Centrus Energy Corp.

Good morning, ladies and gentlemen, and welcome to the Centers Energy Q1 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 8, 2025. I would now like to turn the conference over to Neil Nagarajan, Head of Investment Relations. Please go ahead.

Good morning. Thank you all for joining us. Today's call will cover the results for the first quarter of 2025, ended March 31st. Today we have Amir Vexler, President and Chief Executive Officer, and Kevin Harrell, Chief Financial Officer. Before turning the call over to Amir Vexler, I'd like to welcome all of our callers, as well as those listening to our webcast. This conference call follows our earnings news release issued yesterday. We expect to file a report for the first quarter on Form 10-Q later today. All of our news releases and SEC filings, including our 10-K, 10-Qs, and 8-Ks, are available on our website. A replay of this call will also be available later this morning on the Centris 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 risk 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, May 8, 2025. unless otherwise noted. This call is a property of Centris Energy. Any transcription, redistribution, retransmission, or rebroadcast of the call in any form without the express written consent of Centris is strictly prohibited. Thank you for your participation, and I'll now turn the call over to Amir Pexler.

Thank you, Neil, and thank you to everyone on the call today, both longtime listeners and the growing number of those joining us for the first time. This past year and particularly these recent months have seen Centris make remarkable progress, putting us in a strong position moving forward. We are the only company currently enriching uranium with U.S.-owned, U.S.-origin enrichment technology backed by an American supply chain and powered by American workers. And we are proud to lead the effort to provide domestic and global customers with another market participant by standing up and restoring America's ability to enrich uranium. Before turning to the quarter's performance, let me quickly address the current market dynamic. While there is ongoing uncertainty in the global trade environment, we continue to receive shipments of enriched uranium from our suppliers, and our operations have not been impacted by tariffs. Furthermore, our centrifuge manufacturing supply chain relies on a growing number of suppliers across the United States. Turning to our quarterly numbers, and as previously discussed, it is important to note that there can be significant amount of variability in our quarterly results due to the nature of our business. The majority of our revenue comes from the LEU segment. where our customers generally have multi-year contracts to take delivery of a given quantity at a given price each year. But customers choose which quarter to take the annual delivery and don't always choose the same quarter every year. Revenues and margins fluctuate depending on how many deliveries happen to fall into a particular quarter and whether those deliveries come from a higher-priced or lower-priced contract. And as such, we believe our annual results are moving, are more indicative of our progress. We achieved robust financial results in the first quarter 2025, including $73.1 million in revenue, a gross profit of $32.9 million, and an operating income of $20.5 million. These results were stronger than the first quarter of 2024 results, And while variation is normal for us, the large variation against the previous year's results was due in large part to two things. First, as noted on our last earning call, we had a brief interruption in our supply from 10X stemming from the Russian Federation's November 2024 decree that has since been resolved for our pending orders. This caused a fourth quarter shipment to be pushed into the first quarter of 2025, and second, the impact from a non-recurring lower margin contract on the first quarter of 2024 results. We ended the first quarter with a strong cash balance of $653 million, putting us in a stronger position to both weather temporary market turmoil as well as invest in the company's long-term growth. The Trump administration is in the process of reviewing the funding activities of all federal agencies to align to the President's priorities. We believe that the $3.4 billion that has been appropriated by Congress to jumpstart U.S. nuclear fuel production is consistent with the President's energy dominance agenda. We are awaiting the DOE's decision on how they plan to allocate these funds, to structure the program, and to determine the number of awardees. We are confident in our compelling investment case as the only publicly traded proven enricher that can meet commercial and national security needs while maximizing the government's return on its investment. Our goal is to secure sufficient public and private capital to build our enrichment capacity. And as we await the government's decision, we are pursuing four parallel readiness initiatives to bolster our investment case. First, we continue to strengthen our balance sheet to better position us to make the strategic