Centrus Energy eyes US military for next growth push
The Maryland-based firm expects a defence nuclear fuel contract to be finalised as early as 2026, building on a $900 million Department of Energy task order and a $4.5 billion backlog.
Centrus Energy Corp. has identified the United States military as a primary target market for its enriched uranium, with CEO Amir Vexler indicating that a government contract for defence nuclear fuel could be finalised as early as 2026. The potential agreement may involve supplying nuclear fuel for US Navy vessels, small modular reactors at military bases, or for tritium production, a key component in nuclear weapons. Vexler noted that the Department of Energy’s National Nuclear Security Administration will determine the specific end uses of the supplied material.
This strategic move builds on a $900 million task order received from the US Department of Energy in January 2026 to support commercial-scale production capacity for Low-Enriched Uranium and High-Assay Low-Enriched Uranium. The company has already produced nearly two metric tons of HALEU UF6 for the government under its current operations contract. With Washington actively reducing reliance on imported uranium and bolstering domestic production, an agreement with the military could transform Centrus Energy into a key strategic component of the American nuclear fuel supply chain.
The firm holds a significant competitive edge in the national security market due to US regulations that restrict the use of foreign-sourced uranium for military applications. Centrus Energy is currently constructing a multi-billion-dollar enrichment facility in Ohio, with commercial production expected to commence in 2029. The company’s enrichment technology is transitioning from demonstration to commercial-scale production, positioning it to capture demand as domestic capacity expands.
While the military opportunity represents a significant revenue stream, it is not yet secured and remains limited to management's comments. Investors should be mindful of execution risks, as the company is transitioning from demonstration-scale enrichment to a full-scale commercial buildout, with its first new commercial capacity not expected to come online before 2029. Additionally, Centrus Energy is not the only company the US government is betting on to rebuild domestic enrichment capacity, facing competition from other suppliers such as General Matter and Orano.
The company is not entirely reliant on government demand for its growth, having signed or advanced HALEU supply agreements with commercial entities including Oklo and X-energy. Centrus Energy ended the second quarter with a backlog of $4.5 billion, extending through 2040. This diversification helps underpin demand for its planned enrichment capacity while the firm navigates the path to a binding military contract.
According to the Insider Monkey database, Centrus Energy was held by 28 hedge funds at the end of the first quarter of 2026, with a total investment value of just over $170 million. This represents a decrease from 32 hedge fund investors with a cumulative stake value of $194.5 million in the previous quarter, reflecting a slight shift in institutional positioning as the company pursues its long-term growth catalysts.
