Cameco (CCO) reported Q3 2025 revenue of C$885 million, up 13% year-over-year, reflecting sustained uranium price strength and solid demand for conversion and fuel services. Adjusted net earnings reached C$184 million, or C$0.43 per share, compared to C$144 million (C$0.33 per share) in the same quarter last year. Management attributed the gains to higher realized uranium prices and increased production at both Cigar Lake and McArthur River, two of the world’s largest operating uranium mines.
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Average realized uranium prices rose 15% during the quarter, driven by renewed long-term contracting and tightening supply conditions. Cameco’s uranium segment posted C$627 million in revenue, up 12% year-over-year, while the Fuel Services division delivered C$155 million, up 9%. The company ended the quarter with C$1.5 billion in cash, C$2.3 billion in long-term debt, and a strong order book extending beyond 2030.
Management reaffirmed 2025 production guidance of 19 million pounds of uranium and 11 million kilograms of UF6 conversion, emphasizing operational reliability and portfolio balance across the nuclear fuel cycle. CEO Tim Gitzel said the company remains “well-positioned to support the clean energy transition” as both utilities and governments renew commitments to nuclear energy as part of decarbonization strategies.
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Financial Story
Cameco’s latest quarter underscored the steady normalization of uranium markets after several years of volatility. Total adjusted EBITDA reached C$423 million, up 14% year-over-year, while gross margins expanded to 34%, reflecting both higher realized prices and cost discipline across mining operations. Average production costs rose modestly due to inflationary pressures and ongoing development spending at McArthur River, but higher selling prices more than offset those increases.
| Metric | Q3 2025 | YoY Change | Commentary |
|---|---|---|---|
| Revenue | C$885M | +13% | Driven by higher uranium prices |
| Adjusted Net Income | C$184M | +28% | Margin expansion across all segments |
| Adjusted EPS | C$0.43 | +30% | Supported by Westinghouse contribution |
| EBITDA | C$423M | +14% | Reflects uranium price gains |
| Gross Margin | 34% | +200 bps | Operational efficiency gains |
| Cash Position | C$1.5B | Flat | Strong liquidity maintained |
| Debt-to-Equity Ratio | 0.26x | — | Stable balance sheet |
| Uranium Production | 19M lbs (guidance) | — | Aligned with long-term contracts |
The company’s equity-accounted share of income from Westinghouse Electric added C$39 million in pre-tax contributions, reflecting improved profitability and growing demand for reactor services. Management noted that Westinghouse continues to outperform acquisition expectations, with ongoing growth in both its fuel and services segments. Cameco’s effective ownership in the venture remains at 49%, alongside Brookfield, and it is expected to generate meaningful recurring earnings as global reactor utilization rises.
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Broader Market Context
The global nuclear industry is undergoing its strongest demand resurgence in over two decades. More than 60 new reactors are under construction worldwide, with another 100 in planning stages, as countries seek stable baseload power to complement renewables. Cameco remains a key supplier to this growing market, benefiting from tight supply conditions, depleted inventories, and the gradual return of Western utilities to long-term contracting after years of underinvestment in uranium supply.
However, while long-term fundamentals remain favorable, near-term investor sentiment has become more measured. Spot uranium prices have surged by more than 80% since 2023, raising questions about how much of that optimism is already priced into equities like Cameco. The company’s valuation, now trading at around 18x forward EBITDA, reflects high expectations for sustained contract renewals and pricing power. Any slowdown in contracting activity or delays in reactor restarts could weigh on short-term momentum.
1. Uranium Market Recovery Strengthens the Core Business
Cameco’s uranium segment remains the company’s primary earnings driver, representing roughly 70% of total revenue. Production from Cigar Lake and McArthur River increased 9% year-over-year, benefiting from stable operations and favorable ore grades. The company continues to balance production volumes with contract commitments to maintain pricing leverage and operational discipline, rather than chase market share.
Long-term contracting momentum remains strong, with Cameco securing several multi-year supply deals with U.S. and European utilities. These contracts, often indexed to market prices, give the company greater earnings visibility into the late 2020s. Management expects the uranium segment’s realized prices to rise another 5–10% in 2026, reflecting both contract escalations and the tightening of Western supply chains as governments seek to reduce reliance on Russian-origin material.
2. Westinghouse Becomes a Key Profit Engine
Since acquiring a 49% stake in Westinghouse Electric in late 2023, Cameco has added a second recurring income stream. The nuclear services firm provides fuel, maintenance, and engineering solutions to nearly half the world’s reactors, giving Cameco a downstream foothold in the broader nuclear value chain.
Westinghouse contributed C$39 million in pre-tax income this quarter, supported by a rebound in global maintenance work and increased demand for fuel assemblies. Management expects annualized earnings contributions to rise as reactor utilization grows and refurbishment projects accelerate. Longer-term, Cameco’s exposure to Westinghouse gives it a more vertically integrated earnings base, from uranium mining to conversion, fuel fabrication, and reactor services, making it less dependent on the volatile spot uranium market.
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3. Balance Sheet and Dividend Discipline
Cameco’s capital allocation remains conservative despite surging cash flow. The company maintains one of the cleanest balance sheets in the sector, with net debt under C$1 billion and access to C$2.5 billion in credit facilities. Its conservative approach allows it to fund growth internally while maintaining flexibility for opportunistic investments or acquisitions if market conditions evolve.
Cameco reinstated its C$0.12-per-share quarterly dividend, which represents a modest 0.4% yield but underscores management’s preference for reinvestment and balance-sheet strength over higher payouts. The company also reiterated its commitment to maintaining investment-grade credit metrics as it scales up operations at McArthur River and progresses its U.S. nuclear partnerships. While the dividend remains low, investors value Cameco’s financial discipline as a competitive differentiator in a historically cyclical industry.
The TIKR Takeaway
Cameco’s Q3 results reinforced its position as the leading pure-play nuclear fuel supplier with diversified earnings exposure through Westinghouse. Strong pricing power, high-quality reserves, and a conservative capital structure provide a solid foundation for long-term growth. However, with shares up more than 70% year to date, much of the good news may already be priced in.
Future upside depends on the durability of uranium prices and the successful execution of its vertical integration strategy. Cameco remains one of the best-positioned names in the nuclear renaissance. Still, with expectations high, investors should watch for execution consistency and contract renewal trends before assuming the rally has further room to run.
Should You Buy, Sell, or Hold Cameco’s Stock in 2025?
At around C$128 per share, Cameco trades near 18x forward EBITDA, reflecting a premium valuation for its growth and strategic positioning. The fundamentals remain solid, but the risk-reward has narrowed following a year of outperformance. Long-term investors may continue to hold for exposure to nuclear growth and Westinghouse upside, while new entrants may prefer to wait for a pullback before adding positions.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
