Breaking Down Centrus Energy Corp. (LEU) Financial Health: Key Insights for Investors

You're looking at Centrus Energy Corp. (LEU) because the nuclear fuel market is defintely heating up, so let's cut straight to the numbers. The company's financial health through the first three quarters of 2025 shows a solid foundation, driven by its unique position as the only Western source of High-Assay, Low-Enriched Uranium (HALEU) enrichment, which is crucial for next-generation reactors. Year-to-date through September 30, 2025, Centrus generated approximately $302.5 million in total revenue and reported a net income of roughly $60.0 million, demonstrating strong profitability despite quarterly revenue fluctuations typical of long-term utility contracts. This operational stability is backed by a massive contract backlog of approximately $3.6 billion, extending out to 2040, plus a fortified balance sheet with $833 million in cash and equivalents as of June 30, 2025. The near-term opportunity is clear: Centrus just delivered 900 kilograms of HALEU to the U.S. Department of Energy (DOE) in June 2025, securing a contract extension through June 2026 valued at about $110 million, but the big risk is still the reliance on future government funding for large-scale enrichment expansion. We need to look past the headline numbers and see where that cash is going.

Revenue Analysis

You need a clear picture of where Centrus Energy Corp. (LEU)'s money is coming from, especially with all the noise in the nuclear fuel market. The direct takeaway is this: Centrus's trailing twelve months (TTM) revenue, ending September 30, 2025, hit $454.10 million, representing a solid 15.25% year-over-year growth, but the underlying segments show significant volatility that you must understand. The company is defintely transitioning, with government contracts becoming a larger, more stable factor.

Centrus Energy Corp. operates primarily through two distinct segments, which is key to understanding its financial health. The bulk of the revenue still comes from the Low-Enriched Uranium (LEU) segment, which is the traditional nuclear fuel supply business, selling uranium and Separative Work Units (SWU), or the measure of the effort needed to enrich uranium. The second, and increasingly strategic, source is the Technical Solutions segment, which focuses on advanced enrichment technology, especially the High-Assay, Low-Enriched Uranium (HALEU) production contract with the U.S. Department of Energy (DOE).

Segment Contribution and Primary Sources (9M 2025)

Looking at the first nine months of the 2025 fiscal year (Q1 through Q3), total revenue reached approximately $302.5 million. This breakdown shows where the core business strength lies, and where the growth engine is starting to rev up. Here's the quick math on the segment split:

• LEU Segment: $221.8 million in revenue.
• Technical Solutions Segment: $80.7 million in revenue.

The LEU segment's primary revenue sources are sales of uranium and SWU. For example, in Q3 2025 alone, Centrus Energy Corp. reported $34.1 million in uranium revenue. Still, the Technical Solutions segment, while smaller, is where the company is building its future moat, largely through the HALEU Operation Contract, which is a cost-plus-incentive-fee arrangement.

Growth Volatility and Near-Term Shifts

The overall TTM growth of 15.25% is solid, but quarterly performance has been a roller coaster, which highlights the timing risk inherent in multi-year contracts. The LEU segment is subject to the timing of customer delivery commitments, which are annual, not quarterly, and the fluctuations in the spot market price for SWU. For instance, Q1 2025 saw a massive 67% total revenue increase year-over-year, driven by a 117% jump in LEU revenue due to higher SWU prices and volumes. But, Q2 2025 saw an 18% overall revenue decline year-over-year, mainly from a 26% decrease in LEU revenue due to lower sales volumes. This is a classic example of lumpiness in the nuclear fuel supply business.

The most significant change in the revenue mix is the maturation of the Technical Solutions segment. The successful completion of Phase 2 of the HALEU Operation Contract with the DOE, which involved the delivery of 900 kilograms of HALEU, is a huge operational milestone. The DOE exercising a portion of Phase 3, valued at approximately $110.0 million through June 30, 2026, provides clear, multi-year revenue visibility for this segment. This shift toward domestic, government-backed HALEU production is a structural change, moving Centrus Energy Corp. beyond being a pure-play LEU supplier. This is the new, more stable revenue stream. If you want more details on the valuation implications of this shift, you can check out Breaking Down Centrus Energy Corp. (LEU) Financial Health: Key Insights for Investors.

The LEU segment also saw a major event in Q3 2025, where SWU revenue decreased by $24.1 million due to a 69% drop in the average price of SWU sold, even as the company secured U.S. government waivers for its 2026 and 2027 Russian committed deliveries. This shows the dual nature of their LEU business: long-term contract stability versus short-term price exposure.

