- Cameco (CCO) reports strong Q1 2025 results with net earnings of $70 million and adjusted EBITDA of $353 million.
- Uranium segment sees a 9% increase in average realized price despite a 30% drop in spot prices.
- Fuel services segment experiences over 100% growth in net earnings and adjusted EBITDA.
Cameco Corporation (TSX: CCO; NYSE: CCJ) has announced its consolidated financial results for the first quarter of 2025, showcasing robust performance across its uranium, fuel services, and Westinghouse segments. The company reported net earnings of $70 million, significantly improving from a net loss of $7 million in the first quarter of 2024. Adjusted EBITDA stood at $353 million, reflecting a growth aligned with the company's strategic long-term contracting approach amidst a volatile market.
In the uranium segment, despite a 10% decrease in net earnings and a 6% decrease in adjusted EBITDA due to lower joint venture sales, the average realized price rose by 9% to $62.55 per pound in USD, benefiting from strengthened long-term fixed-price contracts and favorable exchange rates. This price increase stands out against a backdrop of a 30% decline in spot uranium prices over the same period.
The fuel services segment reported over a 100% increase in both net earnings and adjusted EBITDA, driven by a 17% rise in average realized prices and a 22% reduction in cost of sales. These improvements were attributed to higher sales volumes and efficient cost management.
Westinghouse, part of Cameco's portfolio, recorded a net loss of $62 million, a significant recovery from the $123 million loss in the same quarter of the previous year. The segment's adjusted EBITDA increased to $92 million from $77 million in Q1 2024. Cameco expects stronger performance and cash flows in the latter part of 2025, aiming for an adjusted EBITDA range of $355 million to $405 million for the year.
The temporary suspension of production at JV Inkai impacted the uranium production schedule, which resumed by January 23. The revised target for 2025 stands at 8.3 million pounds, with Cameco's share being 3.7 million pounds, although deliveries are not expected until the second half of the year.
Cameco's disciplined approach to long-term contracting and strategic alignment continues to position it advantageously in the nuclear energy market. With a solid balance sheet featuring $361 million in cash and $1.0 billion in total debt, along with an undrawn $1.0 billion credit facility, Cameco remains poised for sustainable growth amidst global economic uncertainties.
