Company: LEU
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001065059-25-000024
Chunk: 143

Company: CENTRUS ENERGY CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 143
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 448%). Income tax expense (benefit) for both periods resulted from applying the annual effective tax rate to the quarterly income (loss) 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 our Annual Report on Form 10-K for the year ended December 31, 2024.

Net Income (Loss) and Comprehensive Income (Loss)

Net income (loss) netted to income of $27.2 million and a loss of $6.1 million for the three months ended March 31, 2025 and 2024, respectively, a change of $33.3 million (or 546%). The change of $33.3 million was primarily attributable to an increase of $30.7 million in gross profit from the LEU segment, a gain of $11.8 million on the extinguishment of long-term debt, an increase of $4.5 million in investment income, and a decrease of $2.7 million in advanced technology costs. This was partially offset by an increase of $3.0 million in interest expense and a decrease of $2.1 million in gross profit from the Technical Solutions segment.

47

Liquidity and Capital Resources

As of March 31, 2025, the Company had a consolidated cash and cash equivalents balance of $653.0 million. In addition, the Company had $29.8 million of restricted cash related to three 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. 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 12 months from the date of this Quarterly Report on Form 10-Q. Our view of liquidity is dependent on, among other things, conditions affecting our operations, including market, international trade restrictions, sanctions and other conditions, the impact of the May 2024 enactment of the Import Ban Act and our ability to obtain additional waivers thereunder, the impact of the November 2024 Russian Decree and the ability of TENEX to secure export licenses thereunder, the level of expenditures and government funding for our services contracts, and the timing of customer payments. Liquidity requirements for our