Centrus Energy Secures Major Government Contract, Bolstering U.S. Nuclear Fuel Independence

A significant push by the U.S. government to strengthen domestic nuclear capabilities is providing a direct and substantial boost to Centrus Energy Corp. The company has been awarded a pivotal portion of a multi-billion dollar federal initiative, reinforcing its unique status as America's only publicly traded uranium enricher. This development raises important questions about the firm's strategic trajectory and financial future.

In a move to decouple the U.S. nuclear fuel supply chain from Russian sources, the Department of Energy has allocated contracts totaling $2.7 billion. Centrus Energy's share of this funding amounts to $900 million. These funds are designated for the procurement of enriched uranium to fuel existing reactors, as well as for High-Assay Low-Enriched Uranium (HALEU). HALEU is an essential component for powering the next generation of advanced and small modular reactors (SMRs).

This strategic investment is timely. The United States is actively working to expand its nuclear power capacity to meet escalating electricity demands, notably from the growing artificial intelligence and data center sectors. For Centrus, the contract accelerates its evolution from a service provider to a leading domestic producer. The capital infusion also dramatically strengthens the company's balance sheet, providing it with approximately $3.5 billion in total liquidity.

Should investors sell immediately? Or is it worth buying Centrus Energy?

Execution and Market Scrutiny Become Key

With the contract secured, investor focus now shifts squarely to operational execution. Centrus has already commenced commercial centrifuge manufacturing operations at its Piketon, Ohio facility. Plans are underway for the construction of a new training and operational building, targeted for completion in 2026.

This major government order mitigates risk for the capital-intensive expansion of the American Centrifuge Plant. The project now boasts a committed order book stretching to 2040, valued at roughly $3.9 billion. Market participants will be closely monitoring the company's progress in meeting its delivery commitments for 2026 and 2027, facilitated by recently granted import licenses.

The next significant milestone will be the release of quarterly financial results, expected on February 6, 2026. Centrus Energy's shares recently traded at $305.35. While the equity has more than tripled in value over the past twelve months, it remains notably below its peak price reached in October.