Centrus Energy Corp.

How Centrus makes money

Centrus Energy supplies nuclear-fuel components to utilities and provides uranium-enrichment, manufacturing and technical services. Its existing fuel business buys material through a supplier network. Its expansion aims to add domestic production of low-enriched uranium and the more highly enriched fuel used by some advanced reactors, known as HALEU. Its Class A shares trade on the New York Stock Exchange as LEU.

Quarterly results

Q3 revenue fell 26% from a year earlier, mainly because fewer uranium deliveries outweighed growth in enrichment sales. Customer contracts generally set annual purchase commitments, so delivery timing affects individual quarters.

Reported Q3 profit included a $46.4 million noncash gain from revaluing common warrants issued in September. Warrants give investors rights to buy shares. Adjusted earnings remove warrant-related items, specified expansion costs and share-based compensation, with applicable tax effects.

The order book and the lease

Research by Ticker Byline shows that about 96% of the backlog's $2.5 billion increase came from additional capacity-dependent commitments. They make up about 77% of total September backlog. Our analysis connects that growth with the expansion schedule and lease negotiations.

The October 19 lease amendment fixed the Piketon site's expiry at October 1, 2027. Centrus says the Department of Energy has indicated it will work toward a long-term extension by December 31, 2026. Without an extension by then, the company says it may have to write down capitalized investments at the site.

The first new expansion capacity is expected in 2029. Centrus announced its first new centrifuge shipment on October 29, ahead of the year-end target set in August. It also reported completing its critical supply-chain contracts and first construction-ready design package.

The accounting measure of remaining performance obligations was about $0.8 billion at September 30 and extends to 2034. It uses a narrower definition than the $7 billion backlog, which extends to 2040 and includes conditional commitments and options.

Government contracts and commercial production

The older HALEU Operation Contract includes about $0.8 billion in reported backlog, with funded amounts, unfunded amounts and unexercised options. Centrus disclosed in August that the Department of Energy did not intend to exercise further production options under that contract.

A separate $900 million expansion contract signed in July pays as performance milestones are met. Larger portions of its funding are scheduled for 2028 and 2031. The contract also provides for up to $170 million of optional fuel deliveries.

Under an October 20 transfer agreement, Centrus subsidiary American Centrifuge Operating took title to specified materials and assumed related facility, maintenance, security and environmental responsibilities. It agreed to hold the existing HALEU for resale to the Department of Energy on request.

Cash, investment and debt

In the first nine months of 2026, operating cash flow was negative $11.1 million, versus positive $99.4 million a year earlier. Cash capital spending rose to $226.4 million from $10.1 million. Cash flow after that spending was negative $237.5 million, compared with positive $89.3 million.

Comparing the nine-month and half-year statements gives Q3 operating cash flow of $5.6 million and capital spending of $131.6 million, leaving negative $126 million after that spending. The year-earlier figures were $10.1 million, $4.4 million and positive $5.7 million.

The September share-and-warrant offering generated $493.8 million in cash proceeds. The $220.4 million warrant liability at September 30 is separate from debt.

Debt principal was $1.21 billion, with maturities in 2030 and 2032.

Westerman and the next milestones

Centrus completed its acquisition of Westerman Holdings on October 16 for about $116 million: $95 million in cash and $21 million in shares, subject to the purchase agreement's working-capital adjustment. Westerman supplies centrifuge casings and other components and also serves non-nuclear industrial customers.

The 2026 revenue forecast remains $450 million to $500 million, and planned capital deployment remains $350 million to $500 million, both unchanged from August. The next concrete tests are the year-end lease-extension target, annual delivery commitments and continued progress toward the first new capacity in 2029.