Centrus Energy Corp.
Centrus Energy Corp. supplies nuclear fuel components for the nuclear power industry in the United States, Japan, the Netherlands, and internationally. The company operates through two segments: Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) components of LEU; natural uranium hexafluoride, uranium concentrates, and uranium conversion; and enriched uranium products to utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, and operations services to public and private sector customers. It also operates as a equipment manufacturing and engineering firm focused primarily on the energy sector. The company was formerly known as USEC Inc. and changed its name to Centrus Energy Corp. in September 2014. Centrus Energy Corp. was incorporated in 1998 and is headquartered in Bethesda, Maryland.
What does it do?
Centrus Energy sells nuclear fuel to power plants across the US, Japan, and Europe. Think of it like a fuel supplier for nuclear reactors — the same way a gas station supplies cars, Centrus supplies the enriched uranium that keeps nuclear plants running. Their main product is something called 'low-enriched uranium,' which is regular uranium that has been processed to the right concentration to generate electricity. They also have a smaller division that helps government and private clients with nuclear technology and engineering work.
Nuclear energy is having a major comeback moment. Big tech companies like Microsoft and Google are signing deals to power their AI data centers with nuclear electricity, which is driving huge demand for uranium fuel. Centrus is one of the very few US-based companies that can actually enrich uranium domestically, making it strategically important at a time when the US is trying to cut dependence on Russian nuclear fuel supplies.
How does it make money?
Centrus makes most of its money through its LEU segment, which brought in the bulk of its $400 million in annual revenue by selling enriched uranium and a processing service called 'separative work units' (essentially the labor cost of enriching uranium) to nuclear plant operators. They lock in long-term supply contracts with utilities, which gives them relatively predictable revenue. Their smaller Technical Solutions segment earns fees from government contracts, including work on advanced reactor programs and uranium enrichment technology for the US Department of Energy.
Why do investors care?
The bull story here is simple: nuclear power is being re-embraced globally after years of decline, and Centrus sits right in the middle of the fuel supply chain. They recently became the only US company producing high-assay low-enriched uranium (HALEU), a special fuel needed for next-generation reactors — and the US government is paying them to do it. For this story to pay off, nuclear energy demand needs to keep growing, government funding needs to continue, and Centrus needs to scale up its production capacity.
Deep Dive
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