UR-ENERGY INC (URG)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $10.435M, up sharply year over year, on deliveries of 165,000 lbs at an average price of $63.20/lb; diluted EPS was -$0.06 and net loss widened to -$20.956M, driven by mark-to-market losses on the uranium inventory loan and higher development spend as Shirley Basin construction accelerated .
• Estimates context: Revenue beat Wall Street consensus ($10.435M vs $9.397M*), while EPS missed (-$0.06 vs -$0.017*); EBITDA was below consensus (-$14.247M vs -$12.8M*) — reflecting continued ramp costs and derivative marks. Values retrieved from S&P Global.
• Operating highlights: U3O8 dried and packaged rose 35% q/q to 112,033 lbs and wellfield flow rates increased ~27%; cash cost per lb sold fell to $40.21, supporting a ~36% cash margin per lb in the quarter .
• Guidance unchanged: 2025 deliveries remain 440,000 lbs at ~$61.56/lb for ~$27.1M revenues, with 110,000 lbs slated for Q3 and 165,000 lbs for Q4; Shirley Basin remains on track for initial operations in early 2026 .
• Contract book expanded: An eighth multi‑year sales agreement adds 100,000 lbs/year in 2028‑2030 at escalated fixed prices “well above” current spot/term, increasing long‑term revenue visibility while retaining market exposure via spot‑linked pricing options .

What Went Well and What Went Wrong

What Went Well

• Production ramp at Lost Creek: 112,033 lbs dried/packaged (+35% q/q); flow rate routinely >3,400 gpm by end of June; head grade held >70 mg/l in May/June .
• Cost improvements: Cash cost per lb sold $40.21 with cash margin ~$22.99 per lb (~36.4%), and produced cost per lb sold down to $50.89 vs $62.06 in Q4 2024 .
• Strategic sales contracting: New eighth sales agreement at escalated fixed prices above spot/term, plus optional spot‑linked volumes at 99% of average monthly spot, securing long‑term volumes while keeping upside to markets .
  • Quote (President Matthew Gili): “Cash costs were $42.83 per pound sold… well below our average selling price in Q2 of $63.20 per pound.”

What Went Wrong

• Earnings pressure from derivative marks and ramp costs: Net loss widened to -$20.956M; mark‑to‑market loss of -$5.622M on the inventory loan and higher development expense (+$4.0M y/y) weighed on results .
• Negative EBITDA and margins: EBITDA of -$14.247M with EBITDA margin -136.5% despite gross profit of $1.94M, reflecting operating cost intensity during ramp .
• Cash drawdown: Cash and cash equivalents fell to $57.6M at quarter-end (and to $49.1M as of July 31), as the company invested $8.9M in capex and used $9.3M in operating cash in H1 .

Financial Results

P&L Summary and Per-Share Metrics

Note: Values with * retrieved from S&P Global.

EBITDA and Margins

Note: Values retrieved from S&P Global.

U3O8 Operational KPIs

Guidance Changes

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was found; themes derived from press releases and 10‑Q MD&A.

Management Commentary

• “The ramp up at Lost Creek continues, with significant increases in the quantities of U3O8 both captured and drummed in the quarter… cash costs were $42.83 per pound sold… well below our average selling price in Q2 of $63.20 per pound.” — President Matthew D. Gili .
• “We anticipate that we will deliver and sell 440,000 pounds U3O8 at an average price per pound sold of $61.56 in 2025 from which we expect to realize revenues of $27.1 million.” — Management MD&A .
• “Pricing [in the new contract] is set at an escalated fixed price, well above current spot and term prices.” — Company press release .

Q&A Highlights

• No Q2 2025 earnings call transcript was available; there were no published Q&A details to assess. Operational clarifications and guidance were provided via the Q2 press releases and 10‑Q MD&A .

Estimates Context

• Revenue: $10.435M actual vs $9.397M consensus* — bold beat on stronger deliveries and pricing. Values retrieved from S&P Global.
• EPS: -$0.06 actual vs -$0.0167 consensus* — bold miss due to mark‑to‑market losses on inventory loan and higher development expenses. Values retrieved from S&P Global.
• EBITDA: -$14.247M actual vs -$12.8M consensus* — miss as ramp and derivative impacts persisted. Values retrieved from S&P Global.

Q2 2025 Estimates vs Actuals

Note: Values with * retrieved from S&P Global.

Key Takeaways for Investors

• Lost Creek ramp is translating into lower cash costs and positive cash margins per lb sold; sustained production gains should further reduce per‑lb costs and NRV adjustments .
• Earnings volatility from derivative marks is material; the inventory loan mark‑to‑market was -$5.6M in Q2 — a non‑operating headwind to EPS tied to spot price moves .
• Contract coverage strengthened with an eighth agreement at escalated fixed prices above spot/term, while retaining spot‑linked optionality — enhancing revenue visibility and market upside .
• 2025 delivery cadence (Q3: 110k; Q4: 165k) supports near‑term revenue flows; watch execution vs production rates and conversion inventory utilization .
• Shirley Basin is a 2026 catalyst: foundation construction underway; wellfield development and staffing ramp progressing; capex plan (~$35.6M + ~$11M MU dev in 2025) is funded by cash/operations but may need flex financing if cash flows are uneven .
• Policy tailwinds (DOE programs; Section 232 probe; nuclear EO) are supportive; tariffs largely excluded for uranium, reducing delivery risk .
• Near‑term trading implications: Revenue beat vs consensus may be overshadowed by EPS miss driven by derivative marks; watch uranium spot price trajectory and Q3 delivery execution for stock reaction catalysts .