Centrus Energy Delivers Steady Revenue Growth: Is It Sustainable?

Centrus Energy LEU has delivered a compound annual growth rate (CAGR) of 14% in revenues between 2021 and 2024. Revenues picked up pace recently, with a 9% increase in 2023 and a strong 38% jump in 2024. This momentum has carried into 2025, with Centrus Energy posting a 67% year-over-year surge in total revenues to $73 million in the first quarter. 

The company’s LEU (Low-Enriched Uranium) segment, which includes revenues from the sales of the SWU (Separative Work Units) component of LEU, natural uranium hexafluoride, uranium concentrates and products, continues to be the main driver of growth.

In the first quarter of 2025, LEU segment’s revenues soared 117% to $51.3 million on a 46% increase in SWU prices and a 49% rise in volumes. There were no uranium sales in this period. In 2024, LEU segment’s revenues rose 30% to $349.9 million. Uranium revenues surged 70% and SWU revenues were up 19%.

Centrus Energy’s Technical Solutions segment has also shown improved results. It derives revenues from the production of High-Assay Low-Enriched Uranium (HALEU) under a U.S. Department of Energy (DOE) contract, as well as technical and other services offered to public and private sector customers. In the first quarter, segment revenues rose 8% year over year to $21.8 million, led by a $2-million increase in revenues generated by the HALEU Operation Contract. 

In 2024, the segment’s revenues surged 80% to $92.1 million. Revenues generated by the HALEU Operation Contract increased $41.3 million primarily due to the transition from Phase 1 to Phase 2, which shifted the arrangement from a cost-share to a cost-plus-incentive-fee. The company has now moved into Phase 3 and also secured a contract extension through June 30, 2026. The contract includes provisions for up to eight additional years of production.

Centrus Energy currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040. The LEU segment’s backlog is $2.8 billion. 

Centrus Energy has not issued specific revenue guidance, but a strong backlog, ongoing LEU demand and HALEU contract suggest continued momentum. With the HALEU market value expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035 and Centrus Energy being the only company with a license for HALEU enrichment, it has a clear first-mover advantage.

Meanwhile, peer Cameco Corporation CCJ has fared better, delivering a CAGR of 24.8% in revenues over 2021-2024. In the first quarter of 2025, Cameco’s revenues rose 17% year over year to CAD 789 million ($550 million). Its uranium segment’s revenues grew 10%, driven by a 15% increase in the Canadian dollar average realized price, which offset a 5% dip in sales volumes. 

Cameco plans uranium deliveries at 31-34 million pounds and expects uranium revenues at CAD 2.8–3.0 billion in 2025.

Cameco’s fuel services division’s first-quarter revenues soared 88% on 60% higher sales volumes and a 17% increase in price. Fuel services revenues are projected at CAD 500–550 million in 2025. Cameco envisions 2025 total revenues at CAD 3.3-3.55 billion.

Energy Fuels UUUU revenues are more volatile, reflecting its strategy to withhold uranium sales when prices are low.  In the first quarter of 2025, total revenues were $16.9 million, which mainly constituted sales of Heavy Mineral Sands (HMS). This marked a year-over-year drop of 33.5% owing to the absence of uranium sales.

In 2024, Energy Fuels’ revenues surged 106% year over year to $78 million, driven by HMS and uranium revenues. This suggests a remarkable CAGR of 196% over 2021-2024. However, this figure does not indicate company-specific momentum but rather reflects the unusually low base of $3 million in 2021 as Energy Fuels had not made uranium sales during the year. 

Energy Fuels expects to sell between 200,000 and 300,000 pounds of uranium during 2025, under its existing long-term contracts with utilities.

LEU’s Price Performance, Valuation & Estimates

Centrus Energy shares have soared 225.1% so far this year compared with the industry’s 6.1% growth.

LEU is trading at a forward 12-month price/sales multiple of 8.21X, a significant premium to the industry’s 2.81X. It has a Value Score of F.

The Zacks Consensus Estimate for Centrus Energy’s 2025 earnings is pegged at $3.45 per share, indicating a 22.8% year-over-year decline. The same for 2026 is $2.81, indicating a decline of 18.48%. Here is how the EPS estimates for 2025 and 2026 have been revised over the past 60 days.

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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