Cameco reports Q1 results: strong consolidated financial and operational results; average realized price benefitting from long-term contracting strategy; full-cycle market fundamentals remain positive
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TSX: CCO website: cameco.com
NYSE: CCJ currency: Cdn (unless noted)
2121 – 11th Street West, Saskatoon, Saskatchewan, S7M 1J3 Canada
Tel: 306-956-6200 Fax: 306-956-6201
Cameco reports Q1 results: strong consolidated financial and operational results; average
realized price benefitting from long-term contracting strategy; full-cycle market fundamentals
remain positive
Saskatoon, Saskatchewan, Canada, May 1, 2025 . . . . . . . . . . . . . . . .
Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the first quarter ended
March 31, 2025, in accordance with International Financial Reporting Standards (IFRS).
“Cameco's first quarter performance across our uranium, fuel services, and Westinghouse segments was robust, reflecting our
disciplined strategic alignment and continued positive momentum across the nuclear energy market,” said Tim Gitzel,
Cameco’s president and CEO. “We’ve repeatedly highlighted our view that full-cycle demand is more durable than ever, and
the perseverance of the positive nuclear market momentum through recurring cycles of uncertainty, has served to reinforce
that perception of durability. The market has faced challenges to Central Asian supply, the unexpected remapping of global
geopolitics and flows across the nuclear fuel cycle, and now, the unstable and unpredictable global economic environment and
trade turmoil that is impacting every country. Through it all, nuclear energy has maintained strong, if not growing support
based on its key attributes that back energy security, national security, and climate security.
“Operationally, first quarter production in both our uranium and fuel services segments was strong and on track with our 2025
outlook, which is unchanged. In the long-term market, we continued to be selective in committing our unencumbered, tier-one,
in-ground uranium inventory and UF6 conversion capacity, building on a contract portfolio that spans over a decade. Every
long-term contract we add reflects today’s positive market sentiment, and we are able to capture greater upside while
protecting from potential market weakness, creating long-term value over the life of the contract. And, when we see our first
quarter average realized price increase year-over-year when the average uranium spot price fell 30% over the same period, it
remains clear that plans and investments centered on spot market exposure face significant risks, and that value creation in
our industry requires a long-term contracting strategy.
“Our strategy continues to demonstrate the benefits of aligning our operational, marketing, and financially-focused actions and
decisions. Utilities are adjusting their global supply chains to mitigate risks and ensure reliable supply, and as proven, reliable
suppliers operating across the nuclear fuel and reactor life cycles, with licensed and permitted operations in geopolitically
stable jurisdictions, Cameco and Westinghouse are in a unique position to benefit from the market transition and continue to
create value for our owners.”
First Quarter Highlights:
• Q1 net earnings and adjusted net earnings of $70 million; adjusted EBITDA of $353 million: Consolidated financial
results were higher than in the first quarter of 2024 and in line with the 2025 outlook we provided, which has not changed.
Quarterly results are impacted by normal variations in the timing of contract deliveries in our uranium and fuel services
segments, and the timing of customer-driven reactor life cycle activities in the Westinghouse segment.
• Uranium: In our core uranium segment, net earnings decreased by 10% and adjusted EBITDA was down by 6%
compared to the same period in 2024, mainly as a result of lower results from JV Inkai due to the timing of sales.
Average realized price continued to show improvements as prices from fixed price contracts increased and the US
dollar strengthened. Total cost of sales (including depreciation and amortization (D&A)) increased by 6% due to an
11% increase in unit cost of sales compared to the same period last year, partially offset by the 5% decrease in sales
volume. Unit cost of sales was higher than in the first quarter of 2024 due to the higher cost of purchased material
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compared to the same period in 2024. In addition, the average cash cost of production was 15% higher for the quarter
compared to the same period in 2024, due to higher production from Cigar Lake, where cash costs are slightly higher
than from McArthur River/Key Lake relative to last year. We continue to expect 18 million pounds of production (100%
basis) at each of McArthur River/Key Lake and Cigar Lake operations in 2025. See Financial results by segment –
Uranium in our first quarter MD&A for more information. Cash cost per pound is a non-IFRS measure, see below.
• Fuel Services: In our fuel services segment, both net earnings and adjusted EBITDA increased by more than 100%
compared to the same period in 2024 due to higher sales, a 17% increase in average realized price and a 22%
decrease in cost of sales. See Financial results by segment – Fuel services in our first quarter MD&A for more
information.
• Westinghouse: As expected, our Westinghouse segment reported a net loss of $62 million (our share) for the first
quarter, improving considerably from a loss of $123 million (our share) in the first quarter of 2024, which was impacted
by the purchase accounting for inventory that was held at the time of acquisition and sold in the first quarter last year.
Westinghouse’s results were and will continue to be impacted by the amortization of the intangible assets that arose
as a result of the fair values assigned to Westinghouse’s net assets at the time of acquisition. We use adjusted
EBITDA as a performance measure for Westinghouse and in the first quarter of 2025, adjusted EBITDA increased to
$92 million, compared to $77 million in the first quarter of 2024, and is expected to be between $355 million (US) and
$405 million (US) for the year. In 2025, Westinghouse’s first half results are expected to be weaker, with stronger
performance, and higher cash flows expected in the fourth quarter. See Our outlook for 2025 and Our earnings from
Westinghouse in our first quarter MD&A for more information. Adjusted net earnings and adjusted EBITDA are non-
IFRS measures, see below.
• Joint Venture Inkai (JV Inkai) production plan: As previously reported, JV Inkai was unexpectedly directed by the
majority owner and controlling partner, Kazatomprom, to suspend production activity on January 1, 2025. Production
resumed on January 23, 2025 and JV Inkai has since worked to update its mine plan and budget to adjust for the January
2025 production suspension. JV Inkai is now targeting 2025 production of 8.3 million pounds (100% basis) of which our
purchase allocation is 3.7 million pounds. The temporary suspension did not have a material impact on our 2025 outlook.
