Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 9 Sep, 25 | LEU | Buy | USD 208.46 | USD 219.0 | USD 230.0 | 1 day | Closed |
7.57%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
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.
Technical Solutions Revenue Growth: Revenue in the Technical Solutions segment rose to USD 28.8 million in Q2 2025 from USD 19.4 million in Q2 2024, marking a 48% increase
Improved Gross Profit: Gross profit increased to USD 53.9 million in Q2 2025 from USD 36.5 million in Q2 2024, reflecting a 48% year-over-year growth
Reduction in Net Income: Net income decreased to USD 28.9 million in Q2 2025 from USD 30.6 million in Q2 2024, reflecting a 6% decline
Decline in Total Revenue: Revenue fell to USD 154.5 million in Q2 2025 from USD 189.0 million in Q2 2024, representing an 18% year-over-year decrease
Centrus Energy’s heavy reliance on long-term government contracts and contingent commitments, combined with the need for substantial public and private investment to expand enrichment capacity, poses significant execution and funding risks for investors
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 208.46 | 187.5 | 219.0 | 230.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Performance: Centrus Energy Corp. (NYSE American: LEU) reported second quarter 2025 financial results with net income of USD 28.9 million on revenue of USD 154.5 million, compared to net income of USD 30.6 million on revenue of USD 189.0 million in the second quarter of 2024. This translated to earnings per share of USD 1.63 (basic) and USD 1.59 (diluted).
Segment Revenue Breakdown: Revenue from the Low-Enriched Uranium (LEU) segment stood at USD 125.7 million in Q2 2025, down from USD 169.6 million in Q2 2024, primarily due to a lower sales volume of uranium and Separative Work Units (SWU). Conversely, the Technical Solutions segment recorded USD 28.8 million in revenue during Q2 2025, an increase from USD 19.4 million in Q2 2024, mainly driven by the Department of Energy’s HALEU Operation Contract.
Cost Structure and Profitability: The cost of sales for the LEU segment declined by USD 61.6 million year-over-year, totaling USD 75.0 million in Q2 2025 compared to USD 136.6 million in Q2 2024. For Technical Solutions, costs rose to USD 25.6 million in Q2 2025 from USD 15.9 million in Q2 2024, reflecting increased expenditure under the HALEU Operation Contract. Overall, Centrus delivered a gross profit of USD 53.9 million in Q2 2025, up from USD 36.5 million in Q2 2024, a 48% improvement.
Operational Achievements: During Q2 2025, Centrus successfully completed Phase 2 of the HALEU Operation Contract, delivering 900 kilograms of HALEU to the Department of Energy. This milestone confirmed the company’s ability to meet contractual production targets and demonstrated the reliability of its enrichment technology. Following this achievement, the DOE exercised part of Phase 3 of the contract, valued at approximately USD 110.0 million through June 30, 2026.
Capital and Liquidity Position: As of June 30, 2025, Centrus held a consolidated cash balance of USD 833.0 million. Additionally, the company raised USD 114.0 million in net proceeds during the quarter through its at-the-market equity offering, further strengthening its liquidity and providing resources for general corporate purposes.
Contractual Backlog: The company reported a total backlog of USD 3.6 billion as of June 30, 2025, extending through 2040. This includes approximately USD 2.7 billion in the LEU segment, comprising both fixed commitments and contingent sales agreements, and USD 0.9 billion in the Technical Solutions segment. In July 2025, Centrus secured an additional USD 0.1 billion contingent LEU sales commitment in support of potential construction of LEU production capacity at its Piketon, Ohio facility.
Strategic Outlook: Centrus emphasized its role as a publicly traded, American enrichment provider in a market largely dominated by foreign state-owned enterprises. With continued execution of the HALEU contract, a robust backlog, and expanding production capabilities, the company positioned itself as a critical player in strengthening U.S. nuclear fuel supply chains and supporting the transition to advanced nuclear technologies.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Centrus Energy Corp. (NYSE: LEU) at the current market price of USD 24.78, as on Sep 09,2025 at 7:05 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Uranium
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| LEU Centrus Energy Corp. |
5.03 2.27% | 226.12 | 17.25 | 19.12 | 2.42 | - | 2.33 | 12.71 |
| CCJ Cameco Corp |
2.18 2.57% | 87.03 | 125.05 | 57.80 | 6.80 | 4.81 | 9.68 | 41.12 |
| NATKY JSC National Atomic Company Kazatomprom |
- -% | 53.10 | 14.26 | 15.75 | 0.0096 | 3.56 | 0.0093 | 0.02 |
| SRUUF Sprott Physical Uranium Trust |
0.74 4.09% | 18.82 | 25.19 | 13.00 | 636.01 | 1.79 | 1968.60 | -177.8571 |
| NXE NexGen Energy Ltd. |
0.23 2.87% | 8.44 | - | - | - | 7.30 | -31.2142 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 09,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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