Over the past couple of years, there's been a shift in sentiment toward nuclear energy to meet the huge electricity demands of artificial intelligence (AI) and data centers. The Department of Energy has set an aggressive target to quadruple nuclear capacity by 2050 and aims to have 10 nuclear reactors under construction by 2030. As part of these efforts, Congress has approved big spending for nuclear innovation and advanced reactor technology. As hyperscalers seek clean-burning energy and the United Stat ...

Shares of Centrus Energy (NYSE: LEU) slumped over 11% on Thursday, extending their previous day's losses and losing 20% value so far in 2025, as of this writing. This is the same stock that was up over 500% in 2025 through mid-October. What's happening to the once red-hot nuclear energy stock? Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Contin ...

Core Viewpoint - Centrus Energy (NYSE:LEU) is experiencing significant stock price declines following disappointing financial results, indicating potential challenges in the nuclear fuel industry and investor sentiment [2][3][4]. Financial Performance - Centrus Energy reported Q4 2025 revenue of $146.2 million, which was below the expected $147.1 million, representing a 3.6% decrease from the previous year [3][6]. - The earnings per share (EPS) for Q4 2025 was $0.79, significantly lower than the consensus estimate of $1.63, and a decline from $3.20 and $3.58 in Q4 2024 and 2023, respectively [4][6]. Stock Performance - As of 11:38 a.m. ET, Centrus Energy's shares have fallen by 19.3%, with a current price of $209.12, reflecting a substantial decrease of 21.08% from previous levels [5][6]. - The stock has recorded a trading range with a low of $207.36 and a high of $256.50 during the session, and the company's market capitalization is approximately $3.66 billion [5][6]. Analyst Insights - Roth Capital has set a price target of $137 for Centrus Energy, indicating a potential decline of approximately -36.41% from the current trading price [2][6].

Group 1 - Centrus Energy (NYSE:LEU) is a significant player in the nuclear fuel industry, focusing on uranium enrichment [1] - Roth Capital has adjusted its rating for Centrus Energy to Neutral and raised the price target from $125 to $137, indicating a more optimistic outlook [1][5] - The stock for LEU is currently priced at $215.70, reflecting a decrease of 18.60% with a significant trading volume of 1,726,957 shares on the NYSE [3][5] Group 2 - Centrus Energy has announced a strategic partnership with Fluor for the expansion of its uranium enrichment capacity in Piketon, Ohio, which is a multi-billion-dollar project [2][5] - The project is managed by Centrus' subsidiary, American Centrifuge Operating, LLC, and is progressing rapidly with centrifuge manufacturing already underway [2] - Centrus President and CEO, Amir Vexler, emphasized the importance of the partnership with Fluor, highlighting Fluor's global leadership and extensive experience in managing complex nuclear construction projects [4]

Core Viewpoint - Centrus Energy Corp. reported disappointing fourth-quarter results, missing Wall Street expectations for both revenue and earnings, leading to a significant drop in share price [1][2]. Financial Performance - The company reported quarterly earnings of 79 cents per share, which was 38.09% below the Street estimate of $1.28 [2]. - Quarterly revenue was $146.2 million, slightly missing the consensus estimate of $146.34 million and down from $151.6 million in the same period last year [2]. Stock Performance - Following the earnings release, the stock initially dropped 9.05% to $241 in extended trading [2]. - As of Wednesday, shares were down 19.87% at $212.34 [6]. Future Outlook - Centrus Energy expects fiscal 2026 revenue to be in the range of $425 million to $475 million [3]. Technical Analysis - The stock is trading 27.7% below its 20-day simple moving average (SMA) and 29.7% below its 100-day SMA, indicating a bearish short-term trend [4]. - Over the past 12 months, shares have increased by 84.41%, suggesting long-term strength despite recent downturns [4]. Momentum Indicators - The Relative Strength Index (RSI) is at 46.28, indicating neutral momentum, while the MACD is below its signal line, suggesting bearish pressure on the stock [5]. Analyst Outlook - The stock carries a Buy Rating with an average price target of $213.53 [6]. - Key resistance is at $211.50 and key support is at $193.00 [6]. - Recent analyst actions include JP Morgan lowering its target to $242.00 and B. Riley Securities raising its target to $315.00 [6].

