• Revenue: Up 24% in Q1 2025.
• Gross Profit: Increased by 44% in Q1 2025.
• Adjusted Net Earnings: Up 52% in Q1 2025.
• Adjusted EBITDA: Increased by 5% in Q1 2025.
• Westinghouse Segment Net Loss: Expected annual net loss of $20 million to $70 million in 2025.
• Westinghouse Adjusted EBITDA: Improved by 19% compared to Q1 last year.
• Uranium Production: 6 million pounds in Q1 2025, slightly higher than 5.8 million pounds in Q1 last year.
• Fuel Services Production: Up 5% over Q1 last year.
• Long-term Uranium Price: Increased from $68 per pound in January 2024 to around $80 per pound.
• Cash Flow: Strong cash flow generation expected in 2025.
• Term Loan Repayment: Final repayment of USD200 million made in January 2025.
• Cash Distribution from Westinghouse: USD49 million received in February.
• Cash Dividend from JV Inkai: USD87 million net of withholdings received in April.

• Warning! GuruFocus has detected 7 Warning Signs with APD.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cameco Corp (NYSE:CCJ) reported a strong financial performance in Q1 2025, with revenue up 24%, gross profit up 44%, and adjusted net earnings up 52%.
• The company successfully repaid the remaining USD 200 million of a USD 600 million term loan used for the Westinghouse acquisition, indicating a strong balance sheet.
• Cameco Corp (NYSE:CCJ) is well-positioned in the nuclear fuel cycle with premier Tier 1 assets and investments across the reactor life cycle.
• The long-term demand outlook for nuclear energy remains positive, with significant commitments to nuclear energy projects globally, including new reactor approvals in China and Poland.
• Cameco Corp (NYSE:CCJ) maintains a strong cash flow generation outlook for 2025, supported by a disciplined financial strategy and a robust contract portfolio.

Negative Points

• The uranium market is experiencing a lack of long-term utility contracting necessary to support both brownfield expansion and new projects.
• Cameco Corp (NYSE:CCJ) faces ongoing geopolitical and trade policy uncertainties, including potential tariffs and Section 232 investigations in the US.
• The Westinghouse segment reported a net loss in Q1 2025 due to normal quarterly variations and ongoing amortization of intangible assets.
• There are risks associated with the production targets at JV Inkai, including ongoing acid and supply chain challenges.
• The company remains in supply discipline, indicating that the uranium segment has not yet reached replacement rate contracting, which requires financial conservatism.

Q & A Highlights

Q: With the balance sheet in great shape after paying down the remaining term loan debt on the Westinghouse acquisition, what are the priorities for capital allocation moving forward? Could we see increased capital returns to shareholders? A: Grant Isaac, CFO, explained that while Cameco is seeing strong cash flow and earnings, they remain in supply discipline due to the lack of replacement rate contracting in the uranium segment. The company is focused on maintaining financial conservatism to manage risks and is considering opportunities for growth in the nuclear fuel cycle. Capital returns to shareholders, such as dividends or share buybacks, may be considered in the future, but the company is currently prioritizing financial discipline.

Q: What are the implications for Westinghouse following the recent IP legal settlement with Korea? A: Grant Isaac, CFO, noted that the settlement allows Westinghouse and Korea to collaborate rather than compete in certain markets, expanding Westinghouse's scope in energy systems. This agreement could lead to Westinghouse participating in markets where it was previously not competitive, such as those requiring fixed-price turnkey solutions.

Q: Can you discuss the transition of fuel buyer procurement emphasis from downstream to upstream and what industry markers indicate this change? A: Tim Gitzel, CEO, highlighted that while there is significant uncontracted uranium demand through 2045, the industry has not yet seen a shift in procurement emphasis. Utilities are currently focused on securing downstream services like enrichment and conversion. However, the need for uranium will eventually drive a shift upstream, and Cameco is prepared to meet this demand with its strong financial position and supply discipline.

Q: What is the outlook for sulfuric acid availability and procurement in Kazakhstan, and how does it affect Cameco's operations there? A: Cory Kos, VP of Investor Relations, stated that while there is no signed agreement for a new sulfuric acid plant, the expectation is for it to be operational by 2027. Currently, there is no solution in place, but Cameco's relations with Kazatomprom have stabilized, and they are on track to meet production targets despite ongoing supply chain risks.

Q: How is Cameco's exploration strategy affected by projected demand and the global slowdown in exploration? A: Tim Gitzel, CEO, emphasized that exploration remains a critical part of Cameco's strategy. The company has retained key properties in the Athabasca Basin and continues to increase its exploration budget. Cameco is committed to maintaining a strong exploration program to support future growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.