Q3 2025 Centrus Energy Corp Earnings Call
Speaker #1: As of today , November 6th , 2025 , unless otherwise noted , this call is a property of CENTRUS ENERGY CORP . Any transcription redistribution , retransmission , or rebroadcast of the call in any form without the express written consent of centrist is strictly prohibited .
Speaker #1: Thank you for your participation , and I'll now turn the call over to Amir . Thank you . Neal . And thank you to everyone on the call today .
Speaker #1: We made significant progress this quarter and strengthening centuries to capitalize on our forthcoming growth opportunities . While continuing to successfully operate our broker trade business .
Speaker #1: This includes hiring to succeed our former chief financial officer , Kevin Harrill . I would like to again thank Kevin for his work to help improve and bring us forward .
Speaker #1: Todd brings a wealth of knowledge and expertise to Sentry's , including more than 20 years of experience in the energy industry . He has been part of a number of large industrial expansions and capital raises precisely and not coincidentally , the tasks were facing .
Speaker #1: Now . I welcome talk to the team . Our progress to date includes our internally focused operational preparations , the growing momentum in discussion we're having with potential future customers , and increasingly strong signals .
Speaker #1: We see from the marketplace . All of these have strengthened our outlook and culminated in one our event in Ohio announcing our hiring plans ahead of our planned expansion in two .
Speaker #1: Today's capital was announcement . But first , let me turn to the quarter results . As many of you know , there can be a significant amount of variability quarter to quarter due to the nature of our business .
Speaker #1: And as such , we believe our annual results are more indicative of our progress . In the third quarter . We achieved $74.9 million in revenue , a gross loss of $4.3 million in operating loss of $16.6 million , and a net income of $3.9 million , 2025 .
Speaker #1: Year to date , net income was 60 million , compared to 19.5 million during the same period last year . Todd will discuss the results and their respective drivers in more depth shortly .
Speaker #1: Turning to our broker trader segment during the quarter , sentries received waivers from the Department of Energy to continue to import Leu for all currently permitted deliveries to US customers in years 2026 and 2027 .
Speaker #1: This announcement provides greater clarity and helps to de-risk that side of our business . Now , turning to our future commercial enrichment business .
Speaker #1: As a reminder to our listeners , our proposed public private partnership model envisions centers potentially securing funding from a number of sources on the public side .
Speaker #1: This includes potential task order awards under our Leu enrichment contract or under our Halo enrichment and the conversion contract , which all represents opportunities to obtain a portion of the $3.4 billion appropriated by Congress .
Speaker #1: By Congress , or potential national security awards . As we have previously stated , we hope to capitalize on any potential public funding made available by the Doe , as it will create the lowest cost of capital structure .
Speaker #1: As the only US owned company with a proven technology . We feel we make a strong case . The private capital would then come in multiple forms , including partnerships , where our balance sheet .
Speaker #1: Furthermore , we also have other business models that address a variety of funding scenarios ahead of the Doe , Liu , and Halo Awards .
Speaker #1: We continue to pursue our readiness initiative to strengthen our investment case and to prepare ahead of our industrial expansion . First , in the quarter , we closed an oversubscribed and upsized convertible senior note transaction on favorable terms , increasing our unrestricted cash balance to over $1.6 billion .
Speaker #1: In line with our strategy to optimize our capital structure and strengthen our position ahead of government announcements . Second , we continue to execute on our supply chain readiness program announced last November that is laying the groundwork for future large scale deployment of our technology .
Speaker #1: Our September Ohio jobs announcement is another concurrent preparation step . Third , we continue to successfully operate our Halo cascade under our contract with the Doe and reached a milestone of two full years of continuous uranium enrichment this past October .
Speaker #1: Our technology has been proven with over 3.9 million machine hours . It can meet the full range of America's commercial and national security enrichment requirements , including but not limited to leu , leu , plus , and Halo .
Speaker #1: Fourth , we are seeing growing momentum in our engagements with key stakeholders , including potential external investors . In August , we signed an agreement with CNP , the third largest operator of nuclear assets in the world , and Posco international for a potential investment in enrichment capacity .
Speaker #1: The key development is an example of how private sector capital could support our potential expansion . There is a large and growing opportunity set for these types of partnerships that could come from foreign countries and utilities to SMR developers and hyperscalers , all of which are looking to secure fuel for their respective ambitions .
