Cameco Lifts Outlook on Nuclear Momentum, Westinghouse Boost After Strong Q2 Performance

Cameco (TSX:CCO,NYSE:CCJ) is riding a wave of renewed nuclear optimism and long-term contracting after posting robust second quarter earnings, raising its expectations for the rest of 2025.

In results released on Wednesday (July 30), the firm reported net earnings of US$234 million for the second quarter and US$285 million for the first half of 2025, both significantly above 2024 levels. Adjusted EBITDA for the quarter came in at US$491 million, with strong contributions across its uranium, fuel services and Westinghouse segments.

“Our integrated strategy that aligns our marketing, operational, and financial decisions continues to serve us well in a market that is shifting its focus toward security of supply,” said Cameco CEO Tim Gitzel.

“As a result, we believe nuclear energy, and in turn Cameco, with our tier-one assets in stable jurisdictions and strategic investments across the entire nuclear fuel cycle, is on the critical path to global energy security,” Gitzel added.

Cameco’s uranium business benefited from higher sales volumes and stronger average realized prices, which reached approximately US$63.50 per pound, up from US$61.30.

That lift, combined with favourable exchange rates and long-term contracts shielded from short-term volatility, contributed to a 46 percent year-on-year increase in uranium segment earnings before income taxes in Q2.

Gitzel emphasized that Cameco’s contract portfolio allows it to navigate short-term market dislocations while remaining positioned for upside. “From a marketing perspective, we are capturing value with continued patience and discipline as we layer-in long-term contracts for both uranium and conversion services” he said, noting that fixed-price contracts and conversions helped insulate the company from weaker spot conditions earlier in the year.

Still, the company flagged operational headwinds. A planned maintenance shutdown at the Key Lake mill increased unit costs and impacted Q2 production. Cameco is maintaining its full-year uranium production guidance at 18 million pounds across its McArthur River/Key Lake and Cigar Lake operations, but warned that execution risks remain.

But it was Westinghouse, the global nuclear services firm in which Cameco holds a 49 percent stake, that delivered the most notable upside. The company revised its 2025 adjusted EBITDA share from Westinghouse to between US$525 million and US$580 million, a significant jump from the previous US$355 million to US$405 million range.

The boost was attributed to Westinghouse’s participation in the construction of two reactors at the Dukovany nuclear power plant in the Czech Republic, which added a further US$170 million in Q2 revenue to Cameco’s equity share.

“We believe that this project evidences the growing support for nuclear power, support that is expected to have a positive impact on our uranium and fuel services businesses,” Gitzel said. Cameco had delivery commitments for an average of 28 million pounds per year through 2029, with higher levels expected between 2025 and 2027.

The company is also exploring future opportunities in enrichment, particularly through its Global Laser Enrichment (GLE) venture. During the company’s earnings call, Executive Vice President and CFO Grant Isaac said GLE remains focused on re-enriching depleted UF6 tails under an agreement with the US Department of Energy.

“That is the primary obligation of GLE,” Isaac explained on the call.

“GLE could do straight down the fairway LEU to replace the Russians and do higher assay enrichments in order to provide fuel for some of the advanced reactor designs that require a high level of enrichment.”

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.