Centrus Energy NYSE: LEU reported higher first-quarter revenue and raised its full-year revenue outlook, citing commercial progress, improving offtake discussions and continued work on its uranium enrichment expansion program.
On the company’s Q1 2026 earnings call, President and Chief Executive Officer Amir Vexler said the quarter marked the beginning of what he called a “historic undertaking” to return the United States to domestic commercial uranium enrichment. He said Centrus remains focused on serving commercial low-enriched uranium, or LEU, high-assay low-enriched uranium, or HALEU, and national security markets.
Vexler said the company’s initial build-out is intended to address more than $2.4 billion of commercial LEU enrichment backlog and 12 metric tons of HALEU capacity. He added that further additions would be tied to firm customer orders and capital resources.
First-Quarter Results
Centrus reported first-quarter revenue of $76.7 million, up $3.6 million, or 5%, from the year-earlier period. Gross profit was $31.5 million, operating income was $0.8 million, net income was $10 million and diluted earnings per share were $0.45. Adjusted net income was $23.5 million, or $1.05 per diluted share.
Senior Vice President, Chief Financial Officer and Treasurer Todd Tinelli said trailing 12-month revenue was $452.3 million. He said the company is emphasizing quarterly and trailing 12-month metrics because deliveries and contractual mix can vary significantly from quarter to quarter.
The LEU segment generated $44.6 million in first-quarter revenue, down 13% from the year-earlier period. Tinelli said SWU revenue declined by $9.7 million due to a 47% decrease in SWU volume sold, partially offset by a 52% increase in the average price of SWU sold. The company also recorded $3 million of uranium sales in the quarter.
Technical solutions revenue was $32.1 million, up $10.3 million, or 47%, primarily due to a $9.8 million increase in revenue from the HALEU operations contract. Vexler said Centrus has contractually produced more than 1.6 metric tons of HALEU UF6 for the government since beginning the contract.
Tinelli said first-quarter net income declined from $27.2 million in Q1 2025, primarily because of a $15.9 million increase in advanced technology costs and the absence of an $11.8 million non-recurring gain from extinguishment of long-term debt recorded in the prior-year quarter. Those factors were partially offset by higher investment income and lower income tax expense.
Backlog and Government Opportunities
Centrus ended the quarter with $3.9 billion of backlog extending through 2040. Vexler said that includes $3.1 billion in the LEU segment and $0.8 billion in technical solutions. The LEU backlog consists of $700 million of broker-dealer backlog and $2.4 billion in contingent LEU enrichment sales under definitive agreements.
Vexler said Centrus remains limited in what it can disclose while government procurements are ongoing. He noted that in January the company won a $900 million HALEU enrichment award from the U.S. Department of Energy, which he said has the potential to exceed $1 billion and still needs to be finalized through negotiations.
Regarding national security work, Vexler said Centrus had submitted its response to the National Nuclear Security Administration after being notified of the agency’s intent to sole source certain enrichment activities from the company. He said Centrus stands ready to support the national security mission but deferred further details to the government.
Expansion Program and Partnerships
Centrus launched a $560 million investment in its Oak Ridge centrifuge manufacturing plant in late January. Vexler said the company has signed three key partners to support the build-out while maintaining control over centrifuge design, engineering and manufacturing know-how.
- Fluor will perform design engineering, procurement, construction and commissioning for the expansion.
- Palantir will provide its Foundry and artificial intelligence platform to integrate systems across classified and unclassified environments and help optimize the build-out.
- Geiger Brothers will lead on-the-ground construction work in Ohio.
Vexler said Centrus has identified approximately $300 million in potential cost savings and additional improvements expected to reduce manufacturing lead times and accelerate the timetable since late January. In response to an analyst question, he said Palantir’s platform provides real-time data and helps Centrus manage hundreds of suppliers, improve project management and make decisions more quickly.
Tinelli said Centrus finished the quarter with $1.9 billion in unrestricted cash and did not access its at-the-market equity program. Including the $900 million HALEU award, he said the company views itself as having about $2.8 billion available, with HALEU funding expected to come in through milestone payments. He said Centrus continues to evaluate low-cost capital options, including potential government and third-party sources.
Guidance Raised for Revenue and Hiring
Centrus raised its 2026 revenue guidance to a range of $450 million to $500 million, up from $425 million to $475 million. The company also increased its expected net new employee additions in Piketon, Ohio, to more than 100 from more than 50.
At the same time, Centrus reaffirmed the rest of its 2026 guidance, including capital expenditures of $350 million to $500 million, finalizing contracts with 100% of partners it deems critical, releasing a Certified-for-Construction package and hiring at least 100 net new employees at its Oak Ridge facility.
Tinelli said total capital spend in the first quarter was $45.2 million, including $23.2 million of capital expenditures and $22 million of non-CapEx spending. The non-CapEx total included $17 million of growth costs and $5 million of prepayments related to the Palantir agreement. He said both CapEx and non-CapEx spending are expected to accelerate through the year.
Market Commentary
During the question-and-answer session, Vexler said the uranium enrichment market continues to face constrained supply and increasing demand from the existing reactor fleet and new reactor developers. He said Centrus is seeing favorable pricing trends, though he declined to comment on specific contract pricing.
Vexler also said advanced reactor companies are increasingly moving from licensing and development toward more serious fuel procurement. He said LEU can drive significant volume, while HALEU may offer advantages from a margin and market-positioning perspective.
The company also discussed its recently announced exploration of a joint venture with Oklo focused on HALEU deconversion. Vexler said commercial deconversion of UF6 into oxide or metal form for advanced reactor fuel does not currently exist and represents “a hole in the fuel cycle.” He said placing deconversion alongside enrichment could provide efficiencies and potential vertical integration for Centrus.
Vexler said conversations with advanced reactor companies, hyperscalers and other potential partners have picked up since Centrus announced its build-out plans, though he noted that first-of-a-kind discussions take time.
About Centrus Energy NYSE: LEU
Centrus Energy Corp is a U.S.-based supplier of nuclear fuel and enrichment services, specializing in the production of low-enriched uranium (LEU) for commercial power reactors and highly enriched uranium for naval propulsion. Through its Centrus Global subsidiary, the company provides technical support, fuel fabrication services and recycled uranium products to utilities operating light-water reactors. Centrus also develops advanced centrifuge technologies aimed at improving enrichment efficiency and reducing the cost of nuclear fuel.
Originally founded as the United States Enrichment Corporation (USEC) in 1998 following a spin-out from the U.S.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Centrus Energy, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Centrus Energy wasn't on the list.
While Centrus Energy currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.
Get This Free Report
