Cameco Eyes Growth After U.S. Nuclear Deal Despite Quarterly Loss

Cameco Corp., a leading uranium mining company based in Saskatoon, has reported a small loss in its latest quarterly earnings. Despite lower sales, the company is optimistic about substantial growth opportunities following a partnership deal with the U.S. government. The agreement positions Westinghouse Electric Co., in which Cameco holds a significant stake, to develop nuclear reactors valued at US$80 billion.

During a recent earnings call, Cameco’s Chief Executive Officer, Tim Gitzel, described the partnership as “transformational.” He highlighted that this collaboration would accelerate the global deployment of Westinghouse’s reactor technology, thereby enhancing energy security and revitalizing domestic supply chains. Gitzel stated, “We expect this milestone to accelerate the global deployment of Westinghouse’s reactor technology, strengthening energy security, revitalizing domestic supply chains, and creating significant growth opportunities for both Westinghouse and for Cameco.”

In the third quarter, Cameco reported revenues of $615 million, a decline of 15 percent compared to the same period last year. The company emphasized that quarterly results can fluctuate based on customer order timing, suggesting that annual figures provide a better performance overview. On a positive note, Cameco indicated increased confidence in achieving its annual sales forecast of up to 34 million pounds of uranium for the year.

Cameco’s management noted that their financial and operational results year-to-date are encouraging. Even with a dip in sales, there was an improvement in realized prices within the uranium and fuel services segments. Additionally, earnings from the investment in Westinghouse showed a positive trend compared to 2024.

After touring new Westinghouse reactors in Georgia, Gitzel underscored the potential of innovation, policy, and industry collaboration. He remarked, “I’m delighted to start today by touching on the transformative partnership between Cameco, Brookfield, the U.S. government, and Westinghouse, marking a major milestone for the company and for the entire sector.”

Cameco’s joint ownership of Westinghouse with Brookfield Business Partners L.P.—49 percent and 51 percent respectively—has been pivotal in driving the company’s strategy. Gitzel pointed out that the long-term commitment to nuclear energy signals a growing momentum for the industry.

As of September 30, 2023, Cameco reported $779 million in cash and cash equivalents, with total debt standing at $1 billion and a $1 billion undrawn revolving credit facility. Gitzel stated, “Today, nuclear energy is not just maintaining relevance as the global energy landscape evolves. It’s undergoing an expansion and meaningful transformation.”

The academic perspective on Cameco’s performance is also positive. Devan Mescall, Edwards enhancement chair in business at the University of Saskatchewan, noted that despite falling short of analyst expectations for the quarter, the company’s overall performance for the year remains strong. He stated, “Overall, for the nine months to date, revenue is up, their gross profit is up, and the price of uranium is up from a year ago.”

Mescall emphasized the significance of Cameco’s cost management, which has allowed the company to remain competitive and profitable. The strong performance in the previous quarters has positioned Cameco well for the remainder of the year.

In his remarks, Gitzel reiterated that the evolving energy landscape presents nuclear energy with significant growth opportunities. He expressed confidence in Cameco’s strategic position to support the sector’s next chapter.

Third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) for uranium were reported at $220 million, down from $240 million in 2024, reflecting lower sales volumes. Mescall noted that Cameco’s management has adeptly navigated the challenges within the uranium market while demonstrating consistency in what is arguably the most favorable market conditions in decades.

“The vertical integration by investing in Westinghouse allows them to not only produce uranium but also participate in reactor construction, which is starting to yield new revenue streams,” Mescall explained. This strategic alignment is crucial as the demand for electricity continues to rise, particularly in the context of industrial and artificial intelligence advancements.

Looking ahead, Cameco’s ability to meet future electricity demands, particularly in a low-carbon manner, positions it as a vital partner for the U.S. energy strategy. Mescall concluded, “This should create stability and opportunity for Cameco in Saskatchewan for the foreseeable future.”

Gitzel ended the earnings call on an optimistic note, stating, “These are incredibly exciting times for this industry, and the outlook is becoming stronger with each passing day.” He emphasized that Cameco is not merely participating in the energy transition; rather, it is actively shaping the future of energy.