Centrus Energy (NYSE:LEU) reported second-quarter 2026 revenue growth and expanded its commercial backlog as the company advanced plans to build U.S. uranium-enrichment capacity for low-enriched uranium, or LEU, and high-assay low-enriched uranium, or HALEU.
Revenue for the quarter ended June 30 rose 14% from a year earlier to $176.1 million. The company reported gross profit of $49.9 million, operating income of $10.4 million and net income of $16.8 million, or $0.77 per diluted share. Adjusted net income was $38.7 million, equivalent to $1.77 per diluted share.
Backlog Reaches $4.5 Billion
Centrus ended the quarter with a $4.5 billion backlog extending through 2040, including $3.7 billion in its LEU segment and $800 million in its Technical Solutions segment. The LEU backlog included $700 million of broker-dealer business and $3 billion in contingent LEU and HALEU enrichment sales.
Chief Financial Officer Todd Tinelli said backlog growth was driven by an approximately $600 million increase in LEU and HALEU enrichment sales. Of the roughly $3 billion in enrichment backlog, $2.4 billion was under definitive agreements. The company said the backlog increase reflected commercial agreements and did not include Department of Energy awards.
Centrus said it has met all financial contingencies associated with its contingent LEU enrichment backlog, covering more than $3 billion in customer contracts. Vexler said this milestone reduces risk around the company’s multi-billion-dollar capacity expansion and could improve its position with utilities considering long-term enrichment supply arrangements.
Management said it expects the existing fleet of nuclear reactors to remain a core source of demand for LEU, while HALEU represents an incremental growth opportunity tied to advanced-reactor development. Vexler described HALEU as a potential source of near-term capital through customer prepayments.
DOE Award and HALEU Agreements Support Expansion
During the quarter, Centrus signed a $900 million Department of Energy task order intended to support deployment of large-scale production capacity as part of its LEU and HALEU expansion. The company said the award provides non-dilutive, non-debt funding and represents a transition from its technology-demonstration work to a larger contract supporting commercial-scale production.
The company also said it completed all HALEU production requirements under its existing DOE demonstration contract two weeks ahead of schedule. Since beginning its HALEU Operations contract, Centrus has contractually produced nearly two metric tons of HALEU uranium hexafluoride for the government.
While new capacity from the expansion is expected to begin coming online in 2029, Centrus said it is working with the DOE on agreements that would allow it to operate the existing 16-centrifuge HALEU cascade commercially in the interim.
Separately, Centrus signed a letter of intent to supply HALEU to power up to five Oklo Aurora powerhouses for multiple years beginning in 2029. The company also announced a definitive HALEU off-take agreement with X-energy on the day of the earnings call. Management did not disclose delivery volumes, timing or commercial terms for the X-energy agreement.
Vexler said Centrus’ HALEU agreements generally include prepayments that will be further negotiated in future definitive agreements. He said the company intends to use such prepayments as another non-dilutive, non-debt source of expansion funding.
Segment Results and Spending
The LEU segment generated $153.4 million in second-quarter revenue, up 22% from the prior-year period. Separative work unit, or SWU, revenue declined by $25.7 million as SWU volumes sold fell 23%, partly offset by a 3% increase in the average SWU price. Centrus also recorded $53.4 million in uranium sales during the quarter.
Technical Solutions revenue declined 21% to $22.7 million, primarily because of a $5.9 million decrease in revenue from the HALEU Operations contract.
Net income fell from $28.9 million a year earlier. Tinelli attributed the decrease primarily to a $12.8 million increase in selling, general and administrative expenses, including higher stock compensation, and a $7.5 million increase in advanced technology costs. Those factors were partly offset by an $8.3 million increase in investment net income.
Advanced technology costs included short-term, non-capitalized costs related to manufacturing readiness and security training for the company’s Piketon, Ohio, and Oak Ridge, Tennessee, expansion efforts. Tinelli said Centrus expects a certain level of these expenses to continue flowing through its income statement while preparations proceed.
Total capital spending was $82.2 million in the second quarter, including $71.6 million of capital expenditures and $10.6 million of non-capitalized advanced technology costs. Centrus expects spending to accelerate through the remainder of 2026. It finished the quarter with $1.9 billion of unrestricted cash and said it raised $53.9 million through its at-the-market equity program.
Guidance Maintained; Workforce Target Raised
Centrus reaffirmed its 2026 guidance for total revenue of $450 million to $500 million and total capital spending of $350 million to $500 million. The company also continues to target finalized agreements with all suppliers it deems critical, release of a certified-for-construction package, and at least 100 net new employees at its Oak Ridge facility.
The company raised its Piketon hiring target to more than 175 net new employees in 2026, from a prior goal of more than 100. Centrus also expects to complete its first centrifuge at its Oak Ridge manufacturing facility during 2026.
Management said the Oak Ridge plant will manufacture centrifuges for shipment and installation at Piketon, where Centrus is preparing to begin enrichment operations. Vexler said the company’s target is to begin commercial production in 2029, while it continues to explore ways to compress timelines without providing a revised schedule.
Centrus plans to host its first investor day in December at its American Centrifuge plant in Piketon.
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.
