Cameco's Westinghouse Bet Proves Profitable: Can It Sustain Success?

Strong Performance in Q2 2025 for Cameco Corporation

Cameco Corporation delivered an impressive second quarter of 2025, with net earnings increasing by 792% year-over-year to CAD 321 million. This significant growth was primarily driven by stronger equity earnings from its 49% investment in Westinghouse Electric Company. Cameco’s share of Westinghouse’s net earnings for the quarter reached CAD 126 million, compared to a loss of CAD 47 million in the same period last year.

The improvement can be attributed to Westinghouse's involvement in the construction of two nuclear reactors at the Dukovany power plant in the Czech Republic. This project contributed a $170 million increase to Cameco’s share of Westinghouse’s second-quarter 2025 revenues. As a result, Cameco’s share of Westinghouse’s adjusted EBITDA rose to CAD 352 million, up from $121 million in the second quarter of 2024.

Looking ahead, Cameco has raised its expectations for its share of Westinghouse’s adjusted EBITDA for 2025 to between CAD 525 million and CAD 580 million, up from the previous range of CAD 355 million to CAD 405 million. The projected share of Westinghouse’s net earnings has also improved, now expected to be between CAD 80 million and CAD 30 million, compared to a previous range of a loss of CAD 20 million to CAD 70 million.

Cameco anticipates substantial future financial benefits from Westinghouse as a subcontractor on the construction project and related fuel fabrication services for both reactors. Over the next five years, Cameco’s share of adjusted EBITDA is expected to grow at a compound annual rate of 6-10%, excluding the $170 million boost in the second quarter of 2025.

Expansion of Nuclear Expertise through Strategic Partnerships

Westinghouse is a leading global provider of nuclear reactor technology and specialized services for commercial and government clients. In 2023, Cameco acquired a 49% stake in Westinghouse through a strategic partnership with Brookfield Asset Management and its listed affiliate Brookfield Renewable Partners (BEP). This collaboration combined Cameco’s nuclear expertise with Brookfield’s leadership in clean energy.

Another key player in the nuclear industry, BWX Technologies (BWXT), reported strong results for the second quarter of 2025. Earnings per share increased by 24% year-over-year to $1.02, while revenues rose 12% to $764 million. BWX Technologies experienced growth in both its Government and Commercial segments, with rising demand for nuclear solutions in global security, clean energy, and medical applications.

Stock Performance and Market Valuation

So far this year, Cameco’s stock has gained 45.2%, outperforming the industry’s 14.4% growth. Meanwhile, the broader Zacks Basic Materials sector has risen 11.7%, and the S&P 500 has climbed 6.9%.

Cameco’s stock is currently trading at a forward price-to-sales ratio of 12.45, significantly higher than the industry average of 1.24. This valuation reflects investor confidence in the company’s long-term prospects.

The Zacks Consensus Estimate for Cameco’s earnings in fiscal 2025 indicates a year-over-year growth of 149%. For fiscal 2026, the estimate suggests a growth of 28.5%. However, the consensus estimate for 2025 has moved upward over the past 60 days, while the 2026 estimate has seen a slight decline.

Cameco currently holds a Zacks Rank #3 (Hold), indicating a neutral outlook. Investors interested in high-potential stocks can refer to the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.