Company: LEU
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001065059-25-000058
Chunk: 98

Company: CENTRUS ENERGY CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 98
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 a decrease in the volume of uranium sold. Cost of sales for the six months ended June 30, 2025 and 2024, included $3.6 million and $1.8 million, respectively, for the revaluation of inventory loans. 

Cost of sales for the Technical Solutions segment was $45.7 million and $32.2 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $13.5 million (or 42%). The increase is primarily attributable to a $13.8 million increase in costs incurred under the HALEU Operation Contract, partially offset by a decrease in costs related to other contracts.

Gross Profit

Gross profit for the LEU segment was $81.9 million and $33.5 million for the six months ended June 30, 2025 and 2024, respectively, an increase of $48.4 million (or 144%). LEU customers generally have multi-year contracts that carry annual purchase commitments, not quarterly commitments. The gross profit in our LEU business varies based upon the timing of those contracts. The pricing applied to deliveries varies depending upon the market conditions at the time the contract was signed. The increase for the six months ended June 30, 2025 was due to the composition of contracts in the period.

Gross profit for the Technical Solutions segment was $4.9 million and $7.3 million for the six months ended June 30, 2025 and 2024, respectively, a decrease of $2.4 million (or 33%). The decrease was primarily attributable to the factors discussed above. Because of the delay in completing Phase 2 of the HALEU Operation Contract, in November 2024, DOE extended Phase 2 to June 30, 2025. Costs incurred subsequent to the extension have not yet been subject to a fee as this portion of Phase 2 remains undefinitized and is subject to negotiation. 

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Non-Segment Information

The following tables present elements of the accompanying Consolidated Statements of Operations and Comprehensive Income that are not categorized by segment (dollar amounts in millions):

Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024

Three Months Ended  June 30, 20252024$ Change% ChangeGross profit$53.9 $36.5 $17.4 48 %Advanced technology costs3.3