LEU's Gross Profit Jumps 113% in H125: Can Momentum Carry Forward?

Centrus Energy LEU saw its gross profit more than doubling to $86.8 million in the first half of 2025 from the year-ago period. The 113% year-over-year increase was driven by a 27% decline in the cost of sales, even as revenues dipped 2% during the same period. 

In the second quarter of 2025, Centrus Energy’s gross profit reached $53.9 million, a 48% increase compared with the prior-year quarter, with the gross margin widening significantly to 34.9% from 19.3% in the year-ago quarter. The first-quarter performance was particularly notable, with gross profit soaring 665% to $32.9 million and gross margin expanding to 45% from just 9.8% a year earlier.

The Low-Enriched Uranium (“LEU”) segment contributed to the major part of the gross profit, generating $81.9 million in gross profit for the six months ended June 30, 2025, a 144% surge year over year. This growth reflects the timing and composition of multi-year contracts, which vary based on market conditions at the time of signing. Meanwhile, the Technical Solutions segment reported a gross profit of $4.9 million for the period, down 33% from last year. This was due to increase in costs incurred under the HALEU Operation Contract, partially offset by a decrease in costs related to other contracts.

In comparison, another uranium producer, Energy Fuels UUUU reported a gross loss of $0.7 million in the first half of 2025 against the gross profit of $19 million in the year-ago comparable period. This was attributed to lower revenues and higher costs. Energy Fuels’ revenues were down 38% in the first half of 2025 owing to lower uranium sales amid weak prices. Costs surged 48% associated with the winding down of the Kwale Project.

Cameco CCJ, on the other hand, delivered a 46% year-over-year increase in gross profit to CAD527 million ($381) in the first half of 2025. This was attributed to a 35% year-over-year increase in Cameco’s revenues to CAD 1.67 billion ($1.2 billion), supported by a 16% increase in uranium sales volumes, higher realized prices and robust growth in fuel services.

This helped offset the 31% year-over-year increase in Cameco’s costs. While costs in the uranium segment increased 24% primarily on 7% increase in the average unit cost of sales and a 16% increase in sales volume along with costs recognized for the planned shutdown at the Key Lake mill. Unit cost of sales was higher due to the increased cost of purchased material. In the Fuel services segment, costs increased 35% as a 55% increase in sales volume was offset by a 12% decrease in the average unit cost of sales.

LEU’s Price Performance, Valuation & Estimates

Centrus Energy shares have soared 208.4% so far this year compared with the industry’s 12.7% growth. During this time, the Basic Materials sector has risen 19.6%, while the S&P 500 has gained 10.8%.

LEU is trading at a forward 12-month price/sales multiple of 7.69X, a significant premium to the industry’s 2.96X.

The Zacks Consensus Estimate for Centrus Energy’s 2025 earnings is pegged at $4.23 per share, indicating a 5.37% year-over-year decline. The same for 2026 is $3.36, indicating a decline of 20.6%. 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 #3 (Hold).

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).

Zacks Investment Research