Cameco reports Q1 results: strong consolidated financial and operational results; average realized price benefitting from long-term contracting strategy; full-cycle market fundamentals remain positive
Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the first quarter ended March 31, 2025, in accordance with International Financial Reporting Standards (IFRS).
“Cameco’s first quarter performance across our uranium, fuel services, and Westinghouse segments was robust, reflecting our disciplined strategic alignment and continued positive momentum across the nuclear energy market,” said Tim Gitzel, Cameco’s president and CEO. “We’ve repeatedly highlighted our view that full-cycle demand is more durable than ever, and the perseverance of the positive nuclear market momentum through recurring cycles of uncertainty, has served to reinforce that perception of durability. The market has faced challenges to Central Asian supply, the unexpected remapping of global geopolitics and flows across the nuclear fuel cycle, and now, the unstable and unpredictable global economic environment and trade turmoil that is impacting every country. Through it all, nuclear energy has maintained strong, if not growing support based on its key attributes that back energy security, national security, and climate security.
“Operationally, first quarter production in both our uranium and fuel services segments was strong and on track with our 2025 outlook, which is unchanged. In the long-term market, we continued to be selective in committing our unencumbered, tier-one, in-ground uranium inventory and UF6 conversion capacity, building on a contract portfolio that spans over a decade. Every long-term contract we add reflects today’s positive market sentiment, and we are able to capture greater upside while protecting from potential market weakness, creating long-term value over the life of the contract. And, when we see our first quarter average realized price increase year-over-year when the average uranium spot price fell 30% over the same period, it remains clear that plans and investments centered on spot market exposure face significant risks, and that value creation in our industry requires a long-term contracting strategy.
“Our strategy continues to demonstrate the benefits of aligning our operational, marketing, and financially-focused actions and decisions. Utilities are adjusting their global supply chains to mitigate risks and ensure reliable supply, and as proven, reliable suppliers operating across the nuclear fuel and reactor life cycles, with licensed and permitted operations in geopolitically stable jurisdictions, Cameco and Westinghouse are in a unique position to benefit from the market transition and continue to create value for our owners.”
First Quarter Highlights:
- Q1 net earnings and adjusted net earnings of $70 million; adjusted EBITDA of $353 million: Consolidated financial results were higher than in the first quarter of 2024 and in line with the 2025 outlook we provided, which has not changed. Quarterly results are impacted by normal variations in the timing of contract deliveries in our uranium and fuel services segments, and the timing of customer-driven reactor life cycle activities in the Westinghouse segment.
- Uranium: In our core uranium segment, net earnings decreased by 10% and adjusted EBITDA was down by 6% compared to the same period in 2024, mainly as a result of lower results from JV Inkai due to the timing of sales. Average realized price continued to show improvements as prices from fixed price contracts increased and the US dollar strengthened. Total cost of sales (including depreciation and amortization (D&A)) increased by 6% due to an 11% increase in unit cost of sales compared to the same period last year, partially offset by the 5% decrease in sales volume. Unit cost of sales was higher than in the first quarter of 2024 due to the higher cost of purchased material compared to the same period in 2024. In addition, the average cash cost of production was 15% higher for the quarter compared to the same period in 2024, due to higher production from Cigar Lake, where cash costs are slightly higher than from McArthur River/Key Lake relative to last year. We continue to expect 18 million pounds of production (100% basis) at each of McArthur River/Key Lake and Cigar Lake operations in 2025. See Financial results by segment – Uranium in our first quarter MD&A for more information. Cash cost per pound is a non-IFRS measure, see page 4.
- Fuel Services: In our fuel services segment, both net earnings and adjusted EBITDA increased by more than 100% compared to the same period in 2024 due to higher sales, a 17% increase in average realized price and a 22% decrease in cost of sales. See Financial results by segment – Fuel services in our first quarter MD&A for more information.
- Westinghouse: As expected, our Westinghouse segment reported a net loss of $62 million (our share) for the first quarter, improving considerably from a loss of $123 million (our share) in the first quarter of 2024, which was impacted by the purchase accounting for inventory that was held at the time of acquisition and sold in the first quarter last year. Westinghouse’s results were and will continue to be impacted by the amortization of the intangible assets that arose as a result of the fair values assigned to Westinghouse’s net assets at the time of acquisition. We use adjusted EBITDA as a performance measure for Westinghouse and in the first quarter of 2025, adjusted EBITDA increased to $92 million, compared to $77 million in the first quarter of 2024, and is expected to be between $355 million (US) and $405 million (US) for the year. In 2025, Westinghouse’s first half results are expected to be weaker, with stronger performance, and higher cash flows expected in the fourth quarter. See Our outlook for 2025 and Our earnings from Westinghouse in our first quarter MD&A for more information. Adjusted net earnings and adjusted EBITDA are non-IFRS measures, see page 4.
- Joint Venture Inkai (JV Inkai) production plan: As previously reported, JV Inkai was unexpectedly directed by the majority owner and controlling partner, Kazatomprom, to suspend production activity on January 1, 2025. Production resumed on January 23, 2025 and JV Inkai has since worked to update its mine plan and budget to adjust for the January 2025 production suspension. JV Inkai is now targeting 2025 production of 8.3 million pounds (100% basis) of which our purchase allocation is 3.7 million pounds. The temporary suspension did not have a material impact on our 2025 outlook. The delivery schedule for our share of the JV’s 2025 production, and for the 0.9 million pounds from our share of 2024 production that remains stored at JV Inkai, is being updated based on the new production schedule. We do not expect to receive any deliveries from JV Inkai until at least the second half of 2025.
- Disciplined long-term contracting: As of March 31, 2025, we had commitments requiring delivery of an average of about 28 million pounds per year, which included deliveries made year to date in 2025, from 2025 through 2029, with commitment levels in 2025 through 2027 being higher than the average, and in 2028 and 2029, lower than the average. To date in 2025, long-term contracting has slowed due to global macro-economic uncertainty related to trade policy issues, and customers’ focus on downstream services driven by continuing geopolitical tensions. However, we continue to have a large and growing pipeline of business under discussion, which we expect will help further build our long-term contract portfolio. As the market continues to improve, we expect to selectively continue layering in long-term volumes that capture greater future upside and downside protection using market-related pricing mechanisms.
- Maintaining financial discipline and balanced liquidity to execute on strategy:
- Strong balance sheet: As of March 31, 2025, we had $361 million in cash and cash equivalents and $1.0 billion in total debt. In addition, we have a $1.0 billion undrawn credit facility which matures October 1, 2028. We continue to expect strong cash flow generation in 2025.
- Focused debt reduction: Thanks to our risk-managed financial discipline and strong cash position, in January 2025 we made the final repayment of $200 million (US) on the $600 million (US) term loan that was used to finance the acquisition of Westinghouse.
- Westinghouse distribution: In February 2025 we received $49 million (US), which represents our share of a $100 million (US) distribution paid by Westinghouse. This is the first distribution since the acquisition closed.
- Dividend from JV Inkai: In April, following the end of the quarter, we received a cash dividend of $87 million (US), net of withholdings, from JV Inkai based on its 2024 financial performance. From a cash flow perspective, we expect to realize the benefit from JV Inkai’s 2025 financial performance in 2026 once the dividend for 2025 is declared and paid.
Source: Cameco
