Up Over 487% in the Past Year, Why Aren't More People Talking About Centrus Energy Stock?

Key Points

• The nuclear energy sector is experiencing a revival due to global initiatives aimed at increasing nuclear capacity by 2050.

• Centrus Energy is the only licensed U.S. producer of high-assay low-enriched uranium (HALEU), crucial for next-generation reactors.

• Centrus Energy's stock price has soared in the past year, reflecting the positive market sentiment surrounding nuclear energy and its role in U.S. production.

• These 10 stocks could mint the next wave of millionaires ›

Nuclear power is gaining momentum as countries face the challenge of addressing growing energy demand while reducing their carbon footprints. In recent years, 31 countries signed the Declaration to Triple Nuclear Energy Capacity by 2050, acknowledging nuclear's role in delivering zero-emission baseload power.

In addition, 14 global banks and financial institutions, including Goldman Sachs, Morgan Stanley, and Citigroup, publicly endorsed the nuclear expansion initiative during Climate Week.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Amidst this resurgence in nuclear energy, Centrus Energy (NYSEMKT: LEU) stock has surged 487%. The stock has flown under the radar to some degree, as investors have focused on Cameco and Oklo. Here's why Centrus Energy deserves a further look.

Centrus Energy provides enriched uranium for nuclear power providers

Centrus Energy Corp supplies nuclear fuel components and provides enrichment and technical services for customers.

It operates through two distinct business segments. Its low-enriched uranium (LEU) segment accounts for the majority of the company's revenue. In this segment, it sells LEU, the fissile component of most nuclear fuel, to utilities that operate commercial nuclear power plants. It also sells natural uranium hexafluoride (the raw material for LEU), uranium concentrates, uranium conversion services, or combined LEU products.

In its technical solutions segment, it provides advanced uranium enrichment for the nuclear industry and the U.S. government, as well as advanced manufacturing, engineering, and other technical services to both government and private sector customers. A significant portion of this segment's revenue comes from the high-assay low-enriched uranium (HALEU) operation contract with the Department of Energy (DOE).

Currently, there are no commercially active HALEU reactors, only test reactors. The main driver for HALEU is the fleet of advanced reactors now under development, such as Oklo's Aurora microreactor. However, these advanced reactors may not be operational until the late 2020s or early 2030s.

Centrus has a robust competitive advantage in the U.S.

Centrus Energy possesses several attributes that differentiate it in the nuclear fuel market. For one, it is the only Nuclear Regulatory Commission (NRC) licensed producer of HALEU for both commercial and national security applications, and it's the only company known to produce HALEU outside of Russia. This position is vital as HALEU is a necessary fuel for next-generation nuclear reactors.

It is also the only American company with a proven enrichment technology capable of meeting both commercial and national security needs. This makes it a crucial piece of the domestic nuclear fuel supply chain and key to national security. In this position, Stifel analysts have noted that Centrus is "uniquely positioned" to play a major role in rebuilding the nuclear enrichment supply chain.

The U.S. ban on Russian LEU imports, which took effect in August 2024, will phase in fully by 2028, when waivers allowing limited Russian deliveries expire. This creates a significant need to replace approximately 25% of enriched uranium currently imported from Russia.

To address this, Centrus plans to restart large-scale domestic LEU enrichment at its Piketon, Ohio plant, supported by its Oak Ridge centrifuge manufacturing facility. This expansion hinges on Department of Energy funding, private investment, and long-term customer commitments. If successful, Centrus could transition from reseller to America's key producer, reducing dependence on foreign enrichment.

On top of that, President Donald Trump signed executive orders targeting faster nuclear deployment. These major policy tailwinds and growing federal support, including a $3.4 billion fund for domestic nuclear fuel initiatives, are significant drivers for Centrus' business.

Image source: Getty Images.

One thing to note is that the development of nuclear infrastructure in the U.S. will take time. The long-term outlook for the build-out is a positive thing, but it won't be a smooth ride in getting there.

Centrus' expansion plans, particularly for LEU and HALEU production, are capital-intensive and long-dated. The first uranium enrichment cascade (which is a series of gas centrifuges connected in stages to gradually increase the concentration of uranium-235) will take around 42 months.

Is Centrus Energy a buy?

In the past year, Centrus Energy stock has surged over 487%, driven by the positive news flow around nuclear energy. Following the run-up, the stock is quite expensive, trading at 37 times its trailing-12-month earnings and 49 times this year's projected earnings.

The stock has real catalysts for going higher, and its position is strong as the only company in the U.S. that can enrich uranium. With the U.S. focusing on bringing precious resource mining and production back to America, Centrus is uniquely positioned to fill the void left by Russia.

The nuclear story will take time to play out, and the current stock price has already factored in a significant amount of growth for investors who choose to purchase shares today. That said, it is a safer play compared to NuScale Power or Oklo, which are years away from offering commercial products. Given its key role in U.S. nuclear energy, Centrus may be worth the high price tag for patient, long-term-focused investors.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,067%* — a market-crushing outperformance compared to 190% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of September 15, 2025

Citigroup is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in Cameco and Morgan Stanley. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Cameco and NuScale Power. The Motley Fool has a disclosure policy.