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Centrus Energy Soars 202% YTD: Buy, Sell or Hold the Stock?
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Key Takeaways
Centrus Energy stock has soared 202.6% in 2025, far outpacing industry, sector and S&P 500 gains.
LEU signed deals with KHNP and POSCO to expand enrichment capacity and secure DOE funding support.
Company delivered 920 kg of HALEU to DOE and holds a $3.6B revenue backlog with contracts through 2040.
Centrus Energy (LEU - Free Report) has skyrocketed 202.4% so far this year, outperforming the non-ferrous mining industry’s 11% growth. The Zacks Basic Materials sector has gained 18.3%, while the S&P 500 has risen 10.1% in the same time frame.
LEU Stock’s YTD Performance vs. Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Among peers, Cameco (CCJ - Free Report) has gained 49.3% and Energy Fuels (UUUU - Free Report) has gained 119.7% year to date.
LEU Stock’s Performance Against Cameco & Energy Fuels
Image Source: Zacks Investment Research
With Centrus Energy stock soaring, investors may be tempted to add it to their portfolios. However, before making a move, 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 Fueling Centrus Energy Stock’s Rally?
Deal to Attract Private Investment in U.S. Enrichment: Centrus Energy recently signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (“KHNP”) and POSCO International, a subsidiary of POSCO (PKX - Free Report) , to attract private capital for expanding its Piketon, OH uranium enrichment plant.
The company is also competing for U.S. Department of Energy (DOE) funding to expand the plant. Centrus Energy has also revised its February 2025 agreement with KHNP to supply higher volumes of low-enriched uranium. This supply commitment, however, remains subject to LEU receiving the funding from the U.S. Department of Energy.
The collaboration with KHNP and POSCO also offers other opportunities, such as additional supply agreements for LEU as well as High-Assay, Low-Enriched Uranium (HALEU) for next-generation reactors. Notably, POSCO International is also advancing a next-generation High-Temperature Gas Reactor powered by HALEU.
DOE Contract Milestones Successfully Delivered: Centrus Energy has so far delivered 920 kilograms of HALEU per its contract with the DOE, completing Phase I and Phase II. It has entered Phase III and 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, subject to funding and DOE discretion.
Solid Backlog Despite Q2 Dip: Centrus Energy posted total revenues of $155 million, down 18% year over year. Revenues for the LEU segment declined 26% year over year to $125.7 million. This was due to the absence of uranium sales and a 27% decline in sales volumes of Separative Work Units (SWU), somewhat offset by 24% SWU higher prices.
The Technical Solutions segment’s revenues, however, jumped 48% to $28.8 million, driven by a $9.1 million boost from the HALEU Operation Contract. Earnings were down 16% to $1.59 per share, despite higher gross profit owing to increased selling, general and administrative expenses and interest expenses.
Centrus Energy ended the quarter with a $3.6-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.
LEU’s Elevated Debt Position is Concerning
LEU had a total debt-to-total capital ratio of 0.55 as of June 30, 2025, higher than the industry. Meanwhile, Cameco has a total debt-to-total capital ratio of 0.13, while Energy Fuels boasts a debt-free balance sheet.
Centrus Energy’s Estimates Move Up, But Suggest Y/Y Declines
The Zacks Consensus Estimate for earnings per share for 2025 and 2026 has been revised upward over the past 60 days. Despite this upgrade, the estimate for Centrus Energy’s 2025 earnings is pegged at $4.23 per share, indicating a 5.37% year-over-year decline. The same for 2026 is $3.36, indicating a decline of 20.6%.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
LEU’s Valuation Looks Stretched
LEU is trading at a forward 12-month price/sales multiple of 7.55X, a significant premium to the industry’s 2.86X. It is also higher than its three-year median of 2.26X. It has a Value Score of F.
Image Source: Zacks Investment Research
Meanwhile, Energy Fuels is trading higher at 26.55X and Cameco at 13.24X.
HALEU Remains the Cornerstone for LEU’s LT Growth Strategy
Centrus Energy provides the enrichment component of LEU, which is measured in SWUs, to utilities that operate commercial nuclear power plants. Its current facilities can process 3.5 million SWU annually, which can be scaled to 7 million SWU.
The company has demonstrated success in producing HALEU and is the only licensed producer in the Western world. HALEU demand is expected to surge to power existing reactors and a new generation of advanced reactors. While low-enriched uranium contains uranium concentration below 5%, HALEU contains uranium enriched to between 5% and 20%. It has an edge offering improved efficiency, extended fuel cycles and lower waste.
The HALEU market value is projected to reach $0.26 billion in 2025 and grow thereafter to $6.14 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.
