Why Is Nuclear Energy Stock Centrus Bleeding Red?
Key Points
Centrus Energy's guidance has disappointed investors.
Centrus, however, is a solid long-term bet with a massive backlog and competitive advantage.
- 10 stocks we like better than Centrus Energy ›
Shares of Centrus Energy (NYSE: LEU) slumped over 11% on Thursday, extending their previous day's losses and losing 20% value so far in 2025, as of this writing. This is the same stock that was up over 500% in 2025 through mid-October.
What's happening to the once red-hot nuclear energy stock?
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Behind Centrus Energy's earnings miss
Centrus Energy supplies nuclear fuel and services for the nuclear energy industry. It is among the few companies in the U.S. producing HALEU (high-assay, low-enriched uranium), a critical fuel for advanced nuclear reactors. Expectations from Centrus have been running high, especially amid President Donald Trump's pro-nuclear moves and the company's backing from the U.S. Department of Energy (DOE).
On Feb. 11, Centrus even announced a partnership with engineering, procurement, and construction giant, Fluor to engineer and design the expansion of its facility in Ohio to support large-scale production of HALEU.
Surely, that's a step in the right direction, as Centrus has already signed definitive sale commitments for low-enriched uranium (LEU) worth $2.1 billion and must scale up production to fulfill the contracts. Its total backlog
So why's the stock plunging?
Centrus failed to meet analysts' expectations and reported a 3.5% drop in revenue for its fourth quarter on Feb. 11. Its revenue was almost flat while net income slipped 6.3% for the whole year. Centrus is also guiding for flat revenue for 2026.
Is Centrus stock a buy on the dip?
The danger with stocks like Centrus Energy is that expectations get priced in too fast, triggering a heavy sell-off on any miss.
The real story for Centrus, though, isn't a single quarter or even a few quarters, which explains why most analysts remain bullish even after earnings. Analysts at Roth Capital, for instance, even raised their price target on the nuclear energy stock to $137 apiece from $125 per share after earnings. That price target, however, is significantly below Centrus Energy's Wednesday closing price of around $210 per share, which is perhaps why the stock fell further on Thursday.
Centrus Energy's backlog, however, already extends to 2040, and its dominance in HALEU is a significant competitive advantage. Those are the things investors should keep in mind while ignoring the short-term noise.
Should you buy stock in Centrus Energy right now?
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Neha Chamaria 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.
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