Centrus Begins Commercial HALEU Production as Backlog Swells to $5.4 Billion
Centrus Energy has begun producing high-assay low-enriched uranium (HALEU) for commercial use using its existing 16-centrifuge demonstration cascade. The Department of Energy granted rights to use the centrifuges commercially, and the parties are working on a longer-term arrangement, management said on the company's third-quarter earnings call.
The company also completed its first newly manufactured centrifuge at its Oak Ridge, Tennessee, manufacturing facility ahead of its year-end target. Centrus is working to reduce production cycle times and increase throughput as it prepares for larger-scale enrichment at Piketon, Ohio.
Backlog and Financial Position
Centrus's enrichment backlog rose to $5.4 billion in contingent sales commitments, up from $3 billion. Total backlog across both segments reached $7 billion and extends through 2040, with $5.1 billion under definitive agreements and the vast majority being LEU, not HALEU.
Third-quarter revenue declined 26% year over year to $55.5 million. The LEU segment generated $31.8 million, down 29%, and Technical Solutions revenue fell 21% to $23.7 million, partly due to lower revenue under its HALEU operation contract. After the quarter ended, Centrus acquired supplier Westerman for approximately $116 million, consisting of $95 million in cash and $21 million in equity. Management said the deal is intended to reduce supply-chain and project risks, diversify revenue, and is expected to be accretive in its first year.
Centrus CEO Amir Vexler said the company remains primarily focused on LEU demand from established nuclear utilities while seeing advanced reactors and national security as additional opportunities.
Vexler added that reactor developers are making stronger commitments to secure fuel but have not pulled demand forward enough to change Centrus's planned capacity rollout. The company secured all suppliers it considers critical and completed its first certified-for-construction package for its Piketon project. It plans to host an investor day at the Piketon plant on Dec. 7.
Centrus reaffirmed 2026 revenue guidance of $450 million to $500 million and total capital spending guidance of $350 million to $500 million, excluding the Westerman acquisition and its potential revenue contribution. It ended the third quarter with approximately $2.2 billion in unrestricted cash. In September it raised about $500 million through an offering of stock, pre-funded warrants and accompanying common warrants, which could generate approximately $2 billion in additional gross proceeds if exercised in full at prices ranging from about $227 to $363 per share.
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