Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 29 Oct, 25 | LEU | Buy | USD 363.7 | USD 383.0 | USD 400.0 | Same day | Closed |
10.53%
|
*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 Expansion: Rose 48% year-over-year (USD 28.8 million vs. USD 19.4 million), driven by progress on the HALEU Operation Contract
Gross Profit Growth: Increased by 48% year-over-year (USD 53.9 million vs. USD 36.5 million), reflecting improved cost efficiency and favorable contract mix
Net Income Decrease: Net income decreased by 5.6% (USD 28.9 million vs. USD 30.6 million), reflecting lower sales and rising operational costs within Technical Solutions
Revenue Decline: Total revenue fell 18% (USD 154.5 million vs. USD 189.0 million) primarily due to lower LEU and uranium sales volumes
Centrus Energy’s investment outlook is primarily exposed to contract concentration risk and dependency on U.S. government programs, particularly the continuation and funding of the HALEU Operation Contract, which underpins a substantial portion of its future revenue and capacity expansion plans
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 363.7 | 310.0 | 383.0 | 400.0 |
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 Overview: Centrus Energy Corp. (NYSE American: LEU) reported net income of USD 28.9 million for Q2 FY2025, compared to USD 30.6 million in the prior-year quarter. Revenue for the period totaled USD 154.5 million, reflecting an 18% decline from USD 189.0 million in Q2 FY2024. Earnings per share were USD 1.63 (basic) and USD 1.59 (diluted). As of June 30, 2025, the company maintained a robust cash balance of USD 833.0 million, underscoring its strong liquidity position.
Operational Milestones: During the quarter, Centrus successfully completed Phase 2 of the High-Assay, Low-Enriched Uranium (HALEU) Operation Contract, meeting its contractual delivery of 900 kilograms of HALEU to the U.S. Department of Energy (DOE). This achievement validated the company’s technological capability to deliver nuclear fuel enrichment in line with federal standards. Following this milestone, the DOE exercised a portion of Phase 3 (Option 1a) of the HALEU Operation Contract, valued at approximately USD 110.0 million through June 30, 2026.
Segmental Performance: Revenue from the Low-Enriched Uranium (LEU) segment declined to USD 125.7 million from USD 169.6 million, marking a 26% reduction driven by lower volumes in both uranium and Separative Work Units (SWU). Uranium revenue dropped USD 29.9 million, while SWU revenue decreased USD 14.0 million, partially offset by a 24% increase in average SWU prices. Conversely, the Technical Solutions segment delivered a 48% increase in revenue to USD 28.8 million, primarily attributable to a USD 9.1 million rise from the HALEU Operation Contract and additional revenue from other technical contracts.
Cost Structure and Profitability: The cost of sales for the LEU segment decreased sharply by 45%, from USD 136.6 million to USD 75.0 million, driven by lower SWU volumes and an 8% reduction in average SWU unit costs. Meanwhile, costs for the Technical Solutions segment rose 61% to USD 25.6 million, due to higher expenses under the HALEU Operation Contract.
Overall, Centrus reported a gross profit of USD 53.9 million, up 48% year-over-year from USD 36.5 million. The LEU segment contributed USD 50.7 million, up 54%, while the Technical Solutions segment generated USD 3.2 million, a modest 9% decrease versus Q2 FY2024.
Balance Sheet and Capital Initiatives: During the quarter, Centrus further strengthened its financial position by raising approximately USD 114.0 million in net proceeds through an at-the-market equity offering. The proceeds are intended for general corporate purposes and to support the company’s future enrichment expansion efforts. With an USD 833.0 million consolidated cash balance, Centrus remains well-capitalized to execute its long-term strategic initiatives.
Domestic Enrichment and Contract Outlook: The DOE amended the HALEU Operation Contract to divide the first three-year option period into Option 1a (one year) and Option 1b (two years). The target cost and fee for Option 1a are USD 99.3 million and USD 8.7 million, respectively, while Option 1b—if exercised—would total USD 163.5 million and USD 15.2 million. Centrus has commenced HALEU production under Option 1a, which will support the DOE’s national nuclear fuel priorities.
Backlog and Future Commitments: As of June 30, 2025, Centrus reported a total backlog of USD 3.6 billion extending through 2040, with USD 2.7 billion attributed to the LEU segment and USD 0.9 billion to Technical Solutions. The company’s backlog includes approximately USD 2.1 billion in contingent LEU sales commitments, largely tied to the planned LEU production facility in Piketon, Ohio. In July 2025, Centrus secured an additional USD 0.1 billion LEU contingent sales commitment under a definitive agreement to further support this initiative.
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 closing market price of USD 363.70, as on Oct 28, 2025
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. |
13.33 4.99% | 280.54 | 17.25 | 19.12 | 2.42 | - | 2.33 | 12.71 |
| CCJ Cameco Corp |
5.25 4.37% | 125.47 | 125.05 | 57.80 | 6.80 | 4.81 | 9.68 | 41.12 |
| NATKY JSC National Atomic Company Kazatomprom |
- -% | 79.00 | 14.26 | 15.75 | 0.0096 | 3.56 | 0.0093 | 0.02 |
| SRUUF Sprott Physical Uranium Trust |
0.04 0.18% | 21.84 | 25.19 | 13.00 | 636.01 | 1.79 | 1968.60 | -177.8571 |
| NXE NexGen Energy Ltd. |
0.35 2.92% | 12.49 | - | - | - | 7.30 | -31.2142 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
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 as on October 29, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
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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.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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