Why Centrus Energy (LEU) Is Up 14.4% After Massive Nuclear Fuel Expansion And Centrifuge Push

• Centrus Energy recently began domestic centrifuge manufacturing to support a multi-billion-dollar expansion of Low-Enriched Uranium production at its Piketon, Ohio plant, underpinned by more than US$1.60 billion in cash, US$1.20 billion in convertible note financing, and US$2.30 billion in contingent LEU sales commitments.
• The company is also preparing future High-Assay, Low-Enriched Uranium output, courting foreign investment from partners such as Korea Hydro & Nuclear Power and POSCO International, and expanding facilities in Ohio and Tennessee to anchor a U.S.-controlled nuclear fuel supply chain.
• Next, we’ll examine how Centrus’ decision to manufacture its own centrifuges at scale could reshape the investment narrative around its growth.

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Centrus Energy Investment Narrative Recap

To own Centrus, you need to believe that U.S.-controlled enrichment capacity will keep tightening its grip on Western nuclear fuel supply, and that the company can turn today’s contracts and cash into functioning LEU and HALEU production lines. The move into domestic centrifuge manufacturing directly touches the main near term catalyst, which is converting US$2.30 billion of contingent LEU commitments into firm revenue, while also heightening execution risk around cost, timing and technical delivery.

The most relevant development here is Centrus’ decision to start manufacturing centrifuges in Tennessee to supply its planned multi billion dollar LEU expansion in Piketon, Ohio. This step links directly to the 2029 production timeline and the need to hit Department of Energy and customer milestones so that its US$1.60 billion cash balance, US$1.20 billion in convertible notes and contingent contracts support actual capacity rather than sitting idle.

Yet investors should also weigh what happens if those contingent LEU contracts slip or federal funding arrives more slowly than expected, leaving Centrus with...

Read the full narrative on Centrus Energy (it's free!)

Centrus Energy's narrative projects $640.9 million revenue and $70.3 million earnings by 2028.

Uncover how Centrus Energy's forecasts yield a $279.73 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Nine Simply Wall St Community members currently see Centrus’ fair value between US$96 and US$310, reflecting very different expectations about its future. As you compare these views, keep in mind that much of the current optimism rests on Centrus scaling enrichment capacity in line with policy support and customer contracting, a process that could materially influence how those projections play out over time.

Explore 9 other fair value estimates on Centrus Energy - why the stock might be worth as much as 18% more than the current price!

Build Your Own Centrus Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Centrus Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Centrus Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Centrus Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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