UUUU vs. LEU: Which Uranium Stock Offers Better Potential?

Energy Fuels Inc. UUUU and Centrus Energy LEU are two uranium-focused companies expected to play an important role in the global nuclear energy supply chain.

Headquartered in Lakewood, CO, Energy Fuels, with a market capitalization of around $4 billion, has produced nearly two-thirds of all uranium in the United States since 2017. It also produces rare earth oxides and is adding new products like titanium, zircon minerals and medical isotopes.

Bethesda, MD-based Centrus Energy’s core offering is low-enriched uranium, or LEU, the fissile component used to fuel commercial nuclear reactors. The company also provides advanced uranium enrichment and technical, manufacturing and engineering services. It is pioneering the production of High Assay Low-Enriched Uranium (HALEU), a specialized fuel expected to support the next generation of advanced nuclear reactors and growing global demand for carbon-free power. LEU has a market capitalization of roughly $3.9 billion.

The long-term uranium outlook remains favorable, supported by rising electricity demand and the accelerating transition toward clean energy. Against this backdrop, investors are assessing which company is better positioned for future growth: Energy Fuels or Centrus Energy.

The Case for UUUU

During the second quarter of 2026, Energy Fuels mined ore containing 315,000 pounds of uranium and produced 865,000 pounds of finished uranium. This takes the total to 1.7 million pounds for the first half, already exceeding the low end of its full-year guidance of 1.5-2.5 million pounds.

Energy Fuels’ second-quarter revenues jumped 496% year over year to $25.1 million, driven by higher uranium sales volumes and realized prices. The company sold 310,000 pounds of uranium at an average realized price of $80.48 per pound. In the year-ago quarter, UUUU sold just 50,000 pounds of uranium at $77 per pound.

Costs applicable to revenues surged 192% to $10.7 million on higher uranium volumes sold, partially offset by lower weighted average cost per pound of uranium sold. Standby costs surged 61% year over year to $2.87 million due to higher permitting activities at Roca Honda and Whirlwind and increased maintenance activities at Nichols Ranch. Selling, general and administration were up 31% year over year, reflecting increases in general headcount, salaries and benefits.

UUUU also incurred $10.7 million in transaction and integration costs related to the planned acquisitions of Australian Strategic Materials (“ASM”) and VAC Group. This, along with higher operating expenses, was partially offset by improved margins on uranium sales, leading to a net loss of 13 cents per share in the quarter, wider than the year-ago loss of 10 cents per share.
UUUU expects to mine 2-2.5 million pounds of contained uranium in 2026 and sell 1.5-2 million pounds through spot and contracted transactions. The company has six uranium supply contracts with U.S. nuclear utilities with deliveries extending to 2032. As of June 30, 2026, contracted volumes totaled 3.20 million base pounds, with minimum and maximum deliveries of 2.77 million and 4.72 million pounds, respectively.

Energy Fuels continues to advance a deep pipeline of uranium projects. The Whirlwind mine and Nichols Ranch ISR project alone could add up to 500,000 pounds of annual uranium production within a year of a development decision. Other major projects, including Roca Honda, Bullfrog and Sheep Mountain, collectively contain nearly 70 million pounds of uranium resources.

Beyond uranium, the company continues to advance its rare earth strategy. In July, the company announced that construction has begun on an expansion of its White Mesa Mill in Utah to enable the large-scale production of heavy rare earth oxides. Recently, Tb oxide produced at the White Mesa Mill has been qualified for use by one of the world’s largest rare earth permanent magnet manufacturers outside China.

The ASM acquisition is expected to close this month. It will strengthen Energy Fuels' position across the REE value chain by adding mining, separation, metallization and alloy production capabilities. In June, UUUU announced plans to acquire Germany-based VAC Group for approximately $1.9 billion. VAC produces permanent magnets, including NdFeB and SmCo magnets, as well as soft magnetic materials. 

The Case for Centrus Energy

For the second quarter of 2026, Centrus Energy reported revenue growth of 14% year over year to $176.1 million. The Low-Enriched Uranium segment’s revenues increased 22% year over year to $153.4 million. Uranium revenues totaled $53.4 million in the second quarter of 2026 compared with no revenues in the year-ago quarter. SWU revenues fell 20% year over year to $100 million as volumes declined 23%, partly offset by a 3% increase in average selling price.

