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LEU vs. NXE: Which Uranium Stock is the Better Pick Now?
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Key Takeaways
Centrus Energy's Q1 revenues jumped 67% to $73.1M, with LEU segment sales more than doubling year over year.
NexGen's Rook I project aims to produce 30M pounds annually, potentially tripling Canada's uranium output.
NXE secured contracts to supply U.S. utilities from 2029 to 2033, ensuring long-term revenue stability.
Centrus Energy (LEU - Free Report) and NexGen Energy (NXE - Free Report) are uranium-focused companies expected to benefit from the global shift toward nuclear energy as a clean power source.
Centrus Energy, with a market capitalization of $4.1 billion, supplies nuclear fuel components for the nuclear power industry across the United States, Belgium, Japan, the Netherlands and internationally. Vancouver-Canada based NexGen Energy, valued at $4.2 billion, is an exploration and development-stage company. It is developing the Rook I Project into the largest, low-cost producing uranium mine globally.
Uranium prices have been under pressure recently, falling to $71 per pound as a pause in fresh buying by holding funds allowed utilities to set lower bids. Prices are down 13% in a year. Prices had briefly surged to a seven-month high of $79 in late June, following a major purchase announcement from the Sprott Physical Uranium Trust. However, this rally was short-lived.
The long-term outlook for uranium remains strong, driven by the growing push for clean energy. The U.S. government’s initiative to quadruple domestic nuclear energy capacity by 2050, along with rising energy needs from AI data centers, has boosted long-term demand expectations. Against this backdrop, investors are evaluating which uranium stock is better positioned, Centrus Energy or NexGen Energy? To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for Centrus Energy
Centrus Energy provides the enrichment component of Low-Enriched Uranium primarily to utilities that operate commercial nuclear power plants. LEU is a critical component in the production of nuclear fuel for reactors that produce electricity. The enrichment component of LEU is measured in Separative Work Units (SWU). Centrus Energy also sells natural uranium hexafluoride, and occasionally sells uranium concentrates, uranium conversion or LEU with the natural uranium hexafluoride and SWU components combined into one sale.
LEU’s existing process buildings can host 3.5 million SWU per year, and it can expand to 7 million SWU per year.
Centrus Energy is the only company with a license for High-Assay Low-Enriched Uranium (HALEU) production to supply commercial and national security needs. HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors.
The Technical Solutions segment provides advanced uranium enrichment for the nuclear industry and the U.S. government, and advanced manufacturing and other technical services to government and private sector customers.
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 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, which was 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.
Under the HALEU Operation Contract with the Department of Energy (DOE), it has delivered 670 kilograms of HALEU as of March 25. On Nov. 5, 2024, the HALEU Operation Contract was modified to extend the Phase 2 period of performance to June 30, 2025. DOE has also increased the Phase 2 contract value and related funding to $152.3 million.
Centrus Energy currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.
While Centrus Energy has seen a CAGR of 22.6% in its top line in the last three years, the bottom line has witnessed a CAGR of 12.6%, indicating margin pressure.
The Case for NexGen Energy
NexGen recently exercised its right of first refusal to acquire the 10% production carried interest (PCI) held by Rio Tinto Exploration Canada Inc. (Rio Tinto) over 39 of NexGen's mineral claims in the Southwest Athabasca Basin. NexGen's entire portfolio, including the Arrow deposit, is now 100% owned. NexGen Energy’s flagship Rook I project consists of 32 contiguous mineral claims totaling an area of approximately 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan.
The project is being developed into the largest source of low-cost uranium globally. It is expected to deliver up to 30 million pounds of high-grade uranium per year, at the lowest quartile of the cost curve of C$13.86 over generations to come. This massive output could triple Canada’s uranium production, elevating NexGen to a dominant position in the nuclear fuel market.
The Arrow Deposit is the focus of the Rook I Project and was discovered in February 2014. It has measured and indicated mineral resources totaling 3.75 million tons, at a grade of 3.10%, containing 257 million pounds of uranium. The company has intersected numerous other mineralized zones on trend from Arrow along the Patterson Corridor on the Rook I property, which are subject to further exploration before economic potential can be assessed.
In December 2024, NexGen Energy announced that it had entered into uranium sales contracts with major U.S. utilities committing to supply 1 million pounds of uranium annually from 2029 to 2033. These contracts, incorporating market-based pricing, validate confidence in the Rook I Project and provide financial stability while allowing the company to benefit from rising uranium prices.
As an exploration and development stage company, NXE does not have revenues and historically has reported recurring operating losses. In the first quarter of 2025, the company reported an adjusted loss of six cents per share compared with the year-ago quarter’s loss of four cents.
