Mission Statement, Vision, & Core Values (2024) of Centrus Energy Corp. (LEU)

An Overview of Centrus Energy Corp. (LEU)

General Summary of Centrus Energy Corp.

Centrus Energy Corp. (LEU) is a Delaware corporation that specializes in nuclear fuel components and services, primarily for the nuclear power industry. The company has two main segments: the LEU segment, which supplies enriched uranium and various nuclear fuel components, and the Technical Solutions segment, which offers advanced engineering and manufacturing services. Centrus was formed in 1998 and has a long history of supplying enriched uranium to commercial nuclear power plants worldwide.

As of 2024, Centrus has achieved significant sales milestones. The company reported total revenue of $290.4 million for the nine months ended September 30, 2024, compared to $216.6 million for the same period in 2023, marking a 34% increase. The LEU segment, which is the primary revenue driver, accounted for approximately 79% of total revenue during this period.

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, Centrus reported a gross profit of $49.7 million, a decrease of 20% from the $62.3 million reported in the same period of 2023. Key financial highlights include:

• Net income for the nine months ended September 30, 2024, was $19.5 million, down from $28.1 million in 2023, representing a 31% decline.
• Operating income was $2.9 million, significantly lower than the $19.8 million reported in the same period of 2023, reflecting operational challenges.
• Advanced technology costs increased from $10.8 million in 2023 to $13.9 million in 2024, indicating continued investment in uranium enrichment technology.
• Selling, general, and administrative expenses decreased to $25.7 million from $27.5 million, reflecting cost management efforts.

The LEU segment revenue was primarily driven by sales of Separative Work Units (SWU), which totaled $198.1 million, up 34% from $147.4 million in 2023. This increase was attributed to a 33% rise in the average price of SWU sold and a 2% increase in volume sold.

Introduction to Centrus Energy Corp. as a Leader in the Industry

Centrus Energy Corp. stands as a leader in the nuclear fuel industry, recognized for its commitment to providing reliable and advanced nuclear fuel solutions. The company’s focus on innovation, particularly in the field of high-assay low-enriched uranium (HALEU), positions it strategically to meet the growing demand for next-generation reactors. The HALEU Operation Contract, awarded by the U.S. Department of Energy, is a testament to Centrus's capabilities and its pivotal role in the nuclear energy sector.

As of September 30, 2024, Centrus's backlog stands at approximately $2.8 billion, reflecting a robust pipeline of future revenue opportunities. This backlog includes significant commitments for LEU sales and contracts that extend to 2040, underscoring the company's long-term viability and strategic planning.

With a cash and cash equivalents balance of $194.3 million and $29.8 million of restricted cash, Centrus maintains a strong liquidity position, enabling it to support ongoing operations and future growth initiatives.

Mission Statement of Centrus Energy Corp. (LEU)

Mission Statement of Centrus Energy Corp. (LEU)

Centrus Energy Corp. (LEU) operates with a mission that emphasizes its commitment to providing reliable nuclear fuel components and services. The mission statement guides the company in its strategic direction and operational decisions, ensuring alignment with long-term goals and customer needs. The essence of Centrus Energy's mission is to contribute to a sustainable energy future through advanced technology and high-quality service delivery.

Core Component 1: Reliability

Reliability is a cornerstone of Centrus Energy's mission. The company aims to be a trusted supplier of nuclear fuel components, providing assurance to its customers that they can depend on its products. For instance, the LEU segment generated approximately $228.0 million in revenue for the nine months ended September 30, 2024, reflecting a 22% increase from the previous year. This growth indicates strong customer confidence in Centrus's ability to deliver quality products consistently.

Core Component 2: Innovation

Innovation drives Centrus Energy's operational strategy, particularly in the development of advanced uranium enrichment technologies. The ongoing HALEU Operation Contract is a prime example, with a contract value of approximately $150 million. This contract includes a cost-sharing agreement with the U.S. Department of Energy (DOE) to enhance production capabilities for high-assay low-enriched uranium (HALEU), which is essential for next-generation reactors. The company's investment in advanced technology positions it as a leader in the nuclear energy sector and reflects its commitment to innovation.

Core Component 3: Sustainability

Sustainability is integral to Centrus Energy's mission, as it aims to provide carbon-free energy solutions to meet global energy demands. The company's focus on nuclear power not only addresses energy needs but also contributes to environmental sustainability. As of September 30, 2024, the company reported a backlog of approximately $2.8 billion in its LEU segment, indicating a robust future demand for its services. This demand underscores the critical role of nuclear energy in achieving sustainable energy solutions.

Through its mission statement, Centrus Energy Corp. reaffirms its commitment to reliability, innovation, and sustainability, ensuring that it remains a key player in the nuclear energy sector while addressing the global demand for clean energy solutions.

