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1. Company Snapshot

1.a. Company Description

Centrus Energy Corp.supplies nuclear fuel and services for the nuclear power industry in the United States, Japan, Belgium, and internationally.The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions.


The LEU segment sells separative work units (SWU) component of LEU; SWU and natural uranium components of LEU; and natural uranium for utilities that operate nuclear power plants.The Technical Solutions segment offers technical, manufacturing, engineering, procurement, construction, and operations services to public and private sector customers, including the American Centrifuge engineering and testing activities.The company was formerly known as USEC Inc.


and changed its name to Centrus Energy Corp.in September 2014.Centrus Energy Corp.


was incorporated in 1998 and is headquartered in Bethesda, Maryland.

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1.b. Last Insights on LEU

Centrus Energy Corp.'s recent performance was driven by strong Q1 2025 earnings and revenue beat, with net income of $27.2 million on $73.1 million in revenue, compared to a net loss of $6.1 million on $43.7 million in revenue in Q1 2024. The company's transition to uranium enrichment is progressing on schedule, and its main business involves enriching raw uranium to make it useful for power generation. The company's consolidated cash balance of $653.0 million as of March 31, 2025, also indicates a strong financial position.

1.c. Company Highlights

2. Centrus Energy's Q3 2025 Earnings: A Strong Performance Amidst Growing Demand

Centrus Energy reported a revenue of $74.9 million for the third quarter of 2025, representing a 30% increase compared to the same quarter last year. The LEU segment generated $44.8 million in revenue, a 29% increase from the same period last year. Despite a gross loss of $4.3 million and an operating loss of $16.6 million, the company reported a net income of $3.9 million. The earnings per share (EPS) came in at $0.19, slightly below the estimated $0.2. The year-to-date net income stood at $60 million, significantly higher than the $19.5 million recorded during the same period last year.

Publication Date: Nov -29

📋 Highlights
  • Q3 2025 Revenue Surge:: Generated $74.9M in revenue, a 30% increase YoY ($17.2M growth), driven by LEU segment performance ($44.8M, +29%).
  • Capital Raise for Expansion:: Raised $805M via 0% convertible senior notes, netting $782.4M to fund strategic initiatives and de-risk operations.
  • DOE Waivers for LEU Imports:: Secured approvals for 2026-2027 U.S. LEU deliveries, ensuring continuity for existing contracts and reducing regulatory uncertainty.
  • SWU Price Dynamics:: Spot SWU prices rose to $220/ton, with management citing tight supply-demand fundamentals and no near-term oversupply expected.

Financial Performance and Outlook

The company's financial performance was bolstered by the increasing demand for nuclear power, driven by the growing requirements for data centers. As Amir Vexler noted, "The demand for U.S.-owned enrichment capacity has never been stronger." The company's readiness initiatives and industrial expansion plans are well-positioned to capitalize on this trend. The issuance of $805 million of 0% convertible senior notes provided added liquidity to execute strategic plans and derisk the business.

Valuation Metrics

With a P/E Ratio of 40.3 and a P/S Ratio of 9.99, the market appears to be pricing in significant growth expectations for Centrus Energy. The EV/EBITDA ratio stands at 30.73, indicating a relatively high valuation. However, the ROE of 41.44% and ROIC of 5.03% suggest that the company is generating strong returns on equity and invested capital. The Free Cash Flow Yield of 3.23% is also a positive indicator.

Growth Prospects and Risks

The company's growth prospects are tied to the increasing demand for nuclear power and its ability to expand its enrichment capacity. The recent waivers from the Department of Energy to continue importing LEU for deliveries in 2026 and 2027 have provided greater clarity and reduced risks. However, the company's reliance on government support and the uncertainty surrounding the Jan 1, 2028 deadline for Russian imports pose risks to its growth prospects.

Contracting and Pricing

The company is focused on locking in commitments and growing its backlog, with a key priority being contracting at the new SWU prices. As Amir Vexler stated, "The ultimate decision of the planned expansion in terms of how much HALEU, how much LEU would be 100% driven by customer demand and customer commitments." The SWU prices have seen a significant uptick, reaching $220 per SWU, and the company's ability to contract at these prices will be crucial to its revenue growth.

