We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Buy, Hold or Sell UUUU Stock Post Q2 Earnings?
Read MoreHide Full Article
Key Takeaways
UUUU posts wider Q2 loss but outlines ambitious growth plans and lower cost targets through 2026.
Lower uranium sales and surging development costs caused Energy Fuels' earnings miss and margin pressure.
Lower uranium sales and surging development costs caused UUUU's earnings miss and margin pressure.
Energy Fuels (UUUU - Free Report) reported second-quarter 2025 results on Aug. 6, which fell short of expectations and also declined from the prior-year quarter. The company reported a loss of 10 cents, wider than the Zacks Consensus Estimate as well as last year's quarter’s loss. UUUU also witnessed a 52% decline in revenues, which also fell short of the consensus mark due to lower sales of uranium in the quarter.
Digging Deeper Into Energy Fuels’ Q2 Results
Total revenues were around $4.2 million, marking a 52% year-over-year plunge. The company sold 50,000 pounds of uranium on the spot market for $77 per pound, generating uranium revenues of $3.85 million. This was 55% lower than the last year's quarter due to lower uranium sales as a result of contract delivery timing and the company's decision to retain uranium in inventory at current spot price levels.
The company also recorded $0.28 million in heavy mineral sands revenues from the sale of 202 tons of rutile.
Costs applicable to revenues were down 0.7%. However, exploration, development and processing soared 265% year over year to $9 million due to higher indirect processing costs at the White Mesa Mill related to a higher headcount and inflation, as well as development activities at the La Sal Complex and the Juniper zone at the Pinyon Plain mine. Increased exploration activities at other mine locations and write-off of consumables inventory at the Kwale Project also led to the increase.
Selling, general and administration were up 118% year over year to $25 million, reflecting higher salaries and benefits tied to an increase in headcount, including employees retained from Base Resources following the acquisition on Oct. 2, 2024.
Overall, lower revenues and higher expenses led to a second-quarter loss per share of 10 cents compared with a loss of four cents in the year-ago quarter.
Looking Beyond the Loss: Key Developments in UUUU’s Q2
During the quarter, the company mined ore containing approximately 665,000 pounds of uranium from the Pinyon Plain, La Sal and Pandora mines. The Pinyon Plain mine has been performing exceptionally well in recent months and produced 635,000 pounds of uranium during the quarter. The mine has the potential to be the highest-grade uranium mine in U.S. history.
UUUU also secured the regulatory approval to construct the Donald Rare Earth and Mineral Sand Project. It is one of the richest deposits of HREEs in the world and could complement UUUU’s domestic operations.
How Did UUUU’s Peers Fare in Q2?
Cameco Corporation’s (CCJ - Free Report) second-quarter 2025 total revenues rose 47% year over year to $634 million (CAD 877 million), beating the Zacks Consensus Estimate of $631 million. Adjusted earnings surged 410% year over year to 51 cents per share (CAD 0.71), way ahead of the consensus estimate of 36 cents.
Cameco’s uranium revenues increased 47% to $510 million (CAD 705 million). Cameco sold 8.7 million pounds of uranium, 40% higher year over year.
Ur Energy (URG - Free Report) reported a loss of four cents per share in the second quarter, wider than the Zacks Consensus Estimate of a loss of one cent and the year-ago quarter’s loss of three cents.
Revenues were $10.4 million, 124% higher than the $4.65 million reported in the year-ago quarter. Ur Energy sold 165,000 pounds of uranium in the quarter.
Energy Fuels Issues Optimistic Outlook for 2025 & 2026
UUUU expects to mine 55,000-80,000 tons of ore containing approximately 875,000-1,435,000 pounds of uranium from its three mines during 2025. It aims to process up to 1 million pounds of uranium this year.
Uranium sales are planned at 350,000 pounds this year. This, however, does not consider any spot sales the company may make in case prices go up. In 2026, Energy Fuels aims to sell between 620,000 and 880,000 pounds of uranium under its current portfolio of long-term uranium sales contracts.
The company expects lower uranium costs starting in the fourth quarter of 2025 as it begins processing low-cost Pinyon Plain ores. Total weighted average cost of goods sold will go down to $23–$30 per pound of uranium, ranking among the lowest costs for mined uranium production in the world.
The company expects to lower the cost of goods sold to approximately $50-$55 per uranium sales for the remaining 2025 sales. The weighted average cost of goods sold is projected to drop to $30-$40 per pound in the first quarter of 2026. These trends are expected to boost gross margins.
UUUU Likely Headed for a Loss in 2025, Profit Expected in 2026
The Zacks Consensus Estimate for Energy Fuels’ earnings for 2025 is currently pegged at a loss of 27 cents per share. The estimate for revenues is $49.23 million, indicating a 37% year-over-year decline.
The estimate for 2026 revenues is pinned at $121.80 million, implying a 147% year-over-year upsurge. The consensus estimate for earnings is pegged at six cents per share. This will be UUUU’s first year of profit since it started trading on the NYSE in December 2013.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Over the past 60 days. the estimates for Energy Fuels for 2025 have undergone positive revision, while the same for 2026 have remained unchanged.
Image Source: Zacks Investment Research
Energy Fuels’ Stock Outperforms Industry & Peers
UUUU shares soared 89.7% year to date against the industry’s 0.8% dip. It has also outperformed the broader Zacks Basic Materials sector’s gain of 11.7% and the S&P 500’s climb of 7.7%.
UUUU Stock's YTD Performance Against Industry & Sector
Image Source: Zacks Investment Research
Energy Fuels has also outpaced Cameco and Ur Energy, which have gained 48.6% and 6%, respectively, year to date.
Image Source: Zacks Investment Research
UUUU’s Valuation Looks Stretched
Energy Fuels is currently trading at a forward price-to-sales multiple of 22.95, well above the industry average of 2.63. UUUU’s Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.
Image Source: Zacks Investment Research
Meanwhile, Cameco and Ur Energy are cheaper options, trading at price-to-sales ratios of 12.75 and 4.74, respectively.
Volatility in Uranium Prices a Concern for Energy Fuels
Uranium prices have been under pressure recently, declining to $71.50 per pound as a pause in fresh buying by holding funds allowed utilities to set lower bids. Prices are down 11.3% 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, but the rally was short-lived. In the event of low uranium prices, Energy Fuels abstains from making any uranium sales, which leads to revenue volatility.
UUUU Positioned for Long-Term Growth
Despite lower prices currently, the long-term outlook for uranium, however, remains strong, driven by the growing push for clean energy. Also, the push for supply chains independent of China is a growth opportunity for UUUU. The White Mesa Mill in Utah, being the only U.S. facility able to process monazite and produce separated REE materials, gives the company an edge. Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. Taking UUUU’s current production levels and development pipeline into account, it has the potential to produce 6 million pounds of uranium per year.
Our Final Take on Energy Fuels Stock
Backed by Energy Fuels’ debt-free balance sheet, the company is advancing with its growth plans to capitalize on the expected surge in uranium and REE demand. Those who already own the stock may stay invested, given UUUU’s solid long-term prospects in both these markets. However, given its premium valuation and the expected loss this year, new investors can wait for a better entry point.
The stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Should You Buy, Hold or Sell UUUU Stock Post Q2 Earnings?
Key Takeaways
Energy Fuels (UUUU - Free Report) reported second-quarter 2025 results on Aug. 6, which fell short of expectations and also declined from the prior-year quarter. The company reported a loss of 10 cents, wider than the Zacks Consensus Estimate as well as last year's quarter’s loss. UUUU also witnessed a 52% decline in revenues, which also fell short of the consensus mark due to lower sales of uranium in the quarter.
Digging Deeper Into Energy Fuels’ Q2 Results
Total revenues were around $4.2 million, marking a 52% year-over-year plunge. The company sold 50,000 pounds of uranium on the spot market for $77 per pound, generating uranium revenues of $3.85 million. This was 55% lower than the last year's quarter due to lower uranium sales as a result of contract delivery timing and the company's decision to retain uranium in inventory at current spot price levels.
The company also recorded $0.28 million in heavy mineral sands revenues from the sale of 202 tons of rutile.
Costs applicable to revenues were down 0.7%. However, exploration, development and processing soared 265% year over year to $9 million due to higher indirect processing costs at the White Mesa Mill related to a higher headcount and inflation, as well as development activities at the La Sal Complex and the Juniper zone at the Pinyon Plain mine. Increased exploration activities at other mine locations and write-off of consumables inventory at the Kwale Project also led to the increase.
Selling, general and administration were up 118% year over year to $25 million, reflecting higher salaries and benefits tied to an increase in headcount, including employees retained from Base Resources following the acquisition on Oct. 2, 2024.
Overall, lower revenues and higher expenses led to a second-quarter loss per share of 10 cents compared with a loss of four cents in the year-ago quarter.
Looking Beyond the Loss: Key Developments in UUUU’s Q2
During the quarter, the company mined ore containing approximately 665,000 pounds of uranium from the Pinyon Plain, La Sal and Pandora mines. The Pinyon Plain mine has been performing exceptionally well in recent months and produced 635,000 pounds of uranium during the quarter. The mine has the potential to be the highest-grade uranium mine in U.S. history.
UUUU also secured the regulatory approval to construct the Donald Rare Earth and Mineral Sand Project. It is one of the richest deposits of HREEs in the world and could complement UUUU’s domestic operations.
How Did UUUU’s Peers Fare in Q2?
Cameco Corporation’s (CCJ - Free Report) second-quarter 2025 total revenues rose 47% year over year to $634 million (CAD 877 million), beating the Zacks Consensus Estimate of $631 million. Adjusted earnings surged 410% year over year to 51 cents per share (CAD 0.71), way ahead of the consensus estimate of 36 cents.
Cameco’s uranium revenues increased 47% to $510 million (CAD 705 million). Cameco sold 8.7 million pounds of uranium, 40% higher year over year.
Ur Energy (URG - Free Report) reported a loss of four cents per share in the second quarter, wider than the Zacks Consensus Estimate of a loss of one cent and the year-ago quarter’s loss of three cents.
Revenues were $10.4 million, 124% higher than the $4.65 million reported in the year-ago quarter. Ur Energy sold 165,000 pounds of uranium in the quarter.
Energy Fuels Issues Optimistic Outlook for 2025 & 2026
UUUU expects to mine 55,000-80,000 tons of ore containing approximately 875,000-1,435,000 pounds of uranium from its three mines during 2025. It aims to process up to 1 million pounds of uranium this year.
Uranium sales are planned at 350,000 pounds this year. This, however, does not consider any spot sales the company may make in case prices go up. In 2026, Energy Fuels aims to sell between 620,000 and 880,000 pounds of uranium under its current portfolio of long-term uranium sales contracts.
The company expects lower uranium costs starting in the fourth quarter of 2025 as it begins processing low-cost Pinyon Plain ores. Total weighted average cost of goods sold will go down to $23–$30 per pound of uranium, ranking among the lowest costs for mined uranium production in the world.
The company expects to lower the cost of goods sold to approximately $50-$55 per uranium sales for the remaining 2025 sales. The weighted average cost of goods sold is projected to drop to $30-$40 per pound in the first quarter of 2026. These trends are expected to boost gross margins.
UUUU Likely Headed for a Loss in 2025, Profit Expected in 2026
The Zacks Consensus Estimate for Energy Fuels’ earnings for 2025 is currently pegged at a loss of 27 cents per share. The estimate for revenues is $49.23 million, indicating a 37% year-over-year decline.
The estimate for 2026 revenues is pinned at $121.80 million, implying a 147% year-over-year upsurge. The consensus estimate for earnings is pegged at six cents per share. This will be UUUU’s first year of profit since it started trading on the NYSE in December 2013.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Over the past 60 days. the estimates for Energy Fuels for 2025 have undergone positive revision, while the same for 2026 have remained unchanged.
Image Source: Zacks Investment Research
Energy Fuels’ Stock Outperforms Industry & Peers
UUUU shares soared 89.7% year to date against the industry’s 0.8% dip. It has also outperformed the broader Zacks Basic Materials sector’s gain of 11.7% and the S&P 500’s climb of 7.7%.
UUUU Stock's YTD Performance Against Industry & Sector
Image Source: Zacks Investment Research
Energy Fuels has also outpaced Cameco and Ur Energy, which have gained 48.6% and 6%, respectively, year to date.
Image Source: Zacks Investment Research
UUUU’s Valuation Looks Stretched
Energy Fuels is currently trading at a forward price-to-sales multiple of 22.95, well above the industry average of 2.63. UUUU’s Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.
Image Source: Zacks Investment Research
Meanwhile, Cameco and Ur Energy are cheaper options, trading at price-to-sales ratios of 12.75 and 4.74, respectively.
Volatility in Uranium Prices a Concern for Energy Fuels
Uranium prices have been under pressure recently, declining to $71.50 per pound as a pause in fresh buying by holding funds allowed utilities to set lower bids. Prices are down 11.3% 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, but the rally was short-lived. In the event of low uranium prices, Energy Fuels abstains from making any uranium sales, which leads to revenue volatility.
UUUU Positioned for Long-Term Growth
Despite lower prices currently, the long-term outlook for uranium, however, remains strong, driven by the growing push for clean energy. Also, the push for supply chains independent of China is a growth opportunity for UUUU. The White Mesa Mill in Utah, being the only U.S. facility able to process monazite and produce separated REE materials, gives the company an edge. Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. Taking UUUU’s current production levels and development pipeline into account, it has the potential to produce 6 million pounds of uranium per year.
Our Final Take on Energy Fuels Stock
Backed by Energy Fuels’ debt-free balance sheet, the company is advancing with its growth plans to capitalize on the expected surge in uranium and REE demand. Those who already own the stock may stay invested, given UUUU’s solid long-term prospects in both these markets. However, given its premium valuation and the expected loss this year, new investors can wait for a better entry point.
The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.