Core Insights - Centrus Energy (LEU) and NexGen Energy (NXE) are positioned to significantly contribute to the global nuclear energy supply chain [1] Company Overview - Centrus Energy, based in Bethesda, MD, has a market capitalization of $4.7 billion and supplies nuclear fuel components internationally [2] - NexGen Energy, located in Vancouver, Canada, is valued at $6.2 billion and is developing the Rook I Project, expected to be the largest low-cost uranium-producing mine globally [2] Market Conditions - Uranium prices have recently rebounded to around $80 per pound due to renewed buying from major funds and expanding nuclear ambitions [3] - The long-term outlook for uranium remains favorable, driven by rising electricity demand and the transition to clean energy [4] Centrus Energy Analysis - Centrus Energy's revenues for Q3 2025 reached $75 million, a 30% increase year-over-year, with the Low-Enriched Uranium segment contributing $44.8 million [7] - The company reported an operating loss of $16.6 million but achieved a net income of $3.9 million due to tax benefits and higher investment income [8] - Centrus has a $3.9 billion revenue backlog from long-term contracts with major utilities through 2040 [9] - The company is the only licensed U.S. producer of High-Assay, Low-Enriched Uranium (HALEU) and plans to expand its enrichment plant in Piketon, OH [10][11] NexGen Energy Analysis - NexGen Energy's Rook I Project covers approximately 35,065 hectares and aims to produce up to 30 million pounds of uranium annually at a low cost of C$13.86 [12][13] - The Arrow Deposit within the Rook I Project has measured resources of 3.75 million tons at a grade of 3.10%, containing 257 million pounds of uranium [14] - NexGen has secured contracts to supply 1 million pounds of uranium annually from 2029 to 2033, providing financial stability [15] - As a development-stage company, NexGen reported an adjusted loss of three cents per share in Q3 2025 [16] Earnings Estimates - Centrus Energy's earnings estimate for 2025 is $4.66 per share, reflecting a 4.2% year-over-year growth, while the 2026 estimate is $3.85 per share, indicating a decline of 17.2% [18] - NexGen Energy's earnings estimate for 2025 is a loss of 35 cents per share, wider than the previous year's loss, with a similar loss projected for 2026 [19] Price Performance & Valuation - Centrus Energy shares have increased by 273.8% over the past year, while NexGen Energy shares have risen by 36.4% [21] - Centrus Energy trades at a forward price-to-book multiple of 12.94X, compared to NexGen Energy's 9.24X [23] Investment Outlook - Centrus Energy is better positioned in the near to medium term due to its unique status as the only licensed HALEU producer in the U.S. and its substantial backlog [24] - NexGen Energy, while having strong margin potential, remains in the development phase and continues to incur losses [25]

Core Insights - Centrus Energy (LEU) and Cameco (CCJ) are positioned to benefit from the global shift towards nuclear energy, with Centrus focusing on High-Assay, Low-Enriched Uranium (HALEU) production and Cameco being a major uranium supplier with significant reserves [1][10]. Industry Trends - Global momentum for nuclear energy expansion is increasing, with India targeting 100 GW of nuclear capacity by 2047 and the US aiming for 400 GW by 2050. Recent agreements between the US and UK aim to expedite reactor approvals and reduce reliance on Russian nuclear fuel by 2028 [2]. Centrus Energy Overview - Centrus Energy supplies components for nuclear fuel, including Low-Enriched Uranium (LEU) and natural uranium hexafluoride. The company reported Q2 2025 revenues of $155 million, an 18% decline year-over-year, with LEU segment revenues down 26% to $125.7 million due to low uranium prices [4][6]. - The Technical Solutions segment saw a 48% revenue increase to $28.8 million, driven by HALEU contracts. Centrus has a $3.6 billion revenue backlog from long-term contracts with utilities through 2040 [5][7]. - The company plans to expand its uranium enrichment plant in Piketon, OH, contingent on securing funding from the U.S. Department of Energy. Centrus has raised over $1.2 billion in the past year and has commitments exceeding $2 billion from utility customers [8][9]. Cameco Overview - Cameco operates tier-one mining and milling operations with a capacity exceeding 30 million pounds of uranium concentrates annually. The company reported a 47% revenue increase to CAD 877 million ($634 million) in Q2 2025, with adjusted earnings per share surging 373% to CAD 0.71 ($0.51) [12][13]. - Uranium revenues rose 47% to CAD 705 million ($510 million), with sales volume increasing by 40% year-over-year. Despite a decline in uranium spot prices, the average realized price increased by 5% due to fixed-price contracts [14]. - Cameco has delivered 15.6 million pounds of uranium in 2025, with a full-year target of 31-34 million pounds. The company expects revenues of CAD 2.8-3.0 billion for uranium in 2025 [17][18]. Financial Estimates - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $454.1 million, indicating a 2.7% growth, while earnings are projected to decline by 3.4% to $4.32 per share. For 2026, revenues are estimated at $505.2 million, reflecting an 11.2% growth [21][22]. - For Cameco, the 2025 revenue estimate is CAD 2.54 billion, implying an 11.3% improvement, with earnings projected to grow by 130.6% to $1.13 per share. The 2026 revenue estimate is $2.52 billion, indicating a slight decline [22][23]. Stock Performance and Valuation - Centrus Energy shares have increased by 523.7% year-to-date, while Cameco shares have risen by 77.4%. Centrus is trading at a forward price-to-sales multiple of 15.29X, while Cameco's multiple is 15.74X [25][26]. - Both companies are ranked 3 (Hold) by Zacks, but Centrus Energy appears more attractive based on valuation and price performance, while Cameco faces downward estimate revisions due to production guidance changes [28][29].