0001628280-26-007117
SEC filingRevenue grew 2% to $448.7M driven by LEU volume gains, offset by Technical Solutions margin compression.
Centrus Energy Corp. is a trusted supplier of nuclear fuel components for the nuclear power industry, which provides a reliable source of carbon-free energy, and provides enrichment and technical services for public and private customers. The company operates two business segments: LEU and Technical Solutions. The LEU segment supplies various components of nuclear fuel to commercial customers from a global network of suppliers, while the Technical Solutions segment provides advanced uranium enrichment for the nuclear industry and the U.S. government, along with advanced manufacturing and other technical services.
The LEU segment accounted for approximately 77% of total revenue for the year ended December 31, 2025. It involves the sale of low-enriched uranium (LEU), primarily the SWU component, to utilities that operate commercial nuclear power plants. The Technical Solutions segment is focused on uranium enrichment for the nuclear industry and the U.S. government, including HALEU production under a contract with the DOE, and advanced manufacturing and engineering services.
Centrus supplies LEU, which consists of SWU (separative work units) and natural uranium hexafluoride. It also sells uranium concentrates, uranium conversion, and enriched uranium product. The company's products include the AC100M centrifuge technology used for enrichment. HALEU (high-assay low-enriched uranium) is a key product for next-generation reactors, enriched to between 5% and 20% U-235.
Centrus sells LEU to domestic and international utilities primarily through medium- and long-term fixed-commitment contracts. The company also engages in spot purchases and maintains inventory. Technical Solutions operates under government contracts, especially with the DOE. The majority of customers are utilities that operate nuclear power plants. No single customer concentration is disclosed.
The enrichment industry is highly competitive, with Centrus holding less than 5% global market share. Major competitors include Rosatom/TENEX (Russia), Urenco (European consortium), CNEIC (China), and Orano (France), all of which are owned or controlled by foreign governments. Competition is based on price and reliability of supply. The global LEU enrichment market is estimated at about 50 million SWU per year.
Centrus aims to provide value through reliable and diverse supply sources. Key strategic pillars include restoring domestic uranium enrichment capabilities for LEU and HALEU, deploying LEU enrichment alongside HALEU to serve commercial and government needs, leveraging technical expertise to expand beyond enrichment into complementary markets, and pursuing a major expansion of uranium enrichment capacity in Piketon, Ohio. The company is also investing in centrifuge manufacturing and infrastructure to support large-scale production.
As of December 31, 2025, Centrus had 467 employees located in Piketon, Ohio (250), Oak Ridge, Tennessee (165), and Bethesda, Maryland (52). The company has collective bargaining agreements with the United Steelworkers Local 689-5 (extended to October 2026) and the International Union, Security, Police, and Fire Professionals of America (through 2030). Centrus emphasizes attracting, developing, and retaining skilled personnel, particularly for specialized roles requiring security clearances.
Revenue increased 2% to $448.7M from $442.0M, driven by LEU segment SWU volume growth (up 23%) offset by a 54% drop in uranium revenue. Gross profit rose 5% to $117.5M, with gross margin expanding 100bps to 26.2% due to favorable LEU contract mix. Operating income grew 5% to $50.2M as higher gross profit was partially offset by increased equity-related compensation ($5.8M vs $1.5M) due to a non-cash reclassification charge. Net income increased 6% to $77.8M, benefiting from $31.8M higher investment income (cash balances from debt issuances) and an $11.8M gain on debt extinguishment, partially offset by a $21.5M swing in nonoperating benefit components and $11.3M higher interest expense. Income tax expense was $8.1M (vs. $0.2M benefit prior year) due to a partial release of the valuation allowance.
LEU Segment: Revenue declined 1% to $346.2M as a 21% increase in SWU revenue ($298.7M) was more than offset by a 54% drop in uranium revenue ($47.5M). SWU volume rose 23%, but average price fell 1%. Cost of sales decreased 8%, improving gross profit 19% to $111.5M (gross margin 32.2% vs. 26.8%). The margin gain reflects favorable contract mix and lower unit costs.
Technical Solutions Segment: Revenue increased 11% to $102.5M, primarily from HALEU Operation Contract work ($10.5M more). Cost of sales grew 30% to $96.5M, compressing gross profit 66% to $6.0M (margin 5.9% vs. 19.1%). The decline stems from undefinitized costs after Phase 2 extension; fee negotiations are pending.
Management highlights several strategic drivers: (1) Plans for a major LEU/HALEU expansion in Piketon, Ohio, with design work starting in December 2025 and construction in early 2026; (2) A $560M investment in Oak Ridge manufacturing capacity (first centrifuges expected online in Ohio by 2029); (3) A $2.3B contingent LEU backlog (subject to funding and capacity deployment); (4) DOE awards under HALEU and LEU production IDIQ contracts, though no assurance of additional task orders. Key risks include the Import Ban Act, Russian Decree limiting TENEX exports, and reliance on waivers for supply. Liquidity is strong with $2.0B cash, but capital expenditures are expected to increase by several hundred million dollars.
As of December 31, 2025, the company held $1,957.2M in cash and cash equivalents, significantly increased from $671.4M a year earlier, driven by proceeds from convertible note issuances and equity offerings. Total debt principal stood at $1,207.5M, consisting of $402.5M 2.25% Convertible Notes due 2030 and $805.0M 0% Convertible Notes due 2032, net of unamortized issuance costs. The 8.25% Notes of $74.3M were redeemed in March 2025. Inventories totaled $322.9M (current), with a net position of $130.2M after accounting for inventories owed to customers and suppliers.
The company's remaining performance obligations (RPO) were approximately $0.6 billion as of December 31, 2025, primarily from the LEU segment with deliveries extending to 2030. Technical Solutions RPO amounted to $79.1M. The company also has a significant supply contract with TENEX (Russia), subject to geopolitical risks and waivers under the Import Ban Act.
There were no share buybacks or dividends disclosed in the notes. Capital expenditures totaled $21.5M in 2025, primarily for construction in progress at the Piketon facility. The company raised $805M from 0% Convertible Notes (August 2025) and $402.5M from 2.25% Convertible Notes (November 2024), using proceeds for working capital and technology investment. The redemption of the 8.25% Notes resulted in a $11.8M gain on extinguishment.
The company operates two segments: LEU and Technical Solutions. LEU revenue was $346.2M in 2025 (down slightly from $349.9M in 2024), with 67% from U.S. customers and 33% from foreign (primarily Japan). Technical Solutions revenue grew to $102.5M from $92.1M, driven by HALEU contract work with DOE. Gross profit for the company was $117.5M overall. Segment operating income was not disclosed in the notes.
The provided document excerpt does not contain the cash flow statement. Only the audit report and index were included.