Centrus Energy Delivers 900 Kg of HALEU to DOE, Expanding Capacity to Meet Surging Demand.

Centrus Energy has delivered 900 kg of High-Assay, Low-Enriched Uranium (HALEU) to the US Department of Energy, marking the completion of Phase II of its three-phase contract. The company plans to expand production capacity in Ohio to meet domestic demand for HALEU and low-enriched uranium, with a market value expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. Centrus Energy competes with major producers of low-enriched uranium, including Orano, Rosatom/TENEX, Urenco, and CNEIC.

Title: Centrus Energy Achieves Milestone in HALEU Production; Plans for Expansion

Centrus Energy has successfully delivered 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy (DOE), marking the completion of Phase II of its three-phase contract. This significant achievement underscores Centrus Energy's leadership in the production of HALEU, a critical fuel type for both existing and advanced nuclear reactors aiming to meet the world's growing demand for carbon-free electricity.

HALEU, with uranium enriched between 5% and 20%, offers advantages such as improved efficiency, extended fuel cycles, and lower waste compared to traditional low-enriched uranium (LEU), which contains uranium concentration below 5%. Centrus Energy, based in Piketon, Ohio, is the only source of HALEU enrichment in the Western world, giving it a clear first-mover advantage in this burgeoning market.

The company's contract with the DOE, signed in 2022, has seen Centrus Energy deliver 920 kilograms in Phase I and Phase II. On June 20, 2025, the DOE granted an extension to the contract, authorizing an additional year of production through June 30, 2026. The contract includes provisions for up to eight additional years of production, contingent upon federal appropriations and DOE discretion.

Centrus Energy plans to expand its production capacity in Ohio to meet the domestic demand for HALEU and low-enriched uranium. The market opportunity is substantial, with the HALEU market value expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. This expansion will position Centrus Energy to capitalize on the growing demand for HALEU, which is crucial for both existing and new advanced reactors.

The company competes with major producers of low-enriched uranium, including Orano (France), Rosatom/TENEX (Russia), Urenco (the Netherlands, the United Kingdom, and two German utilities), and CNEIC (China). In the uranium mining sector, Energy Fuels UUUU is aggressively ramping up production and accelerating the development of long-term pipeline projects to establish itself as a key player in the resurgence of the U.S. nuclear energy sector.

Centrus Energy's stock performance has been robust, with shares gaining 161% so far this year compared to the industry's 9.8% growth. The company is currently trading at a forward 12-month price/sales multiple of 6.57X, a significant premium to the industry's 2.97X. The Zacks Consensus Estimate for Centrus Energy's 2025 earnings is pegged at $3.48 per share, indicating a 22.15% year-over-year decline, and $2.82 for 2026, indicating a decline of 18.82%.

As the only company with a Nuclear Regulatory Commission license for HALEU enrichment, Centrus Energy is well-positioned to lead the market in this critical area of nuclear energy production. The company's strategic plans and market opportunities suggest a promising future for Centrus Energy in the growing nuclear energy sector.

References:
[1] https://finance.yahoo.com/news/centrus-energy-scale-fast-enough-140500709.html
[2] https://www.nasdaq.com/articles/can-centrus-energy-scale-fast-enough-meet-surging-haleu-demand
[3] https://www.barchart.com/story/news/33302217/can-centrus-energy-scale-fast-enough-to-meet-surging-haleu-demand