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, projected decline in earnings for the current year and next, as well as its debt levels that are higher than the industry. Centrus Energy stock currently carries a Zacks Rank #3 (Hold).
Image: Shutterstock
Centrus Energy Soars 202% YTD: Buy, Sell or Hold the Stock?
Key Takeaways
Centrus Energy (LEU - Free Report) has skyrocketed 202.4% so far this year, outperforming the non-ferrous mining industry’s 11% growth. The Zacks Basic Materials sector has gained 18.3%, while the S&P 500 has risen 10.1% in the same time frame.
LEU Stock’s YTD Performance vs. Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Among peers, Cameco (CCJ - Free Report) has gained 49.3% and Energy Fuels (UUUU - Free Report) has gained 119.7% year to date.
LEU Stock’s Performance Against Cameco & Energy Fuels
Image Source: Zacks Investment Research
With Centrus Energy stock soaring, investors may be tempted to add it to their portfolios. However, before making a move, 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 Fueling Centrus Energy Stock’s Rally?
Deal to Attract Private Investment in U.S. Enrichment: Centrus Energy recently signed a Memorandum of Understanding (MOU) with Korea Hydro & Nuclear Power (“KHNP”) and POSCO International, a subsidiary of POSCO (PKX - Free Report) , to attract private capital for expanding its Piketon, OH uranium enrichment plant.
The company is also competing for U.S. Department of Energy (DOE) funding to expand the plant. Centrus Energy has also revised its February 2025 agreement with KHNP to supply higher volumes of low-enriched uranium. This supply commitment, however, remains subject to LEU receiving the funding from the U.S. Department of Energy.
The collaboration with KHNP and POSCO also offers other opportunities, such as additional supply agreements for LEU as well as High-Assay, Low-Enriched Uranium (HALEU) for next-generation reactors. Notably, POSCO International is also advancing a next-generation High-Temperature Gas Reactor powered by HALEU.
DOE Contract Milestones Successfully Delivered: Centrus Energy has so far delivered 920 kilograms of HALEU per its contract with the DOE, completing Phase I and Phase II. It has entered Phase III and 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, subject to funding and DOE discretion.
Solid Backlog Despite Q2 Dip: Centrus Energy posted total revenues of $155 million, down 18% year over year. Revenues for the LEU segment declined 26% year over year to $125.7 million. This was due to the absence of uranium sales and a 27% decline in sales volumes of Separative Work Units (SWU), somewhat offset by 24% SWU higher prices.
The Technical Solutions segment’s revenues, however, jumped 48% to $28.8 million, driven by a $9.1 million boost from the HALEU Operation Contract.
Earnings were down 16% to $1.59 per share, despite higher gross profit owing to increased selling, general and administrative expenses and interest expenses.
Centrus Energy ended the quarter with a $3.6-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.
LEU’s Elevated Debt Position is Concerning
LEU had a total debt-to-total capital ratio of 0.55 as of June 30, 2025, higher than the industry. Meanwhile, Cameco has a total debt-to-total capital ratio of 0.13, while Energy Fuels boasts a debt-free balance sheet.
Centrus Energy’s Estimates Move Up, But Suggest Y/Y Declines
The Zacks Consensus Estimate for earnings per share for 2025 and 2026 has been revised upward over the past 60 days. Despite this upgrade, the estimate for Centrus Energy’s 2025 earnings is pegged at $4.23 per share, indicating a 5.37% year-over-year decline. The same for 2026 is $3.36, indicating a decline of 20.6%.
Image Source: Zacks Investment Research
LEU’s Valuation Looks Stretched
LEU is trading at a forward 12-month price/sales multiple of 7.55X, a significant premium to the industry’s 2.86X. It is also higher than its three-year median of 2.26X. It has a Value Score of F.
Image Source: Zacks Investment Research
Meanwhile, Energy Fuels is trading higher at 26.55X and Cameco at 13.24X.
HALEU Remains the Cornerstone for LEU’s LT Growth Strategy
Centrus Energy provides the enrichment component of LEU, which is measured in SWUs, to utilities that operate commercial nuclear power plants. Its current facilities can process 3.5 million SWU annually, which can be scaled to 7 million SWU.
The company has demonstrated success in producing HALEU and is the only licensed producer in the Western world. HALEU demand is expected to surge to power existing reactors and a new generation of advanced reactors. While low-enriched uranium contains uranium concentration below 5%, HALEU contains uranium enriched to between 5% and 20%. It has an edge offering improved efficiency, extended fuel cycles and lower waste.
The HALEU market value is projected to reach $0.26 billion in 2025 and grow thereafter to $6.14 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.
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, projected decline in earnings for the current year and next, as well as its debt levels that are higher than the industry. 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.