Centrus Energy Q2 revenue beats estimates on LEU segment growth
Centrus Energy Q2 revenue beats estimates on LEU segment growth
Overview
US nuclear fuel supplier's Q2 revenue rose 14% yr/yr, beating analyst expectations
Adjusted net income for Q2 increased yr/yr, while GAAP net income declined on higher costs
Company signed $900 mln HALEU enrichment contract and expanded backlog to $4.5 bln
Outlook
Centrus expects 2026 revenue between $450 mln and $500 mln
Company sees 2026 capital deployment of $350 mln to $500 mln
Centrus raises 2026 hiring guidance for Piketon, Ohio to at least 175 net new employees
Result Drivers
LEU SEGMENT GROWTH - Co said Q2 revenue increase was driven by higher sales in the Low-Enriched Uranium segment
HIGHER COSTS - Co attributed decline in net income to increased selling, general and administrative expenses, mainly from stock-compensation, and higher advanced technology costs
CONSTRAINED SUPPLY AND DEMAND - Co said healthy demand momentum and constrained supply led to upward pressure on enrichment prices and backlog growth
Company press release: ID:nPn7LyXsga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $176.10 mln | $149.85 mln (14 Analysts) |
Q2 Net Income |
| $16.80 mln |
|
Q2 Gross Profit |
| $49.90 mln |
|
Q2 Operating Income |
| $10.40 mln |
|
Q2 Pretax Profit |
| $21.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the uranium peer group is "buy"
Wall Street's median 12-month price target for Centrus Energy Corp. is $267.34, about 41.3% above its August 4 closing price of $189.24
The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 63 three months ago
Reuters Recommended Reads
Aug 4 - PSEG Q2 adjusted EPS beats estimates on increased nuclear generation
Aug 3 - BWX Technologies Q2 revenue growth slightly misses estimates
Aug 4 - Duke Energy's profit beats as higher power demand offsets rising expenses
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)