Fresh off its FY 2025 report, Centrus Energy (LEU) posted Q4 revenue of US$146.2 million with basic EPS of US$0.94, alongside trailing 12 month revenue of US$448.7 million and EPS of US$4.33. Over recent quarters the company has seen revenue move between US$73.1 million and US$154.5 million and quarterly EPS range from US$0.21 to US$1.63, while trailing net income reached US$77.8 million. This context allows investors to weigh growth expectations against what the latest margins imply about the quality and durability of earnings.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the dominant narratives around Centrus, and where the data may confirm or challenge what investors think they know about the business.

Margins Hold At 17.3% On TTM Basis

• Over the last 12 months, Centrus converted US$448.7 million of revenue into US$77.8 million of net income, which works out to a 17.3% trailing net margin, slightly above the 16.6% margin reported a year earlier.
• Supporters of the bullish view argue that Centrus' unique HALEU enrichment position and growing nuclear demand can support "structurally higher" margins. However, the data shows a more modest picture so far.
  • Trailing earnings rose 6.3% year over year and five year average earnings growth is 16.1% per year, which lines up with an already profitable business rather than a sharp step change in profitability.
  • Bullish assumptions look for revenue to grow 18.2% annually with margins moving from 24.0% to 14.9%. The current 17.3% net margin sits between those points and leaves open how closely actual profitability will track that path.

With margins already in the mid teens and bulls expecting Centrus to convert much higher HALEU volumes into future profits, it is worth seeing how that optimistic path is built and what could knock it off course. 🐂 Centrus Energy Bull Case

High P/E Of 53.1x Versus Mixed Valuation Signals

• Centrus trades on a trailing P/E of 53.1x, compared with peer and industry averages of 17.7x and 14.5x. A DCF fair value of US$246.78 sits above the current share price of US$210.16.
• Critics in the bearish camp point to this premium P/E and argue that expectations for long term earnings are already demanding, especially given bearish forecasts for slower growth and much thinner margins.
  • Bearish projections assume revenue grows only 1.7% annually with profit margins dropping from 24.0% to 3.9% by 2028, which would cut earnings from US$104.8 million to US$18.1 million while still needing a very high 160.8x P/E to justify their target path.
  • Against that cautious view, current trailing net income of US$77.8 million and 6.3% earnings growth over the past year show a company that is still solidly profitable, so the tension is between what is currently earned and what bears think future economics could look like.

When a stock trades far above industry P/E levels, as Centrus does, it puts extra focus on whether future margins and growth will resemble the more optimistic or more cautious earnings paths. 🐻 Centrus Energy Bear Case

Growth Forecasts Of 11.7% Meet Non Cash And Dilution Flags

• Analysts in the dataset forecast both earnings and revenue to grow about 11.7% per year, while recent figures show trailing net income of US$77.8 million built partly on what is described as a high level of non cash earnings and a year of shareholder dilution.
• The consensus style narrative suggests Centrus is set for sustained growth supported by a US$3.6 billion backlog and industry tailwinds, but the quality and ownership side of the data introduces some friction with that story.
  • Forecast earnings growth of 11.7% and revenue growth of 11.7% per year sit alongside a 17.3% net margin, which fits a healthy profile, yet the emphasis on non cash items means reported profit does not automatically translate into the same level of cash generation.
  • Shareholder dilution in the past year, combined with expectations that shares outstanding could grow 7.0% per year in the narratives, means that even if earnings rise, each share may capture a smaller slice of that growth than headline numbers suggest.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Centrus Energy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If you think the data points to a different story, shape your own view in a few minutes and Do it your way.

A great starting point for your Centrus Energy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

See What Else Is Out There

Centrus combines a high 53.1x P/E with reliance on non cash earnings and dilution expectations, so the current valuation carries meaningful execution risk.

If that premium pricing worries you, it is worth checking our 51 high quality undervalued stocks to quickly spot companies where current fundamentals and price look more closely aligned.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.