Is Uranium Energy Timing Its Sales for Maximum Market Advantage?

Uranium Energy UEC recently reported fiscal 2025 revenues of $66.84 million, a sharp increase from $0.2 million in the prior fiscal year. However, this surge primarily reflects the company’s decision not to sell any of its purchased uranium inventory in the previous year, rather than a fundamental change in production or pricing.

In fiscal 2024, UEC’s revenues stemmed from toll processing services, which were discontinued in fiscal 2024. In contrast, Uranium Energy’s fiscal 2023 revenues totaled around $164 million, largely derived from sales of purchased uranium inventory. Such disparities or fluctuations highlight the company’s flexible approach to sales, which depends on its cash position and uranium prices.

Even within fiscal 2025, UEC’s revenue pattern was uneven. The company generated $66.84 million in revenues in the first half of 2025 from uranium sales, averaging more than $82.50 per pound. In the second half of 2025, the company chose to withhold sales and maintain its strategic inventory. 

Per the company, this provides it with the flexibility to capture rising uranium prices and meet growing global demand, including anticipated purchases for the U.S. Uranium Reserve and other government programs.

As of fiscal 2025-end, UEC held 1.36 million pounds of uranium in inventory, valued at $96.6 million at the then market prices. This excludes approximately 130,000 pounds of initial Wyoming production. The company expects its warehoused inventory to expand by another 300,000 pounds through December 2025 under purchase contracts priced at $37.05 per pound, in addition to new production from operations.

Uranium prices have recently surged to above $82 per pound, the highest in nearly a year, fueled by growing expectations of expanded nuclear power capacity, fresh purchases by physical uranium funds and policy initiatives. Backed by this increase in uranium prices, we expect the company to sell uranium at spot prices, which might boost its revenues.

Like Uranium Energy, Energy Fuels UUUU and Ur-Energy Inc. URG have also adopted strategies to delay uranium sales during periods of weaker prices.
Energy Fuels 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 the decision to retain uranium in inventory amid low prices. 

Energy Fuels sold 50,000 pounds of uranium in the spot market at an average price of $77 per pound in the first half of 2025 compared with 400,000 pounds of uranium sold in the first half of 2024, with a weighted-average sales price of $84.76 per pound.

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.

UEC’s Price Performance, Valuation & Estimates

Uranium Energy shares have gained 96.4% so far this year compared with the industry’s 29.9% growth.

UEC is trading at a forward 12-month price/sales multiple of 93.19X, a significant premium to the industry’s 1.46X.

The Zacks Consensus Estimate for Uranium Energy’ 2025 earnings is pegged at a loss of 17 cents per share. The bottom-line estimate for fiscal 2026 is pegged at a loss of 12 cents per share. 

The Zacks Consensus Estimate for fiscal 2025 has remained unchanged over the past 60 days while the estimate for 2026 has moved down, as shown in the chart below.

The company currently carries a Zacks Rank #5 (Strong 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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