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UBS Raises Centrus Energy EBITDA Estimates on Higher Margins

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UBS raised its adjusted EBITDA estimates for US nuclear-fuel and uranium-enrichment company Centrus Energy (LEU), citing stronger second-quarter results and higher gross margins driven by increased contract average selling prices, UBS analysts said in a note on Wednesday.

The bank lifted its 2026, 2027, and 2028 adjusted EBITDA forecasts to $60 million, $90 million, and $73 million, respectively, from $45 million, $79 million, and $65 million previously.

Centrus reported second-quarter 2026 diluted GAAP earnings of $0.77 cents per share, 5% above consensus expectations, UBS said.

UBS said Centrus remains well positioned to benefit over the longer term from a potential generational nuclear construction cycle, although the bank continues to view the long lead time required to build the company's enrichment capacity as a counterweight.

The analysts also highlighted recent agreements to supply low-enriched uranium and high-assay low-enriched uranium to advanced nuclear developers.

On Aug. 6, Centrus announced a LEU and HALEU supply agreement with X-Energy, following its June announcement of a letter of intent with Oklo for HALEU supplies supporting up to five Aurora powerhouses as part of Oklo's 1.2-gigawatt agreement with Meta.

X-Energy will provide prepayments to Centrus under the offtake agreement. UBS said the potential prepayment structure under the Oklo agreement could also help reduce funding risks associated with Centrus' HALEU capacity expansion.

"We view the prepayment structures as attractive as they partially de-risk the funding of Centrus's HALEU capacity build-out," UBS said.

For valuation, UBS applied a 52-times enterprise-value-to-EBITDA multiple to its year-end second-quarter 2028 adjusted EBITDA estimate, compared with a previous 47-times multiple applied to its first-quarter 2028 estimate. The revised multiple is in line with Centrus' broader group of nuclear-exposed peers, the bank said.

UBS maintained its neutral rating on Centrus Energy and raised its price target to $185 from $170.

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