Why Centrus Energy (LEU) Is Up 8.5% After Signing Uranium Enrichment Partnership With Korean Firms

• On August 25, 2025, Centrus Energy Corp. announced that it had finalized a Memorandum of Understanding with Korea Hydro & Nuclear Power and POSCO International to explore investment in expanding its uranium enrichment plant in Piketon, Ohio, potentially increasing supply volumes under an existing contract and leveraging contingent federal funding.
• This agreement, which reinforces U.S.-Korea nuclear cooperation, may enhance Centrus's positioning as a key supplier of Low Enriched Uranium (LEU) and High-Assay, Low-Enriched Uranium (HALEU) for current and next-generation nuclear reactors.
• We'll examine how this new international partnership and plans for plant expansion could shape Centrus Energy's outlook and investment narrative.

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Centrus Energy Investment Narrative Recap

To own shares of Centrus Energy, you must believe that robust demand for nuclear fuel, supportive government policy, and strategic global partnerships will result in sustained growth in uranium enrichment and long-term revenue stability. While the newly announced MOU with KHNP and POSCO broadens Centrus’s international reach and could make plant expansion more likely, the most immediate catalyst, timely U.S. Department of Energy funding for capacity expansion, remains contingent, leaving execution risk as a top concern for now.

Among recent developments, the U.S. Department of Energy’s June extension of Centrus’ HALEU production contract to mid-2026 is especially relevant, as it underpins the company’s core growth plans and positions it to capitalize if the new partnership with Korea translates into additional government or utility-backed contracts. The alignment of expanded capacity with contract extensions is crucial for fueling backlog visibility and revenue predictability in the near term.

By contrast, investors should also be mindful of how any delays in federal funding awards or private capital inflows could...

Read the full narrative on Centrus Energy (it's free!)

Centrus Energy is projected to achieve $640.9 million in revenue and $70.3 million in earnings by 2028. This outlook is based on an expected annual revenue growth rate of 13.6%, but forecasts a decrease in earnings of $34.5 million from the current $104.8 million.

Uncover how Centrus Energy's forecasts yield a $238.46 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community estimate Centrus’s fair value from US$72.48 to US$310, with varied buckets across the spectrum. Given that revenue and earnings expectations are highly sensitive to government funding timelines, you’ll find wide differences in how participants weigh these catalysts and risks, explore how your own view compares.

Explore 8 other fair value estimates on Centrus Energy - why the stock might be worth as much as 40% more than the current price!

Build Your Own Centrus Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Centrus Energy research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Centrus Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Centrus Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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