Speaker #1: Our strong progress and these developments have led us to our two most recent announcements . First , at our September event alongside governor DeWine , Senator Jon Husted and Congressman Taylor of Ohio .
Speaker #1: We announced our plan to hire on a large scale ahead of our planned expansion . These are important jobs to an economically depressed area that holds significant talent and is but one example of the value that comes from investing in an American company that is creating American jobs .
Speaker #1: Second , this morning we announced we are launching a $1 billion at the market program . Given the market signal and our progress , we believe now it is an appropriate time to raise these funds in this form ahead of our proposed build out .
Speaker #1: With that , I will turn the call over to Todd to walk through the numbers . Todd .
Speaker #2: Thank you . Amir , for that . Welcome . And thank you to everyone on today's call . First , I'd like to thank Amir for that kind .
Speaker #2: Welcome . My first 100 days on the job have been exciting and have reinforced my strong belief in centrist platform and substantial upside potential .
Speaker #2: I have been impressed with this unique , world class technical capabilities . The operations and its assets already in place , its strong position in the market with high barriers to entry and the talented workforce .
Speaker #2: Looking ahead, I will be focused on appropriately positioning our balance sheet and potential partnership network to sufficiently capitalize the company for our future needs and implement best practices across our operations to support our potentially large expansion.
Speaker #2: Let me first walk through our results , which were in line for our internal projections and reflected the typical quarter over quarter shift in contractual mix that can transpire based on our customer orders and deliveries .
Speaker #2: Total revenue for the third quarter was 74.9 million , an increase of 17.2 million , or 30% , versus the same quarter last year .
Speaker #2: The segment generated 44.8 million in the third quarter , an increase of 29% , or 10 million , compared to the same quarter last year , driven by an increase in the volume of uranium sold , partially offset by a decrease in the average price of swoosh sold .
Speaker #2: The technical Solutions segment delivered revenue of 30.1 million in the third quarter . An increase of 7.2 million , or 31% , over Q3 2004 .
Speaker #2: Results driven by the sale of Lou to the Doe . Centris generated a third quarter gross loss of 4.3 million , compared to a gross profit of 8.9 million in the same period last year .
Speaker #2: The Lou segment cost of sales increased 23.0 million to 52.6 million in the quarter , primarily driven by an increase of volumes of uranium sold , partially offset by a decrease in the average cost of sold .
Speaker #2: Cost of sales in the segment grew 7.4 million to 26.6 million in the quarter , primarily attributed to the $8.5 million in cost increases under the halo operations contract .
Speaker #2: Centris generated net income of 3.9 million in Q3 , compared to a net loss of 5 million in the same period last year .
Speaker #2: Excluding non-recurring costs associated with the CFO transaction . Q3 2025 net income was 4.6 million . 2025 year to date , net income was 60 million , compared to 19.5 million during the same period last year .
Speaker #2: As of September 30th , 2025 , the total company backlog stood at 3.9 billion and extends to 2040 . The Lou segment backlog is approximately 3 billion .
Speaker #2: This includes future SWU and uranium deliveries under medium and long term contracts with fixed commitments , as well as the 2.3 billion in contingent Lou sales commitments , with 2.1 billion of the total under definitive agreements and 0.2 billion of the total subject to entering into definitive agreements .
Speaker #2: Our technical Solutions segment backlog is approximately 0.9 billion as of September 30th , 2025 , which includes funded amounts , unfunded amounts , and unexercised options .
Speaker #2: The options relate to the company Halo operation contract . Turning to our capitalization in the third quarter , we issued 805 million of 0% convertible senior notes for a total net proceeds of 782.4 million .
Speaker #2: The proceeds from the offering deliver added liquidity to execute our strategic plans and help de-risk our business . Furthermore , as announced today , we filed a shelf registration and simultaneously brought down 1 billion to be used in at the market offering .
Speaker #2: We believe that having a shelf in place is part of good business practices , and that using equity to raise capital at this time is prudent solution .
Speaker #2: Given our strong valuation and lower cost of capital associated with it . We will be using the proceeds from the ATM for general corporate purposes .
Speaker #2: The issuance of the 0% convertible notes , as well as today's announced ATM program , are in line with our capital plans to appropriately and prudently raise funds ahead of our planned industrial build out and government funding decisions .
Speaker #2: With that , I will turn the call back to Amir .
Speaker #1: Thanks , Todd . Before ending the call , I'd like to quickly summarize the points that have led to our growing confidence in our most recent announcements .
Speaker #1: First , US utilities are set to expand nuclear capacity . The nuclear Energy Institute recently identified over eight gigawatts of expected additional generation from the existing fleet , including planned restarts and power upgrades .
Speaker #1: And recall that Westinghouse recently pledged to build ten new large reactors in the United States and the federal government recently announced $80 billion investment related to the project .
Speaker #1: The combination of just these two events could equate to a need for an additional roughly 2.5 million swoop per year . Second , we continue to see an acceleration in new market demand for nuclear power .
Speaker #1: For example , the projected power requirements for data centers are driving major investment in nuclear by technology giants , including Amazon , Google , Microsoft and meta , as well as non Hyperscaler owned and operated data centers like REITs and continue to come to market .
Speaker #1: Third , the SMR market continues to mature . The Tennessee Valley Authority , for example , recently announced a deal for a six gigawatt deployment from one SMR design .
Speaker #1: The Department of Energy . Meanwhile , has launched the reactor Pilot program that aims to demonstrate criticality in at least three test reactors by July 4th , 2026 .
Speaker #1: And just last month , the US Army launched the Janus Program , aimed at deploying microreactors at nine bases over the next few years .
Speaker #1: All of these will drive the demand for more enriched uranium and have strengthened our outlook . Last month , the published spot price for Luzu soared to $220 near historic levels .
Speaker #1: The demand for US owned enrichment capacity has never been stronger . I would like to close by thanking our growing list of investors , analysts and listeners without whom none of this would be possible .
Speaker #1: We look forward to updating you on our progress , on our next earnings call . With that , we are happy to take questions .
Speaker #1: Operator .
Speaker #3: Thank you , sir . Ladies and gentlemen , we'll be conducting the question and answer session . We ask that you please limit yourself to one question , and you may return to the question queue for a follow up .
Speaker #3: If you'd like to ask a question , please . Key in star and then one on the telephone keypad . A confirmation tone will indicate that your line is in the question queue .
Speaker #3: You may key in star and then two to leave the question queue . Our first question comes from Ryan of B Riley Securities .
Speaker #3: Please go ahead .
Speaker #4: Hey good morning guys . Thanks for taking my question . Amir , you mentioned the national security opportunity . We saw the bw exp award in September and then a few weeks later on Sam the notice of intent sole source contract with ACO for Unobligated .
Speaker #4: Lou enrichment . Can you just talk a little bit about sentences ? Opportunity there and what that entails ?
Speaker #5: Sure . And good morning to you too , Ryan . So as you pointed out , the recently published The Notice of Intent to Sole Source and you know , award ACO for Ac100 deployment for Unobligated lue enrichment .
Speaker #5: I am not sure that I can add anything beyond what the nnsa announced . It is an intent to sole source award , but I will add just color maybe to it .
Speaker #5: From my perspective in that if you recall , we have repeatedly stated that our strategy is to serve three market segments that are important and all three of them are growing .
Speaker #5: The Lu existing market , the Halo market , and obviously the national security market . And so we definitely look forward to here further communication from the NSA regarding this notice .
Speaker #5: And as always , we stand ready to support the NSA and the nation on the critical national security mission . So what I would read into this is the things are moving forward .
Speaker #5: It looks it looks like , you know , the things that we were aiming for are materializing . But as I said , not much to add beyond what the NSA had and announced .
Speaker #4: Understood . Thanks .
Speaker #6: Thank you .
Speaker #3: The next question comes from Rob Brown of Lake Street Capital Markets . Please go ahead .
Speaker #7: Hi . Good morning . Just wanted to get a little more color on your readiness efforts at Piketon . How do you sort of foresee that playing out and what are the decision gates you're looking at in the next 12 months ?
Speaker #5: Okay . Well good morning , Rob , and thank you for that question . We as as you pointed out correctly and as we have announced in previous calls , the readiness efforts for a planned build out are taking shape and they're taking shape fast .
Speaker #5: We have already announced investment which which we're in the middle of , of spending as part of that preparedness . We are launching things like studies of our production cycle time analysis , for time for article manufacturing .
Speaker #5: You know , things of the sorts that you would need to have lined up for rapid manufacturing deployment . All in anticipation of a plan build out .
Speaker #5: So yes , there's a few more things that need to fall into place in terms of , you know , the public part of it .
Speaker #5: And I will turn your attention to the Ohio's jobs announcement that we made just recently , where we are in the midst of hiring a lot of folks , we are in the midst of building up our strength and skills and all of this is in anticipation of ensuring that we are able to execute and are able to go as fast as we can when when we announce our build out .
Speaker #7: Okay . Thank you .
Speaker #6: Thank you .
Speaker #3: The next question comes from Joseph Reger of Roth Capital . Please go ahead .
Speaker #8: Hey , I'm and thanks for taking the questions . Now that you guys have the waivers for 26 and 27 and there's been these extra announcements about investments in nuclear facilities , restarts and new facilities , has there been any shift in , you know , political commentary out of Washington about the Jan one , 2028 deadline for Russian imports ?
Speaker #8: Any realization that that's an unreasonable date and if not , you know , what do you guys how do you guys think about , you know , the late 2020s and early 2030s as far as a business model , until you guys ramp up , you know , production .
Speaker #5: Hey , good morning , Joe . Actually , this is a really good question from a macro perspective , from a market fundamentals perspective .
Speaker #5: So the first part of your question , there's nothing really that I know that I can report officially or unofficially that , that , that I've heard about reconsidering anything has to do with Russia .
Speaker #5: If you remember , that was done legislatively and you know , that was tied to a an investment here in the US to establish domestic supply chain , which is which is exciting news .
Speaker #5: The reason why I think the question is critical is because what's building excitement for our case is not a day goes by that there's no new announcements of new builds , whether it's the $80 billion announcement from Westinghouse , Cameco and the US government or as I mentioned earlier , some of the , you know , microreactor announcements .
Speaker #5: I mean , heck , I even heard we're planning to put a reactor on the moon , but by NASA . So all of this is adding to the demand for enrichment .
Speaker #5: Demand for enrichment in the Western world could be supplied only by a finite number of companies that are currently serving the market . And obviously , centrist is the new entrant into the market .
Speaker #5: I call into question as to , you know , I think this points to the fact also that that there has to be ability by these companies to produce centrifuges and to be able to satisfy that market demand and to me , this is a reinforcement to to our business model .
Speaker #5: This is a reinforcement to where we're marching with some of our investment decisions to be made here soon . And investment decisions that we're already made .
Speaker #5: All of this is reinforcing the the just the macros that we've been preaching and saying that there will be a significant increase in demand for nuclear enrichment , nuclear fuel enrichment .
Speaker #5: And so we're kind of seeing that materialize . And I think you're asking that question , I cannot I'm unable to quantify it .
Speaker #5: I'm unable to say whether there is any backtalk in the government about anything that has to do with Russia . But all I know is that we're laser focused on ensuring that we are able to maximize enrichment capability and enrichment production as much as we can here in the United States .
Speaker #5: I mean , that's our task . And if the market is growing and the market is looking strong and stronger day by day , that just further reinforces our case .
Speaker #8: Okay . On the second part of the question about if they don't extend the deadline , you know , what do you guys think about the late 2020s ?
Speaker #8: 28 , 29 and maybe 2030 as far as you know , the business ?
Speaker #5: Yeah , you're asking me to speculate . I would not be able to answer that . I do think I do believe that there is going to be an extremely tight market in the years that you're mentioning for the reasons for the reasons that that I mentioned earlier is that a lot of stuff is coming online .
Speaker #5: Russia has been really banned out , so these are going to be tight years . You know , we're going to work as hard as we can to make sure there's enough capacity .
Speaker #5: But these are the years that I've put a question mark on as well .
Speaker #8: Okay . Fair enough . I'll turn it over .
Speaker #6: Thank you .
Speaker #3: Our next question comes from Nick Amicucci of Evercore ISI . Please go ahead .
Speaker #8: Hey , good morning .
Speaker #9: Guys .
Speaker #6: Good morning .
Speaker #9: Just following on that , Amir just wanted to get a sense . So we saw kind of a pretty significant uptick in prices during during the quarter .
Speaker #9: I'm up to $220 per swoop . So just could we kind of parse out kind of the dynamics that we're seeing ? Because obviously Russia is kind of , you know , for lack of a better term , rushing to to kind of get their their fair share of the US market .
Speaker #9: And so supplying through on the market . So if we kind of peel back the onion a little bit , is that could we argue that that's almost even a depressed kind of price at 220 .
Speaker #9: And when where that can be going .
Speaker #6: Yeah .
Speaker #5: Really really good question . And my personal view on things is , as always mentioned , the only way the price is going to go down is when there is access capacity in the market .
Speaker #5: I do not see a line of sight to that based on what we're seeing . We're seeing the demand side of the equation growing so much faster than any new capacity coming online .
Speaker #5: At least announce new capacity . So you you tied it really nicely in your question and sort of reaffirming what I'm saying . This is not just this is not just my sentiment .
Speaker #5: This is a market sentiment . We're seeing oil prices almost at all time highs here . And do I think they will continue to go up ?
Speaker #5: I mean , my my answer to the previous question was there is going to be tightness in the few years and really all it takes is indication of Western capacity , inability to to meet that demand .
Speaker #5: And I think you will see the prices take a much sharper turn . And we've seen before that that at least that's how I look at it .
Speaker #5: Again , the way for them to come down is there has to be access capacity on the market , and we're just not seeing that .
Speaker #5: We're seeing the complete opposite of that , and that's what we're seeing . The prices go up .
Speaker #9: Great . And then if I could just try and parse through some of that and then essay . So sole source opportunity a little bit .
Speaker #9: If we think about that and inevitably kind of the government support that we've seen and the and the continued government support and support for kind of rectifying the domestic nuclear fuel supply chain , is there any , any kind of levers that even from a national or federal security perspective , that could be pulled just to , to expedite kind of the time to build the first , the first cascade , just trying to truncate that a little bit .
Speaker #5: Yeah . No , you know , really good question . You're talking about synergies of commercial and sort of potential national security commitments .
Speaker #5: I mean , there's a lot of things that could be done . I'm really hesitant to go deeper into speculating that just because what we've seen at this point is , is a notice of intent to sole source , if we're fortunate enough to , to to get through , sort of the the rest of the process with the Nnsa , I think it would be a more merited discussion at that point .
Speaker #5: But but absolutely , there is a lot of levers and a lot of things that could be done in , in , in the name of synergies , in terms of build outs .
Speaker #9: Great . Thanks .
Speaker #6: Guys . Thank you .
Speaker #3: Next question comes from Jade Dorsheimer of William Blair . Please go ahead .
Speaker #9: Hey .
Speaker #8: Thanks for taking my question . I guess Amir , you know , if we look at the the 3.4 billion grant and we look at the , you know , we're past the 120 days since the task orders is the timing of this distribution being affected by the government shutdown .
Speaker #8: And then I have a second part of that question .
Speaker #5: Officially , I do not know . I honestly have have no idea . I suspect maybe the answer is yes , but I don't I don't know anything officially .
Speaker #5: .
Speaker #8: Got it . That's helpful . And then , you know , if I look at the , you know , it seems like there's , you know , this is not a technology risk issue .
Speaker #8: It's really just one of capital . And capital is going to determine what the cost basis looks like . Could you maybe just discuss any non-government private sector discussions that you guys might be engaged in ?
Speaker #8: Obviously not the details , but I'm assuming I just find it hard to believe that the trillions of CapEx being deployed , many of which I can think of one data center in particular that has at least seven gigawatts of their their capacity tied to nuclear that that they're not aware of the supply chain gap in terms of fueling .
Speaker #8: And so where I'm getting what I'm getting at is when we look at the utilities , when we look at the the private sector , that's investing behind the meter , why there wouldn't be , you know , there's not more around a potential offtake to stand up , which would render maybe some of the government money .
Speaker #8: You know , much smaller in the grand scheme of things . Thanks .
Speaker #6: Yeah .
Speaker #5: Good . Good question . And Sajjad , so I think you are pointing out correctly to what we've been , what we've been saying for a while now that we are looking to maximize the public private partnership from every source we can .
Speaker #5: Obviously the public part of it , but also the private , the private does not solely depend on centrist ability to to raise its own capital , but it also relies on external investors as well as as we have announced earlier , we have an MoU with with MDP and Posco , where we are in discussions now .
Speaker #5: Hopefully moving towards a commitment . But that that really is kind of symptomatic of what we're seeing in the market . I think the market is , as you said , particularly the companies that would come to rely or would come to rely on nuclear power in general , are starting to realize that , hey , it really is important to turn our attention now to fuel .
Speaker #5: And so we do have discussions with numerous parties we've already publicly announced the CNP and Posco , but we also have discussions with with other interested parties like hyperscalers .
Speaker #5: We're not at the point of announcing anything or naming anybody , but I will , though , put some energy behind what you said .
Speaker #5: We are seeing very encouraging signs out there that people now are turning their attention to fuel , and they realize that investment has to be it has to be made in the fuel .
Speaker #5: I mean , these are the signals that have led us to make some of the announcements in Ohio jobs . As I mentioned earlier , and obviously today's capital raise fits very well into the confidence that we're getting from from these discussions and these signals .
Speaker #8: Thank you .
Speaker #3: Question comes from Vikram Bagheri of Citi . Please go ahead .
Speaker #10: Good morning everyone . You highlighted strong fundamentals in your closing remarks . And responses to questions so far . Clearly , the landscape is very supportive of domestic enrichment .
Speaker #10: I was wondering what signals would you look for to announce further expansion beyond the planned 3.5 million capacity ? Perhaps doubling it , and how much time it will take to get there , and then finally , it seems you have a bullish view on pricing .
Speaker #10: I was wondering what pricing is required to incentivize more expansions and what pricing are you on the writing in your own expansion ? Thank you .
Speaker #5: Good questions , and thank you for that . So to your first question about expansion , the way I see the natural events unfolding is we have to get to a base case type capacity in our facility , which we're planning towards once we start moving towards that .
Speaker #5: It is my anticipation that we were going to get a lot more than signals from the market . We're going to get enhanced commitments and additional commitments from others that we have not gotten them from .
Speaker #5: Basically , what I'm saying is , is there is a large population out there that is perhaps sitting it out for now and waiting to see how things progress .
Speaker #5: And how we will execute , how others will execute , how the market will unfold . So I fully expect that once planned execution is underway , we're going to get more interest and more commitment for further expansion .
Speaker #5: That that really is the signal that that we'll be looking for . And it would be more than a signal . We'd be looking for commitments to your question about swoop pricing and what is an advantageous or hurdle pricing , obviously , I will not be able to name that because that will point to our cost structure and things that we normally would not want anybody to know .
Speaker #5: It's very , you know , proprietary and sensitive information to us . But I will say to you , though , that the pricing that we're seeing right now is , is not bad .
Speaker #5: I mean , this is this pricing that has people that have technology that are able to utilize technology that are able to launch their , their , their technology into production .
Speaker #5: It's not a disadvantage to pricing that we're seeing right now.
Speaker #11: Thank you .
Speaker #3: The next question comes from Bill Peterson of JP Morgan . Please go ahead .
Speaker #12: Hi . Good morning . This is Mahima on for Bill . I was curious are strategic investors looking for you to further derisk the balance sheet yourself before committing to funding ?
Speaker #12: Or are they perhaps waiting for the government or national security type funding to come through before those conversations ? Progress further ?
Speaker #13: How are you doing ? This is Todd , the CFO . I think there's a variety of different areas that the balance sheet can go .
Speaker #13: Obviously with public and private investment . One of the things that is our objective is to put us in a position that really we're not reliant on one source of capital to come into fund our proposed or planned expansion .
Speaker #13: So , you know , obviously when we're looking at private investments that come in , there is offtake arrangements . There's a variety of different scenarios that could take place .
Speaker #13: But our first objective is to well , capitalize the balance sheet and have a capital structure that allows centrists to be well positioned for the future .
Speaker #12: Okay , I appreciate it . Thank you .
Speaker #3: The next question comes from Jeff Graham of Northland Capital Markets . Please go ahead .
Speaker #14: Good morning . Maybe just kind of building off of the last question I wanted to touch on the recent release regarding the potential Korean investment and maybe more broadly , how do you guys think about taking third party private capital investment to help fund any build out of the enrichment ?
