Cameco (TSX: CCO) has been on fire this past year, more than doubling investors’ money with an 88% gain. But the uranium miner isn’t just a speculative play riding the wave of nuclear buzz. With its integrated strategy, disciplined approach to production, and growing exposure to global demand through Westinghouse, this Canadian stock is entering a new phase — one that could justify a long-term hold.
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Into earnings
The second quarter (Q2) of 2025 showed just how strong the Canadian stock’s positioning has become. Cameco posted net earnings of $321 million, with adjusted earnings at $308 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) at $673 million.
That’s a dramatic improvement from a year ago, driven not only by higher uranium prices and volumes but also by a sharp turnaround at Westinghouse, where the company owns a 49% stake. A construction project for two nuclear reactors in the Czech Republic boosted Westinghouse’s second-quarter revenue by US$170 million. This pushed Cameco’s share of earnings from that segment to $126 million in just one quarter.
Staying strong
Even with a planned shutdown at the Key Lake mill in Q2, the uranium business delivered a 46% increase in earnings before tax. Average realized prices improved thanks to strong contract pricing and a favourable exchange rate. Meanwhile, fuel services saw earnings and EBITDA jump more than 30% from last year, helped by strong volumes and cost control.
This is only half the story. Cameco expects its share of Westinghouse’s adjusted EBITDA for the year to land between US$525 million and US$580 million, up from a previous forecast of US$355 million to US$405 million. Management also expects its uranium average realized price for the year to be around $87 per pound, up from $84. That’s not a surprise given the global shift back toward nuclear energy as countries scramble to secure clean, reliable baseload power.
More to come
The fundamentals line up nicely. Cameco now holds over $716 million in cash, with debt at $1 billion and an unused $1 billion credit facility. It’s also receiving dividends from its Inkai joint venture and remains one of the few uranium producers with both tier-one assets and a marketing strategy that avoids oversupplying the market. It’s this restraint that gives Cameco staying power. Rather than flood the market and crush prices, it’s layered in long-term contracts at strong prices while preserving upside. That balance between stability and optionality is what makes it more than just a commodity trade.
The market has taken notice. Shares have climbed to just over $106, with a price-to-earnings ratio now above 86. That may sound expensive, but the valuation reflects not only recent growth but also expectations for continued global demand, increased nuclear project approvals, and the growing cash contribution from Westinghouse. Cameco’s long-term contracts already cover 28 million pounds per year through 2029. And more are expected as utilities move to secure supply.
Foolish takeaway
There are risks to watch. The McArthur River and Key Lake operations face timing risks related to new mining zones and equipment commissioning. There’s also some exposure to macro headwinds if global trade tensions flare up again. And while the Canadian stock has soared, the dividend remains low at just 0.15%, with a payout ratio around 13%.
But this is not an income play; it’s a growth story built on rising nuclear demand, financial discipline, and operational leverage. With adjusted EBITDA over $1 billion in the first half of 2025 and strong cash flow to match, Cameco has room to invest, return capital, or simply ride the next leg of the nuclear renaissance.
For investors asking whether it’s too late to buy, the answer might depend on their time horizon. The Canadian stock has run hot, but the fundamentals are still catching up. Nuclear energy is back in favour, and Cameco is leading the charge. As the world moves toward electrification, and energy security becomes as important as clean energy, Cameco looks less like a short-term trade and more like a strategic long-term hold.
