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Investing.com -- Shares of Centrus Energy (NYSE:LEU) climbed 12% following the company’s announcement of its fourth-quarter financial results. The Bethesda-based nuclear fuel supplier reported a quarterly revenue of $151.6 million, a significant increase from $103.6 million in the same period last year. Despite a decrease in earnings per share (EPS) to $3.20 from $3.64 YoY, investors reacted positively to the company’s robust revenue growth and strategic developments.
Centrus Energy’s financial performance for the fourth quarter was bolstered by a 30% increase in revenue from the low-enriched uranium (LEU) segment and an 80% surge in revenue from the Technical Solutions segment. The company’s successful transition from Phase 1 to Phase 2 in its HALEU Operation Contract with the U.S. Department of Energy (DOE) contributed to the significant revenue rise in the Technical Solutions segment.
The company’s forward-looking initiatives also played a key role in the stock’s positive movement. Centrus Energy has strengthened its balance sheet with the closing of $402.5 million in convertible senior notes, leading to an unrestricted cash balance of $671.4 million as of December 31, 2024. Additionally, the company announced a $60.0 million investment in centrifuge manufacturing activities in Oak Ridge, Tennessee, to mitigate supply chain risks and expedite deployment.
Moreover, Centrus Energy was selected as a contract awardee by the DOE for the production of both LEU and high-assay low-enriched uranium (HALEU), as well as for HALEU Deconversion, positioning the company to potentially benefit from over $3.4 billion in federal funding approved by Congress.
Centrus President and CEO Amir Vexler highlighted the company’s strong quarter and year, emphasizing the expansion of its backlog, the success of its HALEU production, and the restart of centrifuge manufacturing activities. Vexler also pointed to the new government contracts and private financing as foundational for potential expansion at the company’s Ohio enrichment plant.
Looking ahead, Centrus Energy’s backlog stands at $3.7 billion as of December 31, 2024, extending to 2040. This includes future deliveries under medium and long-term contracts with fixed commitments and approximately $2.0 billion in contingent LEU sales contracts and commitments.
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