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LEU Q3 Earnings Beat Estimates on Warrant Gain, Sales Decline
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Key Takeaways
LEU posts Q3 earnings of $1.41 per share, beating estimates, despite a 26% revenue drop to $55.5 million.
A $46.4 million warrant gain lifts earnings, while higher costs widen the operating loss to $29.7 million.
Backlog reaches $7 billion as Centrus Energy advances domestic enrichment and reaffirms its 2026 outlook.
Centrus Energy Corp. (LEU - Free Report) reported third-quarter 2026 earnings of $1.41 per share, beating the Zacks Consensus Estimate of a loss of 42 cents. The figure increased sharply from earnings of 19 cents in the prior-year quarter. The improvement was driven by a $46.4 million noncash gain from the revaluation of warrant liabilities and higher investment income. This was offset by higher selling, general and administrative expenses, advanced technology costs and a lower income tax benefit.
Normalized earnings, excluding the warrant liability, were a loss of 49 cents against earnings of 19 cents in the year-ago quarter. Adjusted loss per share, excluding growth costs and stock-based compensation and warrant-related adjustments, was 46 cents against adjusted earnings of 25 cents in the year-ago quarter.
Revenues declined 26% year over year to $55.5 million but exceeded the Zacks Consensus Estimate of $50 million. Meanwhile, the company’s contingent Low-Enriched Uranium and High-Assay Low-Enriched Uranium (HALEU) enrichment backlog grew to $5.4 billion.
Centrus Energy Corp. Price, Consensus and EPS Surprise
Total cost of sales declined 16.5% year over year to $66.1 million. However, gross loss widened to $10.6 million from $4.3 million in the prior-year quarter.
Advanced technology costs increased to $4.7 million from $1.7 million as Centrus Energy continued investing in its uranium enrichment expansion. Selling, general and administrative expenses rose 38.9% to $13.2 million.
Operating loss widened to $29.7 million from $16.6 million a year earlier. Excluding the impact of warrant-related items, normalized operating loss totaled $25.1 million.
Centrus Energy's Segment Performance in Q3
Low-Enriched Uranium segment revenues declined 29% year over year to $31.8 million. Uranium revenues decreased 48% year over year to $17.7 million due to lower sales volumes. Separative work units (SWU) revenues increased 32% to $14.1 million, supported by a 19% rise in sales volumes and a 10% improvement in average selling prices.
The segment's cost of sales declined 26% to $38.7 million, primarily reflecting lower uranium volumes. However, average SWU unit costs increased 28%. The Low-Enriched Uranium segment reported a gross loss of $6.9 million compared with $7.8 million a year earlier.
Technical Solutions revenues decreased 21% to $23.7 million. This was primarily due to a $10.2 million reduction in revenues generated by the HALEU production contract with the Department of Energy (DOE) signed in 2022, with the remaining change related to other contracts.
Segment cost of sales increased 3% to $27.4 million, reflecting higher customer contract costs, partially offset by lower HALEU operating expenses. The segment recorded a gross loss of $3.7 million against a gross profit of $3.5 million in the prior-year quarter.
LEU's Enrichment Backlog Expands Sharply
Centrus Energy's total backlog increased to $7 billion as of Sept. 30, 2026, from $4.5 billion at the end of June, with commitments extending through 2040. The LEU segment accounted for approximately $6.2 billion of the backlog.
Recent agreements with X-energy, Radiant and Antares supported the expansion of commercial enrichment commitments. These agreements include customer prepayments intended to help finance additional production capacity, strengthening the company's position in advanced nuclear fuel markets.
Centrus Energy Advances Domestic Enrichment Plans
Centrus Energy completed manufacturing and began shipping its first centrifuges from Oak Ridge, TN, ahead of its year-end target. The company also finalized contracts with all suppliers identified as critical and completed its first certified-for-construction package.
The company began enriching HALEU for commercial customers using its existing 16-centrifuge cascade. Its acquisition of Westerman for approximately $116 million is expected to strengthen supply-chain reliability, lower project costs and diversify revenues.
LEU's Cash Position Supports Expansion
Cash and cash equivalents totaled $2.24 billion at the end of September 2026 compared with $1.96 billion at 2025-end. The company raised approximately $500 million through an equity and warrant offering during the third quarter, providing additional funding for its domestic enrichment expansion.
The company used $11.1 million of cash in operating activities during the first nine months of 2026 against cash generation of $99.4 million a year earlier. Capital expenditures increased to $226.4 million from $10.1 million, reflecting accelerated investment in manufacturing and enrichment infrastructure.
