[8-K] Centrus Energy Corp. Reports Material Event
Centrus Energy has secured a significant contract amendment with the U.S. Department of Energy regarding its HALEU (High-Assay, Low-Enriched Uranium) Demonstration Cascade project. The original contract's first three-year option period has been split into two parts:
Key Financial Terms:
- Option 1a (1-year): Target cost of $99.3 million with fee of $8.7 million
- Option 1b (2-years): Target cost of $163.5 million with fee of $15.2 million
- DOE has exercised Option 1a, valued at approximately $110 million, extending performance to June 30, 2026
The amendment acknowledges that Option 1b's estimated cost is insufficient due to cost increases since the original contract award. ACO must submit a revised cost proposal before DOE considers Option 1b. All HALEU produced under this contract remains Department property.
Centrus Energy ha ottenuto una modifica significativa al contratto con il Dipartimento dell'Energia degli Stati Uniti riguardante il progetto HALEU (Uranio a basso arricchimento ad alto dosaggio) Demonstration Cascade. Il primo periodo opzionale di tre anni del contratto originale 猫 stato suddiviso in due parti:
Termini finanziari principali:
- Opzione 1a (1 anno): costo target di 99,3 milioni di dollari con un compenso di 8,7 milioni di dollari
- Opzione 1b (2 anni): costo target di 163,5 milioni di dollari con un compenso di 15,2 milioni di dollari
- Il DOE ha esercitato l'Opzione 1a, del valore di circa 110 milioni di dollari, estendendo la durata fino al 30 giugno 2026
La modifica riconosce che il costo stimato per l'Opzione 1b non 猫 sufficiente a causa dell'aumento dei costi dalla concessione del contratto originale. L'ACO deve presentare una proposta di costo rivista prima che il DOE prenda in considerazione l'Opzione 1b. Tutto l'HALEU prodotto sotto questo contratto rimane di propriet脿 del Dipartimento.
Centrus Energy ha asegurado una enmienda importante al contrato con el Departamento de Energ铆a de EE.UU. referente a su proyecto HALEU (Uranio de bajo enriquecimiento y alto contenido) Demonstration Cascade. El primer per铆odo de opci贸n de tres a帽os del contrato original se ha dividido en dos partes:
T茅rminos financieros clave:
- Opci贸n 1a (1 a帽o): costo objetivo de 99,3 millones de d贸lares con una tarifa de 8,7 millones de d贸lares
- Opci贸n 1b (2 a帽os): costo objetivo de 163,5 millones de d贸lares con una tarifa de 15,2 millones de d贸lares
- El DOE ha ejercido la Opci贸n 1a, valorada en aproximadamente 110 millones de d贸lares, extendiendo la ejecuci贸n hasta el 30 de junio de 2026
La enmienda reconoce que el costo estimado para la Opci贸n 1b es insuficiente debido al aumento de costos desde la adjudicaci贸n original del contrato. ACO debe presentar una propuesta de costos revisada antes de que el DOE considere la Opci贸n 1b. Todo el HALEU producido bajo este contrato sigue siendo propiedad del Departamento.
Centrus Energy電� 氙戈淡 鞐愲剤歆�攵�(Department of Energy)鞕� HALEU(瓿犽啀於� 鞝�雴嶌稌 鞖半澕電�) Demonstration Cascade 頂勲鞝濏姼鞐� 甏�頃� 欷戩殧頃� 瓿勳暯 靾橃爼鞎堨潉 觳搓舶頄堨姷雼堧嫟. 鞗愲灅 瓿勳暯鞚� 觳� 3雲� 鞓奠厴 旮瓣皠鞚� 霊� 攵�攵勳溂搿� 雮橂垊鞏挫鞀惦媹雼�:
欤检殧 鞛爼 臁瓣贝:
- 鞓奠厴 1a (1雲�): 氇╉憸 牍勳毄 9930毵� 雼煬, 靾橃垬耄� 870毵� 雼煬
- 鞓奠厴 1b (2雲�): 氇╉憸 牍勳毄 1鞏� 6350毵� 雼煬, 靾橃垬耄� 1520毵� 雼煬
- DOE電� 鞎� 1鞏� 1000毵� 雼煬 攴滊鞚� 鞓奠厴 1a毳� 頄夓偓頃橃棳 靾橅枆 旮瓣皠鞚� 2026雲� 6鞗� 30鞚缄箤歆� 鞐办灔頃�
鞚措矆 靾橃爼鞎堨潃 鞓奠厴 1b鞚� 鞓堨儊 牍勳毄鞚� 鞗愲灅 瓿勳暯 觳搓舶 鞚错泟 牍勳毄 靸侅姽鞙茧 鞚疙暣 攵�臁表晿雼る姅 鞝愳潉 鞚胳爼頃╇媹雼�. ACO電� DOE臧� 鞓奠厴 1b毳� 瓿犽牑頃橁赴 鞝勳棎 靾橃爼霅� 牍勳毄 鞝滌晥鞚� 鞝滌稖頃挫暭 頃╇媹雼�. 鞚� 瓿勳暯 頃橃棎 靸濎偘霅橂姅 氇摖 HALEU電� 鞐愲剤歆�攵� 靻岇湢搿� 雮晞 鞛堨姷雼堧嫟.
Centrus Energy a obtenu un amendement important 脿 son contrat avec le D茅partement de l'脡nergie des 脡tats-Unis concernant son projet HALEU (Uranium faiblement enrichi 脿 haute teneur) Demonstration Cascade. La premi猫re p茅riode d'option de trois ans du contrat initial a 茅t茅 divis茅e en deux parties :
Principaux termes financiers :
- Option 1a (1 an) : co没t cible de 99,3 millions de dollars avec une r茅mun茅ration de 8,7 millions de dollars
- Option 1b (2 ans) : co没t cible de 163,5 millions de dollars avec une r茅mun茅ration de 15,2 millions de dollars
- Le DOE a exerc茅 l'Option 1a, d'une valeur d'environ 110 millions de dollars, prolongeant l'ex茅cution jusqu'au 30 juin 2026
L'amendement reconna卯t que le co没t estim茅 pour l'Option 1b est insuffisant en raison de l'augmentation des co没ts depuis l'attribution initiale du contrat. L'ACO doit soumettre une proposition de co没t r茅vis茅e avant que le DOE n'examine l'Option 1b. Tout HALEU produit dans le cadre de ce contrat reste la propri茅t茅 du D茅partement.
Centrus Energy hat eine bedeutende Vertrags盲nderung mit dem US-Energieministerium bez眉glich ihres HALEU (High-Assay, Low-Enriched Uranium) Demonstration Cascade Projekts gesichert. Die erste dreij盲hrige Optionsperiode des urspr眉nglichen Vertrags wurde in zwei Teile aufgeteilt:
Wesentliche finanzielle Bedingungen:
- Option 1a (1 Jahr): Zielkosten von 99,3 Millionen US-Dollar mit einer Geb眉hr von 8,7 Millionen US-Dollar
- Option 1b (2 Jahre): Zielkosten von 163,5 Millionen US-Dollar mit einer Geb眉hr von 15,2 Millionen US-Dollar
- Das DOE hat Option 1a im Wert von etwa 110 Millionen US-Dollar ausge眉bt und verl盲ngert die Laufzeit bis zum 30. Juni 2026
Die Vertrags盲nderung erkennt an, dass die gesch盲tzten Kosten f眉r Option 1b aufgrund gestiegener Kosten seit der urspr眉nglichen Vertragsvergabe nicht ausreichen. ACO muss einen 眉berarbeiteten Kostenplan vorlegen, bevor das DOE Option 1b pr眉ft. Alle unter diesem Vertrag produzierten HALEU bleiben Eigentum des Ministeriums.
- DOE exercised Option 1a valued at $110 million, extending HALEU production contract through June 2026
- Contract includes potential for additional two-year extension (Option 1b) plus two more three-year options, indicating long-term revenue potential
- Company to receive significant incentive fees: $8.7M for Option 1a and potential $15.2M for Option 1b
- Option 1b requires cost revision due to 'known cost increases,' suggesting potential margin pressure
- Contract restructuring from three-year to one-year term for Option 1 may indicate DOE funding constraints or performance concerns
- HALEU production ownership remains with DOE, limiting direct commercial benefits beyond contract revenue
Insights
DOE restructured Centrus' HALEU contract, exercising a $110M one-year option while requiring cost revision for the following two years.
The DOE's restructuring of the HALEU contract reveals important dynamics in government procurement strategy. By splitting the original three-year option into a one-year period (Option 1a) and a two-year period (Option 1b), the Department has created a natural evaluation point while still maintaining program continuity. The exercised Option 1a, valued at approximately $110 million with target costs of $99.3 million and fees of $8.7 million, provides Centrus with secured revenue through June 2026.
The acknowledgment that Option 1b's estimated costs are "insufficient due to known cost increases" is particularly significant. This indicates cost growth since the original November 2022 contract signing and explains the DOE's cautious approach. The requirement for ACO to submit a revised cost proposal suggests the DOE is exercising fiscal discipline while allowing the program to continue. This cost-plus-incentive-fee structure limits Centrus' downside risk while potentially constraining upside potential if costs continue to escalate.
The contract modification demonstrates the government's commitment to developing domestic HALEU capabilities while maintaining budget flexibility. For Centrus, this represents a valuable but shortened commitment window, with future funding now contingent on satisfactory cost proposals and performance.
This contract amendment highlights the strategic importance of HALEU production capacity within the U.S. nuclear ecosystem. The DOE's continued engagement with Centrus, despite restructuring the option periods, signals ongoing federal support for developing domestic enrichment capabilities critical for advanced reactor deployment. The 900 kg annual production rate mentioned in the filing represents a fraction of projected future HALEU demand, positioning this as a demonstration project with strategic significance beyond its immediate revenue impact.
The contract restructuring occurs against a backdrop of intensifying focus on nuclear fuel supply chains. Centrus remains one of the few Western companies with active uranium enrichment technology. While the splitting of option periods introduces some uncertainty, the $110 million exercise of Option 1a represents tangible federal investment in this capability.
The acknowledgment of cost increases since the 2022 contract award reflects broader inflationary pressures affecting nuclear infrastructure projects. For Centrus, maintaining cost discipline while scaling production capabilities will be critical to securing the subsequent Option 1b. The clarification that "HALEU produced under this Contract belongs to the Department" confirms this remains primarily a service arrangement rather than commercial production, though the operational experience gained strengthens Centrus' position for future commercial opportunities.
Centrus Energy ha ottenuto una modifica significativa al contratto con il Dipartimento dell'Energia degli Stati Uniti riguardante il progetto HALEU (Uranio a basso arricchimento ad alto dosaggio) Demonstration Cascade. Il primo periodo opzionale di tre anni del contratto originale 猫 stato suddiviso in due parti:
Termini finanziari principali:
- Opzione 1a (1 anno): costo target di 99,3 milioni di dollari con un compenso di 8,7 milioni di dollari
- Opzione 1b (2 anni): costo target di 163,5 milioni di dollari con un compenso di 15,2 milioni di dollari
- Il DOE ha esercitato l'Opzione 1a, del valore di circa 110 milioni di dollari, estendendo la durata fino al 30 giugno 2026
La modifica riconosce che il costo stimato per l'Opzione 1b non 猫 sufficiente a causa dell'aumento dei costi dalla concessione del contratto originale. L'ACO deve presentare una proposta di costo rivista prima che il DOE prenda in considerazione l'Opzione 1b. Tutto l'HALEU prodotto sotto questo contratto rimane di propriet脿 del Dipartimento.
Centrus Energy ha asegurado una enmienda importante al contrato con el Departamento de Energ铆a de EE.UU. referente a su proyecto HALEU (Uranio de bajo enriquecimiento y alto contenido) Demonstration Cascade. El primer per铆odo de opci贸n de tres a帽os del contrato original se ha dividido en dos partes:
T茅rminos financieros clave:
- Opci贸n 1a (1 a帽o): costo objetivo de 99,3 millones de d贸lares con una tarifa de 8,7 millones de d贸lares
- Opci贸n 1b (2 a帽os): costo objetivo de 163,5 millones de d贸lares con una tarifa de 15,2 millones de d贸lares
- El DOE ha ejercido la Opci贸n 1a, valorada en aproximadamente 110 millones de d贸lares, extendiendo la ejecuci贸n hasta el 30 de junio de 2026
La enmienda reconoce que el costo estimado para la Opci贸n 1b es insuficiente debido al aumento de costos desde la adjudicaci贸n original del contrato. ACO debe presentar una propuesta de costos revisada antes de que el DOE considere la Opci贸n 1b. Todo el HALEU producido bajo este contrato sigue siendo propiedad del Departamento.
