|
|
|
|
|||||
|
|
|
Centrus Energy LEU and Energy Fuels Inc. UUUU are prominent US-based companies in the uranium industry. Both are positioned to benefit from the growing global shift toward nuclear energy as a clean and reliable power source.
Despite this favorable long-term trend, uranium prices have faced pressure this year amid abundant supply and uncertain demand. Recently, uranium prices have recovered to around $73.50 per pound, reflecting renewed optimism as major countries and industries increase their bets on nuclear power. India set a target to expand nuclear capacity by 13 times by 2024 from current levels, while easing regulations for private companies to mine uranium. Meanwhile, the United States plans to restore its global leadership in nuclear energy and expand American nuclear energy capacity from approximately 100 GW in 2024 to 400 GW by 2050.
Given uranium’s critical role in fueling nuclear power, these developments are expected to support long-term demand and price recovery. For investors considering this sector to capitalize on future uranium growth, we analyze and compare the fundamentals, growth prospects and risks of LEU and UUUU to determine which stock offers the more attractive investment opportunity.
The company, through its LEU segment, supplies various components of nuclear fuel to commercial customers from its global network of suppliers. Through this segment, Centrus Energy provides the enrichment component of Low-Enriched Uranium (LEU) primarily to utilities that operate commercial nuclear power plants. LEU is a critical component in the production of nuclear fuel for reactors that produce electricity.
The enrichment component of LEU is measured in Separative Work Units (SWU). Centrus Energy also sells natural uranium hexafluoride and occasionally sells uranium concentrates, uranium conversion or LEU with the natural uranium hexafluoride and SWU components combined into one sale.
The Technical Solutions segment provides advanced uranium enrichment for the nuclear industry and the U.S. government, and advanced manufacturing and other technical services to government and private sector customers.
In the second quarter of 2025, Centrus Energy reported total revenues of $155 million, down 18% year over year. Revenues from the LEU segment were down 26% year over year to $125.7 million, due to the absence of uranium sales and a 27% decline in sales volumes of SWU, somewhat offset by 24% SWU higher prices. Technical Solutions revenues jumped 48% to $28.8 million, driven by a $9.1 million boost from the HALEU Operation Contract.
The company’s earnings were $1.59 per share, which marked a 16% decline from the year-ago quarter on lower revenues and higher selling, general and administrative expenses and interest expenses.
Centrus Energy currently has a $3.6 billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.
Centrus Energy is the only company with a license for High-Assay Low-Enriched Uranium (HALEU) production to supply commercial and national security needs. Under the HALEU Operation Contract with the Department of Energy (DOE), it has already delivered 920 kilograms of HALEU and has now moved into Phase III. On June 20, 2025, Centrus Energy secured a contract extension from the DOE authorizing an additional year of production through June 30, 2026. The contract includes provisions for up to eight additional years of production beyond that, contingent upon federal appropriations and DOE discretion.
HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity. Unlike low-enriched uranium, which contains uranium concentration below 5%, HALEU contains uranium enriched to between 5% and 20%. It offers advantages such as improved efficiency, extended fuel cycles and lower waste.
The market opportunity is substantial, with the HALEU market value expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. Centrus Energy is planning to expand production capacity in Ohio so that it can meet the domestic demand for HALEU as well as low-enriched uranium.
UUUU has long held a leadership position in U.S. uranium production, accounting for approximately two-thirds of the country’s output since 2017. Its White Mesa Mill in Utah stands out as the only fully licensed and operational conventional uranium processing facility in the United States. The company aims to transform this asset into a critical minerals hub, producing uranium, vanadium, rare earth elements (REEs) and potentially medical radioisotopes.
Energy Fuels recently achieved a milestone by producing the first kilogram of dysprosium (Dy) oxide at pilot scale from its White Mesa Mill in Utah and attained 99.9% purity. This is unmatched in the United States at this time, underscoring UUUU’s leading role in building a rare earth oxide supply chain independent of China.
Energy Fuels’ Donald Project in Australia could start production by the end of 2027. It is one of the richest deposits of HREEs in the world and could complement UUUU’s domestic operations. Also, its Toliara Project in Madagascar and the Bahia Project in Brazil contain significant quantities of light and heavy REE oxides, which can be supplied to U.S. and European manufacturers.