Profitability Metrics

You're looking at Centrus Energy Corp. (LEU) and seeing a stock that's had a massive run, but the quarterly profitability numbers can look like a rollercoaster. You need to know if the underlying business is sound, or if the profits are just a one-off event. The direct takeaway is this: Centrus's profitability is highly volatile quarter-to-quarter due to contract delivery timing, but the year-to-date trend for 2025 is strong, driven by exceptional margins in the first half of the year.

The company's profitability ratios for the 2025 fiscal year show a stark contrast between quarters, which is typical in the low-enriched uranium (LEU) and High-Assay, Low-Enriched Uranium (HALEU) business where large, multi-year contracts dictate revenue recognition. For instance, the first quarter was excellent, but the third quarter showed a loss at the gross and operating level.

Here's the quick math: Centrus Energy Corp.'s consolidated net income for the nine months ended September 30, 2025, was approximately $60 million, which shows the overall positive trajectory despite the Q3 dip. The trailing twelve months (TTM) net profit margin as of the end of Q2 2025 was a strong 23.97%, indicating a highly profitable business over a full cycle.

The trend in profitability is one of high volatility but overall growth, which is defintely a key risk to monitor. The Q3 2025 gross loss of $4.3 million was primarily driven by the Low-Enriched Uranium (LEU) segment, which recognized a $7.8 million gross loss, compared to a profit in the Technical Solutions segment. This dramatic shift from the Q1 2025 gross profit of $32.9 million was a direct result of the composition of contracts delivered in the quarter, specifically the high cost of sales from a greater volume of uranium sold.

When you compare Centrus Energy Corp.'s profitability to the broader industry, you see a mixed picture. The company's TTM Net Profit Margin of nearly 24.0% is excellent, suggesting strong pricing power and cost control when the right contracts hit. However, a major competitor, Cameco, reported a Gross Profit Margin of 36.31% for Q3 2025, while the median for the energy sector is closer to 41.67%. This suggests that Centrus's core LEU business, which is subject to market price fluctuations and contract timing, can lag behind peers in gross profitability during certain periods.

The analysis of operational efficiency, particularly in the LEU segment, shows that cost management is a major driver of margin expansion. In Q1 2025, the LEU segment's gross margin expanded significantly because the Separative Work Unit (SWU) unit cost fell by 48% year-over-year, which is the kind of operational leverage you want to see. The Q3 gross loss, however, tells you the timing of higher-cost uranium sales can easily overwhelm that efficiency gain. The overall backlog of approximately $3.9 billion as of September 30, 2025, with about $3 billion in the LEU segment, provides a long-term revenue floor, but you still have to watch the quarterly execution. You can read more about the drivers behind this long-term visibility here: Exploring Centrus Energy Corp. (LEU) Investor Profile: Who's Buying and Why?

• Monitor the segment mix: Technical Solutions margins are more stable than LEU.
• Look past quarterly losses: Focus on the TTM Net Margin of 23.97%.
• Watch for HALEU ramp-up: This higher-value product should stabilize margins.

The key action for you is to normalize the quarterly figures by focusing on the trailing twelve months or full-year estimates, as the contract-based revenue recognition makes single-quarter results misleading. The business is profitable, but it's a lumpy kind of profit.

Debt vs. Equity Structure

You're looking at Centrus Energy Corp. (LEU)'s balance sheet, and the first thing that jumps out is the high leverage, but you need to understand the context: Centrus's recent financing moves are a calculated bet on the future of High-Assay Low-Enriched Uranium (HALEU) production, not a sign of financial distress.

As of the third quarter of 2025, Centrus Energy Corp. reported total debt of approximately $1.2 Billion USD against total shareholder equity of $363.1 Million. This structure results in a high Debt-to-Equity (D/E) ratio of roughly 3.34 (or 334.3%). This is a significant figure, especially when you compare it to a major peer in the nuclear fuel space, Cameco, which recently had a D/E ratio around 0.15. Centrus is defintely leaning on debt to fuel its next phase of growth.

Here's the quick math on their leverage:

• Total Debt (Q3 2025): $1.2 Billion
• Total Equity (Q3 2025): $363.1 Million
• Debt-to-Equity Ratio: 3.34

The company's debt load is heavily weighted toward long-term obligations, which is typical for a capital-intensive industry focused on multi-year projects like uranium enrichment. A key part of this total debt is the $805.0 million in 0% convertible senior notes issued in August 2025, which mature in August 2032. These notes are a hybrid instrument, blending debt and equity characteristics.

