Centrus Energy Stock Forecast: (NYSE:LEU) Shares Surge to $208.67 on Nuclear Expansion and Strong Backlog
LEU rallies with 369% yearly gain, Q2 EPS of $1.59, $3.6B in orders through 2040, and analyst upgrades lifting targets toward $275 amid U.S. nuclear revival | That's TradingNEWS
NYSE:LEU Stock Analysis: Centrus Energy Surges as Nuclear Revival Gains Momentum
Centrus Energy (NYSE:LEU) real-time chart extended its remarkable rally with shares climbing 12.6% to $208.67, adding nearly $23 in a single session. The move underscores the company’s role as the only listed U.S. supplier of enriched uranium at scale, a sector gaining urgency as Washington accelerates efforts to rebuild nuclear fuel independence. The stock has been highly volatile, swinging from a 52-week low of $34.91 to a peak of $264.90, delivering a staggering 369% annual gain.
Earnings Strength and Margin Expansion
In the most recent quarter, Centrus reported revenue of $154.5 million, slightly lower year-on-year but well ahead of the $130.6 million analyst estimate. Net income reached $28.9 million with diluted EPS of $1.59, a stark turnaround from negative EPS a year earlier. Gross margin surged to 35% compared to 19% last year, with EBIT margin at 28.1%, reflecting disciplined cost management despite revenue fluctuation. On a trailing-twelve-month basis, the company posted revenue of $436.9 million, net income of $104.8 million, and diluted EPS of $6.17, giving a trailing P/E multiple of 33.8.
Liquidity and Balance Sheet
Centrus ended the quarter with a robust $833 million in cash, equivalent to nearly $46 per share, a cushion that allows it to self-finance key projects if federal funding lags. Debt stood at $429.8 million, producing a debt-to-equity ratio of 119.7%. While leverage remains elevated, the current ratio of 2.6 signals strong liquidity. Free cash flow of $118.9 million reinforces the balance sheet and gives flexibility to support expansion of the Piketon, Ohio enrichment facility.
Strategic Partnerships and MOU with Korea
Momentum accelerated after Centrus signed a Memorandum of Understanding with Korea Hydro & Nuclear Power and POSCO International to expand uranium enrichment in Ohio. The MOU, although non-binding, strengthens credibility as KHNP is one of the world’s most significant nuclear operators with 26 reactors online and four under construction. The agreement builds on a February 2025 supply deal and raises the expected delivery volume of low-enriched uranium. Evercore ISI described the MOU as evidence of “confidence behind Centrus and centrifugal enrichment,” reiterating an Outperform rating with a $252 price target.
Backlog and HALEU Production
Centrus carries a $3.6 billion backlog stretching through 2040, with $1.8 billion already in binding contracts. This provides revenue visibility that few uranium suppliers can match. The Department of Energy recently extended its contract with Centrus for high-assay low-enriched uranium (HALEU), already leading to nearly one ton produced at Piketon. The contract runs through 2026 with an option to extend to 2034, positioning Centrus at the heart of the U.S. government’s advanced nuclear initiatives. The $60 million investment in supply chain readiness reflects its intent to deliver centrifuge capacity once DOE approvals are finalized.
Analyst Upgrades and Market Targets
Multiple firms have boosted outlooks following Q2. Northland raised its target from $205 to $275, citing domestic enrichment momentum. Stifel lifted its target to $242 with a Buy rating, while Evercore reaffirmed $252. Roth Capital, more conservative, adjusted to $108 after noting a revenue shortfall but praised the EPS strength. The consensus now sits near $229.30, offering upside from the $208.67 current price.
Stock Performance and Technical Landscape
The stock has advanced more than 350% over the past year but also corrected 26% from highs before rebounding on recent news. With average daily volume of 1.45 million shares and short interest at 16.1% of float, volatility remains elevated. The 50-day moving average at $200.34 and the 200-day average at $113.66 show the long-term uptrend is intact. LEU trades at 7.2x sales and 9.4x book value, multiples that reflect scarcity of U.S. enrichment assets but also leave little room for operational missteps.
Leadership Changes and Execution Risk
The appointment of Todd Tinelli as CFO signals a fresh push toward financial discipline. Outgoing CFO Kevin Harrill remains through transition to ensure continuity. Leadership changes arrive as Centrus manages complex timelines: the first centrifuge cascade takes 42 months to deploy, the second 6 months, and each subsequent cascade 2 months, a process demanding execution precision. Political uncertainty remains the largest external risk. DOE delays, shifting tariffs, and potential uranium price swings could alter the pace of ramp-up.
Institutional and Insider Dynamics
Institutional holders control roughly 75% of outstanding shares, underscoring confidence from funds and pensions in the long-term nuclear thesis. Insiders hold 4.5%, modest but higher than many peers, while short sellers remain active. Any insider moves can be tracked via LEU insider transactions, important signals in a high-beta name that frequently reacts to sentiment shifts.
Verdict on NYSE:LEU
At $208.67, Centrus Energy (NYSE:LEU) sits at a crucial point. The fundamentals—$3.6B backlog, $833M cash, 35% gross margin—make it a strategic asset in the U.S. nuclear supply chain. The premium valuation, however, requires flawless execution and continued political support. With analyst targets ranging from $229 to $275, the stock has room to advance if enrichment expansion and HALEU contracts stay on track. Given its scarcity value in uranium enrichment, coupled with strong balance sheet liquidity, the call here is Buy, though investors must brace for volatility tied to policy risk and quarterly delivery swings.
