Centrus Energy (NYSE:LEU) used its fourth-quarter and full-year 2025 earnings call to outline what management described as a milestone year marked by a shift toward commercial-scale centrifuge manufacturing and expanded government support for high-assay low-enriched uranium (HALEU) enrichment capacity. Executives also provided full-year 2026 revenue and capital spending guidance and discussed supply, pricing, and project execution priorities.
2025 results and business mix
Management emphasized that quarterly results can fluctuate due to the company’s business model and said annual results are more indicative of progress. For full-year 2025, Centrus reported revenue of $448.7 million, gross profit of $117.5 million, and net income of $77.8 million.
The technical solutions segment produced $102.5 million in 2025 revenue, up 11% from 2024, primarily from a $10.5 million increase tied to the HALEU Operations Contract.
Gross profit improved about 5% year over year. The LEU segment’s cost of sales fell 8% to $234.7 million, and LEU segment gross profit rose 19% to $111.5 million, which management attributed mainly to higher SWU volumes and improved margins from contract and pricing mix, partially offset by lower uranium gross profit. In technical solutions, cost of sales rose 30% to $96.5 million, primarily due to higher HALEU Operations Contract costs, and segment gross profit fell to $6.0 million. Tonelli said phase two costs incurred after November 2024 have not been subject to a fee because that portion of the contract remains undefinitized and subject to final resolution.
Tonelli also said a scheduled and permitted fourth-quarter shipment from Russia did not leave as expected due to a shipping issue and was pushed into the first quarter of 2026. He said the shipment would have lowered average cost per SWU and improved gross margin and net income. He also cited nonrecurring G&A costs in 2025 of $3.6 million and $1.1 million related to voluntary tax withholdings and CFO transition costs.
Commercial enrichment buildout and DOE award
Chief Executive Officer Amir Vexler said 2025 was punctuated by a December announcement to begin commercial centrifuge manufacturing aimed at the commercial LEU market and Centrus’ backlog. He added that in January the Department of Energy selected Centrus for a $900 million HALEU Enrichment Award, which he said “has the potential to exceed $1 billion” and still requires final negotiation. Tonelli later said the award could increase to “just over $1 billion” with $170 million of additional options and that the final contract is expected to be based on milestone payments.
Vexler said the company’s first new centrifuge cascade is expected to come online in 2029, with subsequent cascades thereafter. He said Centrus is working “day one” to reduce lead time and unit costs. During Q&A, he reiterated that execution and manufacturing efficiency—cycle times, supplier lead times, yield, and quality—are key levers, and he said the company is partnering with firms that specialize in manufacturing excellence.
Vexler also announced Centrus has entered into an agreement with Fluor to serve as its primary EPC partner in Piketon, Ohio.
Backlog, demand signals, and import waivers
Vexler said the company received Department of Energy waivers in the third quarter allowing it to continue importing LEU for “all currently committed deliveries to U.S. customers in 2026 and 2027,” which he said provided clarity and reduced risk for that side of the business.
Tonelli said total company backlog was $3.8 billion as of Dec. 31, 2025, extending to 2040. LEU segment backlog was about $2.9 billion, including $2.3 billion in contingent LEU sales contracts and commitments. He said $2.1 billion of that contingent total is under definitive agreements and $200 million is subject to entering definitive agreements. Technical solutions backlog was approximately $900 million, including funded and unfunded amounts and unexercised options related to the HALEU Operations Contract.
On demand, Vexler argued domestic LEU needs are rising as supply tightens, citing Russia’s exit from the market and additional demand from “restarts, upgrades, and new pledged reactors.” He also said the LEU pricing curve has grown at a 24% compound annual growth rate from 2019 to 2025. In Q&A, he said he expects SWU prices to face downward pressure only if reactor demand falls or supply growth outpaces demand; otherwise, tighter supply could continue to support higher prices as utilities seek bids toward the end of the decade.
Capital position and 2026 guidance
Tonelli said Centrus raised $533.6 million of gross proceeds in 2025 through two at-the-market (ATM) programs, including $390.4 million through a November 2025 ATM at an average price of $269.21 per share. He said that, together with cash generated by the business and an “oversubscribed” August convertible senior note issuance, Centrus ended 2025 with $2.0 billion in unrestricted cash.
For 2026, management issued guidance that includes both financial and operational targets.
- Revenue: $425 million to $475 million
- Capital spend/deployment: $350 million to $500 million
Tonelli said 2026 capital deployment will include prepaid expenses that do not appear as capital expenditures but affect free cash flow as the company invests in suppliers scaling ahead of production. In Q&A, management said the 2026 spending profile includes long-lead procurement, supplier prepayments, and engineering work at Piketon, and that it is not necessarily indicative of a more linear spending pattern expected later in the 2027–2029 period.
Operationally, Vexler said Centrus expects in 2026 to finalize contracts with critical partners and add at least 150 net new employees across its facilities (at least 100 in Oak Ridge and at least 50 in Piketon). He also said the company expects to release its first certified-for-construction work package in Piketon and have the majority of construction partners’ mobilization completed in Ohio by year-end.
During the call, management also said it plans to pursue additional low-cost capital sources, including potential national security-related funding, prepayment or offtake arrangements, and potential foreign direct investment. Vexler highlighted a previously signed MOU with KHNP and POSCO International as part of efforts to validate foreign direct investment as an additional capital option.
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.
