Centrus Energy Corp.

What they do

Centrus runs two segments: LEU, which sells low-enriched uranium and its components to nuclear power utilities worldwide, and Technical Solutions, which provides uranium enrichment for the U.S. government and industry plus advanced manufacturing and engineering services. It sources LEU from long-term and spot supply contracts and its own inventory rather than from its own large-scale commercial enrichment today. Technical Solutions operates HALEU production capacity under DOE contracts and is working to restore domestic U.S. enrichment capability.

Revenue drivers

• LEU segment — Provides most of company revenue, mainly selling the enrichment (SWU) component of LEU to utilities, plus natural uranium hexafluoride and occasional uranium sales. Q2 2026 LEU revenue was $153.4 million, up 22% from $125.7 million a year earlier.
• Technical Solutions segment — Earns revenue from uranium enrichment and technical services for the DOE and private customers, including the HALEU Operation Contract recorded on a cost-plus-incentive-fee basis. Q2 2026 revenue was $22.7 million, down 21% from $28.8 million a year earlier.
• SWU sales — The enrichment component is the core LEU product, measured in SWU. In Q2 2026 SWU revenue fell $25.7 million on 23% lower volume, partly offset by a 3% higher average SWU price.
• Uranium sales — The company also sells natural uranium hexafluoride and occasionally uranium concentrates or conversion. Q2 2026 uranium revenue was $53.4 million, with higher uranium volumes driving up LEU cost of sales.

Recent performance

Q2 2026 revenue was $176.1 million, up 14% from $154.5 million in Q2 2025. GAAP net income was $16.8 million versus $28.9 million a year earlier, while non-GAAP adjusted net income was $38.7 million compared with $34.5 million. LEU segment revenue rose 22% to $153.4 million on higher uranium revenue and a 3% higher SWU price, while Technical Solutions revenue fell 21% to $22.7 million largely on a $5.9 million drop in HALEU Operation Contract revenue. LEU cost of sales rose 36% to $101.8 million, driven by higher uranium volumes and a 13% higher average SWU unit cost.

Strategy

Management says it is in full-execution mode on centrifuge manufacturing and plant expansion, with the first new centrifuge expected to be completed in Oak Ridge, Tennessee, by year-end 2026. The company signed a $900 million HALEU Enrichment award contract with the DOE and selected Geiger Brothers as construction contractor for a major uranium enrichment plant expansion. It is also pursuing a first-of-a-kind large-scale commercial HALEU supply agreement that could include prepayments, and is exploring deploying LEU enrichment alongside HALEU enrichment to capture cost synergies. Centrus says it is locking in a majority of critical suppliers to reduce exposure to price fluctuations.

Risks

• Supply chain and Russian supply — The Import Ban Act and Russian Decree restrict imports of SWU and uranium, and supply chain disruptions could prevent Centrus from filling existing customer orders sourced through its global supplier network.
• Dependence on largest customers and suppliers — Centrus relies on a concentrated set of utility customers and supply contracts, including the TENEX Supply Contract, and the inability to sell purchased LEU at prices covering costs would hurt margins.
• Government contract execution — Failure to perform U.S. government contracts or to win additional task orders under IDIQ contracts would reduce Technical Solutions revenue, and the timing and size of future task orders is uncertain.
• Competition and market pricing — Increased enriched uranium imports from China and competition from foreign governments could change the competitive landscape and pressure pricing and customer spending.

Outlook

Management points to healthy demand momentum with constrained supply and upward pressure on SWU prices, citing spot prices at $200 per SWU as of June 30, 2026. It cites $3.0 billion in contingent LEU and HALEU enrichment backlog and expects further growth from commercial enrichment awards. The company is raising full-year 2026 hiring guidance in Piketon, Ohio, and expects its first new centrifuge to be completed in Oak Ridge by year-end 2026. It cautions that deploying LEU and HALEU enrichment depends on available funding and offtake commitments.