Centrus Energy Grows Cash Balance to $1.6 Billion as Backlog Reaches $3.9 Billion—What’s Fueling LEU’s Expansion?

Record Cash Balance and Historic Backlog Underscore Strategic Progress

Centrus Energy’s latest quarterly report marks a turning point: as of September 30, 2025, the company has boosted its unrestricted cash position to an unprecedented $1.6 billion. This surge in liquidity comes on the heels of an upsized $805 million convertible notes offering, showing both market confidence and management’s proactive strategy. At the same time, Centrus’s order backlog stands at a historic $3.9 billion, reflecting sustained demand for its nuclear fuel solutions through 2040 and confirming its place at the forefront of America’s energy security efforts.

Backlog Composition Highlights Robust, Long-Term Commitments

Diving deeper into the backlog, Centrus’s LEU (Low-Enriched Uranium) segment is responsible for $3 billion of the total, bolstered by a combination of fixed contracts and substantial contingent commitments linked to the expansion of production capacity in Piketon, Ohio. The remaining $0.9 billion backlog belongs to the Technical Solutions segment, encompassing both funded and unfunded government contracts. These numbers illustrate the breadth and longevity of Centrus’s commercial relationships, which span the globe and several decades into the future.

Strong Revenue Growth but Gross Margin Compression in the Short Term

On the topline, Centrus’s Q3 2025 revenue climbed 30% year-over-year to $74.9 million. Both LEU and Technical Solutions segments contributed—LEU revenue was up 29% at $44.8 million, while Technical Solutions advanced 31% to $30.1 million. However, the quarter was not without challenges: higher uranium volumes led to a steep rise in LEU segment cost of sales (up 78%), and a swing from a gross profit of $8.9 million last year to a gross loss of $4.3 million this quarter. Management attributes this volatility to the nature of long-term customer contracts, which can skew quarterly results but provide greater consistency year-over-year.

Balance Sheet and Liquidity Improvements Signal Flexibility

The headline here is financial flexibility. Unrestricted cash and equivalents soared to $1.6 billion—over double the figure from nine months earlier. This strength is the product of convertible notes, new equity, and healthy operations, putting Centrus in a position to invest in production capacity and potentially weather future market volatility. While total liabilities grew to $1.88 billion, reflecting new long-term debt, the expanded balance sheet supports Centrus’s ambitious capital investment and growth trajectory.

Strategic Agreements and Hiring Lay the Groundwork for Future Growth

Centrus is leveraging its balance sheet strength with strategic actions: a recent agreement with Korea Hydro & Nuclear Power (KHNP) and POSCO International aims to support expansion at its Piketon plant. Meanwhile, job hiring ahead of this build-out signals forward momentum in operations and local investment. Additionally, management secured U.S. government waivers for 2026–2027 Russian deliveries, de-risking potential supply interruptions at a critical time for global nuclear markets.

Key Takeaways: Backlog and Cash Set the Stage for LEU’s Next Phase

In summary, Centrus Energy’s Q3 results point to a company with robust long-term contracts, record liquidity, and strategic partners lining up for future capacity expansion. While recent gross margin compression is a notable watchpoint, the bigger picture is one of momentum in America’s nuclear energy value chain. For investors, industry watchers, and policy makers alike, LEU’s ability to transform financial strength into new domestic enrichment capability will be a central theme heading into 2026 and beyond.

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