Should You Buy, Sell or Hold LEU Stock Before Q3 Earnings Release?

Centrus Energy LEU is set to release its third-quarter 2025 results on Nov. 5, after market close.

The Zacks Consensus Estimate for Centrus Energy’s third-quarter revenues is pegged at $79 million, indicating year over year growth of 32%. The estimate for earnings is 19 cents per share, which suggests a turnaround performance from the year-ago quarter’s loss of 30 cents per share.

Over the past 60 days, the earnings estimate for third-quarter 2025 has moved up 11.8%.

Centrus Energy’s Earnings Surprise History

Over the trailing four quarters, Centrus Energy’s earnings beat the Zacks Consensus Estimate thrice and missed the same once. LEU has an average trailing four-quarter positive earnings surprise of 262.27%. The trend is shown in the chart below.

What the Zacks Model Unveils for LEU

Our proven model does not conclusively predict an earnings beat for Centrus Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Centrus Energy is 0.00%.

Zacks Rank: LEU currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped Centrus Energy’s Q3 Performance

Centrus Energy posted total revenues of $155 million in the second quarter of 2025, down 18% year over year. Revenues for the Low-Enriched Uranium segment declined 26% year over year to $125.7 million mainly attributed to the absence of uranium sales due to lower prices. The Technical Solutions segment’s revenues, however, jumped 48% to $28.8 million, driven by a $9.1 million boost from the HALEU Operation Contract. 

Uranium prices averaged around $71 per pound in July and gradually gained steam through the quarter, ending at around $82.6 per pound in September. This uptrend was fueled by growing expectations of expanded nuclear power capacity, fresh purchases by physical uranium funds and policy initiatives. Supply concerns were triggered with Cameco Corp. CCJ lowering its 2025 guidance, citing lower deliveries at the McArthur River mine, and Kazatomprom reducing its output by 10% for next year. 

We expect Centrus Energy to have sold uranium in the quarter to take advantage of the rising prices, thereby contributing to higher revenues for the Low-Enriched Uranium segment.  The Technical Segment’s revenues are expected to have been higher year over year, attributed to the HALEU Operation Contract. 
Meanwhile, Centrus Energy has seen lower cost of sales so far this year, which is expected to have boosted its gross profits in the third quarter. However, increased selling, general and administrative expenses and interest expenses are likely to have somewhat dampened the gains on its earnings.

How are Centrus Energy’s Peers Placed in Q3?

Energy Fuels Inc. UUUU will announce third-quarter 2025 results on Nov. 4. The Zacks Consensus Estimate for Energy Fuels’ earnings has remained unchanged over the past 60 days at a loss of eight cents per share. It indicates a wider loss than the loss of seven cents reported in the second quarter of 2024.

Cameco is scheduled to report third-quarter 2025 results on Nov. 5. The Zacks Consensus Estimate for Cameco’s third-quarter earnings per share is pegged at 23 cents. It indicates a significant improvement from the prior-year quarter’s loss of one cent per share. Over the past 60 days, the estimate has moved up 4.55%.

LEU’s Price Performance & Valuation

Centrus Energy has skyrocketed 451.7% so far this year compared with the industry’s 29.7% growth. The Zacks Basic Materials sector has gained 21%, while the S&P 500 has risen 17.9% in the same time frame. Meanwhile, Cameco and Energy Fuels gained 98.9% and 299.8% year to date, respectively.

Centrus Energy stock is trading at a forward price-to-sales ratio of 13.46 compared with the industry’s 3.71. The company is, however, cheaper than Energy Fuels’ and Cameco’s price-to-sales ratios of 39.82 and 17.97, respectively.

Investment Thesis on Centrus Energy

Centrus Energy stands to benefit from the accelerating global shift toward nuclear energy. It supplies nuclear fuel and services and is pioneering the production of High-Assay, Low-Enriched Uranium (HALEU). HALEU offers improved efficiency, extended fuel cycles and lower waste compared with low-enriched uranium. Demand for HALEU is expected to surge to support existing and next-generation reactors. Centrus plans to expand its Piketon, OH enrichment plant to increase production of both HALEU and Low-Enriched Uranium, contingent on funding from the U.S. Department of Energy. 

The scope of the expansion depends on it securing funding from the U.S. Department of Energy (DOE). Centrus Energy has so far raised more than $1.2 billion through two convertible note offerings over the last 12 months and has secured more than $2 billion in contingent purchase commitments from utility customers.

Should You Buy LEU Stock Now?

Centrus Energy’s exclusive Nuclear Regulatory Commission license for HALEU enrichment gives it a unique competitive edge. Existing investors can hold their LEU shares to benefit from the company’s strong long-term growth prospects and strategic positioning. While third-quarter results are expected to come in higher year over year, an earnings beat appears uncertain. Given its premium valuation relative to the industry and pending updates on DOE funding, new investors may consider waiting for a more attractive entry point or clearer visibility on the company’s expansion timeline before initiating a position.

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

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