Britain's Energy Secretary is pushing to keep money flowing into green and low carbon projects even as fiscal rules tighten, which keeps reliable power sources firmly in the policy spotlight. Nuclear energy is part of that conversation for UK investors looking for long term, large scale electricity assets. This article walks through three nuclear energy stocks from the screener that may be used to build targeted exposure to that theme.
The three stocks highlighted here offer a compelling starting point if you want exposure to uranium producers, fuel cycle specialists and reactor operators tied to reliable and sustainable power. However, if you want the strongest names, these 16 nuclear renaissance stocks are the top of the list.
Rolls-Royce Holdings (LSE:RR.)
Overview:Rolls-Royce Holdings designs mission-critical power and propulsion systems, including submarine nuclear reactors, within a broader civil aerospace and defence engine business.
Operations:Rolls-Royce generates about £11.8b from Civil Aerospace, £5.5b from Power Systems and £5.0b from Defence, with only part tied directly to nuclear propulsion.
Market Cap:£112.1b
For the Nuclear Energy Stocks theme, Rolls-Royce offers exposure to submarine nuclear reactors and propulsion, wrapped inside a much larger aerospace and defence engine group.
"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."
Future returns for Rolls-Royce shareholders could hinge on how one pressure point shapes margins and cash generation across these long-cycle programmes.
Those margin and cash questions are exactly what the full narrative for Rolls-Royce Holdings unpacks, setting out where Rolls-Royce could accelerate and where execution risk might still be masking the story.
National Atomic Company Kazatomprom JSC (LSE:KAP)
Overview:National Atomic Company Kazatomprom JSC is a Kazakhstan based uranium producer that supplies nuclear fuel material and related processing services worldwide.
Operations:Kazatomprom generates most of its KZT 1,966,816 million segment revenue from Uranium at about KZT 1,697,002 million, with smaller contributions from Ulba Metallurgical Plant and other activities across China, Russia, the United States, Canada and Europe.
Market Cap:US$16.4b
Kazatomprom gives you pure exposure to the uranium side of nuclear power, with its mining and processing operations feeding reactor fuel supply chains across several major energy markets.
"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, positioning Kazatomprom for sustained pricing power and higher sales volumes, which is described as positive for revenue and margin growth."
The real swing factor is how one cost and logistics squeeze shapes the balance between that pricing power and future profitability.
That cost and logistics squeeze is exactly where the full narrative for National Atomic Company Kazatomprom JSC goes deeper, mapping how Kazatomprom could see pricing power accelerate or get quietly eroded by rising constraints.
Centrica (LSE:CNA)
Overview:Centrica is an integrated energy group that supplies gas and electricity, runs nuclear generation and optimizes energy output across multiple markets.
Operations:The business earns about £16.3b from Retail, £6.0b from Optimisation and £1.6b from Infrastructure, before inter-segment adjustments.
Market Cap:£6.8b
Centrica matters for the Nuclear Energy Stocks theme because its nuclear generation stake and power contracts tie everyday retail supply to long life low carbon assets.
"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), is intended to position the company to pursue stable, long-duration, inflation-linked returns in the context of accelerating decarbonization policies, supporting more predictable revenue and margins over the long term."
What happens if one key policy decision shifts the balance between steady asset-backed cash flows and pressure on future profitability?
That policy swing is exactly what the full narrative for Centrica unpacks, showing where Centrica's regulated assets could quietly accelerate cash flows or leave value stalling on the table.
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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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