Energy Fuels UUUU reported second-quarter 2025 results on Aug. 6, which fell short of expectations and also declined from the prior-year quarter. The company reported a loss of 10 cents, wider than the Zacks Consensus Estimate as well as last year's quarter’s loss. UUUU also witnessed a 52% decline in revenues, which also fell short of the consensus mark due to lower sales of uranium in the quarter.\n\nTotal revenues were around $4.2 million, marking a 52% year-over-year plunge. The company sold 50,000 pounds of uranium on the spot market for $77 per pound, generating uranium revenues of $3.85 million. This was 55% lower than the last year's quarter due to lower uranium sales as a result of contract delivery timing and the company's decision to retain uranium in inventory at current spot price levels.\n\nThe company also recorded $0.28 million in heavy mineral sands revenues from the sale of 202 tons of rutile.\n\nCosts applicable to revenues were down 0.7%. However, exploration, development and processing soared 265% year over year to $9 million due to higher indirect processing costs at the White Mesa Mill related to a higher headcount and inflation, as well as development activities at the La Sal Complex and the Juniper zone at the Pinyon Plain mine. Increased exploration activities at other mine locations and write-off of consumables inventory at the Kwale Project also led to the increase.\n\nSelling, general and administration were up 118% year over year to $25 million, reflecting higher salaries and benefits tied to an increase in headcount, including employees retained from Base Resources following the acquisition on Oct. 2, 2024.\n\nOverall, lower revenues and higher expenses led to a second-quarter loss per share of 10 cents compared with a loss of four cents in the year-ago quarter.\n\nDuring the quarter, the company mined ore containing approximately 665,000 pounds of uranium from the Pinyon Plain, La Sal and Pandora mines. The Pinyon Plain mine has been performing exceptionally well in recent months and produced 635,000 pounds of uranium during the quarter. The mine has the potential to be the highest-grade uranium mine in U.S. history.\n\nUUUU also secured the regulatory approval to construct the Donald Rare Earth and Mineral Sand Project. It is one of the richest deposits of HREEs in the world and could complement UUUU’s domestic operations.\n\nCameco Corporation’s CCJ second-quarter 2025 total revenues rose 47% year over year to $634 million (CAD 877 million), beating the Zacks Consensus Estimate of $631 million. Adjusted earnings surged 410% year over year to 51 cents per share (CAD 0.71), way ahead of the consensus estimate of 36 cents.\n\nCameco’s uranium revenues increased 47% to $510 million (CAD 705 million). Cameco sold 8.7 million pounds of uranium, 40% higher year over year.\n\nUr Energy URG reported a loss of four cents per share in the second quarter, wider than the Zacks Consensus Estimate of a loss of one cent and the year-ago quarter’s loss of three cents.\n\nRevenues were $10.4 million, 124% higher than the $4.65 million reported in the year-ago quarter. Ur Energy sold 165,000 pounds of uranium in the quarter.\n\nUUUU expects to mine 55,000-80,000 tons of ore containing approximately 875,000-1,435,000 pounds of uranium from its three mines during 2025. It aims to process up to 1 million pounds of uranium this year.\n\nUranium sales are planned at 350,000 pounds this year. This, however, does not consider any spot sales the company may make in case prices go up. In 2026, Energy Fuels aims to sell between 620,000 and 880,000 pounds of uranium under its current portfolio of long-term uranium sales contracts.\n\nThe company expects lower uranium costs starting in the fourth quarter of 2025 as it begins processing low-cost Pinyon Plain ores. Total weighted average cost of goods sold will go down to $23–$30 per pound of uranium, ranking among the lowest costs for mined uranium production in the world. \n\nThe company expects to lower the cost of goods sold to approximately $50-$55 per uranium sales for the remaining 2025 sales. The weighted average cost of goods sold is projected to drop to $30-$40 per pound in the first quarter of 2026. These trends are expected to boost gross margins.\n\nThe Zacks Consensus Estimate for Energy Fuels’ earnings for 2025 is currently pegged at a loss of 27 cents per share. The estimate for revenues is $49.23 million, indicating a 37% year-over-year decline.