This convertible note issuance is the core of their financing strategy right now. It allowed Centrus Energy Corp. to raise a significant amount of capital-net proceeds were approximately $782.4 million-without the immediate shareholder dilution that a pure equity offering would cause. The 0% interest rate is a huge win, essentially giving them seven years of interest-free capital to fund their HALEU expansion and other corporate purposes. This is smart financing.

The company has also been actively managing its higher-cost debt, retiring $74.3 million of 8.25% Notes in March 2025, which generated an $11.8 million gain on extinguishment. This move improved their capital structure by swapping expensive, fixed-rate debt for low-cost, long-term, convertible debt.

Centrus Energy Corp. is using this debt to bridge the gap until its HALEU (High-Assay Low-Enriched Uranium) production capacity is fully commercialized, aligning with their long-term vision. You can read more about their strategic goals here: Mission Statement, Vision, & Core Values of Centrus Energy Corp. (LEU).

What this estimate hides is the potential for future equity dilution. If the stock price rises significantly, the noteholders will convert their debt into shares, which will increase the share count. Still, the company is using debt as a strategic tool to fund a critical, high-growth project, making the current high D/E ratio a calculated risk, not a red flag, provided the HALEU market materializes as expected.

Liquidity and Solvency

You're looking at Centrus Energy Corp. (LEU) and wondering if they have the cash to execute their ambitious High-Assay, Low-Enriched Uranium (HALEU) expansion plans. The short answer is yes, their liquidity position is defintely robust, largely due to a massive capital raise in the third quarter of 2025.

The company's most recent liquidity ratios paint a very strong picture. The Quarterly Current Ratio stands at approximately 3.46, and the Quick Ratio (or acid-test ratio, which excludes inventory) is a solid 2.79. A current ratio of 2.0 is often considered healthy, so Centrus Energy Corp. (LEU) is holding significantly more current assets than current liabilities. This means they have ample resources to cover short-term obligations without stress.

Working Capital and Capital Infusion

The working capital trend for Centrus Energy Corp. (LEU) in 2025 is dominated by a major financing move. Following an oversubscribed and upsized convertible senior notes offering in August 2025, the company's unrestricted cash balance surged to over $1.6 billion as of September 30, 2025. Here's the quick math: the net proceeds from that offering alone were approximately $782.4 million.

This huge cash injection was explicitly intended for general working capital and corporate purposes, which includes investment in technology deployment and capital expenditures for their enrichment build-out. This isn't just a temporary cash hoard; it's a strategic move to fund multi-year growth and de-risk the balance sheet.

• Unrestricted Cash (Q3 2025): Over $1.6 billion.
• Current Ratio (Q3 2025): 3.46.
• Quick Ratio (Q3 2025): 2.79.
• Financing Driver: ~$782.4 million net proceeds from notes.

Cash Flow Statement Overview: Financing Dominance

When reviewing the cash flow statement for the 2025 fiscal year, the story is one of strategic financing overshadowing day-to-day operations. While we don't have the explicit year-to-date numbers for all three segments, the drivers are clear:

The key takeaway is that the financing activity has created a significant liquidity buffer, which is crucial for a company transitioning into a major capital-intensive production phase. This is how Centrus Energy Corp. (LEU) is positioning itself as America's critical supplier of specialized nuclear fuel. You can read more about the market positioning in Exploring Centrus Energy Corp. (LEU) Investor Profile: Who's Buying and Why?.

Liquidity Strengths and Near-Term Actions

The primary liquidity strength is the sheer size of the cash balance, which acts as a powerful hedge against short-term operational volatility, like the Q3 2025 gross loss of $4.3 million in the LEU segment. The company has essentially removed near-term liquidity concerns by capitalizing itself for the next phase of its growth cycle.

The only potential liquidity concern to watch is the burn rate of this cash as capital expenditures for the Piketon, Ohio, enrichment plant expansion accelerate. However, the current cash position and high ratios suggest the company has a long runway before that becomes a problem. Your action: Monitor the quarterly 'Cash Flow from Investing Activities' to track the pace of their capital spending against the $1.6 billion war chest.

Valuation Analysis

Centrus Energy Corp. (LEU) appears to be trading at a premium, suggesting it is currently overvalued relative to its near-term earnings, but the analyst consensus is a 'Moderate Buy.' The market is clearly pricing in the company's long-term strategic value in High-Assay, Low-Enriched Uranium (HALEU) production and its substantial contract backlog, which extends out to 2040 with a value of $3.9 billion.