Technical Solutions revenues declined 21% to $22.7 million from $28.8 million. The decrease primarily reflected a $5.9 million drop in revenue from the Department of Energy’s HALEU Operation Contract.

Total cost of sales rose 25%, resulting in a 7% year-over-year decline in gross profit to $49.9 million. Adjusted operating income, which excludes growth costs and stock-based compensation, was $38.7 million in the second quarter of 2026 compared with $40.8 million in the year-ago quarter.  Adjusted operating margin in the second quarter of 2026 was 22% compared with 26.4% in the year-ago quarter.   

Centrus Energy posted earnings of 77 cents per share in the second quarter of 2026, down 51.6% year over year. Excluding growth costs and stock-based compensation, earnings per share came in at $1.77 in the second quarter of 2026 compared with $1.90 in the year-ago quarter.

As of the end of the second quarter of 2026, Centrus Energy’s total backlog reached $4.5 billion, which extends to 2040, providing significant long-term revenue visibility. This includes $3.7 billion in the LEU segment and $0.8 billion in Technical Solutions.

For 2026, Centrus Energy expects total revenues of $450-$500 million.  The company also maintained its total capital deployment outlook of $350-$500 million for the year, to support expansion work at Piketon and Oak Ridge.

Centrus Energy completed all HALEU production required under its demonstration contract in June 2026, producing more than 1,900 kilograms of HALEU. The company’s wholly owned subsidiary, American Centrifuge Operating, LLC, signed the DOE contract on June 30, 2026, finalizing terms of its competitively awarded, fixed-price $900 million DOE task order to deploy commercial-scale HALEU enrichment capacity in Piketon, OH. The award also carries DOE options to buy up to $170 million of HALEU, bringing total potential value to $1.07 billion. The contract marks a pivot from the earlier demonstration program to a commercial framework and supports the company’s multi-billion-dollar expansion, with first new capacity expected to enter service by 2029.

Commercial traction is broadening through a definitive LEU and HALEU supply agreement with X-Energy Inc. XE and an Oklo Inc. OKLO letter of intent.

The company is targeting annual HALEU production of 12 metric tons sometime after 2030, with initial production expected before the end of the decade. 

How Does the Zacks Consensus Estimate Compare for Energy Fuels & Centrus Energy?

The Zacks Consensus Estimate for Energy Fuels’ 2026 earnings is pegged at a loss of 25 cents, narrower than the loss of 38 cents reported in 2025. The consensus estimate for UUUU’s earnings for 2027 is three cents per share. 

The Zacks Consensus Estimate for Centrus Energy’s 2026 earnings is pegged at $2.60 per share, which indicates a year-over-year decline of 33%.  The estimate for 2027 earnings is pinned at $2.87 per share, indicating year-over-year growth of 10.4%.

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While earnings estimates for Energy Fuels for both 2026 and 2027 have moved down over the past 60 days. The estimate for 2026 for Centrus Energy has moved down while the same for 2027 has moved up. 

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UUUU & LEU: Price Performance & Valuation

In the past six months, Energy Fuels’ stock has declined 23.6%. Meanwhile, Centrus Energy stock has gained 1.9%.

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Energy Fuels is trading at a forward price-to-sales multiple of 20.57X, while Centrus Energy’s forward sales multiple sits lower at 8.32X.

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Conclusion

Both Energy Fuels and Centrus Energy are positioned to benefit from the long-term growth of nuclear energy and the increasing focus on domestic critical mineral supply chains.

Energy Fuels offers broader exposure across uranium and rare earth elements, supported by rising production, improving cost trends and a substantial development pipeline. Its expanding REE business could become a meaningful long-term growth driver. However, the stock’s elevated valuation, ongoing losses and downward earnings revisions may limit near-term upside.

Centrus Energy, meanwhile, appears better positioned from a strategic and financial standpoint. Its dominant position in HALEU production, long-term backlog, expanding enrichment capabilities and improving revenue outlook provide stronger near-term visibility.

UUUU currently carries a Zacks Rank #4 (Sell), and Centrus Energy currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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