After surging nearly 28% so far in October, Cameco (TSX:CCO) is currently among the top-performing TSX stocks of the month. On October 28 alone, CCO stock jumped nearly 23% to $148.98 per share, extending its year-to-date gains to around 102%. That’s a massive leap for a large-cap stock that’s already had a strong year.
But behind this price surge is a much bigger story. In this article, I’ll unpack what’s pushing Cameco stock higher, how the business is performing financially, and whether Cameco still has more room to run.
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What’s fueling Cameco stock’s recent surge?
The sharp rally in Cameco stock earlier this week was mainly due to a massive nuclear energy partnership in the United States, as its 49% stake in Westinghouse is turning out to be a game-changer. On October 28, the company announced a historic agreement with the U.S. government and Brookfield Asset Management to construct Westinghouse nuclear reactors worth at least US$80 billion. This move not only highlights Cameco’s importance in the nuclear fuel cycle but also strengthens its financial growth visibility for years to come.
Similarly, in September, it signed a long-term supply deal with Slovenské elektrárne, expanding its global footprint further into Europe. Meanwhile, a 15-year transportation agreement with Indigenous-owned Rise Air highlighted Cameco’s strong community relationships and stable operational base in northern Saskatchewan.
These developments, along with uranium prices hitting multi-year highs, have put Cameco stock on growth investors’ radar this year.
Financial performance shows strong upward momentum
In addition to such growth-oriented deals, Cameco’s solid financial performance is also helping it gain investors’ confidence in 2025. In the second quarter, the company posted a 4% YoY (year-over-year) increase in its adjusted net profit to $308 million. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter nearly doubled from a year ago to $673 million, largely due to higher sales volumes, improved prices, and increased equity earnings from Westinghouse.
While the planned maintenance at its Key Lake mill slightly pushed up costs last quarter, Cameco still expanded margins across the board. In fact, its adjusted EBITDA margin jumped to 76.7% in the quarter, up from 56.3% a year ago.
Production challenges, but growth strategy remains on track
Honestly, Cameco did face a production setback recently. In late August, it trimmed its 2025 uranium production outlook at the McArthur River/Key Lake operations to 14 to 15 million pounds due to delays in ground freezing and new equipment commissioning.
But what’s impressive is how the company has managed the disruption. Higher output from its Cigar Lake mine and diversified sourcing options still helped it stay on track with delivery commitments. In addition, Cameco’s strong balance sheet with $716 million in cash and an undrawn $1 billion credit line also provides it with a cushion to deal with unexpected challenges.
At the same time, Cameco now expects its average realized uranium price to rise to $87 per pound, up from earlier estimates of $84. That means it can generate more revenue even with lower output.
Long-term partnerships signal more room to grow
As of June 30, Cameco had commitments requiring delivery of about 28 million pounds per year through 2029. That consistent demand is likely to help stabilize its revenue and shield it against spot market volatility.
Meanwhile, its growing role in the U.S. nuclear buildout through Westinghouse is perhaps the biggest long-term growth driver. With strong policy support for nuclear across Europe, the U.S., and parts of Asia, Cameco could continue to benefit for years to come. And given its current fundamentals, it may not be too late for investors to get in.