Is Centrus Energy Corp. (LEU) Overvalued or Undervalued?

Looking at the core valuation multiples, Centrus Energy Corp. is expensive. The Price-to-Earnings (P/E) ratio, which measures the price you pay for every dollar of earnings, is high, hovering between 35.97 (TTM as of November 2025) and 53.8 (based on recent price and earnings). For context, this is significantly above the peer average of around 22.3, suggesting the stock is trading on future growth, not present profitability. The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is better for capital-intensive businesses, is also elevated, sitting in the range of 30.64 to 40.98 (TTM as of November 2025). Honestly, those are growth-stock multiples in a utility-adjacent sector.

Stock Price Momentum and Analyst Sentiment

The stock has seen massive momentum in 2025, with a year-to-date rally of over 262% as of mid-November. This surge is largely driven by the aggressive push for domestic nuclear energy capacity, plus the long-term tailwind from the impending ban on Russian Low-Enriched Uranium (LEU). The current stock price, around $241.73 (as of November 21, 2025), is near the high end of its 52-week range of $49.40 to $464.25.

Wall Street analysts maintain a 'Moderate Buy' consensus rating for Centrus Energy Corp. This rating comes from a mix of 7 'Buy' ratings, 4 'Hold' ratings, and 1 'Strong Buy' rating from twelve brokerages. The average 12-month price target is $224.60, which is actually a forecasted downside of about 7% from the current trading price. What this estimate hides, though, is the wide target range, which runs from a low of $104.00 to a high of $300.00. The market is defintely divided on the near-term volatility.

Dividend Policy: Focus on Growth

If you are looking for income, Centrus Energy Corp. is not your company right now. The company currently does not pay a regular dividend. The Trailing Twelve Months (TTM) dividend payout and yield are both $0.00 and 0.00% as of November 2025. This makes sense for a company focused on capital-intensive projects like the domestic enrichment of HALEU, where they need to retain earnings for investment and expansion. You can learn more about the company's investor base and strategy by Exploring Centrus Energy Corp. (LEU) Investor Profile: Who's Buying and Why?

• No TTM dividend payout: $0.00.
• Dividend yield: 0.00%.
• Payout ratio: Not applicable (N/A).
• Capital is reinvested into HALEU development.

Action: Finance: Monitor capital expenditure updates for the HALEU project, as this will signal when the company might pivot to shareholder returns.

Risk Factors

You're looking at Centrus Energy Corp. (LEU) and seeing a lot of upside, especially with their unique position in High-Assay, Low-Enriched Uranium (HALEU). But honestly, no investment in the nuclear fuel cycle is simple. The biggest challenge for Centrus isn't their technology; it's the geopolitics and the government checkbook.

The company has done a great job diversifying, with the Technical Solutions segment revenue increasing to $80.7 million for the nine months ended September 30, 2025, up from $62.4 million in the prior year. Still, the core Low-Enriched Uranium (LEU) business faces three clear risk categories you need to map to your investment thesis.

External & Geopolitical Vulnerabilities

The most immediate external risk is Centrus Energy Corp.'s historical dependence on geopolitically sensitive supply chains. Specifically, their reliance on the TENEX Supply Contract for the import of Russian LEU exposes the company to significant risk from sanctions, trade restrictions, and the ongoing war in Ukraine.

Plus, the entire nuclear industry is highly regulated. Any changes in U.S. energy policy or new tariffs could affect their operational stability and revenue. You also have to watch the broader market. Volatility in energy prices can easily impact revenue, and rising interest rates make the $805.0 million in convertible senior notes issued in August 2025 more expensive to manage long-term.

• Regulatory Shift: New energy regulations could change the economics overnight.
• Market Competition: Established foreign state-owned enterprises are defintely lining up against them.
• Geopolitical Supply: Sanctions risk to the Russian-sourced LEU supply remains a persistent threat.

Operational & Financial Headwinds

On the operational side, the LEU segment showed a gross loss of $(7.8) million for the three months ended September 30, 2025, a sharp drop from a $5.2 million profit in the same period last year. Here's the quick math: while total revenue for the quarter was up to $74.9 million, the LEU segment's gross profit varies wildly based on the timing of multi-year customer contracts. That kind of quarterly fluctuation makes forecasting tricky.

