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Centrus Energy Soars 197% YTD: Buy, Sell or Hold the Stock?
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Key Takeaways
LEU has surged 197% YTD, outpacing peers like CCJ, UUUU, UEC and the non-ferrous mining industry.
The company completed Phase II of its DOE HALEU contract and secured a one-year extension through June 2026.
Q1 revenues rose 67%, with LEU segment sales up 117% year over year on higher prices and volume.
Centrus Energy (LEU - Free Report) has surged 196.5% so far this year, outpacing the non-ferrous mining industry’s 7.3% growth. The Zacks Basic Materials sector has gained 12.4%, while the S&P 500 has risen 5.9% in the same time frame.
LEU Stock’s YTD Performance Vs. Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Looking at its peer performances, Cameco (CCJ - Free Report) has gained 37.8%, Energy Fuels (UUUU - Free Report) has risen 26.9% while Uranium Energy (UEC - Free Report) has dipped 6.3% year to date.
LEU Stock’s Performance Against CCJ, UUUU & UEC
Image Source: Zacks Investment Research
Centrus Energy has been trading above the 200-day simple moving average (SMA) and the 50-day SMA, indicating a bullish trend.
LEU Stock Trades Above 50-Day & 200-Day SMAs
Image Source: Zacks Investment Research
With Centrus Energy stock riding high, investors may rush to add it to their portfolios. However, before making a decision, it would be prudent to take a look at the reasons behind the surge, the company’s growth prospects and risks (if any) in investing.
What’s Driving Centrus Energy Stock’s Surge?
Fulfills Commitments on DOE Contract: Centrus Energy recently achieved a major milestone in the advancement of High-Assay, Low-Enriched Uranium (HALEU) by successfully delivering 900 kilograms of this advanced nuclear fuel to the U.S. Department of Energy (DOE). This marks the completion of Phase II of its three-phase contract with the DOE.
Centrus Energy had signed the contract in 2022 with the DOE to pioneer production of HALEU at the Piketon, OH facility. The company has delivered 920 kilograms in Phase I and Phase II, and has now moved into Phase III. On June 20, 2025, Centrus Energy secured a contract extension from the DOE authorizing an additional year of production through June 30, 2026. The contract includes provisions for up to eight additional years of production beyond that, contingent upon federal appropriations and DOE discretion.
Solid Q1 Results: Centrus Energy generated total revenues of $73.1 million in the first quarter of 2025, a 67% year-over-year surge. Revenues from the LEU segment skyrocketed 117% year over year to $51.3 million, driven by a 46% increase in the average price of Separative Work Units (SWU) sold and a 49% increase in the sales volume of SWU. There were no uranium sales in the quarter.
Revenues from the Technical Solutions segment rose 8% year over year to $21.8 million, led by a $2-million increase in revenues generated by the HALEU Operation Contract. Revenues from the HALEU Operation Contract are recorded on a cost-plus-incentive-fee basis and include a target fee for Phase 2 of the contract.
Robust Backlog: Centrus Energy currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040. The LEU segment’s backlog is $2.8 billion.
Centrus Energy’s Long-Term Story Intact
Centrus Energy is the only source of HALEU enrichment in the Western world. HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity. Unlike low-enriched uranium, which contains uranium concentration below 5%, HALEU contains uranium enriched to between 5% and 20%. It offers advantages such as improved efficiency, extended fuel cycles and lower waste.
The market opportunity is substantial, with the HALEU market value expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. Centrus Energy is planning to expand production capacity in Ohio so that it can meet the domestic demand for HALEU as well as low-enriched uranium.
LEU’s Debt Position is Concerning
LEU had a total debt-to-total capital ratio of 0.68 as of March 31, 2025, higher than Cameco’s 0.13. Meanwhile, Energy Fuels and Uranium Energy have debt free balance sheets.
Disparity Between LEU's Revenue & Earnings Growth
The charts below show the trend in Centrus Energy’s revenues and earnings over the past three years. While LEU has seen a CAGR of 22.6% in its top line, the bottom line grew at a slower pace, seeing a CAGR of 12.6%.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Centrus Energy’s Estimates Move Up, But Suggest Y/Y Declines
The Zacks Consensus Estimate for Centrus Energy’s 2025 earnings is pegged at $3.43 per share, indicating a 23.3% year-over-year decline. The same for 2026 is $2.90, indicating a decline of 15.41%.
Image Source: Zacks Investment Research
.However, both the EPS estimates for 2025 and 2026 have been revised upward over the past 60 days.
Image Source: Zacks Investment Research
LEU’s Valuation Looks Stretched
LEU is trading at a forward 12-month price/sales multiple of 7.46X, a significant premium to the industry’s 2.91X. It is also higher than its three-year median of 2.18X. It has a Value Score of F.
Image Source: Zacks Investment Research
Meanwhile, Energy Fuels is trading higher at 14.06X, Cameco at 11.85X and Uranium Energy at 34.72X.
Our Final Take on Centrus Energy Stock
As the only company with a Nuclear Regulatory Commission license for HALEU enrichment, Centrus Energy has a clear first-mover advantage to capitalize on the expected surge in demand. Investors holding LEU shares should continue to do so to benefit from the solid long-term fundamentals.
