LEU Stock: Is Centrus Energy a Buy? | Uranium Enrichment Play

Centrus Energy is the only U.S.-owned uranium enrichment company and the sole domestic producer of HALEU fuel required for next-generation nuclear reactors — a strategic monopoly tollbooth as America races to rebuild its nuclear fuel supply chain independent of Russia.

Last updated: 2026-02-02 · Data: Yahoo Finance, SEC filings, company investor presentations

The Business

Centrus Energy is America's only commercial uranium enrichment company — and that singular position makes it one of the most strategically critical tollbooths in the global energy infrastructure. The company operates the American Centrifuge Plant in Ohio, enriching natural uranium into the fuel that powers nuclear reactors. But here's what makes this more than just another uranium play: Centrus owns the only operational enrichment capacity on American soil, creating a national security moat that's essentially impossible to replicate.

The business model is straightforward — Centrus takes natural uranium and spins it through centrifuges to increase the concentration of uranium-235, the fissile isotope that enables nuclear fission. Standard reactor fuel requires enrichment to 3-5%, but Centrus is also developing High-Assay Low-Enriched Uranium (HALEU) capabilities for next-generation reactors. This isn't just about feeding today's nuclear fleet; it's about enabling the advanced reactor technologies that could reshape global energy. With 6,200 centrifuges in operation and expansion capabilities, Centrus controls a physical bottleneck that every nuclear utility in America must pass through.

By the Numbers

The Tollbooth Thesis

The uranium enrichment business exemplifies tollbooth economics at their finest — high barriers to entry, essential service, and limited global capacity. Building enrichment infrastructure requires massive capital, decades-long regulatory approvals, and technology that only a handful of countries possess. Russia's Rosatom historically dominated global enrichment, but geopolitical tensions have triggered a wholesale reshoring of nuclear fuel supply chains. The ADVANCE Act and various sanctions are effectively forcing American utilities to source enriched uranium domestically, creating a captive customer base for Centrus.

The HALEU opportunity represents the next chapter of this tollbooth story. Advanced reactors from companies like TerraPower, X-energy, and Kairos Power all require HALEU fuel that simply doesn't exist in commercial quantities in the West. Centrus received $150 million in Department of Energy funding to develop HALEU production capabilities, positioning the company as the likely monopoly supplier for an entirely new category of nuclear technology. As these advanced reactors move from demonstration to commercial deployment, Centrus could capture premium pricing on fuel that's essential to America's nuclear renaissance.

The regulatory moat here is enormous. Nuclear enrichment facilities face decades-long licensing processes, extensive security requirements, and ongoing regulatory oversight that makes new competition nearly impossible. Even if a competitor wanted to challenge Centrus, they'd be looking at billions in capital investment and regulatory approval timelines that stretch into the 2030s. Meanwhile, utilities need enriched uranium today, and Centrus is the only domestic game in town.

The Risks

• Customer concentration risk — heavy dependence on a limited number of nuclear utilities

• Geopolitical reversal — policy changes could reopen Russian/foreign enrichment imports

• Capital intensity — HALEU expansion requires significant ongoing investment with uncertain returns

• Technical execution — enrichment is complex manufacturing with potential operational disruptions

• Commodity exposure — natural uranium price volatility affects input costs and margins

• High leverage — debt-to-equity of 3.3x creates financial risk during market downturns

Income Angle

Centrus currently pays no dividend, reinvesting all cash flow into expanding enrichment capacity and developing HALEU capabilities. This makes sense given the massive growth opportunity and capital requirements ahead, but it limits the stock's appeal to income-focused investors. The company generated $166 million in free cash flow on $454 million in revenue, demonstrating the potential for significant cash generation once expansion investments moderate.

For infrastructure income investors, Centrus represents more of a growth-to-income story. As HALEU production scales and the domestic enrichment monopoly solidifies, the company could eventually transition to meaningful dividend payments. The tollbooth economics suggest sustainable cash flows once the current expansion cycle completes, but patience is required.

The Bottom Line

Centrus Energy owns America's most strategic energy infrastructure asset — the only domestic uranium enrichment capacity in a world that's rapidly reshoring nuclear supply chains. The tollbooth is real, the moat is massive, and the growth runway extends through the entire advanced reactor buildout. However, at 47x earnings with zero dividend yield, this is a bet on monopoly pricing power rather than current income generation.

Related Research

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• SRUUF: Sprott Physical Uranium Trust

Frequently Asked Questions

Is Centrus Energy (LEU) a good investment?

Centrus occupies a unique strategic position as the only U.S. company capable of enriching uranium and producing HALEU fuel. Government contracts and the ban on Russian enriched uranium create a near-monopoly for Centrus in the domestic market. The stock is volatile and trades on geopolitical headlines, but the long-term supply chain thesis is compelling for investors with risk tolerance.

What is HALEU and why does it matter?

HALEU (High-Assay Low-Enriched Uranium) is enriched to 5-20% U-235, compared to standard reactor fuel at 3-5%. It's required for next-generation reactors including TerraPower's Natrium and X-energy's Xe-100. Currently, Russia is the only commercial HALEU supplier. Centrus is the sole U.S. company with a license to produce it — a strategic asset as the U.S. bans Russian nuclear fuel imports.

How does Centrus make money today?

Centrus currently earns revenue from uranium and enrichment trading — buying and selling nuclear fuel under long-term contracts with U.S. utilities. The company's Piketon, Ohio facility is producing HALEU under a DOE contract, with plans to scale production. Revenue is growing as new contracts are signed at higher prices following the Russian fuel ban.

What are Centrus Energy's risks?

Government funding and policy dependence — Centrus relies heavily on DOE contracts for HALEU production. Changes in nuclear energy policy, delays in advanced reactor deployment, and the capital requirements to scale HALEU production are significant risks. The stock's small market cap makes it highly volatile on news headlines.

This analysis is part of Energy Macro's Tollbooth Royalties research. For our complete infrastructure income framework, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, SEC filings, company investor presentations