LEU - Centrus Energy Corp.

Centrus Energy Corp. supplies low-enriched uranium (LEU) fuel for nuclear power plants, with its American Centrifuge Plant in Piketon, Ohio producing HALEU (high-assay low-enriched uranium) for next-generation reactors. The business model combines long-term supply contracts with U.S. and international commercial utilities plus government contracts with the U.S. Department of Energy for HALEU production. Annual revenue is approximately $300-400M, with operations and customers primarily in North America. The company also provides technical and operational services to nuclear fuel cycle facilities under government cost-plus and fixed-price contracts.

Past Year Trends

• Centrus reported FY2024 total revenue of $442.0 million, up approximately 38% year-over-year from $320.2 million in FY2023, with uranium revenue specifically rising 70% driven by a 50% increase in average realized price and 13% higher volume sold. (Bullish)
• Net income declined from $84.4 million in FY2023 to $73.2 million in FY2024 despite the revenue surge, as cost of sales in the LEU segment rose from $163.9 million to $256 million, compressing gross margins and signaling rising production-cost pressure at the Piketon facility. (Bearish)
• In October 2024, the Department of Energy selected Centrus for both the HALEU Deconversion Contract (max aggregate $0.8 billion across all awardees) and the HALEU Production Contract expansion (max aggregate $2.7 billion across all awardees), materially expanding the company's government contract pipeline beyond its existing $3.7 billion backlog as of December 31, 2024. (Bullish)

Next Year Trends

• Centrus is in active negotiation with the DOE on a ~$900 million award to expand its Piketon, Ohio enrichment facility toward a 12-metric-ton-per-year HALEU production capacity; final contract execution and the pace of construction hiring (targeting 1,000 construction jobs and 300 permanent operating roles) represent the primary near-term binary catalyst for the stock. (Bullish)
• The Phase III HALEU Operation Contract, valued at approximately $110 million and running through June 30, 2026, expires within the next 12 months, and DOE holds discretionary options for up to eight additional annual extensions subject to congressional appropriations — making the FY2027 budget cycle and any continuing-resolution risk a direct headwind to revenue continuity. (Bearish)
• The National Nuclear Security Administration notified Centrus of intent to sole-source certain uranium enrichment activities to the company as the only production-ready domestic option for national security missions; finalization of that sole-source contract in the next 12 months would add a distinct, non-competitive revenue stream on top of the existing commercial LEU backlog of approximately $3.0 billion. (Bullish)

Red Flags

No severe red flags identified as of May 2026.