LEU Q2 Earnings Call Highlights Backlog and 2029 Build-Out

LEU Sees Enrichment Demand Tightening

Vexler said demand remains strong across commercial low-enriched uranium, national security and high-assay low-enriched uranium, or HALEU, while long-term LEU pricing has continued to rise.

Vexler cited reactor restarts, power upgrades and new nuclear development as demand drivers, alongside government interest and Centrus’ NNSA work on national-security enrichment.

During Q&A, a JPMorgan analyst asked about customer behavior ahead of the Russian import ban. Vexler said buyer interest is strong amid growing demand and limited new supply in the next year or two.

Centrus Advances Funding and Capacity Build-Out

Vexler said the $900 million Department of Energy enrichment award provides nondilutive, non-debt funding for the expansion. Centrus also completed HALEU production requirements under its demonstration contract two weeks early.

Vexler said Centrus has produced nearly 2 metric tons of HALEU UF6 for the government. New capacity is expected in 2029, while Centrus works with DOE to operate the existing 16-centrifuge cascade commercially.

CFO Todd Tinelli said $1.9 billion in unrestricted cash is sufficient for near-term capital needs. Separately, DOE has communicated that it does not currently intend to exercise further options under the HALEU operations contract.

LEU Backlog Grows as HALEU Contracts Mature

Vexler said backlog reached $4.5 billion through 2040. The LEU segment accounted for $3.7 billion, including about $3 billion of contingent LEU and HALEU enrichment sales.

Tinelli said $2.4 billion of that enrichment backlog is under definitive agreements. In Q&A, Vexler clarified that the backlog increase came from commercial agreements and excluded the DOE award.

A William Blair analyst asked about the Oklo and X-energy HALEU agreements. Vexler said X-energy is definitive, Oklo is moving toward a definitive contract, and prepayments remain a source of nondilutive capital.

Centrus Holds 2026 Outlook, Raises Hiring

Vexler reaffirmed 2026 revenue guidance of $450 million to $500 million and total capital spend of $350 million to $500 million. Centrus raised its Piketon hiring target to more than 175 net new employees.

Tinelli said second-quarter capital spend was $82.2 million, including $71.6 million of CapEx and $10.6 million of non-CapEx spending. He expects spending to accelerate through the year.

Revenues of $176.1 million topped the Zacks Consensus Estimate of $148.31 million. Earnings of $0.77 per share exceeded the consensus mark of $0.74.

LEU Q&A Sharpens the 2029 Timing

A ROTH Capital analyst asked whether commercial production still starts around late 2029. Vexler said the goal is production in 2029, dropping the late qualifier without committing to acceleration.

An Evercore analyst pressed on spending. Tinelli said the project will continue to ramp but declined to provide 2027 guidance, tying the cadence to customer demand and preparations at Piketon.

A Truist analyst asked about utility contracting. Vexler said removal of financial contingencies lowers Centrus’ risk profile with utilities. Tinelli added that current RFP activity targets future delivery periods.

Centrus Keeps Execution at the Center

Vexler said cost reduction and shorter lead times remain priorities as Centrus scales manufacturing. He cited work with Palantir, engineering and construction partners, and major suppliers to improve efficiency.

Vexler also tied faster hiring at Piketon to lead-time efforts. The first centrifuge from the Oak Ridge manufacturing operation is expected to be completed during 2026.

Vexler’s call emphasis remained on converting demand and funding into manufacturing progress, with the 2029 production goal serving as the central operating milestone.

Zacks Signals for LEU Remain Cautious

LEU carries a Zacks Rank #3 (Hold). Under the Zacks framework, a #3 rank can support holding a stock, while the strongest combinations generally pair Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks with Style Scores of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.

LEU has a Value Score of F, Growth Score of F, Momentum Score of D and a VGM Score of F, weak grades in the framework. The Zacks Rank can change as estimates are revised after the just-reported results.

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