Centrus Energy (LEU): A 52% Sell-Off Creates a Buying Opportunity in Nuclear Fuel
Centrus Energy (LEU) has something few companies in the nuclear industry can offer: an established, profitable business, billions of dollars in contracted orders, and a unique position in the U.S. nuclear fuel supply chain.
Yet its stock has fallen more than 52% this year, caught up in a broader sell-off that has hit nuclear energy companies. The Global X Uranium ETF (URA), for example, is down approximately 15% year to date.
We think the decline has created an attractive opportunity to buy a company that stands to benefit from the expansion of nuclear power without having to bet on which next-generation reactor developers ultimately succeed.
Centrus specializes in uranium enrichment, a critical step in producing fuel for nuclear reactors. More importantly, it operates the only U.S. Nuclear Regulatory Commission-licensed facility capable of producing high-assay low-enriched uranium (HALEU).
HALEU contains between 5% and 20% uranium-235 and is required for nearly all advanced small modular reactors (SMRs) and microreactors currently under development.
As these technologies move toward commercial deployment, access to reliable supplies of HALEU will become increasingly important. Centrus already has the technology and regulatory approvals needed to participate in that market.
In July 2026, the company finalized a $900 million order to produce HALEU for the U.S. Department of Energy.
It has also secured multi-year supply agreements with several emerging nuclear reactor developers, including X-energy, Radiant Industries and Antares Nuclear. Some of these agreements include customer prepayments, providing additional support for the company’s expansion plans.
We particularly like Centrus’s position because it can benefit from the growth of advanced nuclear power regardless of which reactor designs ultimately become commercially successful.
And unlike many companies developing next-generation nuclear technologies, Centrus is already generating meaningful revenue and profits.
Second-quarter revenue increased 13.9% year over year to $176.1 million. Adjusted net income climbed 12% to $38.7 million, while adjusted earnings per share held steady at $1.95.
Management expects full-year 2026 revenue between $450 million and $500 million, compared with $448.7 million in 2025.
While that outlook suggests relatively modest near-term growth, the company’s order backlog tells a more compelling long-term story.
Centrus has a $4.5 billion backlog extending through 2040.
Approximately $3.7 billion of that backlog comes from its established nuclear fuel business, which supplies standard reactor fuel and uranium to electric utilities.
These are primarily fixed, multi-year contracts covering future deliveries, giving Centrus substantial visibility into revenue over the coming years.
The company also has agreements covering an additional $3 billion in potential future sales of low-enriched uranium and HALEU. Those potential sales are separate from its existing firm backlog and could provide another source of growth as demand develops.
But perhaps Centrus’s biggest advantage is the strategic importance of its technology to the United States.
The country has not operated a domestic uranium enrichment facility dedicated to national security and defense requirements since the Paducah, Kentucky, plant closed in 2013.
The Department of Energy has been relying on uranium supplies accumulated during the Cold War. Those stockpiles are finite, creating a growing need to establish a reliable domestic source of enriched uranium.
National security requirements make this particularly important.
Under existing government policies and international nonproliferation agreements, U.S. defense agencies cannot rely on foreign enrichment technology or foreign-sourced fuel for certain national security applications.
Centrus’s proprietary AC100M centrifuge is currently the only American-developed, deployment-ready uranium enrichment system that meets those requirements.
That gives the company a competitive advantage that would be difficult for a new entrant to replicate quickly. Developing enrichment technology, obtaining regulatory approvals and establishing the necessary production infrastructure all present substantial barriers to entry.
We believe this position could make Centrus an increasingly important supplier as the United States works to rebuild its domestic nuclear fuel capabilities.
The recent decline in its share price makes the opportunity especially interesting.
Centrus shares trade around $111, down more than 52% year to date and well below their 52-week high of approximately $394.
The stock now trades at roughly 33 times forward earnings. That’s still a premium valuation, but it’s more reasonable following the sell-off, particularly considering the company’s specialized technology, established profitability and long-term contracts.
Of course, there are risks.
The nuclear industry has experienced considerable volatility as investors reassess the timing and economics of new reactor projects. Commercial deployment of advanced reactors could take longer than expected, delaying some of the demand for HALEU.
Centrus also remains exposed to government funding decisions, contract execution and the capital requirements associated with expanding domestic enrichment capacity.
And despite the sharp decline, a forward earnings multiple of 33 leaves room for additional volatility if growth disappoints.
Still, we think the company’s competitive position and contracted business provide compelling reasons to consider the stock.
Centrus is already profitable, its second-quarter revenue grew nearly 14%, and its $4.5 billion backlog provides visibility extending into the next decade and beyond.
Meanwhile, its unique position in domestic HALEU production and proprietary enrichment technology could become increasingly valuable as advanced nuclear reactors move closer to deployment and the United States works to strengthen its nuclear fuel supply chain.
At around $111 per share, we’re recommending Centrus Energy as a long-term nuclear growth opportunity. The stock’s steep decline has created a more attractive entry point into a company with substantial competitive advantages, a growing order book and an important role in the future of American nuclear energy.
