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    LEU
    Earnings call· Jun 2026(Q2 FY26)

    CENTRUS ENERGY Q2 FY26 earnings call LEU

    Aug 6, 2026 Source

    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

    5

    • 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

    4

    • 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

    9
    CategoryTargetConfidence
    Total company revenue
    $450 million to $500 million
    high materiality
    High
    Total capital spend
    $350 million to $500 million
    high materiality
    High
    Critical supplier contracts finalized
    100%
    medium materiality
    High
    Certified for construction package release
    Release of a certified for construction package
    medium materiality
    High
    Oak Ridge net new employees hired
    at least 100 net new employees
    low materiality
    High
    Piketon workforce additions
    over 175 net new employees
    medium materiality
    High
    First centrifuge completion
    completed at our Oak Ridge facility
    high materiality
    High
    First new capacity online
    by 2029
    high materiality
    High
    Commercial production commencement at Piketon
    in 2029
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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 million22%——
    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%——

    Operational metrics

    23
    Total revenue
    $176.1 millionup $21.6 million or 14% YoY
    Q2 FY26

    Reported total revenue for the second quarter.

    Gross profit
    $49.9 millionvs $53.9 million in Q2 FY25
    Q2 FY26

    Reported gross profit for the second quarter.

    Operating income
    $10.4 million
    Q2 FY26

    Reported operating income for the second quarter.

    Net income
    $16.8 millionvs $28.9 million in Q2 FY25
    Q2 FY26

    Reported net income for the second quarter.

    Diluted earnings per share
    $0.77vs $1.59 in Q2 FY25
    Q2 FY26

    Reported diluted earnings per share for the second quarter.

    Adjusted net income
    $38.7 millionvs $34.5 million in Q2 FY25
    Q2 FY26

    Reported adjusted net income for the second quarter.

    Adjusted diluted earnings per share
    $1.77vs $1.90 in Q2 FY25
    Q2 FY26

    Reported adjusted diluted earnings per share for the second quarter.

    Trailing 12-month revenue
    $473.9 million
    TTM

    Reported trailing 12-month revenue.

    Trailing 12-month net income
    $48.5 million
    TTM

    Reported trailing 12-month net income.

    Trailing 12-month adjusted net income
    $92 million
    TTM

    Reported trailing 12-month adjusted net income.

    SG&A costs increase
    $12.8 millionYoY
    Q2 FY26

    Increase in SG&A costs, primarily driven by stock compensation.

    Advanced technology costs increase
    $7.5 millionYoY
    Q2 FY26

    Increase in advanced technology costs.

    Investment net income increase
    $8.3 millionYoY
    Q2 FY26

    Increase in investment net income, partially offsetting other cost increases.

    Adjusted net income gross advanced technology costs
    $10.6 million
    Q2 FY26

    Component of adjusted net income, related to short-term non-capitalized costs.

    Adjusted net income stock compensation costs
    $17.7 million
    Q2 FY26

    Component of adjusted net income, related to stock compensation.

    Adjusted net income combined tax-adjusted costs
    $21.9 million
    Q2 FY26

    Combined and tax-adjusted value of advanced technology and stock compensation costs included in adjusted net income.

    Total capital spend
    $82.2 million
    Q2 FY26

    Total capital spend for the second quarter, including CapEx and non-CapEx.

    CapEx
    $71.6 million
    Q2 FY26

    Capital expenditures for the second quarter.

    Non-CapEx
    $10.6 million
    Q2 FY26

    Non-capital expenditures for the second quarter, classified as advanced technology costs.

    Unrestricted cash
    $1.9 billion
    Q2 FY26 end

    Unrestricted cash balance at the end of the second quarter.

    ATM proceeds
    $53.9 million
    Q2 FY26

    Proceeds acquired opportunistically using the ATM program.

    HALEU UF6 produced
    Nearly 2 metric tons
    since contract inception

    Contractually produced HALEU UF6 for the government under the existing demonstration contract.

    Critical suppliers contracted
    75%
    Q2 FY26

    Percentage of identified critical suppliers with finalized contracts.

    Industry KPIs

    4
    MetricValueDetails
    Realized price differential3%%
    Basin level production volume23%%
    Cost of supply unit cash cost13%%
    Take or pay contract structure—

    Orderbook & backlog

    5
    Total commercial backlog$4.5 billionQ2 FY26 end

    Extends through 2040.

    LEU segment backlog$3.7 billionQ2 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 billionQ2 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 billionQ2 FY26 end
    Increase in LEU and HALEU enrichment salesapproximate $600 millionQ2 FY26

    Drove the growth in total backlog.

    Deals & partnerships

    2
    OkloLetter of Intent (LOI) to supply HALEUmultiple years

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

    X-energyOfftake 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

    1
    DOE $900 million task orderunderway$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

    3
    Quarter-to-quarter variability in financial resultsOngoing

    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 supplyNear 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 incomeQ2 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

    5

    First centrifuge completion in Oak Ridge

    sometime in 2026
    CurrentUnderway
    TargetCompleted

    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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.