Can Energy Fuels Capitalize on the Recent Gain in Uranium Prices?

Energy Fuels Inc. UUUU reported revenues of $21 million in the first half of 2025, marking a 38% plunge from the year-ago period. The decline was mainly due to lower uranium sales as a result of contract delivery timing and decision to retain uranium in inventory amid low prices. Revenues from Heavy Mineral Sands were $15.82 million for the six months ended June 30, 2025, providing partial support.

Energy Fuels sold 50,000 pounds of uranium in the spot market generating $3.85 million, at an average price of $77 per pound in the first half of 2025. Sales were made in the first half and the major part was done in the second quarter. Notably, the company sold 400,000 pounds of uranium in the first half of 2024, with a weighted-average sales price of $84.76 per pound.

As of June 30, 2025, Energy Fuels held a total of 1,875,000 pounds of uranium in inventory, including 725,000 pounds of finished uranium, 1,100,000 pounds of uranium in ore and raw materials, and 50,000 pounds of work-in-progress. 

The company, during the second-quarter earnings, had stated that it expects to sell 140,000 pounds of uranium during the third quarter of 2025 and 160,000 pounds of uranium in the fourth, and between 620,000 and 880,000 pounds in 2026. Energy Fuels had, however, added that it would make further sales in case prices recover.

Uranium prices have recently surged to above $83 per pound in September, the highest in nearly a year fueled by growing expectations of expanded nuclear power capacity, fresh purchases by physical uranium funds and policy initiatives. The United States has announced it would boost its strategic uranium reserve. India aims to boost nuclear capacity to at least 100 GW by 2047 and the United States plans to quadruple its nuclear capacity to 400 GW by 2050.

The U.S. and U.K. governments recently signed the Technology Prosperity Deal, which seeks to accelerate reactor approvals and aid the United Kingdom in achieving full independence from Russian nuclear fuel by the end of 2028.
Backed by this increase in uranium prices, we expect the company to sell uranium at spot prices, which might boost its revenues.

Like Energy Fuels, revenues of peer Ur Energy URG also reflect its strategy to withhold sales when prices are low. Ur-Energy’s revenues were $10.4 million in the first half of 2025, 124% higher than the $4.65 million reported in the year-ago quarter. Ur-Energy sold 165,000 pounds of uranium in the second quarter at an average price of $63.20 per pound compared with no sales in the first quarter due to low prices. This resulted in second-quarter revenues of $10.4 million and nil revenues in the first quarter.

Meanwhile Cameco’s CCJ total revenues in the first half of 2025 increased 35% year over year to CAD 1,666 million ($1,184 million). Uranium revenues were up 27% to CAD 1,324 million ($941 million), driven by a 16% rise in sales volume and an increase of 10% in the Canadian dollar average realized price, which benefited from fixed-price contracts, even though U.S. dollar spot prices fell 24%. Cameco delivered 15.6 million pounds of uranium so far in 2025.

UUUU’s Price Performance, Valuation & Estimates

Energy Fuels shares have gained 225.8% so far this year compared with the industry’s 11.9% growth.

UUUU is trading at a forward 12-month price/sales multiple of 36.73X, a significant premium to the industry’s 2.95X

The Zacks Consensus Estimate for Energy Fuels’ 2025 loss is pegged at 33 cents per share. The bottom-line estimate for 2026 is pegged at earnings of one cent per share. The EPS estimates for both years have however moved down over the past 60 days.

The company currently carries a Zacks Rank #3 (Hold).

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

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