Centrus Energy電� 氙戈淡 鞐愲剤歆�攵�(Department of Energy)鞕� HALEU(瓿犽啀於� 鞝�雴嶌稌 鞖半澕電�) Demonstration Cascade 頂勲鞝濏姼鞐� 甏�頃� 欷戩殧頃� 瓿勳暯 靾橃爼鞎堨潉 觳搓舶頄堨姷雼堧嫟. 鞗愲灅 瓿勳暯鞚� 觳� 3雲� 鞓奠厴 旮瓣皠鞚� 霊� 攵�攵勳溂搿� 雮橂垊鞏挫鞀惦媹雼�:
欤检殧 鞛爼 臁瓣贝:
- 鞓奠厴 1a (1雲�): 氇╉憸 牍勳毄 9930毵� 雼煬, 靾橃垬耄� 870毵� 雼煬
- 鞓奠厴 1b (2雲�): 氇╉憸 牍勳毄 1鞏� 6350毵� 雼煬, 靾橃垬耄� 1520毵� 雼煬
- DOE電� 鞎� 1鞏� 1000毵� 雼煬 攴滊鞚� 鞓奠厴 1a毳� 頄夓偓頃橃棳 靾橅枆 旮瓣皠鞚� 2026雲� 6鞗� 30鞚缄箤歆� 鞐办灔頃�
鞚措矆 靾橃爼鞎堨潃 鞓奠厴 1b鞚� 鞓堨儊 牍勳毄鞚� 鞗愲灅 瓿勳暯 觳搓舶 鞚错泟 牍勳毄 靸侅姽鞙茧 鞚疙暣 攵�臁表晿雼る姅 鞝愳潉 鞚胳爼頃╇媹雼�. ACO電� DOE臧� 鞓奠厴 1b毳� 瓿犽牑頃橁赴 鞝勳棎 靾橃爼霅� 牍勳毄 鞝滌晥鞚� 鞝滌稖頃挫暭 頃╇媹雼�. 鞚� 瓿勳暯 頃橃棎 靸濎偘霅橂姅 氇摖 HALEU電� 鞐愲剤歆�攵� 靻岇湢搿� 雮晞 鞛堨姷雼堧嫟.
Centrus Energy a obtenu un amendement important 脿 son contrat avec le D茅partement de l'脡nergie des 脡tats-Unis concernant son projet HALEU (Uranium faiblement enrichi 脿 haute teneur) Demonstration Cascade. La premi猫re p茅riode d'option de trois ans du contrat initial a 茅t茅 divis茅e en deux parties :
Principaux termes financiers :
- Option 1a (1 an) : co没t cible de 99,3 millions de dollars avec une r茅mun茅ration de 8,7 millions de dollars
- Option 1b (2 ans) : co没t cible de 163,5 millions de dollars avec une r茅mun茅ration de 15,2 millions de dollars
- Le DOE a exerc茅 l'Option 1a, d'une valeur d'environ 110 millions de dollars, prolongeant l'ex茅cution jusqu'au 30 juin 2026
L'amendement reconna卯t que le co没t estim茅 pour l'Option 1b est insuffisant en raison de l'augmentation des co没ts depuis l'attribution initiale du contrat. L'ACO doit soumettre une proposition de co没t r茅vis茅e avant que le DOE n'examine l'Option 1b. Tout HALEU produit dans le cadre de ce contrat reste la propri茅t茅 du D茅partement.
Centrus Energy hat eine bedeutende Vertrags盲nderung mit dem US-Energieministerium bez眉glich ihres HALEU (High-Assay, Low-Enriched Uranium) Demonstration Cascade Projekts gesichert. Die erste dreij盲hrige Optionsperiode des urspr眉nglichen Vertrags wurde in zwei Teile aufgeteilt:
Wesentliche finanzielle Bedingungen:
- Option 1a (1 Jahr): Zielkosten von 99,3 Millionen US-Dollar mit einer Geb眉hr von 8,7 Millionen US-Dollar
- Option 1b (2 Jahre): Zielkosten von 163,5 Millionen US-Dollar mit einer Geb眉hr von 15,2 Millionen US-Dollar
- Das DOE hat Option 1a im Wert von etwa 110 Millionen US-Dollar ausge眉bt und verl盲ngert die Laufzeit bis zum 30. Juni 2026
Die Vertrags盲nderung erkennt an, dass die gesch盲tzten Kosten f眉r Option 1b aufgrund gestiegener Kosten seit der urspr眉nglichen Vertragsvergabe nicht ausreichen. ACO muss einen 眉berarbeiteten Kostenplan vorlegen, bevor das DOE Option 1b pr眉ft. Alle unter diesem Vertrag produzierten HALEU bleiben Eigentum des Ministeriums.
FAQ
What contract amendment did LEU announce in its June 2025 8-K filing?
How much is LEU's Option 1a contract worth with the Department of Energy?
What is the value of LEU's Option 1b contract with the DOE?
What is the HALEU production rate under LEU's Department of Energy contract?
When did LEU sign the original HALEU Demonstration Cascade Contract?
