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 a 147% increase in SWU sales volume.

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

• Annuitized $234 million of pension obligations, resulting in a $16.6 million gain and a significant reduction in liabilities.

• Continued HALEU production and secured $900 million in LEU purchase commitments, contingent on financing for new capacity.

• Received DOE waivers for Russian LEU imports for 2024–2025, supporting uninterrupted supply during the transition period.

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).

• LEU segment revenue was $169.6 million, up 94% year-over-year, with gross profit of $33 million.

• Technical Solutions segment revenue grew to $19.4 million, with gross profit of $3.5 million, both higher year-over-year.

• Consolidated gross profit reached $36.5 million, up from $28 million in the prior year.

• Raised $19.9 million in H1 2024 through ATM offerings, contributing to a total cash and restricted cash balance of $259.6 million.

Outlook and guidance

• No formal guidance for 2024 due to market uncertainty from the war in Ukraine and regulatory changes; annual results expected to align with initial forecasts.

• Backlog increased to $2.7 billion as of June 30, 2024, with LEU segment backlog at $1.7 billion and Technical Solutions at $1.0 billion, extending to 2040 and 2033, respectively.

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

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

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