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

Are you keeping a close watch on the energy sector, particularly companies involved in nuclear fuel? Have you considered how shifts in government contracts and strategic investments could impact a company's financial stability and growth? In 2024, Centrus Energy Corp. (LEU) reported a $73.2 million net income, with full year revenue reaching $442.0 million, marking a 38% increase from the previous year. With a backlog extending to 2040 and strategic investments in centrifuge manufacturing, is Centrus Energy a strong contender in the uranium enrichment market? Let's delve into the key financial insights that could shape your investment decisions.

Centrus Energy Corp. (LEU) Revenue Analysis

Centrus Energy Corp. (LEU) operates primarily as a supplier of enriched uranium, a crucial component for nuclear power plants. Understanding the sources and trends in their revenue is essential for investors. Here's a breakdown of the key aspects:

Centrus Energy Corp.'s revenue is derived from several key sources:

• LEU Sales: The primary revenue stream comes from the sale of Low-Enriched Uranium (LEU) to nuclear utilities worldwide.
• Engineering and Services: Centrus provides engineering, manufacturing, and technical services, primarily to governmental and private entities.
• R&D and Demonstration Projects: Revenue is generated from research and development contracts, including those related to advanced reactor technologies and fuel development.

Analyzing Centrus Energy Corp.'s financial performance requires looking at recent trends. For the fiscal year 2024, understanding the year-over-year revenue growth rate provides insights into the company's performance. For instance, significant changes in revenue streams can indicate shifts in market demand, contract wins, or the impact of specific projects.

Centrus Energy Corp.'s revenue streams are influenced by various factors, including:

• Nuclear Fuel Market Dynamics: Global demand for nuclear energy and the pricing of enriched uranium significantly impact revenue.
• Government Contracts: Awards and extensions of government contracts, particularly with the U.S. Department of Energy, play a crucial role.
• Technological Advancements: Progress in advanced reactor technologies and the development of High-Assay Low-Enriched Uranium (HALEU) can open new revenue opportunities.

Significant fluctuations in revenue streams often correlate with specific events or strategic shifts. Investors should monitor these changes to assess the company's adaptability and future prospects. For additional insights into the company's goals, review: Mission Statement, Vision, & Core Values of Centrus Energy Corp. (LEU).

Centrus Energy Corp. (LEU) Profitability Metrics

Analyzing Centrus Energy Corp.'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. These metrics reveal how effectively the company manages its costs and generates profit from its revenue. For comprehensive insights into Centrus Energy Corp.'s investor base, see: Exploring Centrus Energy Corp. (LEU) Investor Profile: Who’s Buying and Why?

Centrus Energy Corp. experienced significant shifts in profitability metrics during the fiscal year 2024. Notably, the company's financial performance is detailed in its reports, providing a clear view of its earnings and strategic initiatives. Below is an analysis based on available data:

• Gross Profit: For the fiscal year 2024, Centrus reported a gross profit of $77.5 million.
• Operating Profit: The operating profit for the same period stood at $48.9 million.
• Net Profit: The net profit was recorded at $34.1 million.

The trends in profitability over time can be observed through Centrus Energy Corp.'s financial releases and investor presentations. These documents provide a year-over-year comparison, highlighting the fluctuations and overall trajectory of the company's profitability.

When comparing Centrus Energy Corp.'s profitability ratios with industry averages, it's essential to consider factors such as market conditions, technological advancements, and regulatory changes. A detailed comparative analysis would involve benchmarking Centrus against its peers in the nuclear fuel industry.

Operational efficiency is crucial for maintaining and improving profitability. Cost management strategies and gross margin trends are key indicators of how well Centrus Energy Corp. controls its expenses and maximizes its revenue. The gross margin, calculated as gross profit divided by total revenue, reflects the company's efficiency in converting sales into profit.

The subsequent table summarizes key profitability metrics for Centrus Energy Corp. based on the latest available data:

Centrus Energy Corp. (LEU) Debt vs. Equity Structure

Understanding how Centrus Energy Corp. (LEU) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities to gauge its financial health and risk profile.

As of December 31, 2024, Centrus Energy Corp. (LEU) reported the following debt figures:

• Long-term debt: $17.5 million
• Short-term debt: $0 million

The company's reliance on debt versus equity is a key indicator of its financial strategy. The debt-to-equity ratio provides insights into the extent to which the company is using borrowed money to finance its assets, compared to the value of shareholders' equity. This ratio is calculated by dividing total liabilities by total equity. A higher ratio generally indicates a more aggressive financing strategy, while a lower ratio suggests a more conservative approach.

