Centrus Energy Secures Major Government Contract for Nuclear Fuel Expansion

Centrus Energy has positioned itself at the forefront of a strategic shift in U.S. nuclear fuel policy. A substantial federal award is set to accelerate the company's plans for domestic uranium enrichment, placing it in a pivotal role for national energy security. The central challenge now is whether the firm can deliver this new capacity on schedule and at scale, with execution and financing being the key determinants.

The push for High-Assay, Low-Enriched Uranium (HALEU) is driven by its necessity for next-generation nuclear technology. Advanced reactor designs, including many Small Modular Reactors (SMRs), require this specific fuel type, which cannot be supplied by conventional enrichment. By building domestic production, the U.S. aims to reduce its reliance on foreign sources—notably Russia—and establish a secure supply chain for the reactors of the future. For Centrus Energy, this initiative represents a significant potential market advantage, contingent on meeting technical and timeline objectives.

Breakdown of the DOE Award

On January 6, 2026, the U.S. Department of Energy (DOE) issued a task order valued at $900 million to expand enrichment operations at Centrus’s Piketon, Ohio facility. This allocation was reconfirmed on January 21. The contract includes options for an additional $170 million, potentially bringing its total value to $1.07 billion. The program is designed to supply both HALEU and conventional Low-Enriched Uranium (LEU).

The planned investments are concrete: construction of a 150,000-square-foot training, operations, and maintenance center in Piketon, with building work slated to begin in 2026. Additionally, the company will expand centrifuge manufacturing in Oak Ridge, with the first new capacity expected by 2029. The project is estimated to support approximately 1,000 construction jobs and 300 new operational positions in Ohio, plus hundreds more at suppliers and in Oak Ridge. A further 150 existing jobs at the site are expected to be preserved.

Financial Position and Market Reaction

A critical question is whether Centrus can ramp up production economically. The company enters this phase from a position of financial strength, reporting $1.63 billion in unrestricted cash as of September 30, 2025. It had also previously secured conditional purchase commitments for LEU from utility customers totaling $2.3 billion.

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

Market analysts have responded favorably to the developments. On January 8, Zacks Equity Research named Centrus its "Bull of the Day." Subsequently, on January 16, Northland Capital Markets raised its price target for the stock to $325. Despite this optimism, the practical implementation remains a multi-year undertaking.

Key Data Points
* DOE Contract Value: $900 million (with a $170 million option; potential total of $1.07 billion)
* Project Timeline: Construction start in Piketon, 2026; first expanded enrichment capacity operational by 2029
* Company Liquidity: $1.63 billion in unrestricted cash (as of September 30, 2025)
* Stock Performance: Current share price $303.94; 12-month gain of 248.96%

Path Forward and Upcoming Catalysts

In the near term, the construction and commissioning schedule will be the primary metric for success. The clear milestones are the initiation of building activity in 2026 and the delivery of the first new capacity in 2029. Investors will gain further insight into the company's practical management of project financing, execution, and timelines when Centrus releases its next quarterly report on February 5, 2026.

Successfully hitting these announced steps would significantly solidify the company's role in the U.S. nuclear fuel market. Conversely, any delays could complicate the realization of its supply commitments and jeopardize potential follow-on contracts.