3. NewsRoom

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5 No-Brainer Energy Stocks to Buy With $1,000 Right Now

Dec -04

Source: fool.com

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Centrus Energy's Q3 Revenues Up on Uranium Sales: More Upside Ahead?

Dec -02

Source: zacks.com

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Centrus Energy Announces Uplisting to the New York Stock Exchange

Dec -01

Source: prnewswire.com

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Miss These Genesis Mission Stocks, and You’ll Regret It for a Decade

Dec -01

Source: investorplace.com

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3 Nuclear Energy Stocks That Show Great Potential

Nov -30

Source: 247wallst.com

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4 Non-Ferrous Metal Mining Stocks to Consider From a Thriving Industry

Nov -27

Source:

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

Nov -25

Source: zacks.com

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Centrus Energy: Key Enabler Of U.S. Advanced Nuclear Technology

Nov -25

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.54%)

6. Segments

Low-Enriched Uranium

Expected Growth: 10.0%

Centrus Energy Corp.'s Low-Enriched Uranium growth is driven by increasing demand for nuclear power, government support for clean energy, and rising uranium prices. Additionally, the company's strategic partnerships, efficient production processes, and growing sales to utility customers contribute to its 10.0% growth.

Technical Solutions

Expected Growth: 8.0%

Centrus Energy Corp.'s Technical Solutions segment growth is driven by increasing demand for nuclear energy, government investments in nuclear power, and the company's strategic partnerships. Additionally, the segment benefits from its diversified customer base, innovative technology, and cost-effective solutions, enabling it to capitalize on the growing nuclear industry.

Intersegment Elimination

Expected Growth: 0.0%

Centrus Energy Corp's Intersegment Elimination with 0.0% growth is driven by the absence of significant transactions between its reportable segments, indicating a lack of material eliminations. This suggests a well-integrated business model with minimal interdependencies, allowing for a more accurate representation of its financial performance.

7. Detailed Products

Low-Enriched Uranium (LEU)

Centrus Energy Corp. supplies low-enriched uranium (LEU) to nuclear power plants, which is used as fuel to generate electricity.

High-Assay Low-Enriched Uranium (HALEU)

Centrus Energy Corp. provides high-assay low-enriched uranium (HALEU) for advanced reactors and small modular reactors, offering higher energy density and efficiency.

Nuclear Fuel Cycle Services

Centrus Energy Corp. offers nuclear fuel cycle services, including uranium enrichment, fuel fabrication, and waste management, to support the nuclear industry.

Technical Services

Centrus Energy Corp. provides technical services, including engineering, consulting, and project management, to support the nuclear industry.

Enrichment Services

Centrus Energy Corp. offers enrichment services, including uranium enrichment and downblending, to support the nuclear fuel cycle.

8. Centrus Energy Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Centrus Energy Corp. faces moderate threat from substitutes due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

Centrus Energy Corp. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Centrus Energy Corp. relies on a few key suppliers for its uranium fuel, giving them some bargaining power.

Threat Of New Entrants

The nuclear energy industry has high barriers to entry, making it difficult for new entrants to compete with Centrus Energy Corp.

Intensity Of Rivalry

The nuclear energy industry is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.38%
Debt Cost 3.95%
Equity Weight 15.62%
Equity Cost 10.76%
WACC 5.01%
Leverage 540.25%

11. Quality Control: Centrus Energy Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NACCO

A-Score: 6.2/10

Value: 7.9

Growth: 3.3

Quality: 6.3

Yield: 5.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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MRC Global

A-Score: 4.5/10

Value: 6.8

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

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Mexco Energy

A-Score: 4.2/10

Value: 7.1

Growth: 7.2

Quality: 7.5

Yield: 1.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Centrus Energy

A-Score: 3.8/10

Value: 0.0

Growth: 4.3

Quality: 7.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Amplify Energy

A-Score: 3.2/10

Value: 8.0

Growth: 3.0

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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ProPetro Holding

A-Score: 2.3/10

Value: 5.4

Growth: 3.8

Quality: 2.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

266.23$

Current Price

266.23$

Potential

-0.00%

Expected Cash-Flows