Centrus Energy (LEU) risk factors, FY2025 10-K

Centrus Energy's FY2025 10-K, filed Feb 11, 2026, lists 35 risk factors in 9 groups. Against the prior year's 33: 4 new, 2 dropped, 10 substantially reworded.

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Risk factors listed
359 groups
New this year
4vs 33 last year
Dropped
2since the prior 10-K
Substantially reworded
10of those kept
Section length
14k wordsItem 1A

What the changes say

  • Centrus added risks regarding international tariffs affecting Russian LEU transport and a $900.0 million DOE expansion task order in Piketon, Ohio.

What changed since the prior 10-K

New

  • NewOperational Risks

    Tariffs and other changes in international trade policy could adversely affect our business, financial condition and results of operations

    New international tariffs, trade policies, and USTR service fees on Chinese-built vessels could disrupt the transport of Russian LEU to the U.S.

  • NewOperational Risks

    We may not be able to successfully implement our planned expansion projects in Piketon, Ohio and Oak Ridge, Tennessee, which could adversely affect our business, financial condition, and results of operations

    The company faces complex execution and funding hurdles in implementing planned manufacturing expansions in Oak Ridge, Tennessee and Piketon, Ohio.

  • NewOperational Risks

    On January 5, 2026, the DOE announced that ACO was selected for an award of a $900.0 million task order to expand its uranium enrichment facility in Piketon, Ohio, to include commercial-scale production of HALEU and associated LEU cascades used to feed HALEU production. The potential award is subject to negotiation

    Uncertainty surrounding final DOE contract terms and future market demand for HALEU could stall operations at the Piketon demonstration cascade.

  • NewFinancial Risks

    We have significant long-term liabilities

Dropped

  • DroppedOperational Risks

    In Phase 2, we expect to continue operating for a full year at an annual production rate of 900 kilograms of HALEU, but there is no assurance that we will produce 900 kilograms by June 2025

  • DroppedFinancial Risks

    A small number of Class A stockholders, who also have significant holdings of the Company’s 8.25% Notes, may be motivated by interests that are not aligned with the Company’s other Class A stockholders

Reworded

  • 69% rewrittenOperational Risks

    Our ability to operate the HALEU demonstration cascade pursuant to our contract with the Department of Energy under the HALEU Operation Contract after its completion is dependent on our ability to secure additional contracts or other funding sources

    Clarified contract execution details regarding Phase 1 completion and uranium hexafluoride production deliverables for the DOE HALEU contract.

    Was: Our ability to operate the HALEU enrichment facility we are deploying under the HALEU Operation Contract after the completion of the contract is dependent on our ability to secure additional contracts and funding from the U.S. government or other sources

  • 67% rewrittenFinancial Risks

    Centrus is dependent on intercompany support from Enrichment Corp

    Updated references from the retired 8.25% Notes to the 2.25% Convertible Notes regarding Enrichment Corp subsidiary guarantees and financing.

  • 62% rewrittenFinancial Risks

    We continue to have significant long-term liabilities, including the indebtedness under our 0% Convertible Notes and 2.25% Convertible Notes, which mature in August 2032 and November 2030, respectively

    Added the $805.0 million in 0% Convertible Notes due 2032 alongside existing 2.25% Convertible Notes as part of long-term liabilities.

    Was: We continue to have significant long-term liabilities, including the indebtedness under our 2.25% Convertible Notes, which mature in November 2030 and our 8.25% Notes, which mature in February 2027

  • 45% rewrittenOperational Risks

    There is no assurance that we will be awarded additional task orders under any of our IDIQ contracts and, if awarded, the nature, timing and amount of the task orders that may be issued under an award is uncertain

    Adjusted verb tense regarding how awardees compete for individual task orders under DOE IDIQ contracts.

