Centrus Energy Business Update Report

Dec 21, 2025

∙ Paid

Centrus Energy Corp. (NYSE: LEU) – SEQH Capital Research Tear Sheet
Date: December 20, 2025

Core Thesis

Strategic U.S. fuel bottleneck: Only domestically-owned enricher positioned to fill the enrichment gap created by the Russian uranium ban and rising U.S./global nuclear capacity, giving Centrus structural pricing power in Western fuel markets.
HALEU first mover: Currently the only Western producer of commercial quantities of HALEU, the key fuel for most advanced and small modular reactors, creating a high‑margin niche with limited competition.
Multi‑year revenue visibility: ~$3.9B backlog through 2040, including ~$2.3B contingent LEU contracts tied to expansion milestones, effectively pre‑selling future output as new capacity ramps.

Stock move: LEU’s roughly 15% Friday gain reflects repricing around the shift from demo-scale operations to commercial enrichment, with the stock trading in the mid‑$260s and a multi‑billion‑dollar market cap.
Commercial LEU launch: December announcements confirm the start of commercial LEU enrichment activities and industrial-scale AC100M centrifuge manufacturing for Piketon, marking a step‑change in long‑term earnings power.

Piketon expansion: Multi‑billion‑dollar plan to install thousands of AC100M centrifuges at the American Centrifuge Plant, supported by an expanded domestic supply chain and new Training/Operations & Maintenance infrastructure in Ohio.
Federal alignment: DOE HALEU extension, participation in the $2.7B domestic HALEU/LEU program, and U.S. policy to phase out Russian fuel and expand nuclear capacity directly support Centrus’s expansion economics.
Balance sheet: Over $1B of recent convertible issuance plus strong cash provide the capital base to execute expansion while preserving flexibility, with the backlog anchoring future cash flows.

Execution on large‑scale build‑out, timing and size of additional DOE awards, regulatory/political changes, and the capital intensity of the expansion could affect the pace and magnitude of value realization, but do not alter the core structural supply‑demand advantage.

Full Report and Outlook Attached Below: