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Centrus Energy Hit by Weak Uranium Sales: Recovery Ahead?
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Key Takeaways
Centrus Energy's Q2 revenues fell 18% as LEU sales dropped, with no uranium sales recorded.
LEU backlog reached $3.6B through 2040, with $2.7B tied to future contracts and commitments.
LEU stock has surged 167.6% in 2025, far outpacing industry, sector and S&P 500 gains.
Centrus Energy (LEU - Free Report) faced a challenging second quarter of 2025 as weakness in its Low-Enriched Uranium (LEU - Free Report) segment was a drag on its overall results owing to the absence of uranium sales. The company reported a 26% drop in revenues in the LEU segment and a 27% decline in sales volumes of Separative Work Units (SWU). Although SWU prices rose 24%, the increase was insufficient to offset the volume shortfall.
The company’s LEU segment includes revenues from the sales of the SWU component of low-enriched uranium, natural uranium hexafluoride, uranium concentrates and products. As a result of segment weakness in the second quarter, Centrus Energy saw total revenues fall 18% despite improvements in its Technical Solutions division.
The second quarter marked a sharp reversal from Centrus Energy’s strong first quarter of 2025, when LEU revenues surged 117% to $51.3 million. That performance was fueled by a 46% increase in SWU prices and a 49% rise in sales volumes. There were no uranium sales in this period.
Looking back at 2024, Centrus Energy’s total revenues climbed 30% to $349.9 million, with uranium revenues jumping 70% and SWU revenues up 19%.
Despite near-term headwinds, Centrus Energy maintains a strong order pipeline. As of June 30, 2025, the company reported a $3.6 billion backlog extending through 2040. Of this, approximately $2.7 billion is tied to the LEU segment. It reflects an estimated aggregate dollar amount of revenues for future SWU and uranium deliveries, primarily under medium and long-term contracts with fixed commitments, and approximately $2.1 billion in contingent LEU sales commitments.
Meanwhile, peer Cameco Corporation (CCJ - Free Report) fared better in the second quarter, with total revenues climbing 47% year over year to $634 million (CAD 877 million). Cameco’s uranium revenues increased 47% to $510 million (CAD 705 million).
Cameco sold 8.7 million pounds of uranium, 40% higher than the second quarter of 2024. Despite a 17% decline in the average U.S. dollar spot price for uranium, the Canadian dollar average realized price increased 5% to CAD 81.03 per pound due to the impact of fixed price contracts.
Cameco has delivered 15.6 million pounds of uranium so far in 2025, reaching the halfway mark of its full-year target of 31–34 million pounds.
Energy Fuels (UUUU - Free Report) reported weaker results reflecting its strategy to withhold uranium sales when prices are low. Energy Fuel’s second-quarter 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 Energy Fuels’ decision to retain uranium in inventory at current spot price levels.
Energy Fuels plans uranium sales of 350,000 pounds this year. This, however, does not consider any spot sales the company may make in case prices go up.
LEU’s Price Performance, Valuation & Estimates
Centrus Energy shares have soared 167.6% so far this year compared with the industry’s 3.2% growth. During this time, the Basic Materials sector has risen 14.7%, while the S&P 500 has gained 9.6%.
Image Source: Zacks Investment Research
LEU is trading at a forward 12-month price/sales multiple of 6.90X, a significant premium to the industry’s 2.74X. It has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centrus Energy’s 2025 earnings is pegged at $4.24 per share, indicating a 5.15% year-over-year decline. The same for 2026 is $3.36, indicating a decline of 20.8%. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Centrus Energy Hit by Weak Uranium Sales: Recovery Ahead?
Key Takeaways
Centrus Energy (LEU - Free Report) faced a challenging second quarter of 2025 as weakness in its Low-Enriched Uranium (LEU - Free Report) segment was a drag on its overall results owing to the absence of uranium sales. The company reported a 26% drop in revenues in the LEU segment and a 27% decline in sales volumes of Separative Work Units (SWU). Although SWU prices rose 24%, the increase was insufficient to offset the volume shortfall.
The company’s LEU segment includes revenues from the sales of the SWU component of low-enriched uranium, natural uranium hexafluoride, uranium concentrates and products. As a result of segment weakness in the second quarter, Centrus Energy saw total revenues fall 18% despite improvements in its Technical Solutions division.
The second quarter marked a sharp reversal from Centrus Energy’s strong first quarter of 2025, when LEU revenues surged 117% to $51.3 million. That performance was fueled by a 46% increase in SWU prices and a 49% rise in sales volumes. There were no uranium sales in this period.
Looking back at 2024, Centrus Energy’s total revenues climbed 30% to $349.9 million, with uranium revenues jumping 70% and SWU revenues up 19%.
Despite near-term headwinds, Centrus Energy maintains a strong order pipeline. As of June 30, 2025, the company reported a $3.6 billion backlog extending through 2040. Of this, approximately $2.7 billion is tied to the LEU segment. It reflects an estimated aggregate dollar amount of revenues for future SWU and uranium deliveries, primarily under medium and long-term contracts with fixed commitments, and approximately $2.1 billion in contingent LEU sales commitments.
Meanwhile, peer Cameco Corporation (CCJ - Free Report) fared better in the second quarter, with total revenues climbing 47% year over year to $634 million (CAD 877 million). Cameco’s uranium revenues increased 47% to $510 million (CAD 705 million).
Cameco sold 8.7 million pounds of uranium, 40% higher than the second quarter of 2024. Despite a 17% decline in the average U.S. dollar spot price for uranium, the Canadian dollar average realized price increased 5% to CAD 81.03 per pound due to the impact of fixed price contracts.
Cameco has delivered 15.6 million pounds of uranium so far in 2025, reaching the halfway mark of its full-year target of 31–34 million pounds.
Energy Fuels (UUUU - Free Report) reported weaker results reflecting its strategy to withhold uranium sales when prices are low. Energy Fuel’s second-quarter 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 Energy Fuels’ decision to retain uranium in inventory at current spot price levels.
Energy Fuels plans uranium sales of 350,000 pounds this year. This, however, does not consider any spot sales the company may make in case prices go up.
LEU’s Price Performance, Valuation & Estimates
Centrus Energy shares have soared 167.6% so far this year compared with the industry’s 3.2% growth. During this time, the Basic Materials sector has risen 14.7%, while the S&P 500 has gained 9.6%.
Image Source: Zacks Investment Research
LEU is trading at a forward 12-month price/sales multiple of 6.90X, a significant premium to the industry’s 2.74X. It has a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centrus Energy’s 2025 earnings is pegged at $4.24 per share, indicating a 5.15% year-over-year decline. The same for 2026 is $3.36, indicating a decline of 20.8%. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.