investments to expand our capacity as part of the envisioned public-private partnership. Recall, we improved our capital position in the fourth quarter by issuing $402.5 million of convertible senior notes. In the first quarter of 2025, we used a part of those proceeds to redeem all of our higher yield eight and a quarter percent notes for their aggregate principal amount to further strengthen our balance sheet and prepare centers ahead of the government's funding decision. Kevin will discuss this in more depth a little later. Second, in late November of 2024, we launched a $60 million investment with several goals in mind. To restart centrifuge manufacturing readiness and extend the capacity of our centrifuge manufacturing facility in Oak Ridge, Tennessee. To rebuild our supply chain and to complete engineering work. This lays the groundwork for the future large-scale deployment of our technology. The investment serves to de-risk Centris' domestic supply chain while reinforcing our first mover advantage in domestic centrifuge production by kick-starting the process ahead of a government funding decision. Third, we continue to successfully operate our HALU cascade at our Pykestone, Ohio facility under the operations contract to deliver HALU that the DOE urgently needs. As a reminder, We began enrichment operations at the American centrifuge plant in Paikton in 2023, making it the first new U.S.-owned, U.S. technology enrichment plant to begin production in nearly 70 years. Through March 31st, we have achieved cumulative deliveries to the Department of Energy of approximately 670 kilograms of halo, in spite of the supply chain bottleneck to the 5B cylinders. A very important goal of our demo program is to demonstrate continuous, successful, and safe centrifuge operations. And we have done so over the past 19 months. The successful operation of the HALU cascade builds upon more than 3.5 million machine hours of successful operations compiled during previous centrifuge testing and technology demonstrations for LEU enrichment. Our technology is de-risked, works as designed, and delivers HALU on time and on budget. Furthermore, the centrifuge design can be used to produce LEU, LEU+, HALU, and is uniquely able to meet a range of national security needs. Our successful deployment, along with our track record of achieving milestones on or ahead of schedule and under budget, demonstrates that we provide our government with a solid investment case for the available U.S. taxpayer funds. And the fourth initiative is that we continue to work with both local and federal government officials to advocate for centrist and the case for keeping American taxpayer dollars in the United States to support American jobs. This includes, first, Chairman Chuck Fleischman, who represents the district where our manufacturing facility in Oak Ridge, Tennessee is located and chairs the House Energy and Water Development Appropriations Subcommittee, was instrumental in securing a large portion of the $3.4 billion in funding. The chairman's congressional district is a hub for nuclear innovation, and he is a strong advocate to ensure companies in this industry are successful. And more recently, A bipartisan group of elected leaders from Ohio sent a pair of letters to Energy Secretary Chris Wright urging him to prioritize Centris' American-owned, American-made centrifuge technology while awarding the funds. The first letter came from 11 Ohio congressional members. The second letter came from Governor Mike DeWine, Lieutenant Governor Jim Trestle, Senator Bernie Marino, and Senator John Husted. Both letters demonstrated the growing groundswell of public support as elected leaders forcefully speak about the importance of investing in an all-American supply chain. As the House letter noted, funding our major competitors would amount to handing U.S. taxpayer dollars to foreign state-owned enterprises. Our efforts to restore America's nuclear fuel supply chain have gained added urgency recently. We have already discussed the large and growing existing market for commercial LEU both domestically and abroad. It is important to note that our business case is based on current commercial market demand and does not incorporate growth accelerators such as data centers, hyperscalers, or AI. and we know that there is a need for enriched uranium for national security purposes. We also understand the heightened need for energy security and the independence in this global trade environment. Furthermore, we know there is a potentially large future market for ALU stemming from the forthcoming advanced reactor market. The DOE recently released supply from its HALO availability program to five advanced reactor developers. At Centris, we're proud to offer the free market with an American source of enriched uranium for these domestic and international needs. We envision many paths to success, producing LEU to transition America's existing reactors away from imports, meeting America's critical national security requirements, and fueling the next generation of reactors with HALO. With that, I will turn the call over to Kevin to walk through the numbers.