Core Viewpoint - Centrus Energy's stock has experienced a significant decline of 19.3% following disappointing Q4 2025 financial results, despite a previous gain of 9.2% since the start of 2026 [1] Financial Performance - Centrus Energy reported Q4 2025 revenue of $146.2 million, falling short of analysts' expectations of $147.1 million, marking a 3.6% year-over-year decline [2] - The company's diluted earnings per share (EPS) for Q4 2025 was $0.79, significantly lower than the consensus estimate of $1.63 and down from $3.20 and $3.58 reported in Q4 2024 and 2023, respectively [3] Backlog and Future Prospects - Despite the disappointing financial results, Centrus Energy has a robust backlog that increased to $3.8 billion at the end of 2025, up from $3.7 billion at the end of 2024, indicating positive future prospects [4] - As a key provider of nuclear fuel, Centrus Energy plays a critical role in the nuclear energy sector, which is currently experiencing a renaissance [5]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved revenue of $448.7 million, a gross profit of $117.5 million, and a net income of $77.8 million, marking a $6.7 million or 1.5% increase in revenue compared to 2024 [7][16] - The LEU segment generated $346.2 million in 2025, relatively flat compared to $349.9 million in 2024, while uranium revenue decreased by 54% year-over-year to $55.6 million [16][17] - SWU revenue increased by 21% year-over-year, amounting to $51.9 million, driven by a 23% increase in the volume of SWU sold [17] - The technical solutions segment delivered $102.5 million in 2025, an increase of 11% over 2024 levels [17] Business Line Data and Key Metrics Changes - The LEU segment's gross profit increased by 19% to $111.5 million in 2025, primarily due to an increase in SWU sales volume and margin [17] - The technical solutions segment's gross profit decreased by 66% to $6 million due to increased costs under the HALEU Operations Contract [18] Market Data and Key Metrics Changes - Near-term domestic LEU demand is projected to increase by approximately 6.5 million SWUs due to Russia exiting the market and additional demand from reactor restarts and upgrades [9] - The LEU pricing curve has experienced a 24% compound annual growth rate from 2019 to 2025, indicating a constrained market and pent-up demand [9] Company Strategy and Development Direction - The company is focused on building both LEU and HALEU capacity to meet future enrichment needs, positioning itself as a key player in the market [24] - The company aims to capitalize on its first-mover advantage in the HALEU market and is actively pursuing additional low-cost capital sources [10][22] - The company plans to have HALEU production online before the end of the decade, producing 12 metric tons of HALEU per year thereafter [21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of execution and continuous improvement in reducing unit costs and lead times as they build out capacity [28][29] - The company anticipates increasing demand for LEU and HALEU, driven by U.S. energy security initiatives and the need for advanced reactors [24][52] Other Important Information - The total company backlog stood at $3.8 billion as of December 31, 2025, with the LEU segment backlog approximately $2.9 billion [19] - The company ended the year with an unrestricted cash balance of approximately $2 billion, providing flexibility for future investments [20] Q&A Session Summary Question: Timeline for improving the 42-month forecast - Management emphasized the importance of execution and continuous improvement to reduce lead times and costs, with dedicated resources working on this [28][29] Question: Commercialization timeline for LEU - Management indicated that they are progressing towards fulfilling commitments and turning contingent sales into firm contracts [34] Question: CapEx guidance for 2026 - Management noted that the initial year of CapEx guidance includes long lead procurement and engineering work, and future years will see more linear spending [40][42] Question: Achieving nth-of-a-kind costs - Management clarified that nth-of-a-kind costs will be achieved before reaching 3 million SWUs, indicating efficient scaling [46][47] Question: Government discussions on Russian imports - Management reported strong demand stacking up towards the end of the decade but noted no specific updates from the government regarding import policies [51][52] Question: Contract dynamics for long-term supply arrangements - Management acknowledged the impact of shipping delays on guidance but expressed confidence in the supply side and potential upside from market improvements [57] Question: Milestones to de-risk the timeline - Management highlighted the importance of supply chain configuration and partnerships to ensure timely production and meet demand [60][63] Question: HALEU production target and sourcing strategy - Management confirmed that the HALEU production target is designed to stimulate market demand and that they are actively seeking commitments from customers [67][68]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved revenue of $448.7 million, a gross profit of $117.5 million, and a net income of $77.8 million, indicating a $6.7 million or 1.5% increase in revenue compared to 2024 [7][16] - The LEU segment generated $346.2 