Centrus Energy stock rises on MOU with Korean firms for Ohio plant expansion

Published 26/08/2025, 11:18
Centrus Energy stock rises on MOU with Korean firms for Ohio plant expansion

Investing.com - Centrus Energy Corp. (NYSE:LEU), a $3.38 billion market cap nuclear fuel company, saw its shares rise Tuesday after announcing a Memorandum of Understanding with Korean firms to explore potential investment in its Ohio uranium enrichment facility. The stock has already gained over 11% in the past week, according to InvestingPro data.

The non-binding MOU was signed with Korea Hydro & Nuclear Power and POSCO International to support the expansion of Centrus Energy’s uranium enrichment plant in Piketon, Ohio, according to a company announcement Monday.

This development follows Centrus Energy’s recent convertible senior note offering that generated approximately $780 million in net proceeds, providing the company with financial resources to execute the buildout of its enrichment facility.

Evercore ISI maintained its Outperform rating on Centrus Energy with a $252.00 price target, noting that while the MOU is not binding, it demonstrates "significant support and confidence" in the company’s ability to establish itself in the domestic nuclear fuel supply chain.

The Department of Energy recently allowed Centrus Energy to import LEU for all current committed deliveries through 2027, which Evercore ISI analysts believe alleviates potential risk to the company’s brokerage business.

In other recent news, Centrus Energy Corp. has made several noteworthy announcements. The company has priced an upsized private offering of $700 million in zero-coupon convertible senior notes due 2032, increased from a previously announced $650 million. This offering is being made to qualified institutional buyers, with an option for initial purchasers to buy up to an additional $105 million in notes. Additionally, Centrus Energy received a waiver from the U.S. Department of Energy allowing the import of low enriched uranium from Russia for deliveries to U.S. customers in 2026 and 2027. This follows a previous authorization for imports in 2024 and 2025. In executive changes, Kevin J. Harrill has resigned as Senior Vice President, Chief Financial Officer, and Treasurer, effective August 10, 2025, but will remain with the company until August 29, 2025, to aid in the transition. These developments reflect ongoing strategic moves by Centrus Energy to manage its financial and operational commitments.

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