Will Korean Investment and Enrichment Expansion Shift Centrus Energy's (LEU) Growth Narrative?

• Last week, Korea Hydro & Nuclear Power (KHNP) and POSCO International announced signing a Memorandum of Understanding with Centrus Energy to explore investment in expanding the uranium enrichment plant in Piketon, Ohio, and increasing low-enriched uranium supply volumes, contingent on federal funding.
• This agreement marks a significant step forward for U.S.-Korea nuclear collaboration, with potential to boost private capital participation and expand Centrus Energy’s market reach in the context of growing global nuclear energy demand.
• We'll assess how the partnership to expand enrichment capacity and secure Korean investment could influence Centrus Energy's growth outlook.

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Centrus Energy Investment Narrative Recap

Centrus Energy shareholders are largely betting on the company’s ability to quickly scale uranium enrichment capacity in step with policy-driven nuclear growth and to secure the necessary federal funding to bring new production online. The recent MOU with KHNP and POSCO International opens new private investment channels and could strengthen the company’s case for Department of Energy funding, currently the single most important short-term catalyst, yet its impact remains contingent and not yet material as all expansion efforts still hinge on federal grant approval, which is also the central risk.

Among recent announcements, the August 25, 2025, MOU with KHNP and POSCO International stands out for its relevance to the near-term outlook. With both supply contract volumes and capital commitments tied to US government support, this partnership could signal growing international interest, but until federal funding is secured, expansion remains theoretical rather than transformative.

By contrast, investors should also be mindful of how delays or changes in federal funding decisions could…

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

Centrus Energy's outlook anticipates $640.9 million in revenue and $70.3 million in earnings by 2028. This scenario assumes a 13.6% annual revenue growth rate but reflects a $34.5 million decrease in earnings from the current level of $104.8 million.

Uncover how Centrus Energy's forecasts yield a $229.30 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community estimate Centrus Energy’s fair value between US$72.48 and US$229.30 per share. While opinions are mixed, the company’s fate is still closely tied to the timely allocation of government funding, an issue that may shape earnings and future growth; weigh the range of perspectives before forming your outlook.

Explore 7 other fair value estimates on Centrus Energy - why the stock might be worth as much as 12% 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 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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