NXE’s results are likely to continue to reflect the impact of salaries, office, administrative and travel costs as well as costs consistent with the expansion of operations. However, once it starts production, there remains strong margin potential due to the Rook I’s low-cost position.
How Do Estimates Compare for LEU & NXE?
The Zacks Consensus Estimate for Centrus Energy’s 2025 revenues is $437.5 million, implying a 1% dip from the year-ago quarter’s actual. The consensus mark for LEU’s earnings is pegged at $3.45 per share, which indicates a year-over-year decline of 23%. Over the past 60 days, the consensus mark for earnings for 2025 has moved up 7%.
The Zacks Consensus Estimate for Centrus Energy’s 2026 revenues of $486.5 million indicates year-over-year growth of 11.2%. The estimate for earnings is pinned at $2.81 per share, indicating a year-over-year decline of 18.5%. The earnings estimate has moved up 7% over the past 60 days.
The Zacks Consensus Estimate for NexGen Energy’s earnings for 2025 is a loss of 13 cents per share, wider than the loss of 10 cents in 2024. The estimate for 2026 is also a loss of 13 cents per share.
The estimate for NexGen Energy for 2025 has remained unchanged over the past 60 days. Over this time period, the estimate has moved down from a loss of 11 cents per share to the current expected loss of 13 cents in the past 60 days.
Image Source: Zacks Investment Research
Centrus Energy & NexGen Energy: Price Performance, Valuation & Other Comparison
LEU shares have surged 261.8% year to date while NexGen Energy’s shares have gained 10.6%.
Image Source: Zacks Investment Research
Centrus Energy is trading at a forward price-to-book multiple of 19.20X. Meanwhile, NXE’s forward price-to-book multiple sits at 5.43X.
Image Source: Zacks Investment Research
LEU had a total debt-to-total capital ratio of 0.68 as of March 31, 2025. In comparison, NXE is better placed with a debt-to-total capital ratio of 0.28.
LEU or NXE: Which is the Better Investment Option?
Centrus Energy stands out as the only company currently licensed to produce HALEU, giving it a strategic edge in meeting future nuclear fuel needs. However, its earnings growth has not kept pace with its top line and its higher debt levels raise concerns. While LEU has delivered superior stock performance, NexGen offers better value based on forward valuation and debt metrics.
Although NXE is still in the development phase, it offers exposure to a high-grade, long-life asset with strong margin potential. NexGen’s Zacks Rank #3 (Hold) reflects a balanced risk-reward outlook, whereas LEU’s Zacks Rank #4 (Sell) highlights the abovementioned concerns.
Image: Bigstock
LEU vs. NXE: Which Uranium Stock is the Better Pick Now?
Key Takeaways
Centrus Energy (LEU - Free Report) and NexGen Energy (NXE - Free Report) are uranium-focused companies expected to benefit from the global shift toward nuclear energy as a clean power source.
Centrus Energy, with a market capitalization of $4.1 billion, supplies nuclear fuel components for the nuclear power industry across the United States, Belgium, Japan, the Netherlands and internationally. Vancouver-Canada based NexGen Energy, valued at $4.2 billion, is an exploration and development-stage company. It is developing the Rook I Project into the largest, low-cost producing uranium mine globally.
Uranium prices have been under pressure recently, falling to $71 per pound as a pause in fresh buying by holding funds allowed utilities to set lower bids. Prices are down 13% in a year. Prices had briefly surged to a seven-month high of $79 in late June, following a major purchase announcement from the Sprott Physical Uranium Trust. However, this rally was short-lived.
The long-term outlook for uranium remains strong, driven by the growing push for clean energy. The U.S. government’s initiative to quadruple domestic nuclear energy capacity by 2050, along with rising energy needs from AI data centers, has boosted long-term demand expectations. Against this backdrop, investors are evaluating which uranium stock is better positioned, Centrus Energy or NexGen Energy? To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for Centrus Energy
Centrus Energy provides the enrichment component of Low-Enriched Uranium primarily to utilities that operate commercial nuclear power plants. LEU is a critical component in the production of nuclear fuel for reactors that produce electricity. The enrichment component of LEU is measured in Separative Work Units (SWU). Centrus Energy also sells natural uranium hexafluoride, and occasionally sells uranium concentrates, uranium conversion or LEU with the natural uranium hexafluoride and SWU components combined into one sale.
LEU’s existing process buildings can host 3.5 million SWU per year, and it can expand to 7 million SWU per year.
Centrus Energy is the only company with a license for High-Assay Low-Enriched Uranium (HALEU) production to supply commercial and national security needs. HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors.
The Technical Solutions segment provides advanced uranium enrichment for the nuclear industry and the U.S. government, and advanced manufacturing and other technical services to government and private sector customers.
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 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, which was 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.
