Centrus' Backlog Hit $5.4 Billion. Its Quarterly Revenue Was $55 Million. Here's How Those Numbers Fit Together.

Centrus Energy (NYSE: LEU) is a linchpin of the nuclear energy market. It's one of the few U.S. companies licensed to sell low-enriched uranium (LEU), the most common fuel for conventional nuclear reactors. It's also the only publicly traded U.S. producer of high-assay low-enriched uranium (HALEU) for next-gen nuclear reactors.

Centrus' contingent LEU and HALEU backlog swelled to $5.4 billion at the end of the third quarter of 2026, up from $3.0 billion in the second quarter. However, it only generated $55.5 million in revenue in the third quarter. In the first nine months of 2026, it generated $308.3 million in revenue, and it expects that figure to reach $450-$500 million for the full year. Let's see why there's such a huge gap between its backlog and reported revenue.

Centrus' backlog vs. revenue

Centrus' growing backlog looks impressive, but those commitments extend through 2040. Meanwhile, its quarterly and annual revenues include only the orders it delivers, bills, and recognizes under generally accepted accounting principles (GAAP) within that period.

Nuclear power utilities also typically secure their supply chains years in advance through long-term contracts. So while Centrus is locking in more contracts, they won't necessarily boost its near-term revenue. Instead, analysts expect Centrus' annual revenue to grow at only a 3-year CAGR of 2.6%, from $448.7 million in 2025 to $484.5 million in 2028. They expect its net income to decline from $77.8 million in 2025 to $66.9 million in 2028.

Centrus faces other near-term headwinds

Some major changes will also throttle Centrus' near-term growth. About 13 years ago, Centrus stopped enriching its own LEU in the U.S. after it became cheaper to import LEU from overseas and resell it to U.S. utilities. But in recent years, the sanctions against Russia and the U.S. push toward energy independence drove Centrus to restart its domestic LEU plants.

The U.S. plans to ban all Russian uranium imports by 2028, before Centrus can fully restart its domestic LEU operations or ramp up HALEU production. That's why its growth will remain sluggish over the next few years, even as the nuclear energy market expands.

With an enterprise value of $3.4 billion, Centrus might seem reasonably valued at seven times this year's sales. However, it faces more near-term challenges than many other nuclear companies that aren't undergoing massive, capital-intensive transformations. I'd keep an eye on this stock, but I wouldn't buy it before other more promising nuclear power stocks.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.