Centrus Energy (LEU 5.27%) attracted the right kind of energy on the stock exchange Friday. The company's shares closed that session 5% higher, after it published news of an important contract renewal. That pop looked particularly impressive when matched against the S&P 500's (^GSPC -0.22%) trajectory, which dipped into the red with a 0.2% decline.

An energetic extension

Before market open that morning, Centrus divulged that the U.S. Department of Energy (DoE) exercised its option to extend the company's contract to produce for it high-assay, low-enriched uranium (HALEU). The extension now runs through June 30, 2026.

Image source: Getty Images.

HALEU is a type of nuclear fuel that has a level of enrichment considered most suitable for current nuclear reactor technology, including the small nuclear reactors (SMRs) that have recently come into vogue.

In what's probably not a coincidence, Centrus' latest news comes barely a week after its business partner Oklo was tapped to build and operate a nuclear plant to supply heat and electricity to an Air Force base in Alaska. The two companies have a memorandum of understanding (MOU) in place for Centrus to supply HALEU for Oklo's projects.

The trend is its friend

In its press release on the contract extension, Centrus added that the DoE holds options for further extensions to the existing contract. It could opt to keep Centrus's HALEU supply going for as much as a further eight years.

So it's not only good news that a major business for the company has a longer runway, but it's looking for more as time goes by. Assuming President Trump's embrace of nuclear energy remains in place (and possibly outlives his administration), Centrus will be in a very good position indeed.