Centrus Energy Stock Tanks: What’s Behind the August 2025 Sell-Off?

Centrus Energy shares just got nuked—here’s why Wall Street hit the panic button.

The uranium play that fizzled

No fluffy intro needed: traders dumped LEU stock like radioactive waste after fresh DOE contract delays surfaced. The 'strategic reserves' narrative? On life support.

Short sellers smell blood

With 3x the average volume, bears piled in as institutional holders bolted. Classic case of 'buy the rumor, sell the news'—except there wasn’t any good news.

Nuclear winter for retail investors?

Another reminder that 'energy security' stocks trade on politics, not fundamentals. But hey—at least the hedge funds got their bonuses.

Image source: Getty Images.

What's ailing Centrus?

There was no obvious Centrus-specific news behind the day's decline, although a few factors were likely weighing on the stock. First and foremost was the TRUMP administration's announcement of new tariffs on imports from dozens of countries around the world, and the threat to tighten sanctions on Russia in particular. Centrus' role as an importer of uranium, and Russia's role as a primary source of most uranium for nuclear fuel, puts Centrus in an awkward position here.

Second,hinted today at plans to start selling shares in its own advanced reactor-building subsidiary,. Investors may take this as a cue that the momentum trading frenzy in nuclear stocks could be nearing an end.

Finally, uranium prices are down about 10% from their recent high hit in late June -- and have stayed down for most of the month of July, a second suggestion that atomic power might not be the next big thing.

Should you sell Centrus stock?

All that said, Centrus doesn't look to me anywhere NEAR as risky as other nuclear stocks. It's got more cash than debt on its balance sheet, is generating positive free cash flow, and is earning decent profits -- $106.5 million over the past year.

While hardly cheap at 35 times earnings, it's also hardly the most expensive nuclear stock in this industry. I expect Centrus shares to recover quickly.