Supply chain constraints are also a constant headache. If third-party transporters, fabricators, or converters run into trouble, it impacts Centrus Energy Corp.'s ability to deliver, affecting liquidity and business continuity.

Strategic Risks and Mitigation Actions

The single most important strategic risk is the timing and certainty of government awards. Centrus Energy Corp. is the only U.S.-licensed producer of HALEU, but scaling up requires securing federal funding and binding commercial contracts to deliver on that anticipated market opportunity. The government's commitment to the $3.4 billion in funding Congress has provided to jumpstart domestic nuclear fuel production is the key catalyst.

To mitigate these major risks, Centrus Energy Corp. has taken clear actions. They bolstered their cash reserves with a follow-on equity offering of US$196.6 million and secured a waiver to import LEU for 2026-2027 deliveries, which de-risks future supply. They also signed a Memorandum of Understanding with Korea Hydro and Nuclear Power and POSCO International to explore investment in their Ohio enrichment plant expansion. That's a strong move to ward off foreign competition and secure private capital.

You can read more about what drives their long-term vision here: Mission Statement, Vision, & Core Values of Centrus Energy Corp. (LEU).

The next concrete step is to monitor the definitive terms and funding release for the HALEU expansion contracts. That's the signal that turns strategic opportunity into guaranteed revenue.

Growth Opportunities

You're looking at Centrus Energy Corp. (LEU) and wondering if the recent surge is sustainable, and the answer is yes, but the growth story is complex and centers on a single, game-changing product: High-Assay Low-Enriched Uranium (HALEU). This isn't just a product innovation; it is a strategic national security imperative that locks Centrus into a unique, high-margin position.

The core growth driver is Centrus Energy Corp.'s status as the only U.S.-owned company with domestic technology capable of producing HALEU-uranium enriched to between 5% and 20%-which is the specialized fuel required for the next generation of advanced nuclear reactors. Centrus Energy Corp. has already validated its capability by successfully delivering 900 kilograms of HALEU to the U.S. Department of Energy (DOE) by June 2025, completing Phase II of its contract. Honestly, this first-mover advantage is a massive competitive moat.

Here's the quick math on the market opportunity: the HALEU market value is projected to grow from an estimated $260 million in 2025 to a staggering $6.2 billion by 2035, driven by the deployment of Small Modular Reactors (SMRs) and other advanced designs. This is a multi-decade tailwind, not a short-term trade.

Future Revenue and Earnings Estimates

The company's financial trajectory for the 2025 fiscal year reflects this pivot toward high-value enrichment services. Consensus analyst estimates for Centrus Energy Corp.'s full-year 2025 revenue are around $0.45 billion. This is backed by a substantial total company backlog of approximately $3.6 billion as of June 30, 2025, with commitments extending through 2040.

Earnings estimates, however, show the volatility that comes with a company in a high-growth transition phase. The consensus for full-year 2025 Earnings Per Share (EPS) is approximately $2.96 per share, though some more recent analyst projections sit lower at $2.63 per share. What this estimate hides is the margin expansion in the Technical Solutions segment, which is where the HALEU revenue is booked. The Technical Solutions segment revenue increased from $62.4 million to $80.7 million for the nine months ended September 30, 2025, compared to the prior year.

Strategic Initiatives and Competitive Edge

Centrus Energy Corp. is actively moving from a fuel reseller model to a domestic producer, which is the key to long-term profitability. This shift is supported by clear, concrete actions:

• Capacity Expansion: A planned investment of approximately $60 million is underway for manufacturing readiness at the Piketon, Ohio, plant to lay the groundwork for a large-scale Low-Enriched Uranium (LEU) expansion.
• Strategic Capital: The company signed a Memorandum of Understanding (MoU) with Korea Hydro and Nuclear Power and POSCO International to explore potential private investment for this Ohio plant expansion.
• Government Backing: The DOE extended the HALEU operation contract through June 30, 2026, with the Phase 3 option period having a target cost of approximately $99.3 million and a fee of $8.7 million.

The biggest competitive advantage is the geopolitical reality: Centrus Energy Corp. is the only company outside of Russia capable of producing HALEU, which is vital as the U.S. seeks to reduce dependence on foreign nuclear fuel suppliers ahead of the expected Russian LEU import ban phase-in by 2028. Plus, the balance sheet is defintely strong, with $833 million in cash and cash equivalents as of June 30, 2025, giving them the flexibility to fund these expansions. For a deeper dive into the balance sheet, check out Breaking Down Centrus Energy Corp. (LEU) Financial Health: Key Insights for Investors.