Centrus Energy Reaffirms 2026 Outlook
Centrus Energy continues to expect full-year 2026 revenues between $450 million and $500 million. Total capital deployment is projected in the range of $350-$500 million, excluding the Westerman acquisition.
The company maintained its workforce expansion targets of at least 175 net new employees at Piketon, OH, and 100 at Oak Ridge. Management expects capital deployment to accelerate as construction and centrifuge manufacturing activities increase, with additional details planned for its Dec. 7 Investor Day.
LEU Stock’s Price Performance
The company’s shares have lost 61.5% in the past six months compared with the industry’s 3% decline.
Cameco Corporation (CCJ - Free Report) reported a third-quarter 2026 adjusted net loss of CAD 2 million ($1.4 million) against adjusted earnings of CAD 32 million ($23.2 million) in the year-ago quarter. Adjusted earnings per share were at break-even against 5 cents a year earlier. Earnings missed the Zacks Consensus Estimate of 23 cents.
Cameco’s revenues declined 0.8% year over year to $442 million (CAD 619 million) due to lower uranium sales volumes despite higher prices. The top-line figure missed the Zacks Consensus Estimate of $495 million.
Cameco’s uranium segment revenues decreased 1% to CAD 518 million ($370 million) as lower sales volumes were partially offset by an 8% increase in the average realized price to CAD 91.76 per pound, reflecting the impact of market-priced contracts.
Energy Fuels (UUUU - Free Report) reported a loss of 20 cents per share compared with the Zacks Consensus Estimate of a loss of 10 cents. Energy Fuels had reported an adjusted loss of 7 cents per share a year ago.
Energy Fuels’ revenues increased 64.8% year over year to $29.2 million, which beat the Zacks Consensus Estimate of $17 million. The company sold 320,000 pounds of uranium at a weighted average realized price of $88.90 per pound, generating uranium revenues of $28.4 million.
A Uranium Stock Awaiting Results
Ur-Energy Inc. (URG - Free Report) is expected to release third-quarter 2026 results next week. The Zacks Consensus Estimate for Ur-Energy’s bottom line is pegged at a loss of 4 cents per share compared with the loss of 7 cents in the year-ago quarter. The consensus estimate for Ur-Energy’s revenues is pegged at $12.13 million, indicating 92% growth from the prior-year reported figure.
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LEU Q3 Earnings Beat Estimates on Warrant Gain, Sales Decline
Key Takeaways
Centrus Energy Corp. (LEU - Free Report) reported third-quarter 2026 earnings of $1.41 per share, beating the Zacks Consensus Estimate of a loss of 42 cents. The figure increased sharply from earnings of 19 cents in the prior-year quarter. The improvement was driven by a $46.4 million noncash gain from the revaluation of warrant liabilities and higher investment income. This was offset by higher selling, general and administrative expenses, advanced technology costs and a lower income tax benefit.
Normalized earnings, excluding the warrant liability, were a loss of 49 cents against earnings of 19 cents in the year-ago quarter. Adjusted loss per share, excluding growth costs and stock-based compensation and warrant-related adjustments, was 46 cents against adjusted earnings of 25 cents in the year-ago quarter.
Revenues declined 26% year over year to $55.5 million but exceeded the Zacks Consensus Estimate of $50 million. Meanwhile, the company’s contingent Low-Enriched Uranium and High-Assay Low-Enriched Uranium (HALEU) enrichment backlog grew to $5.4 billion.
Centrus Energy Corp. Price, Consensus and EPS Surprise
Centrus Energy Corp. price-consensus-eps-surprise-chart | Centrus Energy Corp. Quote
LEU's Q3 Margins Hurt by Higher Costs
Total cost of sales declined 16.5% year over year to $66.1 million. However, gross loss widened to $10.6 million from $4.3 million in the prior-year quarter.
Advanced technology costs increased to $4.7 million from $1.7 million as Centrus Energy continued investing in its uranium enrichment expansion. Selling, general and administrative expenses rose 38.9% to $13.2 million.
Operating loss widened to $29.7 million from $16.6 million a year earlier. Excluding the impact of warrant-related items, normalized operating loss totaled $25.1 million.
Centrus Energy's Segment Performance in Q3
Low-Enriched Uranium segment revenues declined 29% year over year to $31.8 million. Uranium revenues decreased 48% year over year to $17.7 million due to lower sales volumes. Separative work units (SWU) revenues increased 32% to $14.1 million, supported by a 19% rise in sales volumes and a 10% improvement in average selling prices.
