Exchange: LSE | Sector: Energy | Industry: Oil Gas Energy
Q1 2025
Published: Dec 5, 2024
Earnings Highlights
Revenue of $17.09M up 14% year-over-year
EPS of $-0.05 decreased by 957.9% from previous year
Gross margin of 36.6%
Net income of -20.16M
"N/A" - N/A
Uranium Energy Corp (0LJQ.L) QQ1 2025 Results Analysis — US Uranium Portfolio Delivers Revenue Growth Amid Near-Term Profitability Challenge
Executive Summary
Uranium Energy Corp (0LJQ.L) reported QQ1 2025 revenue of $17.09 million with gross profit of $6.25 million, yielding a gross margin of approximately 36.6%. Despite top-line growth, the quarter generated an operating loss of $13.20 million and a negative EBITDA of $21.24 million, culminating in a net loss of $20.16 million and an earnings per share of −$0.049. The year-over-year revenue surge (as reported in the metrics) reflects a very small base in the prior-year period, underscoring how early-stage uranium developers can show outsized YoY percentage changes even as the company remains in a near-term loss position. The quarter’s cash flow was characterized by a negative operating cash flow of $11.45 million and negative free cash flow of $12.67 million, with capital allocation skewed toward investing activities (notably maturities of investments and capex), yet the balance sheet remains cash-rich with $190.6 million in cash and equivalents and no material debt.
Beyond liquidity, Uranium Energy Corp sits on a sizeable US-focused uranium asset base (Palangana, Goliad, Burke Hollow, Longhorn, Salvo, and related projects) that provides optionality to scale production as uranium prices and contract activity improve. The company posted a strong current ratio (~20.6) and substantial liquidity, offering flexibility to fund ongoing exploration, development, and potential strategic initiatives. However, the near-term investment thesis hinges on uranium price stabilization or upside, execution of production ramp plans, and ongoing cost discipline to move toward sustained profitability. The lack of an explicit quarterly guidance in the data set necessitates a scenario-driven approach focused on commodity cycles and project execution as the primary drivers of earnings reversals. Investors should monitor uranium market dynamics, planned production steps at US sites, capex cadence, and any monetization prospects for non-core assets.
Gross Margin: ~36.6% (6.25m gross profit on 17.09m revenue; prior ratios in the data set show margins that may reflect data sourcing differences)
Operating Income: −$13.20 million; YoY: not provided; QoQ: not provided; Margin: −77.3%
EBITDA: −$21.24 million; EBITDA Margin: approximately −124% of revenue (−$21.24m / $17.09m)
Financial Highlights
- Revenue: $17.09 million; YoY: +14,630.17%; QoQ: N/A
- Gross Profit: $6.25 million; YoY: +32,800.00%; QoQ: +1,210.30%
- Gross Margin: ~36.6% (6.25m gross profit on 17.09m revenue; prior ratios in the data set show margins that may reflect data sourcing differences)
- Operating Income: −$13.20 million; YoY: not provided; QoQ: not provided; Margin: −77.3%
- EBITDA: −$21.24 million; EBITDA Margin: approximately −124% of revenue (−$21.24m / $17.09m)
- Net Income: −$20.16 million; Net Margin: −118% (−$20.16m / $17.09m)
- EPS: −$0.049; Diluted EPS: −$0.049
- Net Cash from Operating Activities: −$11.45 million
- Free Cash Flow: −$12.67 million
- Cash and Cash Equivalents: $190.60 million; Total Cash: $197.85 million
- Current Ratio: 20.56; Quick Ratio: 15.36; Cash Ratio: 15.00
- Total Assets: $917.80 million; Total Liabilities: $93.78 million; Equity: $824.02 million
- Net Debt: −$190.60 million (net cash position; no long-term debt reported)
- Key capitalization metrics from QQ1 2025 show a conservative balance sheet with strong liquidity and limited leverage, supporting long-term exploration and development plans while the company consumes cash in the near term.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
17.09M
14 630.17%
N/A
Gross Profit
6.25M
32 800.00%
1 210.30%
Operating Income
-13.20M
-8.94%
30.72%
Net Income
-20.16M
-995.91%
-33.36%
EPS
-0.05
-957.89%
-28.68%
Key Financial Ratios
currentRatio
20.56
grossProfitMargin
-46%
operatingProfitMargin
-79.6%
netProfitMargin
-118%
returnOnAssets
-2.2%
returnOnEquity
-2.45%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.03
priceToBookRatio
3.74
priceEarningsRatio
-38.23
Net Income vs. Revenue
Expense Breakdown
Management Commentary
- Earnings transcript data for QQ1 2025 is not provided in the supplied material. Accordingly, there are no management quotes or thematic highlights to quote directly. The analysis below incorporates management commentary where available from the filings and industry context, and it notes the absence of transcript details requiring updates if/when they are provided.
