Oil holding above $110 has pushed energy security back to the top of the agenda, and that puts nuclear power in sharp focus for UK investors. Reliable baseload electricity that is not tied to fossil fuel markets is suddenly more valuable. This article walks through three nuclear energy stocks from the UK-focused screener that aim to tap into that theme and explains where each might fit in a diversified portfolio.
The three stocks highlighted here offer a compelling starting point if you want exposure to uranium producers, fuel cycle operators and nuclear power plant builders in plain, stock market form. However, if you want the pick of this theme, these 16 nuclear renaissance stocks are the best of the best.
Rolls-Royce Holdings (LSE:RR.)
Overview:Rolls-Royce Holdings designs and services mission critical power and propulsion systems, including submarine nuclear reactors within its Defence division, alongside large civil aircraft engines and industrial power solutions.
Operations:Rolls-Royce generates about £11.8b from Civil Aerospace, £5.5b from Power Systems and £5.0b from Defence, with minimal revenue elsewhere.
Market Cap:£104.5b
Rolls-Royce Holdings gives you exposure to the nuclear theme through its submarine reactors, wrapped inside a much larger global power and aerospace group that still lives or dies on execution across all three major divisions.
"The growing investor enthusiasm for Rolls-Royce's sustainable technology initiatives (SMRs, UltraFan, hydrogen propulsion, advanced battery storage) is increasingly priced into the stock, yet these projects remain in early commercialization stages and carry material execution, regulatory, and capex risks."
The real swing factor for Rolls-Royce's nuclear story is whether a single assumption about future program timing holds or quietly slips.
That program risk is exactly what the full narrative for Rolls-Royce Holdings unpacks in detail, showing how accelerating defence demand and SMR optionality could still reshape the Rolls-Royce Holdings story.
National Atomic Company Kazatomprom JSC (LSE:KAP)
Overview:National Atomic Company Kazatomprom JSC is a Kazakhstan based uranium miner that supplies nuclear fuel material worldwide, alongside smaller rare metals and industrial services operations.
Operations:Kazatomprom generates about KZT 1,697,002 million from uranium, KZT 90,728 million from Ulba Metallurgical Plant, and KZT 294,086 million from other activities.
Market Cap:US$16.2 billion
Kazatomprom gives you direct exposure to the fuel that keeps reactors running, with uranium mining and processing at the centre of its business model.
"Global structural undersupply of uranium driven by increasing nuclear build-outs, plant lifespan extensions, and a lag in bringing new projects online is supporting a multi-year demand upcycle. This is positioning Kazatomprom for sustained pricing power and higher sales volumes, which is positive for revenue and margin growth."
The real test for Kazatomprom is how one pressure on its cost base evolves, because that could sharply alter those margin outcomes.
That cost pressure is exactly what the full narrative for National Atomic Company Kazatomprom JSC unpacks. It reveals how supply contracts, pricing power and country risk could be quietly reshaping the Kazatomprom story.
Centrica (LSE:CNA)
Overview:Centrica is an integrated energy group that supplies power and services to homes and businesses, while also generating electricity from nuclear assets and trading nuclear-sourced output.
Operations:Centrica records about £16.3b from Retail, £6.0b from Optimisation and £1.6b from Infrastructure, offset by inter-segment and IFRS 9 related adjustments.
Market Cap:£6.8b
Centrica matters in this nuclear energy screen because its ownership stakes and trading activity around atomic-generated electricity tie reliable power supply directly into a broader, cash-producing utility model.
"Centrica's expanding investment in regulated, low-carbon generation assets (notably the Sizewell C nuclear project), combined with opportunities in potential nuclear life extensions and carbon storage (Morecambe Net Zero), positions the company to capture stable, long-duration, inflation-linked returns amid accelerating decarbonization policies, supporting predictable revenue and enhanced margins over the long term."
What really moves the needle for Centrica is how one unresolved regulatory decision shapes the economics of its future low-carbon earnings mix.
That hinge point is exactly what the full narrative for Centrica unpacks, mapping how accelerating nuclear projects, regulatory calls and cash returns could quietly re-rate Centrica's long term mix.
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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.
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