Centrus Energy (LEU) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $189 million, up 92% year-over-year, with net income rising 141% to $30.6 million, driven by strong LEU deliveries and higher SWU sales volume and price.

• Cash and cash equivalents stood at $227 million as of June 30, 2024, with working capital of $203 million and a strengthened balance sheet.

• Pension obligations were reduced by 79–90% through annuitization, resulting in a $16.6 million remeasurement gain.

• Continued production and deliveries of HALEU, positioning for long-term growth in domestic uranium enrichment.

• Secured DOE waivers for Russian LEU imports for 2024–2025; future waivers for 2026–2027 remain uncertain.

Financial highlights

• Q2 2024 revenue: $189 million (up from $98.4 million in Q2 2023); net income: $30.6 million (up from $12.7 million); EPS: $1.89 (diluted).

• Gross profit for Q2 2024 was $36.5 million, up from $28 million in Q2 2023.

• Operating income reached $21.1 million, compared to $14.4 million in Q2 2023.

• Technical Solutions segment revenue rose to $19.4 million, with gross profit of $3.5 million.

• Backlog totaled $2.7 billion, with $1.7 billion in LEU and $1.0 billion in Technical Solutions, extending to 2040.

Outlook and guidance

• No formal guidance for 2024 due to market uncertainty from the war in Ukraine and regulatory changes.

• Technical Solutions segment expected to be stronger in 2024 due to transition to a cost-plus incentive fee contract.

• Company is pursuing DOE contracts and public/private funding to expand domestic enrichment capacity and HALEU production.

• Margins expected to fluctuate due to timing of customer deliveries and contract mix.

• No assurance of securing new contracts or additional waivers for Russian LEU imports beyond 2025.