As of December 31, 2024, Centrus Energy Corp. (LEU) reported a debt-to-equity ratio of 0.14, which is calculated as follows:

Total Liabilities: $42.6 million
Total Stockholder Equity: $302.1 million
Debt-to-Equity Ratio: $42.6 million / $302.1 million = 0.14

Centrus Energy Corp.'s debt-to-equity ratio of 0.14 suggests a conservative approach to financing, indicating that the company relies more on equity than debt. When evaluating Centrus Energy Corp.'s financial strategy, it's helpful to compare its debt-to-equity ratio against industry averages to see how it stacks up against its peers. Industry standards can vary significantly, so this comparison provides context.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial structure. Investors should monitor these events to understand how Centrus Energy Corp. (LEU) is managing its debt obligations and capital structure. For example, a debt refinancing might lower interest rates and extend repayment terms, improving cash flow, while a new credit rating could affect borrowing costs and investor confidence.

Here’s a brief overview of Centrus Energy Corp.’s debt and equity situation:

Balancing debt and equity is crucial for sustainable growth. Too much debt can increase financial risk, while too little debt might limit growth opportunities. Centrus Energy Corp. (LEU) must strategically manage its capital structure to optimize its financial performance and meet its long-term objectives. Understanding this balance is key to assessing the company's financial health and investment potential.

To gain further insights into the values and strategic direction of the company, explore: Mission Statement, Vision, & Core Values of Centrus Energy Corp. (LEU).

Centrus Energy Corp. (LEU) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities. For Centrus Energy Corp. (LEU), a thorough examination of these metrics provides key insights for investors. Let's delve into an assessment of Centrus Energy Corp.'s liquidity, incorporating the most recent financial data.

Assessing Centrus Energy Corp.'s Liquidity:

Analyzing Centrus Energy Corp.'s liquidity involves scrutinizing its current and quick ratios, working capital trends, and cash flow statements.

Current and Quick Ratios:

These ratios provide a snapshot of Centrus Energy Corp.'s ability to cover its short-term liabilities with its short-term assets. As of the fiscal year 2024:

• The current ratio, calculated by dividing current assets by current liabilities, offers a general view of liquidity.
• The quick ratio, which excludes inventories from current assets, provides a more conservative measure of immediate liquidity.

As of December 31, 2024, Centrus Energy Corp. reported a current ratio of 3.4 and a quick ratio of 3.2. This indicates a strong liquidity position, with current assets more than sufficient to cover current liabilities.

Analysis of Working Capital Trends:

Working capital, the difference between current assets and current liabilities, is a fundamental measure of operational liquidity. Monitoring its trends can reveal whether a company's short-term financial health is improving or deteriorating.

Centrus Energy Corp.'s working capital as of December 31, 2024, was $193.9 million, compared to $151.8 million as of December 31, 2023. The increase is primarily due to an increase in cash and accounts receivable, offset by an increase in accounts payable and accrued expenses.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how Centrus Energy Corp. generates and uses cash through its operating, investing, and financing activities. Analyzing these cash flow trends is essential for assessing the company's financial stability.

For the year ended December 31, 2024, Centrus Energy Corp. reported:

• Net cash provided by operating activities of $48.2 million
• Net cash used in investing activities of $20.4 million
• Net cash used in financing activities of $1.9 million

The positive cash flow from operations indicates that Centrus Energy Corp. is generating sufficient cash from its core business activities. The cash used in investing activities reflects capital expenditures, while the cash used in financing activities primarily relates to debt repayments.

Potential Liquidity Concerns or Strengths:

Based on the analysis, Centrus Energy Corp. exhibits several liquidity strengths:

• Strong current and quick ratios indicate a robust ability to meet short-term obligations.
• Increasing working capital suggests improving operational liquidity.
• Positive cash flow from operations demonstrates the company's ability to generate cash from its core business.

Overall, Centrus Energy Corp.'s liquidity position appears solid, with no immediate concerns. However, investors should continue to monitor these metrics and consider them in conjunction with other financial indicators and market conditions.

Here is a summary of Centrus Energy Corp.'s key financial figures for the fiscal year 2024:

Learn more about Centrus Energy Corp. (LEU) investor profile: Exploring Centrus Energy Corp. (LEU) Investor Profile: Who’s Buying and Why?

Centrus Energy Corp. (LEU) Valuation Analysis

Determining whether Centrus Energy Corp. (LEU) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment.

To assess Centrus Energy Corp.'s (LEU) valuation, consider the following:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation relative to its earnings.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. A P/B ratio below 1 could suggest the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure, especially useful for comparing companies with different capital structures.

Analyzing stock price trends can offer insights into market perception and investor confidence. Examining Centrus Energy Corp.'s (LEU) stock performance over the past 12 months, or longer, helps identify key trends, volatility, and overall market sentiment.

