On the global chessboard, the pieces are moving fast, and the stakes are nuclear. The war in Ukraine has tightened Russia’s grip on uranium enrichment, while China is sprinting ahead with its own atomic ambitions. Trade wars and fractured supply chains are splitting nations into rival camps. In this charged atmosphere, Centrus Energy (LEU) is rolling out a multi-billion-dollar expansion in Piketon, Ohio, designed to restore America’s industrial-scale uranium enrichment. Supported by a nationwide supply ch ...

Key Points Centrus Energy sells low-enriched uranium (LEU) to today's reactors and plans to make high-assay low-enriched uranium (HALEU) for next-generation reactors. The company is profitable and has a strong cash position. Its enrichment capacity is limited, and it still depends on foreign sources for its LEU supply. 10 stocks we like better than Centrus Energy › Centrus Energy (NYSEMKT: LEU) has been one of several nuclear energy stocks that have crushed the market in 2025. Compared to the S&P ...

Core Insights - Centrus Energy announced a multi-billion-dollar expansion of its Ohio facility, marking the most significant domestic uranium enrichment investment in decades, which is expected to create 1,300 jobs and increase production of Low-Enriched Uranium (LEU) and High-Assay, Low-Enriched Uranium (HALEU) [1][2][3] Group 1: Expansion Plans and Market Demand - The expansion is strategically timed as the U.S. aims for energy independence and nuclear power is experiencing a resurgence [2][3] - Centrus has secured over $2 billion in customer commitments and raised $1.2 billion in funding over the past year, indicating strong market demand for enriched uranium [3][5] - The company is the only American firm utilizing domestic technology and manufacturing for uranium enrichment, enhancing its competitive edge [2][4] Group 2: Financial Performance - In Q2 of 2025, Centrus reported revenue of $154.5 million with a gross margin of 35%, an increase from 19% in the previous year [5] - The company ended Q2 with a cash position of $833 million, providing sufficient liquidity to support its expansion plans [5] Group 3: Strategic Partnerships - Centrus has formed a memorandum of understanding with Korea Hydro & Nuclear Power (KHNP) and POSCO International, reflecting growing international confidence in its expansion plans [4] - The partnership with KHNP demonstrates real market demand for American-made enriched uranium, as Korea operates 26 reactors and is constructing four more [6] - The increased supply volume commitment under the February 2025 contract is contingent on federal funding, validating Centrus' commercial viability [6]

Core Insights - Centrus Energy (LEU) is planning to significantly expand its uranium enrichment plant in Piketon, OH to increase production of Low-Enriched Uranium (LEU) and High-Assay, Low-Enriched Uranium (HALEU) [1][8] - The expansion is contingent on securing funding from the U.S. Department of Energy (DOE), which is reviewing proposals for increasing domestic LEU and HALEU production [2][8] - Centrus has raised over $1.2 billion through convertible note offerings and secured more than $2 billion in contingent purchase commitments from utility customers [3] Expansion Plans - The expansion will involve adding thousands of additional centrifuges to enable large-scale production [2] - A Memorandum of Understanding (MOU) has been signed with Korea Hydro & Nuclear Power (KHNP) and POSCO International to attract private capital for the expansion [3][4] - The project is expected to create 1,000 construction jobs and 300 operational jobs at the Piketon site, along with supporting jobs in Tennessee and across the supply chain [5] Competitive Position - Centrus Energy is the only U.S.-based company that manufactures centrifuges and related equipment using exclusively American technology, differentiating it from foreign competitors [6] - Centrus Energy's stock has increased by 314.4% this year, outperforming the industry average growth of 14.8% [7][9] Financial Estimates - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is $4.32 per share, reflecting a 3.4% year-over-year decline, while the estimate for 2026 is $3.25, indicating a 24.7% decline [10]

Core Viewpoint - Centrus Energy is expanding its uranium enrichment operations at its Piketon, Ohio facility, which has led to a significant increase in its stock price, reflecting investor confidence in the nuclear energy sector [1][3]. Group 1: Company Expansion Plans - Centrus Energy plans to expand its operations to increase production of low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU) [3]. - The company has raised over $1.2 billion through two convertible note transactions and secured more than $2 billion in contingent purchase commitments from customers [3]. - The size of the expansion is contingent on funding decisions from the U.S. Department of Energy [3]. Group 2: Market Position and Leadership - Centrus Energy is recognized as a leader in uranium enrichment, a complex operation not many companies engage in [4]. - The governor of Ohio highlighted the critical role of uranium enrichment operations in U.S. national defense since the Cold War, emphasizing Centrus' unique technology for domestic enrichment at an industrial scale [4]. Group 3: Investment Considerations - The stock of Centrus Energy has increased by 361% year to date, but it is currently trading at a premium valuation of approximately 40.5 times operating cash flow, compared to a five-year average cash flow multiple of 6.6 [6]. - The anticipated growth of advanced nuclear small modular reactors (SMRs) is driving interest in uranium enrichment companies like Centrus Energy as potential investment opportunities [5][6].

