Company: LEU
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001065059-25-000058
Chunk: 167

Company: CENTRUS ENERGY CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 167
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 100% of the principal amount, together with any accrued and unpaid interest. The Company recorded a gain of $11.8 million related to the extinguishment of the 8.25% Notes in the six months ended June 30, 2025.

Income Tax Expense

Income tax expense was $16.5 million and $6.6 million in the six months ended June 30, 2025 and 2024, respectively, an increase of $9.9 million (or 150%). Income tax expense for both periods resulted from applying the annual effective tax rate to the quarterly income from continuing operations adjusted for discrete items. For more information about the valuation allowance, see Note 14, Income Taxes, in our Consolidated Financial Statements on Form 10-K for the year ended December 31, 2024.

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Net Income and Comprehensive Income

Net income was $56.1 million and $24.5 million in the six months ended June 30, 2025 and 2024, respectively, an increase of $31.6 million (or 129%). The increase was primarily attributable to an increase of $46.0 million in gross profit, as discussed above, a gain of $11.8 million on the extinguishment of long-term debt, and an increase of $10.1 million in investment income. This was partially offset by an increase of $18.1 million in nonoperating components of net periodic benefit expense, an increase of $9.9 million in income tax expense, and an increase of $5.8 million in interest expense.

53

Liquidity and Capital Resources

As of June 30, 2025, the Company had a consolidated cash and cash equivalents balance of $833.0 million. In addition, the Company had $11.2 million of restricted cash related to one of three initial inventory loans, which required a cash deposit into an escrow fund. In May 2025, $18.6 million of the restricted cash was released from escrow, following the repayment of two of the three inventory loans in March 2025. In July 2025, the remaining $11.2 million of the restricted cash was released from escrow, following the repayment of the last of the three inventory loans in June 2025. See Note 3, Cash, Cash Equivalents, and Restricted Cash of the Consolidated Financial Statements. The Company anticipates having adequate liquidity to support our business operations for at least the next