UUUU’s second-quarter total revenues were around $4.2 million, marking a 52% year-over-year plunge. The company sold 50,000 pounds of uranium on the spot market for $77 per pound, generating uranium revenues of $3.85 million. This was 55% lower than the last year's quarter due to lower uranium sales as a result of contract delivery timing and the company's decision to retain uranium in inventory at current spot price levels. It also recorded $0.28 million in heavy mineral sands revenues from the sale of 202 tons of rutile.
Exploration, development and processing soared 265% year over year and selling, general and administration were up 118% year over year. Overall, lower revenues and higher expenses led to a loss per share of 10 cents compared with a loss of four cents in the year-ago quarter.
During the quarter, the company mined ore containing approximately 665,000 pounds of uranium from the Pinyon Plain, La Sal and Pandora mines. The Pinyon Plain mine has been performing exceptionally well in recent months and produced 635,000 pounds of uranium during the quarter. The mine has the potential to be the highest-grade uranium mine in U.S. history.
UUUU expects to mine 55,000-80,000 tons of ore containing approximately 875,000-1,435,000 pounds of uranium from its three mines during 2025. It aims to process up to 1 million pounds of uranium this year. Uranium sales are planned at 350,000 pounds this year. In 2026, Energy Fuels aims to sell between 620,000 and 880,000 pounds of uranium under its current portfolio of long-term uranium sales contracts.
The company expects lower uranium costs starting in the fourth quarter of 2025 as it begins processing low-cost Pinyon Plain ores. Total weighted average cost of goods sold will go down to $23–$30 per pound of uranium, ranking among the lowest costs for mined uranium production in the world.
The company expects to lower the cost of goods sold to approximately $50-$55 per uranium sales for the remaining 2025 sales. The weighted average cost of goods sold is projected to drop to $30-$40 per pound in the first quarter of 2026. These trends are expected to boost gross margins.
Supported by a debt-free balance sheet, Energy Fuels is ramping up uranium production while advancing REE capabilities. With its current operations and development pipeline, the company can eventually produce up to 6 million pounds of uranium annually.
The Zacks Consensus Estimate for Centrus Energy’s 2025 revenues is $451.4 million, implying 2.1% growth from the year-ago quarter’s actual. The consensus mark for LEU’s earnings is pegged at $4.23 per share, which indicates a year-over-year decline of 5.4%.
The consensus estimate for Centrus Energy’s 2026 revenues of $502.8 million indicates year-over-year growth of 11.4%. The estimate for earnings is pinned at $3.36 per share, indicating a year-over-year decline of 20.6%.
The consensus estimate for Energy Fuels’ 2025 revenues of $40.8 million indicates a year-over-year drop of 48%. The company is expected to incur a loss of 33 cents per share in 2025, indicating a wider loss than the loss of 28 cents reported in 2024.
The Zacks Consensus Estimate for UUUU’s 2026 revenues of $122 million indicates a year-over-year upsurge of 199%, with earnings per share pegged at one cent, marking the first year of expected profit for the company.
In the past 60 days, earnings estimates for Centrus Energy have moved higher for both 2025 and 2026, whereas Energy Fuels has experienced downward revisions, as shown in the chart below.
LEU shares have surged 166.2% year to date while UUUU shares have gained 83.3%.
Centrus Energy is trading a forward price-to-sales multiple of 6.66X, a premium to the industry average of 2.68X. Energy Fuels is trading way higher, at a forward price-to-sales multiple of 22.49X.
Both Energy Fuels and Centrus Energy are ramping up their capabilities to capitalize on the anticipated surge in nuclear demand. UUUU’s efforts to diversify beyond uranium into REEs and create a supply chain independent of China are commendable. Meanwhile, Centrus Energy is the only U.S. company licensed to produce HALEU, which is essential for the next generation of nuclear reactors.
Both stocks currently have a Zacks Rank #3 (Hold) each, which makes choosing one a difficult task. LEU is currently more attractive than UUUU from a valuation standpoint. It also scores over Uranium Energy in terms of price performance. Energy Fuels has seen downward estimate revisions for 2025 and is expected to incur a loss due to lower expected sales. In contrast, the estimates for LEU have moved up. Given these factors, Centrus Energy is the more appealing option at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 4 hours | |
| 7 hours | |
| 8 hours | |
| Aug-21 | |
| Aug-21 | |
| Aug-20 | |
| Aug-19 | |
| Aug-19 | |
| Aug-19 | |
| Aug-19 | |
| Aug-19 | |
| Aug-18 | |
| Aug-17 | |
| Aug-14 | |
| Aug-13 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite