LEU vs. UEC: Which Uranium Stock Offers Better Upside Now?

By Madhurima Das | November 25, 2025, 11:57 AM

Centrus Energy LEU and Uranium Energy UEC are two U.S.-based uranium companies positioned to benefit from the country’s renewed focus on nuclear energy independence.

Uranium prices have faced pressure this year due to abundant supply and demand uncertainty. Prices recently retreated to $77 per pound after hitting a 14-month high of $84 last month as supply concerns have eased lately.

The long-term outlook for uranium, however, remains strong, driven by the growing push for clean energy. The U.S. Geological Survey’s addition of uranium to its 2025 Critical Minerals List further highlights its strategic importance for national security and domestic supply chains. For investors interested in this space, lets analyze which uranium stock is better positioned for upside, LEU or UEC. A closer look at their fundamentals, growth drivers and key risks can offer clarity.

The Case for Centrus Energy

The company, through its LEU segment, supplies components of nuclear fuel to commercial customers. This includes the supply of the enrichment component of Low-Enriched Uranium (“LEU”) to utilities that operate commercial nuclear power plants. The enrichment component of LEU is measured in Separative Work Units (SWU). Centrus Energy also sells natural uranium hexafluoride.

The Technical Solutions segment’s revenues are primarily derived from the production of High-Assay, Low-Enriched Uranium (HALEU) under the HALEU Operation Contract with the U.S Department of Energy (DOE). It also includes technical, manufacturing, engineering and operations services offered to public and private sector customers.

In the third quarter of 2025, Centrus Energy reported total revenues of $75 million, up 30% year over year. Revenues for the LEU segment rose 29% year over year to $44.8 million, driven by uranium sales in the quarter (contributing $34.1 million) in contrast to nil uranium revenues in the year-ago quarter. Meanwhile, SWU revenues were down 69% to $10.7 million due to lower SWU prices.

LEU reported an operating loss of $16.6 million in the quarter compared with a loss of $7.6 million in the last year quarter. Higher volumes pushed LEU cost of sales up 78%, while expenses in the Technical Solutions segment climbed 39% due to increased HALEU-related project costs.

Despite the operating loss, Centrus Energy posted net income of $3.9 million (or earnings per share of 19 cents) attributed to an income tax benefit and higher investment income. The company had reported a loss per share of 30 cents in the year-ago quarter.

Centrus Energy currently has a $3.9 billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.

LEU holds a unique competitive advantage as the only licensed U.S. producer of HALEU. Demand is expected to surge in the next few years to power both existing reactors and a new generation of advanced reactors. While low-enriched uranium contains uranium concentration below 5%, HALEU offers concentration in the range of 5-20% with 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 $6.14 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. Meanwhile, LEU opportunity is also expected to grow $2.4 billion per year.

The company recently unveiled ambitious plans to significantly expand its uranium enrichment plant in Piketon, OH, to boost the production of Low-Enriched Uranium and HALEU. This project will mark a significant step in restoring America’s ability to enrich uranium at scale. Centrus Energy’s multi-billion-dollar plan requires public and private investment and involves adding thousands of additional centrifuges at the plant to enable large-scale production.

The Case for Uranium Energy

Uranium Energy has a combined 12.1 million pounds of U.S.-licensed uranium production capacity from three central processing plants. The company also boasts the largest resource portfolio in the United States and one of the largest in North America.

The company reported fiscal 2025 (ended July 2025) revenues of $66.84 million, a substantial increase from $0.2 million in the prior fiscal year. This jump reflected UEC’s decision not to sell any of its purchased uranium inventory in fiscal 2024, rather than an operational or price impact. In fiscal 2024, UEC’s revenues reflected toll processing services, which have been discontinued.

During fiscal 2025, Uranium Energy sold 810,000 pounds of uranium at an average price of around $82.50 per pound.

Operating costs surged 104% to $66 million. This was driven by higher development spending on the Burke Hollow Project and the Christensen Ranch Mine. Production readiness expenditures related to the Christensen Ranch Mine, Irigaray Plant and Palangana Mine added to its cost burdens. General and administrative expenses were also higher.

Overall, the higher operating expenses led to a 20-cent per share loss for the company in fiscal 2025, wider than the loss of seven cents per share for fiscal 2024. Adjusted loss in fiscal 2025 was 17 cents compared with the loss of eight cents per share in the last fiscal.

The company is investing in building the next generation of low-cost uranium projects that will be competitive on a global basis and utilize the ISR (in-situ recovery) mining process, which is expected to reduce environmental impact compared with conventional mining.

Fiscal 2025 marked a significant milestone with Uranium Energy transitioning from developer to producer. It successfully restarted operations at the Christensen Ranch ISR Mine in Wyoming’s Powder River Basin with initial production at around 130,000 pounds of precipitated uranium and dried and drummed concentrate.

The ramp-up phase will continue while new production areas are being constructed in 2025 and 2026. The Burke Hollow project remains on track with an expected start-up in December 2025, strengthening its production profile.

Uranium Energy also acquired Rio Tinto’s Sweetwater Complex, adding roughly 175 million pounds of historic resources and establishing its third U.S. hub-and-spoke production platform. The company also launched United States Uranium Refining & Conversion Corp. to position itself as the only vertically integrated U.S. company with uranium mining, processing and planned refining and conversion capabilities

How do Estimates Compare for LEU & UEC?

The Zacks Consensus Estimate for Centrus Energy’s 2025 revenues is $448.6 million, implying 1.5% growth from the year-ago quarter’s actual. The consensus mark for 2025 earnings is pegged at $4.58 per share, which indicates year-over-year growth of 2.5%.

The consensus estimate for Centrus Energy’s 2026 revenues of $494.61 million indicates year-over-year growth of 10.3%. The estimate for earnings is pinned at $3.70 per share, indicating a year-over-year decline of 19.4%.