    Was: There is no assurance that we will be awarded any task orders under any of our IDIQ contracts and, if awarded, the nature, timing and amount of the task orders that may be issued under an award is uncertain

  • 39% rewrittenFinancial Risks

    The conditional conversion feature of our 0% Convertible Notes and 2.25% Convertible Notes, if triggered, may adversely affect our financial condition and operating results

    Included the newly issued $805.0 million 0% Convertible Notes due 2032 alongside 2.25% Convertible Notes regarding cash conversion risks.

    Was: The conditional conversion feature of our 2.25% Convertible Notes, if triggered, may adversely affect our financial condition and operating results

  • 38% rewrittenFinancial Risks

    Certain provisions in the indentures governing the 0% Convertible Notes and 2.25% Convertible Notes may delay or prevent an otherwise beneficial takeover attempt of us

    Expanded takeover defense and fundamental change repurchase provisions to cover both 0% Convertible Notes and 2.25% Convertible Notes indentures.

    Was: Certain provisions in the indenture governing the 2.25% Convertible Notes may delay or prevent an otherwise beneficial takeover attempt of us

  • 33% rewrittenLegal and Compliance Risks

    The inability to attract and retain key personnel could have an adverse impact on our business

    Added an estimate that planned expansions in Piketon and Oak Ridge will require hiring at least 150 additional employees in 2026.

  • 32% rewrittenFinancial Risks

    The terms of the indentures governing our 0% Convertible Notes and 2.25% Convertible Notes do not restrict Centrus or any of its subsidiaries from incurring substantial additional indebtedness in the future. If we incur substantial additional indebtedness, however, the foregoing risks would intensify

    Updated debt references to remove the retired 8.25% Notes and incorporate the 0% Convertible Notes.

    Was: The terms of the indenture governing our 8.25% Notes do not restrict Centrus or any of its subsidiaries from incurring substantial additional indebtedness in the future. If we incur substantial additional indebtedness, however, the foregoing risks would intensify

  • 24% rewrittenFinancial Risks

    Conversion of our 0% Convertible Notes and 2.25% Convertible Notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock

    Was: Conversion of our 2.25% Convertible Notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock

  • 22% rewrittenRisks related to general factors primarily include

    The current war in Ukraine and related international or U.S. sanctions, tariffs and restrictions on trade, and the Russian response thereto, could have a material adverse impact on our business, results of operations, and financial condition

    Was: The current war in Ukraine and related international or U.S. sanctions and restrictions on trade could have a material adverse impact on our business, results of operations, and financial condition

All 35 risk factors

Headings as the filing states them, in filing order.

Risks related to general factors primarily include

  1. 01The current war in Ukraine and related international or U.S. sanctions, tariffs and restrictions on trade, and the Russian response thereto, could have a material adverse impact on our business, results of operations, and financial condition22% rewritten
  2. 02Our future prospects are tied directly to the nuclear energy industry worldwide. The financial difficulties experienced by, and operating conditions of, our customers and suppliers could adversely affect our results of operations and financial condition
  3. 03Our business, financial and operating performance could be adversely affected by epidemics and other health related issues
  4. 04Our business is exposed to price volatility associated with the procurement of SWU and uranium

Operational Risks

  1. 05Restrictions on imports or sales of SWU or uranium that we buy from our Russian supplier and our other sources of supply could adversely affect profitability and the viability of our business
  2. 06We are dependent on purchases from our suppliers and other sources to meet our obligations to customers and rely on third parties to provide essential goods and services
  3. 07Tariffs and other changes in international trade policy could adversely affect our business, financial condition and results of operationsNew
  4. 08We face significant competition from major producers who may be less cost sensitive or may be favored due to support from foreign governments
  5. 09The ability to compete in certain foreign markets may be limited for legal, political, economic, or other reasons
  6. 10Dependence on our largest customers or suppliers could adversely affect us
  7. 11We may not be able to successfully implement our planned expansion projects in Piketon, Ohio and Oak Ridge, Tennessee, which could adversely affect our business, financial condition, and results of operationsNew
  8. 12There is no assurance that we will be awarded additional task orders under any of our IDIQ contracts and, if awarded, the nature, timing and amount of the task orders that may be issued under an award is uncertain45% rewritten
  9. 13The dollar amount of the LEU backlog, as stated at any given time, is not necessarily indicative of future sales revenues and is subject to uncertainty
  10. 14Our ability to operate the HALEU demonstration cascade pursuant to our contract with the Department of Energy under the HALEU Operation Contract after its completion is dependent on our ability to secure additional contracts or other funding sources69% rewritten
  11. 15On January 5, 2026, the DOE announced that ACO was selected for an award of a $900.0 million task order to expand its uranium enrichment facility in Piketon, Ohio, to include commercial-scale production of HALEU and associated LEU cascades used to feed HALEU production. The potential award is subject to negotiationNew
  12. 16Our Technical Solutions segment conducts business under various types of contracts, including fixed-price and cost-share contracts, which subjects us to risks associated with cost overruns

Financial Risks

  1. 17We have significant long-term liabilitiesNew
  2. 18We continue to have significant long-term liabilities, including the indebtedness under our 0% Convertible Notes and 2.25% Convertible Notes, which mature in August 2032 and November 2030, respectively62% rewritten
  3. 19The terms of the indentures governing our 0% Convertible Notes and 2.25% Convertible Notes do not restrict Centrus or any of its subsidiaries from incurring substantial additional indebtedness in the future. If we incur substantial additional indebtedness, however, the foregoing risks would intensify32% rewritten
  4. 20The conditional conversion feature of our 0% Convertible Notes and 2.25% Convertible Notes, if triggered, may adversely affect our financial condition and operating results39% rewritten
  5. 21Conversion of our 0% Convertible Notes and 2.25% Convertible Notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock24% rewritten
  6. 22Certain provisions in the indentures governing the 0% Convertible Notes and 2.25% Convertible Notes may delay or prevent an otherwise beneficial takeover attempt of us38% rewritten
  7. 23Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our debt
  8. 24The Company has material unfunded postretirement health and life benefit obligations. Changes in interest rates and other factors affecting the amounts to be contributed to fund future postretirement benefit liabilities could adversely affect earnings and cash flows in future periods
  9. 25Our revenues and operating results may fluctuate significantly from quarter to quarter and year to year, which could have an adverse effect on our cash flows
  10. 26Results of operations could be negatively impacted if adverse conditions or changes in circumstances indicate a possible impairment loss related to our intangible assets
  11. 27Centrus is dependent on intercompany support from Enrichment Corp67% rewritten
  12. 28A small number of holders of our Class A Common Stock may exert significant influence over the direction of the Company
  13. 29Our ability to utilize our NOL carryforwards to offset future taxable income may be limited

Legal and Compliance Risks

  1. 30Our operations are highly regulated by the U.S. government, including the NRC and the DOE as well as the States of Ohio and Tennessee and could be significantly impacted by changes in government policies and priorities
  2. 31Our operations involve the use, transportation and disposal of toxic, hazardous and/or radioactive materials and could result in liability without regard to fault or negligence
  3. 32Failures to protect classified or other sensitive information, or cybersecurity incidents could result in significant liability or otherwise have an adverse effect on our business
  4. 33The inability to attract and retain key personnel could have an adverse impact on our business33% rewritten
  5. 34The potential for the DOE to seek to terminate or exercise its remedies under the 2002 DOE-USEC Agreement and our other agreements with DOE, or to require modifications to such agreements that are adverse to our interests, may have adverse consequences on the Company
  6. 35Our success depends on our ability to adapt to a rapidly changing competitive environment in the nuclear industry

Other Centrus Energy 10-Ks

  • FY2024 10-K risk factors
    33 risks

    Centrus is highly exposed to geopolitical risks tied to the war in Ukraine and Russian supply dependencies. The company relies heavily on a small group of customers and suppliers for its nuclear fuel business. Operations depend heavily on U.S. government contracts, particularly with the DOE and NRC, and compliance with strict regulations.

    Filed Feb 07, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.