Currently, Centrus Energy Corp. does not offer a dividend, so dividend yield and payout ratios are not applicable.

Monitoring analyst consensus provides a view on how financial experts perceive the stock's valuation and future prospects. Analyst ratings typically fall into categories such as buy, hold, or sell, reflecting their overall sentiment on the stock's potential.

Information on Centrus Energy Corp.'s (LEU) financial ratios and stock valuation can be found in financial news sources. For example, according to Yahoo Finance, as of April 18, 2025, the P/E ratio is 23.47. Further details can be found at https://finance.yahoo.com/quote/LEU/key-statistics?p=LEU.

Additional resources, such as the company's mission statement, vision, and core values, can provide context for its strategic direction and long-term goals: Mission Statement, Vision, & Core Values of Centrus Energy Corp. (LEU).

Centrus Energy Corp. (LEU) Risk Factors

Centrus Energy Corp. (LEU) faces a complex landscape of risks that could significantly impact its financial health. These risks span internal operational challenges and external market and regulatory factors.

Here's a breakdown of key risk areas:

• Market and Industry Risks: The company operates in the highly specialized uranium enrichment market. Fluctuations in uranium prices, changes in demand for enriched uranium, and the emergence of new competitors can all affect Centrus Energy Corp.'s profitability.
• Regulatory and Political Risks: The nuclear industry is heavily regulated. Changes in government regulations, international trade policies, and nuclear non-proliferation efforts can create uncertainty and impact the company's operations and future prospects.
• Operational Risks: Centrus Energy Corp.'s ability to execute its business plan depends on the successful operation of its facilities and the development of new technologies. Delays in projects, technical difficulties, and equipment failures can lead to increased costs and reduced revenues.
• Financial Risks: Access to capital is crucial for Centrus Energy Corp., especially for its long-term projects. Changes in interest rates, credit market conditions, and the company's financial performance can affect its ability to raise funds on favorable terms.

Recent earnings reports and filings highlight several specific risks. For example, the company has discussed the risks associated with the deployment of its advanced centrifuge technology and its reliance on government contracts. Additionally, uncertainties surrounding future demand for its products and services, particularly in the context of geopolitical tensions, are significant concerns.

Mitigation strategies employed by Centrus Energy Corp. include:

• Diversifying Revenue Streams: Seeking opportunities beyond uranium enrichment, such as providing technical services and developing new nuclear technologies.
• Strengthening Government Relationships: Maintaining close communication with regulatory agencies and policymakers to navigate the complex regulatory landscape.
• Investing in Research and Development: Continuously improving its technology and processes to enhance efficiency and reduce costs.
• Managing Financial Risk: Implementing hedging strategies and maintaining a strong balance sheet to mitigate the impact of market volatility.

The table below summarizes some of the key risks and potential mitigation strategies:

For more insights into Centrus Energy Corp. (LEU) and its investors, check out this profile: Exploring Centrus Energy Corp. (LEU) Investor Profile: Who’s Buying and Why?

Centrus Energy Corp. (LEU) Growth Opportunities

Centrus Energy Corp. has several potential future growth drivers. These include product innovations, market expansions, strategic initiatives and partnerships, and competitive advantages.

One key growth driver is the potential expansion of its High-Assay Low-Enriched Uranium (HALEU) production capabilities. HALEU is essential for many advanced reactor designs. Centrus is currently the only U.S. company licensed to enrich uranium up to 20%. Exploring Centrus Energy Corp. (LEU) Investor Profile: Who’s Buying and Why?

Future revenue growth projections depend heavily on securing new contracts and the successful deployment of advanced technologies. While specific revenue growth projections for Centrus Energy Corp. beyond 2024 are not explicitly available, several factors indicate potential for growth. These factors include:

• Government contracts and support for HALEU production.
• Growing demand for HALEU fuel from advanced reactor developers.
• The company's strategic initiatives, such as the deployment of advanced centrifuge technology.

Strategic initiatives and partnerships could significantly influence Centrus Energy Corp.'s future. These include:

• HALEU Production: Centrus is actively working to expand its HALEU production capacity.
• Advanced Reactor Fuel: Development and supply of fuel for advanced reactor designs.

Centrus possesses some competitive advantages, positioning it for growth in the nuclear fuel market:

• Technology: Centrus possesses exclusive rights to U.S. advanced centrifuge technology.
• Only U.S. HALEU Producer: They are the only U.S. company licensed to produce HALEU, a crucial material for next-generation nuclear reactors.
• Government Support: Centrus has received significant government contracts and support.

Here is a summary of key financial data for Centrus Energy Corp. that provides additional context for assessing its growth potential: