Centrus Energy (NYSE: LEU ) has been around for decades but started attracting more investors in 2019, when it began contracting with the US Department of Energy to enrich uranium and provide next-generation high-grade, low-enriched uranium (HALEU). In 2025, that attention increased dramatically, along with the nuclear industry in general, as HALEU was seen as a way to help meet the growing energy needs of data centers across the country. Centrus share prices rose from $54 in April 2025 to an all-time high of $464.25 in October 2025. The nuclear stock was high at the time on news that it had struck a deal with the National Nuclear Security Administration to develop low-enriched uranium for government use.
But since its all-time high, Centrus stock has fallen about 63%. Reasons for the decline include a mixed first-quarter earnings report, volatile uranium prices, and concerns about production if Russia’s LEU import ban goes into effect in 2028.
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The sharp drop in price has created a potential buy-the-dip situation for investors willing to think long term about Centrus. Here are three reasons to love the stock’s long-term potential.
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1. Centrus has an active HALEU monopoly in the US
Centrus is the only licensed US manufacturer of HALEU. That’s a big drain, especially since demand for advanced reactor fuel is expected to grow at a compound annual growth rate of 10.8% through 2033, according to a DataIntelo report. Centrus management estimates that the HALEU market opportunity could reach $8 billion annually by 2035.
The growth of the HALEU market is mainly driven by the transition to advanced nuclear technologies, including Small Modular Reactors (SMRs) and Generation IV designs. Unlike conventional reactors, these next-generation plants rely on high HALEU enrichment levels to achieve longer duty cycles, better fuel efficiency, and improved safety.
As governments and private industry push to decarbonize the energy grid and meet net-zero goals by 2050, HALEU has become critical to delivering integrated, flexible, and reliable energy systems of the future.
2. Centrus’ Q1 was mixed, but still a strong quarter
Centrus reported its first-quarter earnings on May 5, with earnings per share (EPS) coming in at $0.45, down from the $1.60 EPS it reported last year and missing estimates. However, it posted adjusted non-GAAP EPS of $1.05, beating Wall Street analyst consensus estimates of $0.33. GAAP earnings fell due to higher spending on plant expansion, management said.
Revenue for the quarter rose 4.9% year-over-year, to $76.7 million. Strong demand and strong contract execution prompted management to revise full-year revenue guidance up to $450 million to $500 million, from a previous forecast of $425 million to $475 million.
Centrus has a long-term order backlog of $3.9 billion that runs through 2040, providing clarity on the company’s future revenue.
3. Don’t bet on the government
Centrus is not just another utility or mining asset. It occupies an important, strategic position in the West’s energy infrastructure. Following the West’s aggressive push to completely remove Russia’s enriched uranium (the ban on imports comes into effect in 2028), the US government has designated domestic fuel supply as an urgent national security issue.
Centrus operates under a large financial cushion, bolstered by the Department of Energy’s multi-phase HALEU contract worth up to $900 million. This effectively reduced its capital-heavy centrifuge construction with federal taxpayer dollars.
Why the termination?
The stock’s steep year-to-date decline is largely due to shifting macroeconomic forces, near-term project execution jitters, some investor profit-taking, and year-to-date valuations. However, the underlying business performance remains incredibly strong, making it an outstanding case for low profitability in the nuclear sector.
The company’s huge backlog is growing. On June 19, the company signed an agreement with the builder of the nuclear power plant That’s right to provide enough HALEU to power up to five of Oklo’s Aurora facilities in Southern Ohio for several years, with deliveries to Oklo scheduled to begin in 2029.
Should you buy Centrus Energy shares right now?
Before buying stock in Centrus Energy, consider the following:
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James Halley has no position in any of the specified stocks. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has disclosure policy.
This Nuclear Power Stock Is Down 32%. Buy It Now Before It Sets New All-Time Highs. was first published by The Motley Fool
