Cameco (TSX:CCO,NYSE:CCJ) is driving a wave of renewed nuclear optimism and long-term contracting after posting sturdy second quarter earnings, elevating its expectations for the remainder of 2025
In outcomes launched Wednesday (July 30), the Saskatoon-based agency reported internet earnings of US$234 million for the second quarter and US$285 million for the primary half of 2025, each considerably above 2024 ranges.
Adjusted EBITDA for the quarter got here in at US$491 million, with robust contributions throughout its uranium, gas companies, and Westinghouse segments.
“Our built-in technique that aligns our advertising, operational, and monetary choices continues to serve us nicely in a market that’s shifting its focus towards safety of provide,” mentioned Cameco CEO Tim Gitzel.
“In consequence, we consider nuclear power, and in flip Cameco, with our tier-one belongings in secure jurisdictions and strategic investments throughout the complete nuclear gas cycle, is on the essential path to international power safety,” Gitzel added.
Cameco’s uranium enterprise benefited from greater gross sales volumes and stronger common realized costs, which reached roughly US$63.50 per pound, up from US$61.30.
That carry, mixed with beneficial trade charges and long-term contracts shielded from short-term volatility, contributed to a 46 p.c year-over-year improve in uranium phase earnings earlier than earnings taxes in Q2.
Gitzel emphasised that Cameco’s contract portfolio permits it to navigate short-term market dislocations whereas remaining positioned for upside.
“From a advertising perspective, we’re capturing worth with continued endurance and self-discipline as we layer-in long-term contracts for each uranium and conversion companies” he mentioned, noting that fixed-price contracts and conversions helped insulate the corporate from weaker spot circumstances earlier within the 12 months.
Nonetheless, the corporate flagged operational headwinds. A deliberate upkeep shutdown on the Key Lake mill elevated unit prices and impacted Q2 manufacturing. Cameco is sustaining its full-year uranium manufacturing steerage at 18 million kilos throughout its McArthur River/Key Lake and Cigar Lake operations, however warned that execution dangers stay.
But it surely was Westinghouse, the worldwide nuclear companies agency during which Cameco holds a 49 p.c stake, that delivered probably the most notable upside.
The corporate revised its 2025 adjusted EBITDA share from Westinghouse to between US$525 million and US$580 million, a big soar from the earlier US$355–405 million vary.
The increase was attributed to Westinghouse’s participation within the development of two new reactors on the Dukovany nuclear energy plant within the Czech Republic, which contributed a further US$170 million in Q2 income to Cameco’s fairness share.
“We consider that this venture evidences the rising help for nuclear energy, help that’s anticipated to have a optimistic impression on our uranium and gas companies companies,” Gitzel mentioned.
Cameco had supply commitments for a mean of 28 million kilos per 12 months by way of 2029, with greater ranges anticipated between 2025 and 2027.
The corporate can be exploring future alternatives in enrichment, notably by way of its World Laser Enrichment (GLE) enterprise. Throughout the firm’s earnings name, Government Vice President and CFO Grant Isaac mentioned GLE stays targeted on re-enriching depleted UF6 tails underneath an settlement with the US Division of Power (DOE).
“That’s the main obligation of GLE,” Isaac mentioned. “GLE may do straight down the green LEU to interchange the Russians and do greater assay enrichments with the intention to present gas for a number of the superior reactor designs that require a excessive stage of enrichment.”
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
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