Energy Fuels Inc. UUUU and Uranium Energy UEC are leading United States-based uranium producers that are poised to benefit from the nation's push for domestic nuclear energy and reduced reliance on foreign uranium sources. However, both companies are currently facing headwinds due to a 25% decline in uranium prices over the past year, driven by abundant supply and uncertain demand. Uranium is currently priced at $67 per pound.
Despite this short-term pressure, the long-term outlook for uranium remains strong, driven by the growing push for clean energy. Notably, the United States is the largest consumer of uranium at 47 million pounds annually, with increasing demand from utilities and the U.S. government for domestic supply.
For investors considering this sector to capitalize on future uranium growth, the main question is — which stock is better positioned to navigate the market challenges? To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for Energy Fuels
The company has been a leading U.S. producer of natural uranium concentrate for the past several years, accounting for two-thirds of domestic uranium output since 2017. Its White Mesa Mill in Utah is the only fully licensed and operating conventional uranium processing facility in the United States. The company aims to establish the mill as a critical minerals hub in the United States with its uranium, vanadium, rare earth elements (REE) and potential radioisotope production.
The acquisition of Base Resources Limited in October 2024 gave UUUU access to the promising Toliara Mineral Sand Project, which enhances its potential as a key producer of titanium and zirconium minerals, alongside REEs.
Although expanding into REEs poses challenges due to China’s market dominance, Energy Fuels possesses the technical expertise, strategic assets and competitive advantages to establish a foothold in this sector. The increasing push to increase domestic production for uranium and REEs is a major growth opportunity for UUUU.
Energy Fuels is currently producing from 3 uranium mines. The expected ore production for 2025 is at 730,000-1,170,000 pounds of contained uranium. The company anticipates uranium contract sales of 200,000-300,000 pounds in 2025.
Supported by a debt-free balance sheet, Energy Fuels is ramping up uranium production while advancing REE capabilities. With its current operations and development pipeline, the company could eventually produce up to 6 million pounds of uranium annually.
UUUU reported revenues of $78 million in 2024, which marked a 106% year-over-year surge. This was mainly due to the revenue contributions from Heavy Mineral Sands following the Base Resources acquisition, while uranium revenues rose 9%. Energy Fuels reported a loss of 28 cents per share for 2024, wider than the loss of 19 cents in 2023. The company has been reporting losses since it started trading on the NYSE in December 2013.
The Case for Uranium Energy
Uranium Energy is America’s largest and fastest-growing supplier of uranium. It has a combined 12.1 million pounds of combined U.S. licensed production capacity from three central processing plants. Uranium Energy also boasts the largest resource portfolio in the United States and one of the largest in North America.
The company recently reported the successful commissioning of the drying and packaging circuit at the Irigaray Central Processing Plant with uranium feed from the Christensen Ranch In-Situ Recovery operations. Ramp-up continues at the Christensen Ranch and new production areas are being constructed and will be completed in 2025. It is also advancing the Roughrider and Burke Hollow Projects with resource expansions and development programs, respectively. Since 2017, the company has added $1 billion in accretive acquisitions. The latest was the acquisition of Rio Tinto Group’s RIO portfolio of uranium mining projects in Wyoming in December 2024. The acquisition includes Rio Tinto's licensed Sweetwater Plant and mining projects with approximately 175 million pounds of historic resources. Uranium Energy paid $175 million in cash to Rio Tinto.
The Sweetwater Plant has a licensed annual capacity of 4.1 million pounds of uranium. This plant, in addition to the other assets, will significantly enhance and accelerate UEC’s production capabilities in Wyoming’s Great Divide Basin, where it already holds 12 properties.
Uranium Energy had more than $214 million of liquid assets (cash, equities and inventory at market prices), and zero debt as of Jan. 31, 2025. UEC had 1,356,000 pounds of purchased uranium concentrate inventory valued at $97.3 million as of Jan. 31, 2025. To build on its physical uranium program, the company will buy an additional 300,000 pounds of uranium at $37.05 per pound under existing contracts in December 2025. This will provide UEC with a low-cost stream of physical uranium at a time of heightened geopolitical uncertainty.
In the second quarter of fiscal 2025 (ended Jan. 1, 2025), Uranium Energy reported revenues of $49.8 million, which reflected the sale of 600,000 pounds of uranium at $82.92 per pound. Adjusted loss per share was one cent, hurt by an 80% surge in total operating expenses. The company's results have been bearing the brunt of higher operating expenses in the last few quarters.
How Do Estimates Compare for Energy Fuels & Uranium Energy?
The Zacks Consensus Estimate for Energy Fuel’s 2025 revenues of $72.3 million suggests a year-over-year drop of 7.5%. The company is expected to incur a loss of 21 cents per share in 2025, indicating a narrower loss from the 28 cents reported in 2024. EPS estimates for 2025 have been unchanged over the past 60 days, whereas the same for 2026 have moved downward.
The Zacks Consensus Estimate for UUUU’s 2026 revenues of $180 million suggests a year-over-year upsurge of 149%, with earnings per share pegged at 6 cents, marking the first year of expected profits for the company.
The Zacks Consensus Estimate for Uranium Energy’s 2025 revenues is at $89.8 million, implying a substantial improvement from the $0.22 million reported in the year-ago quarter. Over the past 60 days, the consensus mark has moved down from the prior mentioned earnings of 1 cent per share to a loss of 10 cents. The company had reported a loss of 9 cents in 2024.
The Zacks Consensus Estimate for Uranium Energy’s 2026 revenues of $87.1 million suggests a year-over-year dip of 2.9%. Despite this, the company is expected to report earnings per share of 1 cent, indicating a year-over-year rally of 112.5%. The estimate has moved down 93% over the past 60 days.
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UUUU & UEC: Price Performance & Valuation
The year-to-date price performances of both Energy Fuels and Uranium Energy have not been impressive, mainly mirroring the trend in uranium prices. UUUU shares have declined 7.8%, whereas UEC shares have fallen 19.9%.
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Energy Fuels is trading at a forward price-to-sales multiple of 9.02, below its median of 21.22X over the last five years. Uranium Energy’s forward sales multiple sits at 25.73X, below its median of 26.53X over the last five years.
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Conclusion
Both UUUU and UEC will face revenue pressure due to lower uranium prices. Both companies’ bottom lines are expected to be in the red in 2025 and return to profitability next year. Both are, meanwhile, ramping up their capabilities to capitalize on the anticipated surge in domestic uranium demand. Energy Fuels’ efforts to diversify beyond uranium into REEs and to create a supply chain independent of China are commendable.
UUUU appears to be more attractive than UEC from a valuation standpoint. It also scores over Uranium Energy in terms of price performance. UEC has been witnessing drastic downward estimate revisions for both 2025 and 2026. Given these factors, UUUU is the more appealing option at the moment. While UUUU carries a Zacks Rank #3 (Hold), UEC currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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