Centrus Energy (LEU) Q4 2024 earnings summary

Executive summary

• 2024 revenue rose to $442 million, up from $320.2 million in 2023, with net income of $73.2 million, down from $84.4 million.

• Backlog expanded to $3.7 billion through 2040, including $2.8 billion in LEU and $0.9 billion in technical solutions.

• Secured major DOE contracts for HALEU deconversion, HALEU enrichment, and LEU enrichment, and closed $402.5 million in convertible senior notes.

• Launched $60 million investment to resume and expand centrifuge manufacturing at Oak Ridge, de-risking supply chain and accelerating readiness.

• Only U.S. company with proven enrichment technology and NRC licenses for both HALEU and LEU.

Financial highlights

• 2024 revenue reached $442 million, with gross profit of $111.5 million and operating income of $48 million.

• LEU segment revenue grew to $349.9 million, up 30%, and technical solutions revenue rose 80% to $92.1 million.

• LEU segment gross profit was $93.9 million, down 11%, while technical solutions gross profit rose 151% to $17.6 million.

• Adjusted net income per diluted share was $4.47 for 2024, compared to $5.44 in 2023.

• Cash and cash equivalents at year-end were $671.4 million, up from $201.2 million a year earlier.

Outlook and guidance

• Positioned to compete for over $3.4 billion in federal funding for domestic enrichment, with strong demand expected from nuclear industry growth and enriched uranium bans starting in 2028.

• DOE contracts for HALEU and LEU production have maximum aggregate values of $2.7 billion and $3.4 billion, respectively, but actual awards depend on future task orders.

• $60 million investment kickstarts a 42-month timeline for first commercial cascade, contingent on timely government task orders.

• Executive Order 14154 has paused IRA funding, creating uncertainty in timing and outcome for related projects.

• Continues to monitor market for opportunistic uranium sales, leveraging inventory and strong cash position.