Speaker #14: What are the kind of trade offs you guys may consider as you think about taking third party investment ? Thank you .
Speaker #5: That's a good question . I'll try to answer it without revealing things that are not disclosed in in our non-disclosure agreement with any of the parties .
Speaker #5: Obviously , if an investor invests , they expect something in return . And it's a process of negotiations to ensure that we can find a win win solution .
Speaker #5: You know , when you're in environment where you're hitting record , swoop prices and the prospects appear that they will continue to go up and the prospects are that the market will continue to have tightness in supply .
Speaker #5: That helps make a very strong case for an investor that comes in . So I know I'm not really giving you a lot of details , but all this to say is that we have numerous models that we're working through and whatever decision we make , we certainly are grounded in delivering shareholder value and maximizing it .
Speaker #5: From our perspective .
Speaker #14: Understood . I wasn't expecting a super specific answer , but I appreciate the time . Thank you .
Speaker #6: Thank you .
Speaker #3: The next question comes from Eric Stein of Craig-hallum Capital Group . Please go ahead .
Speaker #15: Good morning . This is Luke on for Eric . Thanks for taking our questions . So have your views on your targeted enrichment mix between Lu and Hailu and the market change at all , given the progress being made by some of the advanced reactor developers , do you see more robust demand in the near term , becoming more realistic in your view ?
Speaker #15: Thanks .
Speaker #6: Right .
Speaker #5: Good good good question . So the ultimate decision of the plant of the plant expansion in terms of how much , how much Lu would be 100% driven by customer demand and customer commitments .
Speaker #5: And however however , they sway that mix . I will say that during my time in the company , which is almost two years now , particularly in the last year , we have seen Hailu going from sort of like an MoU type .
Speaker #5: Let's agree to some point in the future where we can talk about a contract very non-committal to we're seeing companies now . Hey , we're we're ready to to make a commitment type conversations .
Speaker #5: So we're seeing Hailu evolve very quickly and rapidly , especially through some of these expansion plans that you're hearing from Microreactors and other small modular reactors .
Speaker #5: I mean , ultimately , if somebody starts buying these reactors as is happening right now in the market , they would be able to make commitments for fuel .
Speaker #5: So all this to say that there's a lot of momentum behind Hailu now we're but the ultimate decision is going to be what that commitment breakdown looks like between Hailu and Lu .
Speaker #15: Great . Thanks for the color .
Speaker #6: Thank you .
Speaker #3: The next question comes from Sameer Joshi of H.C. Wainwright . Please go ahead .
Speaker #16: Hey , good morning guys , and congrats on the new role . Looking forward to interact with you . I just have one question on improved swoop pricing environment .
Speaker #16: Are you able to contract these like it has the backlog increased from the new swoop prices ? And when should we see ? I know these are longer term mid to long term contracts , so we may not see it in revenues soon .
Speaker #16: But when if you have signed contracts , when should we see those prices .
Speaker #6: So .
Speaker #5: I want to reassure our investors and shareholders that , you know , locking in commitments and growing that commitment backlog is a big priority for us both in Hailu and Lu
Speaker #5: . And the three segments that we have the been discussing . That that is a key , important focus for us . Obviously , we don't disclose details around our contracts , and I will point out to you , though , that a lot of these conversations and the results of these conversations are very non-linear .
Speaker #5: So we could be working on something for a while . And release something large and then not hear anything or see anything for , for , for a little while .
Speaker #5: So it's not necessarily a steady stream , but like I said , it could present itself in a non-linear fashion . But the only thing I can leave you with without , without violating any .
Speaker #5: Again , nondisclosures that we have is that it is still a major focus area for us , and a priority for the company .
Speaker #16: Got it . Thanks a lot .
Speaker #6: Thank you .
Speaker #3: Thank you . Ladies and gentlemen . We have now reached the end of the Q&A session . I will now hand it over to Neal Nagarajan for closing remarks .
Speaker #6: Thank you Judith .
Speaker #5: This will conclude our investor call for the third quarter of 2025 . As always , I want to extend a thank you to our listeners and our analysts who called in , and we look forward to speaking with you again next quarter
Speaker #3: Thank you . Ladies and gentlemen , that concludes today's event . Thank you for attending . And you may now disconnect your lines .