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The call presents a predominantly constructive outlook driven by a large contracted backlog ($3.9B), a major DOE HALEU award, strong cash reserves ($1.9B), strategic partnerships, identified cost savings (~$300M), and an upward revision to 2026 revenue guidance. These positives are tempered by near-term profitability pressure from increased expansion-related (advanced technology) costs, a meaningful year-over-year decline in GAAP net income and EPS, reduced LEU/SWU volumes in the quarter, and some execution/timing uncertainty around pending government awards and project milestones. Overall, the operational momentum, funding runway, and strategic initiatives outweigh the transitory cost and timing headwinds, supporting a favorable outlook while acknowledging execution risk during build-out.
Centrus reaffirmed its 2026 operational plan while raising full-year revenue guidance to $450–$500 million (from $425–$475M) and reiterated targets to finalize contracts with 100% of critical partners, release a certified-for-construction package, and limit total capital spend to $350–$500 million; workforce targets were increased to at least 100 net new hires at Oak Ridge and over 100 net new hires in Piketon (up from 50+). The company closed Q1 with a $3.9 billion backlog through 2040 (LEU $3.1B — including $700M broker-dealer and $2.4B contingent under definitive agreements — plus $0.8B in Technical Solutions), noted a $900 million DOE HALEU award (potential to exceed $1B) supporting a 12 metric‑ton HALEU build, and reported it has contractually produced >1.6 metric tons of HALEU UF6; Centrus finished the quarter with $1.9 billion of unrestricted cash (and roughly $2.8 billion of near‑term funding when including the $900M award on milestones) and a trailing‑12‑month revenue run rate of $452.3 million.
Reported Q1 revenue of $76.7 million, up $3.6 million (5%) year-over-year; gross profit of $31.5 million (TTM gross profit $116.1 million); operating income of $0.8 million; net income of $10.0 million; diluted EPS $0.45. Introduced adjusted metrics: adjusted net income $23.5 million and adjusted diluted EPS $1.05.
TTM revenue of $452.3 million and TTM net income of $60.6 million (adjusted net income TTM $87.8 million), providing a broader, stabilized view of business performance amid quarter-to-quarter variability.
Total backlog of $3.9 billion through 2040, comprised of $3.1 billion in LEU (including $700 million broker-dealer backlog and $2.4 billion contingent LEU enrichment sales under definitive agreement) and $0.8 billion in Technical Solutions.
Won a $900 million HALEU enrichment award from the U.S. Department of Energy (potential to exceed $1 billion, subject to negotiations). Since commencing HALEU operations contract, contractually produced over 1.6 metric tons of HALEU UF6 for the government.
Ended Q1 with $1.9 billion in unrestricted cash and did not access ATM; combined with the DOE HALEU award milestone structure provides roughly $2.8 billion of funding potential. Company states sufficient near-term funding for capital requirements.
Launched a $560 million investment in Oak Ridge centrifuge manufacturing and signed three strategic partners: Fluor (EPC), Palantir (data/AI/optimization), and Geiger Brothers (construction). Identified approximately $300 million in potential cost savings and lead-time improvements tied to these partnerships.
Raised fiscal 2026 revenue guidance to $450–$500 million (from $425–$475 million). Reaffirmed other 2026 targets: total capital spend $350–$500 million, release a certified-for-construction package, finalize contracts with 100% of critical partners, and increase Piketon workforce additions to 100+ net new employees (previously 50+).
Technical Solutions revenue increased to $32.1 million in Q1, a $10.3 million (47%) increase year-over-year, primarily driven by the HALEU operations contract (approx. $9.8 million increase).
Good morning, ladies and gentlemen, and welcome to the Centrus Energy Q1 2026 Earnings Call Conference Call. [Operator Instructions] This call is being recorded on Wednesday, May 6, 2026. I would now like to turn the call over to Mr. Neal Nagarajan. Please go ahead.
Good morning. Welcome, and thank you to all of our callers as well as those listening to our webcast. Today's call will cover the results for the first quarter 2026 ended March 31. Today, we have Amir Vexler, President and Chief Executive Officer; and Todd Tinelli, Senior Vice President, Chief Financial Officer and Treasurer. This conference call follows our earnings news release issued yesterday. We have filed our report for the first quarter on Form 10-Q earlier today. All of our news releases and SEC filings, including our 10-K, 10-Qs and 8-Ks, are available on our website. A replay of this call will be also available later this morning on the Centrus website.
I would like to remind everyone that certain information we may discuss on this call today may be considered forward-looking information that involves risks and uncertainty, including assumptions about the future performance of Centrus. Our actual results may differ materially from those in our forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in our forward-looking statements is contained in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking information provided today is time-sensitive and accurate ...