Shares of uranium fuel and nuclear services leader Cameco Corp. (TSX: CCO; NYSE: CCJ) surged 11.7% in early trading Tuesday following revised earnings guidance from its partially owned subsidiary Westinghouse Electric. The spike reflects investor reaction to Westinghouse’s upward revision of its 2025 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) forecast.
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The $170 million uplift holds significant weight for Cameco, which reported approximately $1.1 billion in adjusted EBITDA for 2024. Westinghouse maintains its projected 6%-10% CAGR for adjusted EBITDA over the next five years, aligning with Cameco’s core uranium fuel and nuclear product/services sales growth trajectory.
As the world’s second-largest uranium producer (accounting for 17% of 2024 global output behind Kazakhstan’s Kazatomprom), Cameco leverages its global mining operations across Canada, the U.S., and Kazakhstan. Its strategic 49% acquisition of Westinghouse in late 2023 serves dual purposes: mitigating volatility from cyclical uranium pricing and cementing its position as Westinghouse’s preferred uranium supplier.
Despite modest projected growth in the global nuclear market, converging forces—geopolitical tensions, green energy policies, and surging power demand from AI/cloud computing data centers—are accelerating nuclear investment. Current uranium spot prices stand near $70 per pound, with Bank of America forecasting a doubling to $140 by 2027.
Analysts project Cameco’s revenue will grow at an 8% CAGR from 2024-2027, while EPS could skyrocket 85% CAGR amid rising uranium prices. Though its forward P/E of 63x appears elevated, sustained growth momentum and pricing power may justify the premium valuation.
