Canadian uranium leader Cameco (TSX: CCO; NYSE: CCJ) is signaling that the global nuclear power revival may just be getting started, following a stunning rally that has seen its shares more than double this year. After a single-day surge of nearly 23% on October 28, the stock is up approximately 28% for the month, ranking it among the top performers on the Toronto Stock Exchange and pushing its year-to-date gain to about 102%.
The sharp ascent has left market participants questioning whether it is too late to buy into the Cameco story. Yet, given the company’s pivotal role in the global nuclear fuel cycle, its growing portfolio of long-term contracts, and robust financials, the growth narrative fueled by the nuclear renaissance may still have room to run.
The powerful uptick in late October was primarily ignited by a landmark nuclear energy cooperation agreement in the United States. On October 28, Cameco announced a historic pact with the U.S. government and Brookfield Asset Management to jointly build Westinghouse nuclear reactors in a project valued at a minimum of $80 billion.
Cameco holds a 49% stake in nuclear services firm Westinghouse. The deal not only underscores Cameco’s critical position in the nuclear fuel cycle but also charts a clear, long-term path for financial growth. This initiative is also seen as aligning with the executive order signed by President Trump in May to advance nuclear technology, aimed at bolstering U.S. energy security and supporting the power-hungry artificial intelligence sector.
Beyond forward-looking agreements, Cameco’s solid operational performance has bolstered investor confidence. In the second quarter, the company’s adjusted net earnings climbed 4% year-over-year to C$308 million. More impressively, adjusted EBITDA nearly doubled, soaring to C$673 million, driven by higher sales volumes, improved pricing, and increased equity income from Westinghouse.
Although planned maintenance at the Key Lake facility slightly elevated costs last quarter, Cameco still achieved broad-based margin expansion. Its adjusted EBITDA margin jumped significantly to 76.7%, up from 56.3% a year ago, demonstrating exceptional operational efficiency.
The company recently navigated production headwinds, revising down its 2025 uranium production guidance for the McArthur River/Key Lake operations to 14-15 million pounds. However, Cameco has shown notable command over the situation. By ramping up output from the Cigar Lake mine and leveraging its diversified sourcing channels, the company remains on track to meet its delivery commitments. Furthermore, with a cash reserve of C$716 million and an untapped C$1 billion credit facility, Cameco possesses a substantial buffer against unforeseen challenges.
As of June 30, Cameco had secured long-term delivery commitments averaging approximately 28 million pounds of uranium annually through 2029. This predictable, stable demand base helps smooth revenue volatility and provides a hedge against spot price fluctuations.
Concurrently, Westinghouse’s increasingly vital role in U.S. nuclear reactor construction arguably represents Cameco’s most powerful long-term growth engine. BloombergNEF estimates that U.S. data center power consumption is projected to double by 2035, accounting for nearly 9% of total demand. Analysis from BMO Capital Markets suggests the $80 billion investment could support the construction of 6 to 10 new AP1000 reactors, which would significantly augment Westinghouse’s project pipeline throughout the 2030s.
