Cameco Boosts Global Presence with Slovakia Deal: A Growth Driver?

Cameco Expands Global Reach with Long-Term Agreement in Slovakia

Cameco, a leading player in the nuclear energy sector, has signed a long-term agreement to supply natural uranium hexafluoride (UF6) to Slovenské elektrárne (SE), Slovakia’s largest electricity producer. This contract, which will run through 2036, marks Cameco’s first major foothold in the Slovakian market and reflects its broader strategy of expanding its global commercial presence in the nuclear fuel industry.

SE plays a critical role in Slovakia’s energy infrastructure, generating over 60% of the country’s electricity. The company recently retired its last coal-fired power plant at the end of the first quarter of 2024, making its electricity production entirely free of direct carbon dioxide emissions. Currently, SE operates five nuclear reactors, 31 hydropower plants, and two photovoltaic facilities, showcasing its commitment to sustainable energy solutions.

Cameco will provide both uranium and conversion services to SE. The material will be used to support operations at SE’s Bohunice and Mochovce nuclear facilities, beginning in 2028. Conversion, a crucial step in the nuclear fuel cycle, involves transforming natural uranium into a form suitable for enrichment and reprocessing. Cameco’s expertise in this area positions it as a reliable and experienced partner in the nuclear energy sector.

The company's operations span the entire nuclear fuel cycle, from exploration to fuel services. These include uranium production, refining, uranium dioxide and UF6 conversion, and CANDU fuel manufacturing for heavy water reactors. As of December 31, 2024, Cameco had contracts to sell approximately 220 million pounds of uranium with 41 customers worldwide and about 85 million kilograms of UF6 conversion with 34 customers.

Cameco controls roughly 20% of the world’s primary UF6 conversion capacity, placing it among the top players in the industry alongside companies like Orano, Rosatom, and ConverDyn. In 2024, the company’s fuel services segment produced 13.5 million kgU, including 10,781 tonnes of UF6. It aims to maintain similar levels in 2025, targeting 13–14 million kgU. This segment is strategically important, supporting uranium production growth, strengthening customer relationships, and creating long-term contract opportunities.

Market Performance and Valuation

This year, Cameco’s stock has seen significant gains, rising 52% compared to the industry’s 21.5% growth. Meanwhile, the broader Zacks Basic Materials sector has increased by 21%, and the S&P 500 has climbed 12.8%. Other uranium producers, such as Energy Fuels (UUUU) and Centrus Energy (LEU), have posted even higher gains, with 138.3% and 240.3% respectively, year to date.

Cameco’s stock is currently trading at a forward price-to-sales ratio of 13.48, significantly higher than the industry average of 1.18. Energy Fuels trades at a price-to-sales ratio of 27, while Centrus Energy is at 8.29. Despite this, the Zacks Consensus Estimate for Cameco’s earnings in fiscal 2025 indicates a year-over-year growth of 130.6%, with an estimated 31.3% growth in 2026.

In contrast, Energy Fuels is expected to see a decline of 17.86% in 2025, followed by a 102.5% growth in 2026. Centrus Energy is projected to experience a 5.4% decline in 2025 and a 20.6% drop in 2026. The consensus estimate for Cameco’s 2025 earnings has risen over the past 60 days, while the 2026 estimate has slightly decreased.

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