However, new investors can wait for a better entry point, considering the premium valuation and the expected decline in earnings for the current year. The company’s higher debt level than its peers is also concerning. Centrus Energy stock currently carries a Zacks Rank #3 (Hold).
Image: Shutterstock
Centrus Energy Soars 197% YTD: Buy, Sell or Hold the Stock?
Key Takeaways
Centrus Energy (LEU - Free Report) has surged 196.5% so far this year, outpacing the non-ferrous mining industry’s 7.3% growth. The Zacks Basic Materials sector has gained 12.4%, while the S&P 500 has risen 5.9% in the same time frame.
LEU Stock’s YTD Performance Vs. Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Looking at its peer performances, Cameco (CCJ - Free Report) has gained 37.8%, Energy Fuels (UUUU - Free Report) has risen 26.9% while Uranium Energy (UEC - Free Report) has dipped 6.3% year to date.
LEU Stock’s Performance Against CCJ, UUUU & UEC
Image Source: Zacks Investment Research
Centrus Energy has been trading above the 200-day simple moving average (SMA) and the 50-day SMA, indicating a bullish trend.
LEU Stock Trades Above 50-Day & 200-Day SMAs
Image Source: Zacks Investment Research
With Centrus Energy stock riding high, investors may rush to add it to their portfolios. However, before making a decision, it would be prudent to take a look at the reasons behind the surge, the company’s growth prospects and risks (if any) in investing.
What’s Driving Centrus Energy Stock’s Surge?
Fulfills Commitments on DOE Contract: Centrus Energy recently achieved a major milestone in the advancement of High-Assay, Low-Enriched Uranium (HALEU) by successfully delivering 900 kilograms of this advanced nuclear fuel to the U.S. Department of Energy (DOE). This marks the completion of Phase II of its three-phase contract with the DOE.
Centrus Energy had signed the contract in 2022 with the DOE to pioneer production of HALEU at the Piketon, OH facility. The company has delivered 920 kilograms in Phase I and Phase II, and has now moved into Phase III. On June 20, 2025, Centrus Energy secured a contract extension from the DOE authorizing an additional year of production through June 30, 2026. The contract includes provisions for up to eight additional years of production beyond that, contingent upon federal appropriations and DOE discretion.
Solid Q1 Results: Centrus Energy generated total revenues of $73.1 million in the first quarter of 2025, a 67% year-over-year surge. Revenues from the LEU segment skyrocketed 117% year over year to $51.3 million, driven by a 46% increase in the average price of Separative Work Units (SWU) sold and a 49% increase in the sales volume of SWU. There were no uranium sales in the quarter.
Revenues from the Technical Solutions segment rose 8% year over year to $21.8 million, led by a $2-million increase in revenues generated by the HALEU Operation Contract. Revenues from the HALEU Operation Contract are recorded on a cost-plus-incentive-fee basis and include a target fee for Phase 2 of the contract.
Robust Backlog: Centrus Energy currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040. The LEU segment’s backlog is $2.8 billion.
Centrus Energy’s Long-Term Story Intact
Centrus Energy is the only source of HALEU enrichment in the Western world. HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity. Unlike low-enriched uranium, which contains uranium concentration below 5%, HALEU contains uranium enriched to between 5% and 20%. It offers advantages such as improved efficiency, extended fuel cycles and lower waste.
The market opportunity is substantial, with the HALEU market value expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. Centrus Energy is planning to expand production capacity in Ohio so that it can meet the domestic demand for HALEU as well as low-enriched uranium.
LEU’s Debt Position is Concerning
LEU had a total debt-to-total capital ratio of 0.68 as of March 31, 2025, higher than Cameco’s 0.13. Meanwhile, Energy Fuels and Uranium Energy have debt free balance sheets.
Disparity Between LEU's Revenue & Earnings Growth
The charts below show the trend in Centrus Energy’s revenues and earnings over the past three years. While LEU has seen a CAGR of 22.6% in its top line, the bottom line grew at a slower pace, seeing a CAGR of 12.6%.
Image Source: Zacks Investment Research
Centrus Energy’s Estimates Move Up, But Suggest Y/Y Declines
The Zacks Consensus Estimate for Centrus Energy’s 2025 earnings is pegged at $3.43 per share, indicating a 23.3% year-over-year decline. The same for 2026 is $2.90, indicating a decline of 15.41%.
.However, both the EPS estimates for 2025 and 2026 have been revised upward over the past 60 days.
Image Source: Zacks Investment Research
LEU’s Valuation Looks Stretched
LEU is trading at a forward 12-month price/sales multiple of 7.46X, a significant premium to the industry’s 2.91X. It is also higher than its three-year median of 2.18X. It has a Value Score of F.
Image Source: Zacks Investment Research
Meanwhile, Energy Fuels is trading higher at 14.06X, Cameco at 11.85X and Uranium Energy at 34.72X.
Our Final Take on Centrus Energy Stock
As the only company with a Nuclear Regulatory Commission license for HALEU enrichment, Centrus Energy has a clear first-mover advantage to capitalize on the expected surge in demand. Investors holding LEU shares should continue to do so to benefit from the solid long-term fundamentals.
However, new investors can wait for a better entry point, considering the premium valuation and the expected decline in earnings for the current year. The company’s higher debt level than its peers is also concerning. Centrus Energy stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.