The Department of Energy (DOE) has recently committed $2.7 billion in contract awards targeting uranium enrichment capacities that span a broad spectrum of industry needs. These contracts support both low-enriched uranium (LEU), which fuels the current generation of nuclear reactors, and high-assay low-enriched uranium (HALEU), a critical fuel type tailored for cutting-edge reactor designs.
Within this allocation, Centrus Energy (NYSE:LEU) stands out as a key recipient, securing $900 million aimed at scaling up its existing HALEU production. The company plans to enhance its current output capability, which handles approximately 900 kilograms annually, and propel the development of advanced nuclear reactor fuels. Alongside Centrus, General Matter and Orano Federal Services each received contract awards approaching similar magnitudes. Additionally, Global Laser Enrichment secured $28 million aimed at ongoing innovation in uranium enrichment technologies.
The infusion of federal funds coincides with Centrus Energy’s announcement of commencing manufacturing of new centrifuge units purposed for LEU production, underlining a dual-track advancement in its enrichment portfolio. This momentum is bolstered by parallel governmental support: the U.S. government’s endorsement of HALEU initiatives and the Korean government’s backing for its LEU enterprise, collectively enhancing the company’s strategic positioning within the nuclear fuel market.
This suite of contract awards emerges amid a resurgence in the nuclear energy sector, which the federal government actively fosters. Secretary of Energy Chris Wright recently affirmed that these agreements exemplify the administration’s dedication to reconstructing a reliable end-to-end domestic nuclear fuel supply chain. This infrastructure is anticipated to supply fuel not only for the existing fleet of reactors but also for the next wave of nuclear technology deployments.
Despite Centrus Energy’s mixed performance in the third quarter and the announcement of an equity offering, its stock has demonstrated a strong growth trajectory. Over the last twelve months, Centrus Energy’s stock appreciated by over 268%, reflecting positive investor sentiment regarding its prospects. On the day of the contract announcement, the stock price surged by just over 10%, closing at $300.41.
Benzinga Edge Stock Rankings further corroborate this upward performance, with Centrus Energy earning a momentum ranking within the 98th percentile. The company’s strong showing across short-term, medium-term, and long-term price trend metrics underscores robust investor confidence.