Centrus Energy Valued at 8.05 P/S Ratio, Q4 EPS Plunges 75%
Centrus Energy is trading at a forward price-to-sales ratio of 8.05 versus the industry’s 5.05, reflecting an expensive valuation despite a $3.8 billion contract backlog. Its Q4 revenue fell 4% to $146 million and adjusted EPS plunged 75% to $0.79 due to an 82% drop in uranium sales.
1. Premium Valuation
Centrus Energy trades at a forward price-to-sales ratio of 8.05, well above the 5.05 industry average yet below peers trading at 19.54 and 45.43. Its Value Score of F underscores concerns that the current premium valuation may not be supported by fundamentals.
2. Q4 Financial Performance
In the fourth quarter, total revenues declined 4% to $146 million, driven by a 2% rise in LEU segment sales to $124.4 million and a 128% surge in SWU revenues to $111 million but offset by an 82% plunge in uranium sales to $13.4 million. Gross profit fell 43% to $35 million and adjusted EPS tumbled 75% to $0.79.
3. Backlog and 2026 Outlook
The company closed 2025 with a $3.8 billion backlog—including $2.9 billion in LEU contracts—supporting 2026 revenue guidance of $425–$475 million versus $448.7 million in 2025. This backlog underpins modest near-term growth with long-term contracts extending through 2040.
4. Balance Sheet and Long-Term Strategy
Centrus Energy’s debt-to-capital ratio of 0.61 is substantially higher than peer averages, and EPS estimates for 2026–2027 have been revised down to $3.32 and $3.38. The company is funding a multi-billion-dollar expansion in Piketon, Ohio, including HALEU production capacity and a potential $900 million DOE task order for commercial-scale enrichment.