Will Centrus Energy’s (LEU) Expansion Reflect a New Phase for Its Supply Chain Strategy?

• In recent weeks, Centrus Energy announced plans to expand its uranium enrichment plant in Ohio, following a waiver from the U.S. Department of Energy permitting imports of low enriched uranium from Russia through 2027 and a new memorandum of understanding with Korean firms regarding facility investment.
• This expansion illustrates how international collaboration and regulatory flexibility are shaping the company's response to evolving nuclear energy policy and supply chain dynamics.
• We’ll now explore how Centrus Energy’s planned enrichment facility expansion could influence its overall investment narrative and growth prospects.

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Centrus Energy Investment Narrative Recap

To be a shareholder in Centrus Energy, you must believe in the long-term need for nuclear fuel, the company’s unique U.S. enrichment capability, and its ability to secure government and utility contracts. The recent Ohio plant expansion, tied to a DOE waiver and Korean partnership, boosts market optimism by addressing supply chain constraints, but whether it materially accelerates federal contract commitments or mitigates approval delays, the core growth catalyst and biggest risk, remains to be seen.

Among the latest developments, Centrus’s Memorandum of Understanding with Korean firms directly relates to capacity expansion and investment in the Piketon facility. This formal alliance reinforces demand for enrichment services and could support near-term scale-up, yet execution remains highly dependent on timely allocation of federal funding, the factor most likely to influence new contract wins and financial visibility.

By contrast, investors should closely watch for indications that federal funding delays 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 analysts forecasting a 13.6% annual revenue growth rate, but a decline in earnings of $34.5 million from the current level of $104.8 million.

Uncover how Centrus Energy's forecasts yield a $258.05 fair value, a 29% downside to its current price.

Exploring Other Perspectives

Nine fair value estimates from the Simply Wall St Community span US$72.48 to US$310, showing a wide range. With much of Centrus’s future tied to government contract timing, these diverse opinions invite you to consider multiple possible outcomes for the business.

Explore 9 other fair value estimates on Centrus Energy - why the stock might be worth as much as $310.00!

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 2 key rewards 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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