Michael Joel-Hansen
Saskatoon StarPhoenix
Saskatoon-based uranium miner Cameco Corp. beat analyst expectations and reported higher earnings for the second quarter on Thursday as jurisdictions around the world snapped up more uranium to power nuclear reactors.
The company reported net earnings of $321 million, up significantly from $36 million at the same time last year. Adjusted net earnings were $308 million, up from $62 million, while earnings before interest, taxes and amortization (EBITA) came in at $673 million, a large increase from $337 million at the same time last year, and beating analyst expectations of $629 million.
Cameco credited its strong performance to its equity earnings from its 49 per cent share in Westinghouse Electric Co., along with strong results from its uranium and fuel service operations. Earnings for uranium sales before taxes were up 46 per cent, while adjusted EBITA
was up 43 per cent from the same time in 2024. Fuel sales earnings before taxes were up 33 per cent, while adjusted EBITA was up 36 per cent from last year.
In an earnings call, chief executive Tim Gitzel said the company is well placed to meet increased demand for nuclear power. He pointed to plans to start construction on small modular reactors in Ontario along with plans to build 10 new reactors across the United States and a number of approved projects in Europe as being good for the nuclear industry.
“We believe Cameco is positioned as a central pillar supporting the wave of new nuclear plans announced in recent months,” Gitzel said on an investor call Thursday morning.
He said Cameco has $760 million in cash on hand, with $1 billion in debt and $1 billion in an undrawn revolving credit facility.
“From a financial perspective we are in excellent shape,” Gitzel said.
Uranium production was lower at the company’s Key Lake Mill mill due to planned maintenance. But Cameco is still projecting its McArthur River/Key Lake and Cigar Lake facilities will each produce 18 million pounds of uranium in 2025. The J.V. Inkai mine in Kazakhstan, which Cameco owns 40 per cent of, remains projected to produce 8.3 million pounds.
Gitzel said Cameco continues to produce uranium in step with demand, but added nuclear utilities still have not secured enough uranium to meet the projected growth in demand.
“Utilities still have a significant amount of uranium to secure to meet their fuel needs through 2045,” he said.
The company is exploring mining additional uranium from new areas at its McArthur River site, which poses a risk to production due to a lower availability of skilled labour and possible challenges commissioning new equipment. Wildfire threats have sent a number of skilled
workers home, Gitzel said.
In a note to clients, Mohamed Sidibé, an analyst with National Bank of Canada Financial Markets, said Cameco’s earnings per share growth of 71 cents beat the bank’s expectations of 51 cents.
He attributed the beat to higher revenue from uranium and fuel sales, along with higher equity from J.V. Inkai and Westinghouse.
“Overall we expect Cameco to outperform peers in trading today on the back of the stronger-than-expected results in the uranium and
Westinghouse segments, partially offset by production outlook risk at McArthur River,” Sidibé wrote.
Cameco’s share price was down almost four per cent to $103.32 in midday trading. Still, the stock is up 38 per cent, year to date.
Cameco also announced changes to its executive team on Thursday. As of Sept. 1, Grant Isaac will be come the company’s chief operating officer, while Heidi Shockey will take on the role of chief financial officer. Liam Mooney becomes chief legal officer. Outgoing chief legal officer Sean Quinn and Brian Reilly, the outgoing chief operating officer, are set to remain with the company in advisory roles until they both retire
in March 2026.
The company indicated no changes would be coming to the chief executive role.
“I will remain as CEO and will continue to guide this company through the most exciting times that any of us have ever experienced in this industry,” Gitzel said.
