Nuclear Renaissance Drives Centrus Energy Stock to New Heights: Should You Buy Now?

Centrus Energy shares have surged 450% since a deal to reopen Three Mile Island and President Trump's executive orders to accelerate nuclear power development. Tight uranium supplies and lack of domestic enrichment make Centrus a key nuclear player. However, the share price is high and near-term earnings growth prospects appear limited.

Centrus Energy (LEU) shares have experienced a remarkable surge, rising over 450% since a deal to reopen Three Mile Island and President Trump's executive orders to accelerate nuclear power development. The stock's performance has been driven by several key factors, including tight uranium supplies, the lack of domestic enrichment capabilities, and Centrus' strategic position in the nuclear industry.

Centrus Energy, a U.S.-based nuclear fuel supplier, has seen its stock price soar due to a combination of market sentiment, geopolitical factors, and the company's expansion plans. The company's stock has more than doubled since the beginning of 2025, reaching a new 52-week high of $265.48 per share [1].

One of the primary drivers behind Centrus' stock surge is the global demand for uranium, which has been on the rise due to the increasing popularity of nuclear energy as a carbon-free power source. Uranium prices have recently jumped above $80/lb, the highest level in over a decade, reflecting the growing demand for reactor fuel [2].

The geopolitical landscape has also played a significant role in Centrus' stock performance. The fallout from Russia's war in Ukraine has led to a ban on Russian uranium imports in the U.S., creating uncertainty in the supply chain. Russia historically supplied around 20-30% of the U.S.' enriched uranium, but exports are now in question. Centrus has secured a U.S. government waiver to continue importing limited Russian LEU through 2027 to fulfill existing customer contracts, but the future of this arrangement remains uncertain [3].

To address the lack of domestic enrichment capabilities, Centrus announced a multi-billion-dollar expansion of its uranium enrichment plant in Piketon, Ohio, in September 2025. The project, pending U.S. Department of Energy funding, aims to add 1,000 construction jobs and 300 operations jobs and significantly boost capacity for Low-Enriched Uranium (LEU) and High-Assay Low-Enriched Uranium (HALEU) [4]. The expansion is seen as critical for national security and is supported by bipartisan backing in the U.S. government.

Centrus' strong financial performance has also contributed to its stock surge. The company reported a net income of $28.9 million in Q2 2025, with gross margins improving to around 35% [5]. The company's order backlog, which extends to 2040, is valued at $3.6 billion, providing excellent revenue visibility for the foreseeable future [6].

However, despite the positive outlook, some analysts have expressed caution about Centrus' stock valuation. While the average 12-month price target is around $244, targets range from $108 to $310, reflecting differing outlooks on the company's potential growth [7]. Some analysts warn that the stock's valuation has run far ahead of fundamentals, while others argue that Centrus is uniquely positioned for decades of growth in a nuclear renaissance [8].

In conclusion, Centrus Energy's stock surge can be attributed to a combination of market sentiment, geopolitical factors, and the company's strategic position in the nuclear industry. However, investors should be mindful of the potential risks and uncertainties associated with the company's expansion plans and the current market valuation.