The segment's cost of sales declined 26% to $38.7 million, primarily reflecting lower uranium volumes. However, average SWU unit costs increased 28%. The Low-Enriched Uranium segment reported a gross loss of $6.9 million compared with $7.8 million a year earlier.
Technical Solutions revenues decreased 21% to $23.7 million. This was primarily due to a $10.2 million reduction in revenues generated by the HALEU production contract with the Department of Energy (DOE) signed in 2022, with the remaining change related to other contracts.
Segment cost of sales increased 3% to $27.4 million, reflecting higher customer contract costs, partially offset by lower HALEU operating expenses. The segment recorded a gross loss of $3.7 million against a gross profit of $3.5 million in the prior-year quarter.
LEU's Enrichment Backlog Expands Sharply
Centrus Energy's total backlog increased to $7 billion as of Sept. 30, 2026, from $4.5 billion at the end of June, with commitments extending through 2040. The LEU segment accounted for approximately $6.2 billion of the backlog.
Recent agreements with X-energy, Radiant and Antares supported the expansion of commercial enrichment commitments. These agreements include customer prepayments intended to help finance additional production capacity, strengthening the company's position in advanced nuclear fuel markets.
Centrus Energy Advances Domestic Enrichment Plans
Centrus Energy completed manufacturing and began shipping its first centrifuges from Oak Ridge, TN, ahead of its year-end target. The company also finalized contracts with all suppliers identified as critical and completed its first certified-for-construction package.
The company began enriching HALEU for commercial customers using its existing 16-centrifuge cascade. Its acquisition of Westerman for approximately $116 million is expected to strengthen supply-chain reliability, lower project costs and diversify revenues.
LEU's Cash Position Supports Expansion
Cash and cash equivalents totaled $2.24 billion at the end of September 2026 compared with $1.96 billion at 2025-end. The company raised approximately $500 million through an equity and warrant offering during the third quarter, providing additional funding for its domestic enrichment expansion.
The company used $11.1 million of cash in operating activities during the first nine months of 2026 against cash generation of $99.4 million a year earlier. Capital expenditures increased to $226.4 million from $10.1 million, reflecting accelerated investment in manufacturing and enrichment infrastructure.
Centrus Energy Reaffirms 2026 Outlook
Centrus Energy continues to expect full-year 2026 revenues between $450 million and $500 million. Total capital deployment is projected in the range of $350-$500 million, excluding the Westerman acquisition.
The company maintained its workforce expansion targets of at least 175 net new employees at Piketon, OH, and 100 at Oak Ridge. Management expects capital deployment to accelerate as construction and centrifuge manufacturing activities increase, with additional details planned for its Dec. 7 Investor Day.
LEU Stock’s Price Performance
The company’s shares have lost 61.5% in the past six months compared with the industry’s 3% decline.
Image Source: Zacks Investment Research
Centrus Energy’s Zacks Rank
LEU currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Quick Look at LEU’s Peers’ Performance in Q3
Cameco Corporation (CCJ - Free Report) reported a third-quarter 2026 adjusted net loss of CAD 2 million ($1.4 million) against adjusted earnings of CAD 32 million ($23.2 million) in the year-ago quarter. Adjusted earnings per share were at break-even against 5 cents a year earlier. Earnings missed the Zacks Consensus Estimate of 23 cents.
Cameco’s revenues declined 0.8% year over year to $442 million (CAD 619 million) due to lower uranium sales volumes despite higher prices. The top-line figure missed the Zacks Consensus Estimate of $495 million.
Cameco’s uranium segment revenues decreased 1% to CAD 518 million ($370 million) as lower sales volumes were partially offset by an 8% increase in the average realized price to CAD 91.76 per pound, reflecting the impact of market-priced contracts.
Energy Fuels (UUUU - Free Report) reported a loss of 20 cents per share compared with the Zacks Consensus Estimate of a loss of 10 cents. Energy Fuels had reported an adjusted loss of 7 cents per share a year ago.
Energy Fuels’ revenues increased 64.8% year over year to $29.2 million, which beat the Zacks Consensus Estimate of $17 million. The company sold 320,000 pounds of uranium at a weighted average realized price of $88.90 per pound, generating uranium revenues of $28.4 million.
A Uranium Stock Awaiting Results
Ur-Energy Inc. (URG - Free Report) is expected to release third-quarter 2026 results next week. The Zacks Consensus Estimate for Ur-Energy’s bottom line is pegged at a loss of 4 cents per share compared with the loss of 7 cents in the year-ago quarter. The consensus estimate for Ur-Energy’s revenues is pegged at $12.13 million, indicating 92% growth from the prior-year reported figure.