million in 2025, relatively flat compared to $349.9 million in 2024, while uranium revenue decreased by 54% year-over-year to $55.6 million [16][17] - SWU revenue increased by 21% year-over-year, amounting to $51.9 million, driven by a 23% increase in the volume of SWU sold [16][17] - The total company backlog stood at $3.8 billion as of December 31, 2025, with the LEU segment backlog approximately $2.9 billion [19] Business Line Data and Key Metrics Changes - The technical solutions segment delivered $102.5 million in 2025, an increase of $10.4 million or 11% over 2024 levels, primarily due to a $10.5 million increase in revenue from the HALEU operations contract [17] - The LEU segment's gross profit increased by $17.6 million or roughly 19% to $111.5 million in 2025, driven by an increase in SWU sales volume and margin [17] - The technical solutions segment's gross profit decreased by $11.6 million or 66% to $6 million due to increased costs under the HALEU operations contract [18] Market Data and Key Metrics Changes - Near-term domestic LEU demand is set to increase by approximately 6.5 million SWUs due to Russia exiting the market and additional demand from restarts and new reactors [9] - The LEU pricing curve has experienced a 24% compound annual growth rate from 2019 to 2025, indicating a constrained market and pent-up demand [9] Company Strategy and Development Direction - The company plans to build both LEU and HALEU capacity, signaling readiness to meet future enrichment needs and addressing the projected gap between supply and demand [24] - The company is pursuing additional low-cost capital sources, including national security-related funding and potential foreign direct investments [22] - The company aims to capitalize on its first mover advantage in the global HALEU market and is actively engaging with hyperscalers for future agreements [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of execution and continuous improvement in reducing unit costs and lead times as the company embarks on manufacturing centrifuges [28] - The company anticipates that demand for LEU and HALEU will continue to grow, particularly as advanced reactors come online and the market tightens [52] - Management expressed confidence in the company's ability to meet its commitments and capitalize on the opportunities presented by the $900 million HALEU Enrichment Award [10][21] Other Important Information - The company ended 2025 with an unrestricted cash balance of approximately $2 billion, positioning it well for future capital needs [20] - The company is expected to provide financial guidance for 2026, projecting total revenue of $425 million to $475 million [14][22] Q&A Session Summary Question: Timeline for improving the 42-month forecast - Management emphasized the importance of execution and continuous improvement to reduce lead times and costs, with dedicated resources working on this initiative [28][29] Question: Commercialization capacity ramp timeline - Management indicated that the backlog of LEU commitments is crucial, and they are progressing towards fulfilling these commitments [34] Question: CapEx guidance and linearity throughout the year - Management noted that the initial year of CapEx guidance includes long lead procurement and is not indicative of future linear spending [41][42] Question: Achieving End-of-a-Kind cost - Management clarified that the End-of-a-Kind cost will be achieved before reaching 3 million SWUs, which is a significant milestone for the company [46][47] Question: Government discussions on Russian imports cutoff - Management reported strong demand stacking up towards the end of the decade but did not provide specific updates on government discussions regarding the cutoff [51][52] Question: Contract dynamics for long-term supply arrangements - Management acknowledged the challenges faced due to shipping delays but expressed confidence in the contracted supply from foreign sources [57] Question: Milestones to de-risk the timeline for initial enrichment capacity - Management is actively working on supply chain configurations and partnerships to ensure timely production and meet demand [60][61] Question: HALEU production target and sourcing strategy - Management confirmed the intention to maximize both LEU and HALEU capacity and optimize contracts to meet customer needs [96][97]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved revenue of $448.7 million, a gross profit of $117.5 million, and a net income of $77.8 million, marking a $6.7 million or 1.5% increase in revenue compared to 2024 [5][14] - The LEU segment generated $346.2 million in 2025, relatively flat compared to $349.9 million in 2024, while uranium revenue decreased by 54% year-over-year to $55.6 million [14][15] - SWU revenue increased by 21% year-over-year, amounting to $51.9 million, driven by a 23% increase in the volume of SWU sold [14] - The technical solutions segment delivered $102.5 million in 2025, an increase of $10.4 million or 11% over 2024 levels [15] Business Line Data and Key Metrics Changes - The LEU segment's cost of sales decreased by $21.3 million or 8% to $234.7 million, resulting in a gross profit increase of $17.6 million or roughly 19% to $111.5 million [15] - The technical solutions segment's cost of sales increased by $22 million or 30% to $96.5 million, leading to a gross profit decrease of $11.6 million or 66% to $6 million [16] Market Data and Key Metrics Changes - Near-term domestic LEU demand is set to increase by approximately 6.5 million SWUs due to Russia exiting the market and additional demand from restarts, upgrades, and new pledged reactors [7] - The LEU pricing curve has experienced a 24% compound annual growth rate from 2019 to 2025, indicating a constrained market and pent-up demand [7] Company Strategy and Development Direction - The company is focused on building both LEU and HALEU capacity to meet future enrichment needs, positioning itself as a key player in the market [22] - The company aims to capitalize on its first mover advantage in the global HALEU market and is actively pursuing additional low-cost capital [10][23] - The company plans to have HALEU production online before the end of the decade, producing 12 metric tons of HALEU per year thereafter [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the projected gap between supply and demand for both domestic and foreign utilities continues to widen, with increasing demand expected as the U.S. seeks to enhance energy security [22] - The company is optimistic about the future, citing strong engagement from potential customers and the importance of the $900 million HALEU Enrichment Award [19][23] Other Important Information - The total company backlog stood at $3.8 billion as of December 31, 2025, with the LEU segment backlog approximately $2.9 billion [17] - The company ended the year with an unrestricted cash balance of approximately $2 billion, providing flexibility for future investments [18] Q&A Session Summary Question: Timeline for improving the 42-month forecast - Management emphasized the importance of execution and continuous improvement to reduce unit costs and improve timelines, with dedicated resources working on this [25][26] Question: Commercialization timeline for LEU and HALEU - Management indicated that the backlog of LEU commitments is crucial and they are progressing towards fulfilling these commitments [29][31] Question: CapEx guidance and linearity throughout the year - Management explained that the initial year of CapEx includes long lead procurement and prepayments, and future years are expected to be more linear [39] Question: Achieving End-of-a-Kind costs - Management clarified that End-of-a-Kind costs will be achieved before reaching 3 million SWUs, which is a significant milestone [43][44] Question: Government discussions on Russian imports - Management noted that while there is significant demand anticipated, there are no current updates from the government regarding the January 1, 2028 cutoff for Russian imports [49][50] Question: Contract dynamics for long-term supply arrangements - Management stated that while the guidance is flat, there is potential upside due to improving market conditions and contracted supply from foreign sources [54][55] Question: Timeline for initial enrichment capacity and de-risking - Management highlighted that they are actively working on lead times and supply chain configurations to expedite production timelines [59][60] Question: HALEU production target and market demand - Management confirmed that the HALEU production target aligns with market demand and DOE task orders, with ongoing discussions with OEMs [65][66] Question: Sourcing strategy for LEU feed for HALEU - Management indicated that they aim to maximize the capacity of their facility and optimize contracts to provide both LEU and HALEU enrichment [92][94]

Core Viewpoint - Fluor Corporation has secured a significant multi-year role as the lead EPC contractor for Centrus Energy Corp.'s multi-billion-dollar uranium enrichment expansion in Ohio, enhancing its position in the nuclear energy sector [1][2]. Company Overview - Fluor generated $16.3 billion in revenue in 2024, indicating its strong market presence and strategic importance in the nuclear energy sector as demand for clean energy solutions grows [6]. - The company is currently trading 6.1% above its 20-day simple moving average and 9.5% above its 100-day simple moving average, reflecting short to medium-term strength [4]. Market Context - The broader market experienced modest gains, with the S&P 500 rising by 0.08% and the Energy sector gaining 0.89%, contributing to Fluor's stock performance [3]. - Fluor's stock was up 0.92% at $48.57 during premarket trading, indicating positive market sentiment [12]. Technical Analysis - The Relative Strength Index (RSI) is at 65.13, indicating neutral territory, while the Moving Average Convergence Divergence (MACD) is above its signal line, suggesting bullish momentum [5]. - Over the past 12 months, Fluor's shares have increased by 0.56%, positioning them closer to their 52-week highs than lows, indicating a bullish sentiment [4]. Analyst Outlook - The stock carries a Buy Rating with an average price target of $50.14, with recent analyst actions suggesting a positive outlook for growth prospects [8]. - EPS estimate is 34 cents, down from 48 cents year-over-year, while revenue estimate remains at $4.26 billion, indicating a stable revenue outlook [10]. ETF Exposure - Fluor carries meaningful weight in certain ETFs, suggesting that significant inflows or outflows could impact stock performance [12].