Core Viewpoint - Centrus Energy is planning a significant expansion of its uranium enrichment plant in Piketon, Ohio, in collaboration with state and federal officials [1] Group 1: Company Expansion - The expansion of Centrus Energy's uranium enrichment plant is being announced in partnership with Ohio Governor Mike DeWine, U.S. Senator Jon Husted, and U.S. Congressman Dave Taylor [1] - The initiative is supported by JobsOhio, Ohio Southeast Economic Development (OhioSE), and Pike County Economic Development [1]

The share price of Centrus Energy Corp. (NYSEAMERICAN:LEU) surged by 29.52% between September 16 and September 23, 2025, putting it among the Energy Stocks that Gained the Most This Week. Centrus Energy (LEU) Gained Almost 30% This Week. Here is Why. Pixabay/Public Domain Centrus Energy Corp. (NYSEAMERICAN:LEU) is a trusted supplier of nuclear fuel and services for the nuclear energy industry. Centrus Energy Corp. (NYSEAMERICAN:LEU) soared to a 10-year high this week after uranium futures in the US soa ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a pressing concern regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a significant strain on global power grids [2] - The company in focus is positioned to capitalize on the rising demand for electricity, which is becoming the most valuable commodity in the digital age [3][8] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, benefiting from the export of American LNG and the onshoring of manufacturing due to tariffs [5][6][7] - It possesses critical nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - The company is noted for being debt-free and holding a significant cash reserve, which is nearly one-third of its market capitalization [8][10] Market Position - The company has an equity stake in another prominent AI venture, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9][10] - It is trading at a low valuation of less than 7 times earnings, making it an attractive investment option compared to other energy and utility firms burdened with debt [10][11] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and a surge in U.S. LNG exports, positions the company favorably for future growth [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, further solidifying the importance of energy infrastructure in supporting this growth [12][13]

Industry Overview - The US nuclear energy industry is experiencing a significant boost following President Trump's executive order aimed at reducing regulatory barriers and increasing nuclear capacity fourfold to enhance energy security amid rising electricity demand from AI-powered data centers [2][3] - The strategy emphasizes domestic nuclear fuel extraction and enrichment to reduce reliance on imports from China and Russia, with the International Atomic Energy Agency predicting a potential increase in global nuclear capacity by up to 2.5 times by 2050 [3] Government Initiatives - A new nuclear power agreement between the United States and Britain is set to be signed during President Trump's state visit, aimed at attracting investment and accelerating the construction of new nuclear plants [4] - The British government is supporting Rolls-Royce in its efforts to build the first compact modular reactors in the UK, with a commitment of £19 billion ($25 billion) for a new plant at Sizewell C [4] Company Highlights - Energy Fuels Inc. (NYSE:UUUU) reached a 52-week high of $14.42 on September 19, 2025, reflecting strong investor confidence in its ability to meet the growing demand for nuclear fuel and critical minerals [11] - The company has successfully produced high-purity neodymium-praseodymium oxide for electric vehicle magnets, enhancing its position in the "mine-to-magnet" rare earth supply chain [12] - Denison Mines Corp. (NYSE:DNN) acquired 485,000 shares of Foremost Clean Energy Ltd. for approximately $1.07 million, increasing its stake to about 19.17%, indicating strategic interest in uranium exploration [14][15] - Centrus Energy Corp. (NYSE:LEU) achieved a new 52-week high of $265.48 on September 19, 2025, showcasing its strong market position and liquidity, while also being well-positioned to capitalize on opportunities in the nuclear fuel supply chain [18][19]

Core Insights - Centrus Energy (LEU) reported a significant 27% year-over-year reduction in the cost of sales for the first half of 2025, leading to a 113% increase in gross profit to $86.8 million despite a 2% decline in revenues [1][5][12] Cost of Sales Analysis - In 2024, the LEU segment experienced a 56% increase in the cost of sales, primarily due to a 67% rise in the average unit cost of Separative Work Units (SWU) sold, partially offset by a 4% decrease in SWU volumes [2] - The Technical Solutions segment saw a 69% increase in the cost of sales, attributed to costs related to the HALEU Operation Contract during its transition from Phase 1 to Phase 2 [3] - For the first half of 2025, the LEU segment's cost of sales was $95.1 million, down 40% year over year, driven by a 22% decline in the average unit cost of SWU sold and a 12% decrease in SWU volumes [4] - The Technical Solutions segment's cost of sales was $45.7 million, a 42% increase year over year, mainly due to a $13.8 million rise in costs under the HALEU Operation Contract [4] Gross Profit Performance - The LEU segment generated $81.9 million in gross profit for the first half of 2025, reflecting a 144% year-over-year increase, influenced by the timing and composition of multi-year contracts [6] - The Technical Solutions segment reported a gross profit of $4.9 million, down 33% from the previous year, due to increased costs under the HALEU Operation Contract [7] Industry Comparison - Energy Fuels reported a 48% increase in its cost of sales to $21.8 million in the first half of 2025, resulting in a gross loss of $0.7 million, attributed to lower revenues and higher costs [8][9] - Cameco experienced a 31% year-over-year increase in costs in the first half of 2025, but still achieved a 46% increase in gross profit to CAD 527 million ($381 million) due to higher revenues and sales volumes [10][11] Stock Performance and Valuation - Centrus Energy shares have increased by 337.5% year-to-date, outperforming the industry growth of 16.6% and the Basic Materials sector's rise of 22% [13] - The company is trading at a forward 12-month price/sales multiple of 8.30X, significantly higher than the industry's 3.06X [14] Earnings Estimates - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is $4.34 per share, indicating a 2.91% year-over-year decline, with a further decline of 20.6% expected for 2026 [15]