N/A
— N/A
N/A
— N/A
Forward Guidance
- Explicit management guidance for QQ1 2025 is not contained in the provided data. In this context, the forward outlook must be scenario-driven and grounded in uranium market dynamics and the company’s development agenda. Key considerations:
- Uranium price and contract activity: A sustained recovery in uranium prices or favorable contract terms could unlock a meaningful production ramp at US-based assets (e.g., Palangana, Goliad, and other Texas projects), improving margins and capital efficiency.
- Production ramp and capex cadence: The company’s ability to scale output while controlling sustaining and growth capex will be critical to achieving a path to profitability. Monitoring project timelines, permitting, and capex commitments will be essential.
- Non-core asset monetization: Potential monetization or strategic development of titanium/titanium-related assets could provide optionality and optional cash flow.
- Operational efficiency: Reducing per-unit production costs and optimizing SG&A versus revenue will determine how quickly the company can move from cash burn to cash generation.
- Outlook assessment: In a base-case scenario with modest uranium price stability, the company may continue to incur near-term losses until production scales and fixed-cost absorption improves. In a favorable scenario with uranium price recovery and successful ramp, Uranium Energy Corp could approach breakeven or modest profitability, aided by a strong liquidity cushion. Investors should monitor commodity prices, contract activity, permitting progress, and the company’s capex plan cadence as the primary drivers of the outlook.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0LJQ.L Focus
36.58%
-79.60%
-2.45%
-38.23%
0OCQ.L
-2.27%
-3.22%
-36.20%
-5.91%
0R3M.L
0.00%
0.00%
-12.90%
-18.44%
0RU5.L
-102.58%
-244.73%
-38.70%
-3.36%
0JSY.L
26.80%
9.51%
2.56%
20.80%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Uranium Energy Corp presents a cautious-to-moderate risk, high-reward thesis. The company’s QQ1 2025 results show a challenging near-term profitability trajectory, with negative earnings and cash burn, despite a strong liquidity position and a sizable US uranium asset base. The key drivers for a potential turnaround are uranium price recovery and the successful execution of a production ramp at core Texas assets. If prices firm or improve and the company achieves scale efficiently, free cash flow could turn positive as fixed costs dilute with higher volumes. In the near term, the stock may trade on macro uranium dynamics and execution milestones rather than trailing-twelve-month earnings. Investors should monitor (1) uranium price trends and offtake activity, (2) capex cadence and project timelines at Palangana, Goliad, and related sites, (3) cost control initiatives and SG&A optimization, and (4) any monetization prospects for titanium assets or other non-core assets.
Key Investment Factors
Growth Potential
Potential uplift from US-based production ramp (Palangana, Goliad, Burke Hollow, Longhorn, Salvo) if uranium prices improve and offtake agreements solidify. Optional monetization of titanium assets and strategic partnerships could unlock additional value.
Profitability Risk
Uranium price volatility and regulatory risks; execution risk in ramping production; potential for higher sustaining and growth capex; sensitivity to working capital and potential project delays; absence of quarterly guidance adds uncertainty to near-term forecasts.
Financial Position
Strong liquidity with $190.6m in cash plus no reported debt; sizable asset base (PPE $577.3m) supporting exploration and development; robust equity base ($824.0m) providing financial flexibility to weather near-term losses and fund growth initiatives.
SWOT Analysis
Strengths
Strong cash position with $190.6 million of cash and equivalents; net cash position (no debt) supports liquidity and optionality
Large, US-focused uranium asset base (Palangana, Goliad, Burke Hollow, Longhorn, Salvo) with expansion potential
Clean balance sheet with substantial equity and relatively low liabilities, providing financial flexibility for project development and potential partnerships
Weaknesses
Significant near-term cash burn: operating cash flow and free cash flow negative in QQ1 2025
Negative EBITDA and net income in the quarter, signaling profitability challenges absent a material price/volume uptick
Dependence on uranium market cycles; no sustained revenue diversification evident in the period
Opportunities
Uranium market upcycle catalysts (spot and contract prices) potentially enabling production ramp
Strategic use of liquidity to fund expansion and tech development at US uranium sites
Possible monetization or value realization from titanium assets and non-core monetization opportunities
Threats
Sustained weakness in uranium prices or protracted market downturn