stimulate growth.

International LEU demand is also increasing, with new nuclear developments in Europe and Asia, including the restart of TEPCO's Kashiwazaki reactor. Government and national security markets show growing demand signals, with NNSA exploring sole-sourcing enrichment activities from Centrus. The HALEU market is also expanding, with three of four reactor designs reaching criticality ahead of the DOE's deadline fueled by HALEU, and potential Department of War funding could accelerate timelines.

Centrifuge Build-Out and Funding Milestones

The company signed a $900 million task order with the U.S. Department of Energy, providing substantial non-dilutive, non-debt funding for its commercial centrifuge build-out program. This award supports the deployment of large-scale production capacity as part of a multibillion-dollar LEU and HALEU expansion.

Centrus successfully completed all HALEU production requirements under its existing demonstration contract with the DOE two weeks ahead of schedule, producing nearly 2 metric tons of HALEU UF6. The company is also working with the DOE to privately operate the existing 16-centrifuge HALEU cascade on a commercial basis in the interim before new capacity comes online by 2029.

HALEU Market Leadership and Offtake Agreements

Centrus is solidifying its first-mover advantage in the HALEU market by signing new agreements. This quarter, the company signed a Letter of Intent with Oklo to supply HALEU for up to five Aurora powerhouses starting in 2029. More recently, an offtake contract for HALEU was announced with X-energy.

These HALEU commitments generally include prepayments, which serve as another source of non-dilutive, non-debt funding for Centrus' expansion, a structure the company intends to utilize in future HALEU offtake contracts.

Supply Chain and Workforce Expansion

Centrus has made significant progress in securing its supply chain, finalizing contracts with approximately 75% of identified critical suppliers to mitigate price fluctuations and stabilize costs. The company continues to evaluate M&A opportunities within its supply chain to align with long-term growth.

Workforce additions are also progressing, with meaningful increases in both Piketon and Oak Ridge. The company raised its 2026 annual guidance for Piketon workforce additions from over 100 to over 175 net new employees, reflecting accelerated progress.

Market Dynamics and Pricing Environment

The increased demand, coupled with Centrus' build-out progress, has led to increased momentum in its order book backlog. The strong demand signals in commercial LEU have created a constructive pricing environment, with long-term LEU pricing continuing its steady ascent year-to-date and spot pricing remaining at last year's highs.

Management anticipates market tightness for at least the near and midterm due to constrained supply and growing demand, positioning Centrus to benefit as a proven enricher.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.