Centrus Energy Corp.

Greetings and welcome to Centris Energy fourth quarter fiscal year 2025 conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Neil Nagarajan, Head of Investor Relations. Thank you. You may begin.

Good morning. Thank you all for joining us. Today's call will cover the results for the fourth quarter 2024, ended December 31st. Today we have Amir Vexler, President and Chief Executive Officer, and Kevin Harrell, Chief Financial Officer. Before turning the call over to Amir, I'd like to welcome all of our callers, as well as all of those listening to our webcast. This conference call follows our earnings news release issued yesterday. We expect to file a report for the fourth quarter and full year on Form 10-K later today. All of our news releases and SEC filings, including our 10-Ks, 10-Qs, and 8-Ks, are available on our website. A replay of this call will also be available later this morning on the Center's website. I would like to remind everyone that certain information we may discuss on this call today may be considered forward-looking information that involves risks and uncertainty, including assumptions about the future performance of CentRIS. Our actual results may differ materially from those in our forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in our forward-looking statements is contained in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Finally, The forward-looking information provided today is time-sensitive and accurate only as of today, February 7, 2025, unless otherwise noted. This call is the property of Centris Energy. Any transcription, redistribution, retransmission, or rebroadcast of the call in any form without the expressed written consent of Centris is strictly prohibited. Thank you for your participation, and I'll now turn the call over to Amir.

Thank you, Neil, and thank you to everyone on the call today, both long-time listeners and a growing number of those joining us for the first time. I'd like to quickly welcome Neil to the team as our new head of investor relations. Neil brings a wealth of experience to this role, and his hiring is another example of us continuing to build out our core function at a pivotal time. I would like to also thank Dan for his previous service in this role and for his continued support of Centris' corporate communications effort going forward. This is another year of success for Centris Energy, as we made significant progress across all fronts and continued our efforts to restore America's ability to enrich uranium to meet the nation's energy and national security needs, while creating thousands of jobs in the process. As previously announced, this year we already won a DOE contract award for halo deconversion, won a DOE contract award for halo enrichment, continued to successfully enrich HALU under the operations contract with DOE, signed long-term contingent LEU sales commitments and grew the company backlog to $3.7 billion through 2040, and delivered our balance sheet through strategic initiatives associated with our pension plan. This past quarter, we continued on this progress by winning a DOE contract award for LEU enrichment, further strengthening our capital position by issuing $402.5 million of convertible senior notes, accelerating centrifuge manufacturing preparation while de-risking our American-only supply chain to strengthen our first mover advantage, and delivering to the Department of Energy a total of 545 kgs of HALU to date in Phase 2 of the operations contract. Outside of our accomplishment, we saw many industry dynamics continue to shift in our favor, as I will discuss shortly. But first, let me dive into the quarters and annual results. Starting with our annual results, recall that the majority of our revenue is derived from the LEU segment, where customers generally have multi-year contracts to take delivery of a given quantity at a given price each year. As we have previously stated, our customers choose which quarter to take their annual deliveries and don't choose the same quarter every year. For the full year 2024, we achieved $442 million in revenue, a gross profit of $111.5 million, and an operating income of $48 million. We have continued to deliver strong revenue growth and solid margin in our LEU segment, even as we work through a number of trade actions. We have secured waivers from the U.S. Department of Energy, allowing all of our planned imports in 2024 and 2025. We are working through the 2026 and 2027 waiver process with the department. Meanwhile, in November, the Russian government revoked the general license that our supplier, Tenex, had for exporting material from Russia to the United States. and now require a specific license for each shipment. We have been informed that Tenex has received three specific licenses to date to export LEU to satisfy our pending orders. We will use the majority of this LEU to satisfy pending orders to a single customer on a delayed basis. Tenex has informed us of its plan to seek additional export licenses to meet its delivery obligations under the Tenex supply contract for our pending and future orders. We are in close communications with Tenex as well, as our customers whose orders may be impacted to mitigate any potential future disruptions or delays. Turning to our operations, let me first discuss three contract awards we won under a competitive solicitation from the DOE. These are designed to jumpstart American production of both low-enriched uranium, or LEU, and high-assay low-enriched uranium, or HALEU. In October, we won contract awards for HALU enrichment and HALU deconversion. And then in December, we won a contract award, the LEU RFP, which will provide funding to restart American LEU enrichment, reducing U.S. dependence on foreign state-owned sources of enriched uranium. As a reminder, these contracts were awarded as IDIQs, indefinite delivery, indefinite quantity. essentially meaning that we are eligible to compete for future task orders under each contract. The next step in the process will be for the DOE to issue task orders under each contract. The ultimate dollar value of our contract and the scale of the expansion they could support will depend on what task orders for each we will compete and hopefully win. These three contracts are in aggregate backed by more than $3.4 billion in congressional appropriations that were approved as part of the Inflation Reduction Act in 2022 and the bipartisan government funding bill in March 2024. Taken together, they represent the largest federal investment in domestic nuclear fuel production in decades. We made a strong case to the government to receive robust funding under these future task orders. Centris is uniquely positioned to deliver a made-in-America solution that uses an American-only supply chain and manufacturing to support American jobs. We are the only American company with a proven enrichment technology and an NRC license to enrich uranium up to just under 20% for halo, and one of two companies with an NRC license to enrich LEU. Restoring a truly domestic uranium enrichment capability will strengthen our energy security and our national security while creating family-supporting high-tech jobs for American workers. The argument for choosing Centris is further strengthened by the fact that the federal government needs a U.S. origin enrichment technology for national security mission, and we have the only deployment-ready technology capable of meeting those requirements. That's crucially important because commercial enrichment facilities using foreign enrichment technology cannot be used to support U.S. national security mission. In fact, in late 2024, the National Nuclear Security Administration, or NNSA, issued a request for information, or RFI, for an AC-100 centrifuge machine design deployment demonstration at the Piketon, Ohio, facility to support NNSA defense mission requirements for enriched uranium. We believe that our technology will put the US in a position to decouple itself from foreign influences and secure energy autonomy while keeping American taxpayer money in the US. Centris offers a proven American technology that would keep jobs in America to support both commercial and national security needs. We agree with what the US government has said all along that this needs to be a public-private partnership to be viable. European governments fund their state-owned enrichers. We need our American government to, in turn, back an American alternative. And we are ready to help support this push. As Kevin will discuss shortly, we have begun to lay the groundwork ahead of task quarters being issued. In the fourth quarter, we significantly strengthened our balance sheet by closing of over 400 million of convertible notes. This move facilitated our ability to begin investing in our future. And in late November, we announced an approximately $60 million investment to resume centrifuge manufacturing activities and expand our manufacturing capacity at our Oak Ridge facility over the next 18 months. This investment serves to de-risk Centris' supply chain while reinforcing our first mover advantage in domestic centrifuge production by kick-starting the process ahead of government task orders being issued. Nuclear power already accounts for nearly 20% of 2023 U.S. electricity production, and all of the required enriched uranium for U.S. nuclear reactors currently comes from foreign state-owned entities. There is a large existing addressable market for Centris to penetrate. With Congress's enriched uranium ban, we know that the approximately 25% of enriched uranium that is currently imported from Russia will need to be replaced starting in 2028. We continue to hear about mothballed reactors coming back online, from Palisade in Michigan and Duane Arnold in Iowa, to most recently Santee Cooper's announcement that it is seeking buyers to complete the project at South Carolina's VC Summer Nuclear Stations. We also know that utilities are considering upgrading many of their existing reactor fleets to avoid potentially costly new builds over the near term. And then there is international opportunities. These include markets that continue to ramp up reactors or otherwise are considering nuclear energy, such as in Europe and in Japan. additional opportunities that could further accelerate nuclear's growth. In the second half of 2024, we heard a number of big tech companies announcing historic and unprecedented investments in nuclear energy. But we cannot just rest on the prospects of this large and growing energy market, as well as nuclear's growing share of the market. Credibility is built off of customers. To date, we have secured a cumulative total of approximately $2 billion in customer contingent LEU sales commitments to support deployment of our new LEU production capacity in Piketon. This is a clear sign from utilities that they need to secure more supply and that the market demands more competition. So, they are turning to Centris Energy. We are very excited about our company's future prospects and look forward to building on our momentum. We have begun laying the groundwork ahead of the government's anticipated task quarters for which we plan to compete and look forward to sharing more with you on upcoming calls. With that, I will turn the call over to Kevin to walk through the numbers.