LEU nuclear energy shares open down 4%, now up over 10%

LEU nuclear energy shares open down 4%, now up over 10%

Centrus Energy Corp. (NYSE:LEU) experienced a significant swing in its share price on September 12, 2025, opening down by 4% but subsequently rebounding to be up over 10% . The stock's volatility can be attributed to a combination of recent developments and investor sentiment.

The company's expansion plans, particularly the announced project to expand its uranium enrichment plant in Piketon, Ohio, have garnered significant attention. This expansion, which could generate over 1,000 construction jobs and 300 new operations jobs, is set to produce both low-enriched uranium (LEU) and high-assay, low-enriched uranium (HALEU) . The project's success hinges on federal funding decisions from the U.S. Department of Energy, which could significantly impact Centrus Energy's financial outlook.

The latest contract extension from the U.S. Department of Energy further solidifies Centrus Energy's position as a key supplier of critical fuel for next-generation nuclear reactors. The extension authorizes the company's Piketon facility to continue production through June 2026, with options for further extension . This contract extension is seen as a vote of confidence in Centrus Energy's ability to meet the growing demand for HALEU, a critical fuel for advanced nuclear reactors.

Investors have been closely monitoring Centrus Energy's ability to execute on its expansion plans and secure additional contracts. While the company has shown strong liquidity metrics and solid financial health, persistent execution risk remains a significant short-term threat . Delays in scaling capacity or securing follow-on contracts could impact margins and revenue, potentially affecting the company's long-term growth prospects.

Despite the volatility, Centrus Energy's exclusive HALEU production license and strong market positioning in the nuclear fuel supply chain make it an attractive investment for those who believe in the long-term potential of the U.S. nuclear sector. However, investors should remain cautious and monitor the company's progress closely, as the stock's valuation is currently high and may be sensitive to changes in contract activity or production ramp-up.