Why Centrus Energy Stock Heated Up Today
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Centrus is setting up a U.S. nuclear fuel supply chain -- basically single-handed.Centrus Energy (LEU +13.95%) stock soared 14.2% through 3:15 p.m. ET Friday after the nuclear fuel supplier announced plans to expand into centrifuge manufacturing for the enrichment of uranium. Historically, Centrus Energy has focused on buying and selling, to nuclear plant operators, enriched uranium for use as nuclear fuel. It's lately floated plans to buy and then enrich uranium on its own, including High-Assay, Low-Enriched Uranium, or HALEU, for use in advanced nuclear reactors -- and that's what today's announcement pertains to. Image source: Getty Images. Centrus's plans Initially, Centrus will produce Low-Enriched Uranium (LEU) at its Piketon, Ohio, facility, and Centrus has $2.3 billion worth of supply contracts already. First, though, Centrus needs centrifuges to concentrate the uranium into a fuel-grade product. As part of its "multi-billion-dollar uranium enrichment expansion," the company announced today that it will begin centrifuge manufacturing at a factory in Oak Ridge, Tenn. The centrifuges made there can then be used to produce LEU and HALEU nuclear fuel in Ohio. ExpandNYSE: LEUCentrus EnergyToday's Change(13.95%) $32.05Current Price$261.73Key Data PointsMarket Cap$4.2BDay's Range$235.00 - $265.7852wk Range$49.40 - $464.25Volume66KAvg Vol1.3MGross Margin28.85% Centrus math Centrus is awaiting confirmation of Department of Energy funding, but says award of these funds is "imminent." The company puts the value of the DOE contracts at "~$900 million per task order," with separate task orders expected for the production of both LEU and HALEU.Advertisement The company has already secured $1.2 billion in funding "via convertible note transactions," now has $1.6 billion in the bank, and has announced a sale of stock to raise $1 billion more. Centrus is putting the pieces in place to dominate uranium enrichment in the U.S. Centrifuge production won't start till 2029, and enrichment presumably thereafter. Time's getting tight, but with most new nuclear power start-ups not expected to begin operating before 2030, the company should be ready to begin supplying nuclear fuel by the time it's needed.Read NextDec 19, 2025 •By Steven PorrelloCentrus Has Tumbled From All-Time Highs in October. Here's What's Next.Nov 24, 2025 •By Steven PorrelloIs Centrus Energy Stock a Buy Now?Nov 22, 2025 •By Courtney CarlsenShould You Buy Centrus Energy While It's Below $270?Nov 13, 2025 •By Matthew NestoWhere Will Nuclear Fuel Supplier Centrus Energy [LEU] Be in 5 Years?Nov 6, 2025 •By Scott LevineWhy Shares of Centrus Energy Are Powering Down TodayOct 20, 2025 •By Courtney CarlsenWhere Will Centrus Energy Be in 5 Years?About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedCentrus EnergyNYSE: LEU$261.73 (+0.14%) $+32.05*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement