Canadian investors have had a lot to think about lately. Recent economic data shows Gross Domestic Product (GDP) growth slowing more than expected, signalling that the Canadian economy is starting to feel the full weight of higher interest rates. Inflation held steady at 2.7% in April, while consumer spending softened. Retail sales declined, and wage growth appears to be flattening.
The big question now is whether the Bank of Canada will start cutting interest rates again soon. In the middle of all this uncertainty, some investors are turning their attention to long-term trends, and few trends are as compelling right now as the global demand for clean energy.
Cameco
That’s where Cameco (TSX:CCO) comes into focus. As Canada’s largest uranium producer, Cameco stock plays a major role in supplying fuel for nuclear power plants around the world. It has operations at key sites like McArthur River and Cigar Lake, and a stake in Westinghouse, one of the most recognized names in nuclear reactor technology. The company has long been viewed as a foundational stock for investors who want exposure to the nuclear energy story.
At the moment, Cameco stock is trading just around $95, below the three-digit mark. So, the question becomes, is this a smart entry point for long-term investors?
Into earnings
Looking at the latest earnings results, the fundamentals are lining up nicely. In the first quarter (Q1) of 2025, Cameco stock reported $70 million in net earnings. That’s a big improvement from the $7 million loss in Q1 2024. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $353 million, and revenue climbed 25% year over year. It also delivered earnings per share of $0.16, compared to a loss of $0.02 during the same period last year.
Breaking things down further, Cameco stock’s fuel services division saw a surge in performance, with adjusted EBITDA more than doubling year over year. Its uranium segment was slightly lower, with a 6% dip in adjusted EBITDA due to higher output and associated costs at the Cigar Lake site. Still, the average realized price was up thanks to Cameco’s long-term contracts. This helped protect it from the roughly 30% decline in uranium spot prices that took place earlier this year.
Even Westinghouse, which had been a drag on earnings in the past, showed improvement. The business posted a loss of $62 million, much better than the $123 million loss it reported a year ago. This is a promising sign, especially considering Westinghouse’s long-term strategic importance in the nuclear space.
Looking ahead
Financially, Cameco remains in a strong position. It repaid a US$200 million loan earlier this year and finished the quarter with over $360 million in cash. That kind of balance sheet strength gives it room to manage costs, pursue new growth, and remain flexible in a volatile market.
Some investors may still be cautious. Uranium prices can be unpredictable, and energy stocks in general can be volatile. But Cameco stock’s long-term supply contracts give it steady cash flow, and its role in the nuclear energy ecosystem makes it a strategic asset. Nuclear energy is once again being viewed as a viable solution to both climate change and energy security. With countries like the U.S., France, India, and China planning to expand their nuclear programs, demand for uranium should only grow.
For those who believe in the long-term case for nuclear energy, Cameco stock offers a chance to buy into that future at a price below recent analyst targets. With strong earnings, a healthy balance sheet, and clear demand drivers, the stock looks like a reasonable buy below $95.
Bottom line
As Canadian economic growth slows and interest rates potentially fall, the market could reward companies with steady revenue and ties to long-term global trends. Cameco stock checks both boxes. For investors looking for a mix of growth, resilience, and exposure to clean energy, this might be the right time to take the plunge.
