Centrus Energy's Q3 Revenues Up on Uranium Sales: More Upside Ahead?

Core Insights - Centrus Energy (LEU) reported total revenues of $75 million in Q3 2025, marking a 30% increase year over year, primarily driven by improved performance in its Low-Enriched Uranium segment, particularly uranium sales [1][11] Revenue Breakdown - The Low-Enriched Uranium segment generated revenues of $44.8 million, with uranium sales contributing $34.1 million, a significant increase from no uranium revenues in the same quarter last year [2][3] - Separative Work Units (SWU) revenues fell 69% to $10.7 million due to lower SWU prices, while Technical Solutions revenues rose 31% to $30 million, bolstered by a $7.3 million increase from the HALEU Operation Contract [2][11] Year-to-Date Performance - For the first nine months of 2025, Centrus Energy's total revenues reached $302.5 million, a 4% increase year over year, with the LEU segment contributing $221.8 million [3] Uranium Market Dynamics - Uranium prices faced pressure earlier in the year due to oversupply and uncertain demand but saw an uptrend in Q3, averaging $82.6 per pound in September, driven by expectations of expanded nuclear power capacity and fresh purchases by physical uranium funds [5] - Current uranium prices are at $77 per pound, down 2% year over year, but the long-term outlook remains strong due to the push for clean energy and the strategic importance of uranium highlighted by the U.S. Geological Survey [6] Peer Comparison - Energy Fuels Inc. reported a 337.6% increase in total revenues year over year, driven by higher uranium sales, while Cameco Corporation experienced a 14.7% decline in total revenues due to volume decreases in both segments [7][12] Stock Performance and Valuation - Centrus Energy shares have increased by 277.4% year to date, significantly outperforming the industry average growth of 29.5% [13] - The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is $4.58 per share, indicating a 2.6% decline year over year, with a forward price/sales multiple of 9.32X, which is a premium compared to the industry's 3.73X [14][15]