\n\nThe estimate for 2026 revenues is pinned at $121.80 million, implying a 147% year-over-year upsurge. The consensus estimate for earnings is pegged at six cents per share. This will be UUUU’s first year of profit since it started trading on the NYSE in December 2013.\n\nOver the past 60 days, the estimates for Energy Fuels for 2025 have undergone positive revision, while the same for 2026 have remained unchanged.\n\nUUUU shares soared 89.7% year to date against the industry’s 0.8% dip. It has also outperformed the broader Zacks Basic Materials sector’s gain of 11.7% and the S&P 500’s climb of 7.7%.\n\nEnergy Fuels has also outpaced Cameco and Ur Energy, which have gained 48.6% and 6%, respectively, year to date.\n\nEnergy Fuels is currently trading at a forward price-to-sales multiple of 22.95, well above the industry average of 2.63. UUUU’s Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.\n\nMeanwhile, Cameco and Ur Energy are cheaper options, trading at price-to-sales ratios of 12.75 and 4.74, respectively.\n\nUranium prices have been under pressure recently, declining to $71.50 per pound as a pause in fresh buying by holding funds allowed utilities to set lower bids. Prices are down 11.3% in a year. Prices had briefly surged to a seven-month high of $79 in late June, following a major purchase announcement from the Sprott Physical Uranium Trust, but the rally was short-lived. In the event of low uranium prices, Energy Fuels abstains from making any uranium sales, which leads to revenue volatility.\n\nDespite lower prices currently, the long-term outlook for uranium, however, remains strong, driven by the growing push for clean energy. Also, the push for supply chains independent of China is a growth opportunity for UUUU. The White Mesa Mill in Utah, being the only U.S. facility able to process monazite and produce separated REE materials, gives the company an edge. Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. Taking UUUU’s current production levels and development pipeline into account, it has the potential to produce 6 million pounds of uranium per year.\n\nBacked by Energy Fuels’ debt-free balance sheet, the company is advancing with its growth plans to capitalize on the expected surge in uranium and REE demand. Those who already own the stock may stay invested, given UUUU’s solid long-term prospects in both these markets. However, given its premium valuation and the expected loss this year, new investors can wait for a better entry point.\n\nThe stock currently carries a Zacks Rank #3 (Hold).

Should You Buy, Hold or Sell UUUU Stock Post Q2 Earnings?

Energy Fuels (UUUU) reported a second-quarter 2025 loss of 10 cents per share, down from a loss of 4 cents in the prior-year quarter, due to a 52% year-over-year decline in revenues and soaring expenses. Revenues totaled $4.2 million, driven by $3.85 million in uranium sales at $77 per pound, down 55% from the previous year. Costs increased significantly, with exploration, development, and processing rising 265% to $9 million, and selling, general, and administration up 118% to $25 million. The company mined 665,000 pounds of uranium from its Pinyon Plain, La Sal, and Pandora mines, with Pinyon Plain producing 635,000 pounds. UUUU secured regulatory approval for the Donald Rare Earth and Mineral Sand Project, one of the world’s richest deposits of heavy rare earth elements (HREEs). Cameco Corporation reported stronger results, with 47% higher revenues and 410% higher adjusted earnings, while Ur Energy reported a wider loss despite a 124% revenue increase. Energy Fuels expects to mine 55,000–80,000 tons of ore with 875,000–1,435,000 pounds of uranium in 2025 and aims to process up to 1 million pounds. It forecasts uranium sales of 350,000 pounds in 2025 and 620,000–880,000 pounds in 2026 under long-term contracts. The company expects to reduce its cost of goods sold to $23–$30 per pound by Q4 2025 and to $30–$40 per pound in Q1 2026, improving gross margins. Despite a premium valuation of 22.95x forward price-to-sales (vs. industry average of 2.63), UUUU shares rose 89.7% year to date, outperforming the sector and S&P 500. The Zacks Rank is #3 (Hold), suggesting a neutral stance for new investors. Uranium prices have declined to $71.50 per pound, down 11.3% year-over-year, due to reduced buying by utilities, though long-term demand remains strong due to clean energy and supply chain diversification away from China. Energy Fuels’ debt-free balance sheet supports its expansion in uranium and rare earth elements, with potential to produce 6 million pounds annually.