Vision Statement of Centrus Energy Corp. (LEU)

Vision for Sustainable Energy Solutions

The vision of Centrus Energy Corp. (LEU) as of 2024 emphasizes the commitment to providing sustainable energy solutions through advanced nuclear technology. This vision aligns with the global need for carbon-free energy sources, highlighting the importance of nuclear power in achieving environmental goals.

Innovation in Nuclear Technology

Centrus aims to lead in innovation by developing advanced uranium enrichment technologies. The company focuses on deploying High-Assay Low-Enriched Uranium (HALEU) production capabilities, which are essential for next-generation reactors. The HALEU Operation Contract, valued at approximately $150 million, aims to produce 900 kilograms of HALEU UF6 annually.

Global Leadership in Nuclear Fuel Supply

The vision also includes becoming a trusted global supplier of enriched uranium and nuclear fuel components. As of September 30, 2024, Centrus's backlog in the LEU segment reached approximately $2.8 billion, reflecting strong demand for its products and services. The company supplies around 60% of its revenue from the LEU segment, demonstrating its integral role in the nuclear energy market.

Commitment to Safety and Reliability

Centrus prioritizes safety and reliability in its operations. The company continues to invest in advanced safety protocols and quality assurance measures to ensure that its nuclear fuel products meet the highest standards. This commitment is crucial as the industry faces increasing scrutiny regarding safety practices.

Partnerships and Collaboration

As part of its vision, Centrus seeks to foster partnerships with government and private sector entities to drive innovation and expand its market reach. Collaborations, such as those under the HALEU Operation Contract, allow Centrus to leverage its expertise in engineering and manufacturing, positioning the company to meet the evolving needs of the nuclear power industry.

Advancing Nuclear Energy Adoption

Centrus envisions a future where nuclear energy plays a critical role in the global energy mix. The company is committed to advocating for nuclear power as a safe, reliable, and sustainable energy source. This includes engaging with policymakers and stakeholders to promote the benefits of nuclear energy.

Investment in Workforce Development

To support its vision, Centrus recognizes the importance of skilled workforce development. The company invests in training and development initiatives to ensure that its employees are equipped with the necessary skills to operate advanced nuclear technologies effectively.

Core Values of Centrus Energy Corp. (LEU)

Integrity

Integrity is a foundational core value for Centrus Energy Corp., emphasizing ethical conduct and transparency in all operations. The company strives to maintain trust with stakeholders by adhering to the highest standards of integrity.

In 2024, Centrus demonstrated its commitment to integrity through stringent compliance measures and transparency in its financial reporting. For instance, the company's net income for the three months ended September 30, 2024, was reported at $(5.0) million, while the previous year showed a net income of $8.2 million. This fluctuation reflects the company's commitment to accurately reporting its financial performance despite the challenges faced.

Innovation

Innovation drives Centrus Energy Corp. to develop advanced technologies and solutions in the nuclear energy sector. The company invests significantly in research and development to enhance uranium enrichment processes and expand its operational capabilities.

In 2024, Centrus was awarded the HALEU Operation Contract, which has a base contract value of approximately $150 million, aimed at producing high-assay low-enriched uranium (HALEU). This contract underscores Centrus's commitment to innovation, as it seeks to position itself as a leader in the next generation of nuclear fuel production.

Sustainability

Sustainability is integral to Centrus's operations, focusing on providing clean, carbon-free energy solutions. The company is committed to environmental stewardship and reducing its carbon footprint.

In its efforts towards sustainability, Centrus has engaged in initiatives aimed at restoring domestic uranium enrichment capabilities, which plays a critical role in meeting U.S. energy security needs. The company’s Technical Solutions segment is actively involved in projects that contribute to clean energy jobs and support local communities, reflecting its commitment to sustainable practices.

Collaboration

Collaboration is essential for Centrus Energy Corp., as it engages with various stakeholders, including government entities, private sector partners, and local communities, to achieve its business objectives.

As of September 30, 2024, Centrus reported a backlog of approximately $2.8 billion in its LEU segment, which highlights the strong partnerships and long-term contracts established with utilities. These collaborative efforts are vital for ensuring a reliable supply of enriched uranium and advancing the company's operational goals.

Excellence

Excellence is a core value that guides Centrus in delivering high-quality products and services. The company is dedicated to continuous improvement in its operational processes.

In the nine months ended September 30, 2024, Centrus achieved a gross profit of $49.7 million, demonstrating its focus on operational excellence. The company's commitment to excellence is also reflected in its strategic investments in technology and infrastructure, aimed at enhancing productivity and efficiency across its operations.

Article updated on 8 Nov 2024

Resources:

• Centrus Energy Corp. (LEU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Centrus Energy Corp. (LEU)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Centrus Energy Corp. (LEU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.