ZACKS·2025-11-25 18:00Core Insights - Centrus Energy (LEU) and Uranium Energy (UEC) are positioned to benefit from the U.S. focus on nuclear energy independence, despite current uranium price pressures [1][2] - The long-term outlook for uranium remains strong due to the clean energy push and its strategic importance highlighted by the U.S. Geological Survey [2] Centrus Energy (LEU) - Centrus Energy supplies components of nuclear fuel, including Low-Enriched Uranium (LEU) and natural uranium hexafluoride [3][4] - In Q3 2025, Centrus reported total revenues of $75 million, a 30% increase year-over-year, with LEU segment revenues rising 29% to $44.8 million [5] - The company experienced an operating loss of $16.6 million, attributed to increased sales costs and project expenses [6] - Despite the operating loss, Centrus posted a net income of $3.9 million due to tax benefits and higher investment income [7] - Centrus holds a $3.9 billion revenue backlog with long-term contracts through 2040 and is the only licensed U.S. producer of High-Assay, Low-Enriched Uranium (HALEU) [7][8] - The HALEU market is projected to grow from $0.26 billion in 2025 to $6.14 billion by 2035, with Centrus planning to expand production capacity [9][10] Uranium Energy (UEC) - UEC has a production capacity of 12.1 million pounds of uranium and reported fiscal 2025 revenues of $66.84 million, a significant increase from $0.2 million in the prior year [12][13] - Operating costs surged 104% to $66 million due to higher development spending, leading to a loss of 20 cents per share in fiscal 2025 [14][15] - UEC is transitioning from developer to producer, successfully restarting operations at the Christensen Ranch ISR Mine [17] - The company acquired Rio Tinto's Sweetwater Complex, adding significant resources and establishing a vertically integrated production platform [19] Financial Estimates and Valuation - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $448.6 million, indicating a 1.5% growth, while UEC's fiscal 2026 revenues are estimated at $72.9 million, reflecting a 9% improvement [19][22] - Centrus Energy's shares have surged 275.1% year-to-date, while UEC shares have gained 80.7% [27] - Centrus is trading at a forward price-to-sales multiple of 9.29X, significantly lower than UEC's 63.96X [29] - Centrus Energy is viewed as a more attractive investment option due to upward estimate revisions and its unique position in the HALEU market [32]