LEU Shares Fall 19% Over Three Months: Is Now a Good Time to Invest?

Centrus Energy Stock Performance Compared to Industry and Peers

Over the last three months, Centrus Energy (LEU) shares have fallen by 19.3%. This contrasts sharply with the Mining – Non Ferrous sector, which saw a 31.4% increase. During the same period, the Zacks Basic Materials sector rose 15.2%, while the S&P 500 slipped 0.6%.

Other uranium companies, including Cameco (CCJ) and Energy Fuels (UUUU), performed notably better, posting gains of 31.3% and 39.4%, respectively.

LEU’s Recent Performance vs. Industry Benchmarks

Source: Zacks Investment Research

Centrus Energy’s Valuation Premium

Currently, Centrus Energy trades at a forward price-to-sales ratio of 8.51, which is significantly higher than the industry average of 4.92. Its Value Score of F suggests the stock is overvalued.

Despite this premium, Centrus Energy (LEU +0.95%) is priced below Cameco (CCJ -1.70%) and Energy Fuels (UUUU +0.52%), which have forward price-to-sales ratios of 19.98 and 29.70, respectively.

Given LEU’s recent lagging performance, investors must consider whether its fundamentals and growth prospects warrant its current valuation.

Fourth Quarter Results and Outlook for 2026

For the fourth quarter of 2025, Centrus Energy reported revenues of $146 million, marking a 4% decrease from the previous year. The Low-Enriched Uranium segment saw a 2% increase to $124 million, driven by a 128% jump in Separative Work Units (SWU) revenue to $111 million. However, uranium sales dropped 82% to $13.4 million, largely due to a significant one-off uranium transaction in Q4 2024.

The Technical Solutions segment experienced a 27% year-over-year decline, totaling $21.8 million.

Gross profit fell 43% compared to last year, as the cost of sales rose 24%. Gross margin shrank to 24% from 41%, and operating margin dropped to 9% from 30%. Adjusted earnings per share came in at $0.79, a 75% decrease year-over-year.

A delayed shipment from Russia, originally expected in Q4, was postponed to Q1 2026, negatively impacting margins and net income.

For 2026, Centrus Energy anticipates revenues between $425 million and $475 million, with the midpoint indicating flat growth. The company ended 2025 with a strong backlog of $3.8 billion, including long-term utility contracts extending through 2040. The Low-Enriched Uranium segment accounts for approximately $2.9 billion of this backlog.

Expansion Initiatives to Increase Production

In September 2025, Centrus Energy unveiled plans to expand its uranium enrichment facility in Piketon, Ohio, aiming to ramp up production of both Low-Enriched Uranium and High-Assay, Low-Enriched Uranium (HALEU). By December, domestic centrifuge manufacturing began to support commercial LEU enrichment, strengthening the company’s leadership in U.S.-based uranium enrichment.

This expansion is intended to fulfill over $2.3 billion in contingent LEU sales contracts with customers in the U.S. and abroad. Centrus targets annual HALEU production of 12 metric tons after 2030, with initial output expected by the end of the decade.

On January 5, 2026, the Department of Energy awarded Centrus Energy a $900 million task order to further expand its Piketon facility for commercial-scale HALEU production, pending final negotiations.

Centrus is also in talks with Oklo Inc. (OKLO) to form a joint venture focused on HALEU deconversion services and advancing fuel-cycle technologies. This partnership would operate at Piketon, adjacent to Oklo’s planned 1.2-gigawatt nuclear campus, potentially streamlining supply chains and boosting domestic nuclear fuel capacity.

Debt Levels: A Key Risk Factor

As of December 31, 2025, LEU’s debt-to-total capital ratio stood at 0.61. In comparison, Cameco’s ratio is 0.13, and Energy Fuels maintains a debt-free balance sheet.

Downward Trend in Earnings Estimates

Over the past two months, consensus estimates for Centrus Energy’s earnings per share for 2026 and 2027 have been revised lower.

Source: Zacks Investment Research

The projected earnings for 2026 are $3.27 per share, reflecting a 16% year-over-year decrease. For 2027, the estimate is $3.38 per share, indicating a slight increase of 1.84%.

Source: Zacks Investment Research

HALEU Market Opportunity and Reactor Demand

Centrus Energy supplies the enrichment component of low enriched uranium, measured in SWUs, to utilities operating commercial nuclear plants. Its facilities currently process 3.5 million SWUs annually, with potential to scale up to 7 million SWUs.

As the only licensed HALEU producer in the Western world, Centrus stands to benefit from rising demand for HALEU to fuel both existing and next-generation reactors. The HALEU market is projected to reach $8 billion annually by 2035, giving Centrus a strategic edge.

The first new cascade is expected to be operational in 2029, with some HALEU production before 2030 and full-scale output of 12 metric tons per year soon after. However, the lengthy timeline remains a concern.

Investment Considerations for LEU

Centrus Energy is instrumental in revitalizing the U.S. uranium enrichment supply chain, which has suffered from years of underinvestment. Its ambitious expansion and HALEU strategy position the company for sustained growth as demand for advanced reactors increases.

The company’s leadership in HALEU offers a significant early advantage, though it may take time for these benefits to be fully realized. Existing shareholders may wish to hold their positions to capitalize on long-term prospects. Prospective investors, however, might consider waiting for a more favorable entry point, given the stock’s premium valuation, near-term earnings challenges, downward revisions, and high debt levels. Currently, Centrus Energy holds a Zacks Rank #3 (Hold).