Under the HALEU Operation Contract with the Department of Energy (DOE), it has delivered 670 kilograms of HALEU as of March 25. On Nov. 5, 2024, the HALEU Operation Contract was modified to extend the Phase 2 period of performance to June 30, 2025. DOE has also increased the Phase 2 contract value and related funding to $152.3 million.
Centrus Energy currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.
While Centrus Energy has seen a CAGR of 22.6% in its top line in the last three years, the bottom line has witnessed a CAGR of 12.6%, indicating margin pressure.
The Case for NexGen Energy
NexGen recently exercised its right of first refusal to acquire the 10% production carried interest (PCI) held by Rio Tinto Exploration Canada Inc. (Rio Tinto) over 39 of NexGen's mineral claims in the Southwest Athabasca Basin. NexGen's entire portfolio, including the Arrow deposit, is now 100% owned.
NexGen Energy’s flagship Rook I project consists of 32 contiguous mineral claims totaling an area of approximately 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan.
The project is being developed into the largest source of low-cost uranium globally. It is expected to deliver up to 30 million pounds of high-grade uranium per year, at the lowest quartile of the cost curve of C$13.86 over generations to come. This massive output could triple Canada’s uranium production, elevating NexGen to a dominant position in the nuclear fuel market.
The Arrow Deposit is the focus of the Rook I Project and was discovered in February 2014. It has measured and indicated mineral resources totaling 3.75 million tons, at a grade of 3.10%, containing 257 million pounds of uranium. The company has intersected numerous other mineralized zones on trend from Arrow along the Patterson Corridor on the Rook I property, which are subject to further exploration before economic potential can be assessed.
In December 2024, NexGen Energy announced that it had entered into uranium sales contracts with major U.S. utilities committing to supply 1 million pounds of uranium annually from 2029 to 2033. These contracts, incorporating market-based pricing, validate confidence in the Rook I Project and provide financial stability while allowing the company to benefit from rising uranium prices.
As an exploration and development stage company, NXE does not have revenues and historically has reported recurring operating losses. In the first quarter of 2025, the company reported an adjusted loss of six cents per share compared with the year-ago quarter’s loss of four cents.
NXE’s results are likely to continue to reflect the impact of salaries, office, administrative and travel costs as well as costs consistent with the expansion of operations. However, once it starts production, there remains strong margin potential due to the Rook I’s low-cost position.
How Do Estimates Compare for LEU & NXE?
The Zacks Consensus Estimate for Centrus Energy’s 2025 revenues is $437.5 million, implying a 1% dip from the year-ago quarter’s actual. The consensus mark for LEU’s earnings is pegged at $3.45 per share, which indicates a year-over-year decline of 23%. Over the past 60 days, the consensus mark for earnings for 2025 has moved up 7%.
The Zacks Consensus Estimate for Centrus Energy’s 2026 revenues of $486.5 million indicates year-over-year growth of 11.2%. The estimate for earnings is pinned at $2.81 per share, indicating a year-over-year decline of 18.5%. The earnings estimate has moved up 7% over the past 60 days.
The Zacks Consensus Estimate for NexGen Energy’s earnings for 2025 is a loss of 13 cents per share, wider than the loss of 10 cents in 2024. The estimate for 2026 is also a loss of 13 cents per share.
The estimate for NexGen Energy for 2025 has remained unchanged over the past 60 days. Over this time period, the estimate has moved down from a loss of 11 cents per share to the current expected loss of 13 cents in the past 60 days.
Image Source: Zacks Investment Research
Centrus Energy & NexGen Energy: Price Performance, Valuation & Other Comparison
LEU shares have surged 261.8% year to date while NexGen Energy’s shares have gained 10.6%.
Image Source: Zacks Investment Research
Centrus Energy is trading at a forward price-to-book multiple of 19.20X. Meanwhile, NXE’s forward price-to-book multiple sits at 5.43X.
Image Source: Zacks Investment Research
LEU had a total debt-to-total capital ratio of 0.68 as of March 31, 2025. In comparison, NXE is better placed with a debt-to-total capital ratio of 0.28.
LEU or NXE: Which is the Better Investment Option?
Centrus Energy stands out as the only company currently licensed to produce HALEU, giving it a strategic edge in meeting future nuclear fuel needs. However, its earnings growth has not kept pace with its top line and its higher debt levels raise concerns. While LEU has delivered superior stock performance, NexGen offers better value based on forward valuation and debt metrics.
Although NXE is still in the development phase, it offers exposure to a high-grade, long-life asset with strong margin potential. NexGen’s Zacks Rank #3 (Hold) reflects a balanced risk-reward outlook, whereas LEU’s Zacks Rank #4 (Sell) highlights the abovementioned concerns.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.