Cameco Corporation Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Annual Revenue: Approximately $3.5 billion, up 11% from 2024.

Adjusted EBITDA: About $1.9 billion, a 26% increase year-over-year.

Adjusted Net Earnings: Just under $630 million, reflecting a 115% improvement compared to 2024.

Cash and Investments: Ended the year with approximately $1.2 billion in cash and short-term investments, and $1 billion in total debt.

Uranium Production: Produced 21 million pounds in 2025, exceeding revised guidance.

2Strategic Updates and Business Highlights

Continued focus on a landmark partnership with the U.S. government to build Westinghouse reactors, backed by at least $80 billion in planned investment.

Strong performance from all business segments, particularly in uranium and fuel services, with record UF6 production at Port Hope.

Investment in Westinghouse has exceeded expectations, contributing to strong underlying performance and cash distributions.

Long-term contracting strategy remains a cornerstone, with 230 million pounds committed under long-term contracts.

3Forward Guidance and Outlook

2026 Uranium Production Guidance: Expected to be between 19.5 million and 21.5 million pounds.

Average Realized Prices: Anticipated to be between CAD 85 and CAD 89 per pound.

Westinghouse EBITDA Guidance: Projected between USD 370 million and USD 430 million, lower than 2025 due to lumpiness in project timelines.

Continued focus on disciplined production and contracting strategy to align supply with anticipated demand growth.

4Bad News, Challenges, or Points of Concern

Market Conditions: Long-term contracting volumes remain below replacement rates, indicating a mismatch between supply and demand.

Production Challenges: McArthur River's output may be as much as 4 million pounds below its design capacity due to delays and market conditions.

Technical Risks: Ongoing development issues at McArthur River, including encountering challenging geological conditions, could impact future production.

Discipline in Contracting: The company is being cautious in committing to new contracts, which may limit short-term revenue growth despite strong market fundamentals.

5Notable Q&A Insights

Westinghouse Projects: Discussions are ongoing regarding the definitive agreement with the U.S. government, with potential long lead item orders expected in 2026.

Uranium Pricing: The company is maintaining a disciplined approach to pricing and contracting, holding back on large volumes until market demand strengthens.

Conversion Market: Tightness in the conversion market is expected to continue, but Cameco is focused on securing long-term contracts with favorable terms rather than short-term gains.

Future Demand: The management expressed confidence in the long-term demand for uranium, emphasizing that the current market dynamics favor disciplined operators like Cameco. Overall, Cameco Corporation demonstrated strong financial performance in 2025 while navigating challenges in production and market conditions. The company remains focused on strategic partnerships and disciplined execution to capitalize on future growth opportunities in the nuclear sector.