Energy Fuels Stock Surges on Record Production and New Contracts

Shares of US uranium producer Energy Fuels delivered one of the commodity sector's strongest single-day performances this Friday, soaring nearly 15%. The catalyst was a comprehensive corporate update that delivered positive surprises on both production volumes and new contract signings. This prompts a key question for investors: does this rally have staying power?

The surge in Energy Fuels' share price aligns with a broader recovery in the nuclear sector at the outset of 2026. Uranium spot prices continue to trade above $80 per pound, a level that directly benefits producing companies.

A significant driver of the positive market reaction was the announcement of two new long-term supply agreements with US nuclear utility operators. These offtake contracts, spanning 2027 to 2032, utilize hybrid pricing models. This structure provides a hedge against potential price declines while retaining exposure to potential upside.

Unlike some competitors, such as Denison Mines—which also posted notable gains—Energy Fuels is already in commercial production. This operational status allows it to benefit immediately from the current favorable price environment. The contracts with domestic utilities further highlight the strategic importance of secure, in-country fuel sources, a theme that gained substantial geopolitical weight throughout 2025.

Production Targets Exceeded

On the operational front, Energy Fuels reported substantial progress. The company's projected uranium production for 2025 exceeds 1.6 million pounds, sourced primarily from its Pinyon Plain Mine in Arizona and the La Sal Complex in Utah. In a separate achievement, the company produced approximately 1 million pounds of finished uranium concentrate, surpassing its own annual forecast.

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

Fourth-quarter figures underscore this operational momentum:

• Q4 Projected Sales Volume: 360,000 pounds of uranium
• Q4 Projected Revenue: $27 million USD
• Average Realized Sales Price: $74.93 per pound
• Year-over-Year Increase: 50%

Beyond its core uranium business, the company reported advancements in its rare earth elements initiative. A batch of high-purity dysprosium oxide met the quality specifications of a major South Korean automotive manufacturer, signaling Energy Fuels' technical capability to deliver beyond uranium.

Looking Ahead to 2026

For the current year, Energy Fuels plans to continue its exploration and expansion activities. This includes drilling programs in the Juniper Zone of the Pinyon Plain Mine. The equity now trades significantly above its 200-day moving average, indicating a sustained long-term upward trend remains intact.

Market observers are now awaiting the full audited financial results for 2025. These reports will allow for verification of margin development at the realized sales price of nearly $75 per pound. With production targets exceeded and supply contracts secured into the early 2030s, Energy Fuels enters the new year with a high degree of operational predictability.