"Full-year net earnings reached $590 million CAD, up 243% from $172 million CAD in 2024. Revenue of $2.56 billion USD definitely surpassed the $1.13 billion estimate, and free cash flow hit $790.9 million, up 70% year-over-year, leaving things looking fairly positive overall. Westinghouse contributed $780 million CAD in adjusted EBITDA, up 61%, which helped make the case for a dividend raise to $0.24 per share, one year ahead of schedule."
"Cameco holds roughly 230 million pounds under long-term contracts, with 2026 average realized price guidance of CAD 85-89 per pound, described as 'flattish' year-over-year. McArthur River, the second-largest uranium mine in the world, is being operated well below its 25 million-pound licensed capacity, with 2026 production guided to 19.5-21.5 million pounds."
"The contract structure enabling these results also caps upside if uranium prices accelerate. CEO Tim Gitzel called it discipline: 'This discipline stems from our commitment to our long-term strategy, allowing us to look past the distractions posed by short-term volatility.'"
Cameco reported full-year net earnings of $590 million CAD, up 243% from 2024, with revenue of $2.56 billion USD exceeding estimates and free cash flow reaching $790.9 million. The company raised its dividend to $0.24 per share one year ahead of schedule, supported by Westinghouse's 61% EBITDA growth. However, retail investor sentiment declined from 81.2 to 68.2 on Reddit despite strong results. This divergence stems from Cameco's long-term contract strategy, which locks in approximately 230 million pounds of uranium at CAD 85-89 per pound through 2026. While this approach provides stability and predictable cash flows, it caps upside potential if uranium prices accelerate. McArthur River operates below its 25 million-pound licensed capacity, with 2026 production guided to 19.5-21.5 million pounds, reflecting management's disciplined approach to volatility.
Read at 24/7 Wall St.
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