The delivery schedule for our share of the JV’s 2025 production, and for the 0.9 million pounds from our share of 2024
production that remains stored at JV Inkai, is being updated based on the new production schedule. We do not expect to
receive any deliveries from JV Inkai until at least the second half of 2025.
• Disciplined long-term contracting: As of March 31, 2025, we had commitments requiring delivery of an average of about
28 million pounds per year, which includes deliveries made year to date in 2025, from 2025 through 2029, with commitment
levels in 2025 through 2027 being higher than the average, and in 2028 and 2029, lower than the average. To date in 2025,
long-term contracting has slowed due to global macro-economic uncertainty related to trade policy issues, and customers’
focus on downstream services driven by continuing geopolitical tensions. However, we continue to have a large and
growing pipeline of business under discussion, which we expect will help further build our long-term contract portfolio. As
the market continues to improve, we expect to selectively continue layering in long-term volumes that capture greater future
upside and downside protection using market-related pricing mechanisms.
• Maintaining financial discipline and balanced liquidity to execute on strategy:
• Strong balance sheet: As of March 31, 2025, we had $361 million in cash and cash equivalents and $1.0 billion in
total debt. In addition, we have a $1.0 billion undrawn credit facility which matures October 1, 2028. We continue to
expect strong cash flow generation in 2025.
• Focused debt reduction: Thanks to our risk-managed financial discipline and strong cash position, in January 2025
we made the final repayment of $200 million (US) on the $600 million (US) term loan that was used to finance the
acquisition of Westinghouse.
• Westinghouse distribution: In February 2025 we received $49 million (US), which represents our share of a $100
million (US) distribution paid by Westinghouse. This is the first distribution since the acquisition closed.
• Dividend from JV Inkai: In April, following the end of the quarter, we received a cash dividend of $87 million (US),
net of withholdings, from JV Inkai based on its 2024 financial performance. From a cash flow perspective, we expect
to realize the benefit from JV Inkai’s 2025 financial performance in 2026 once the dividend for 2025 is declared and
paid.
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Consolidated financial results
THREE MONTHS
HIGHLIGHTS ENDED MARCH 31
($ MILLIONS EXCEPT WHERE INDICATED) 2025 2024 CHANGE
Revenue 789 634 24%
Gross profit 270 187 44%
Net earnings (loss) attributable to equity holders 70 (7) >100%
$ per common share (basic) 0.16 (0.02) >100%
$ per common share (diluted) 0.16 (0.02) >100%
Adjusted net earnings (ANE) (non-IFRS, see below) 70 46 52%
$ per common share (adjusted and diluted) 0.16 0.11 45%
Adjusted EBITDA (non-IFRS, see below) 353 335 5%
Cash provided by operations 110 63 75%
The financial information presented for the three months ended March 31, 2024, and March 31, 2025, is unaudited.
Selected segment highlights
THREE MONTHS
HIGHLIGHTS ENDED MARCH 31
($ MILLIONS EXCEPT WHERE INDICATED) 2025 2024 CHANGE
Uranium Production volume (million lb) 6.0 5.8 3%
Sales volume (million lb) 6.9 7.3 (5)%
Average realized price1 ($US/lb) 62.55 57.57 9%
($Cdn/lb) 89.12 77.33 15%
Revenue 619 561 10%
Gross profit 203 169 20%
Earnings before income taxes 227 253 (10)%
Adjusted EBITDA2 286 303 (6)%
Fuel services Production volume (million kgU) 3.9 3.7 5%
Sales volume (million kgU) 2.4 1.5 60%
Average realized price 3 ($Cdn/kgU) 56.64 48.36 17%
Revenue 135 72 88%
Earnings before income taxes 68 20 240%
Adjusted EBITDA2 75 25 200%
Adjusted EBITDA margin (%)2 56 35 60%
Westinghouse Adjusted free cash flow2 49 44 11%
(our share) Net loss (62) (123) (50)%
Adjusted EBITDA2 92 77 19%
1 Uranium average realized price is calculated as the revenue from sales of uranium concentrate, transportation and storage fees divided by the volume of uranium
concentrates sold.
2 Non-IFRS measure, see below.
3 Fuel services average realized price is calculated as revenue from the sale of conversion and fabrication services, including fuel bundles and reactor
components, transportation and storage fees divided by the volumes sold.
The table below shows the costs of produced and purchased uranium incurred in the reporting periods (see non-IFRS
measures starting on page 4). These costs do not include care and maintenance costs, selling costs such as royalties,
transportation and commissions, nor do they reflect the impact of opening inventories on our reported cost of sales.
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THREE MONTHS
ENDED MARCH 31
($CDN/LB) 2025 2024 CHANGE
Produced
Cash cost 22.39 19.52 15%
Non-cash cost 10.30 9.79 5%
Total production cost 1 32.69 29.31 12%
Quantity produced (million lb)1 6.0 5.8 3%
Purchased
Cash cost1 106.14 87.75 21%
Quantity purchased (million lb)1 1.2 2.6 (54)%
Totals
Produced and purchased costs 44.93 47.40 (5)%
Quantities produced and purchased (million lb) 7.2 8.4 (14)%
1 Due to equity accounting, our share of production from JV Inkai is shown as a purchase at the time of delivery. These purchases will fluctuate during t he quarters
and timing of purchases will not match production. There were no purchases during the first quarter of 2025. In the first quarter of 2024, we purchased 1.1 million
pounds from JV Inkai at a purchase price per pound of $129.96 ($96.88 (US) ).
Non-IFRS measures
The non-IFRS measures referenced in this document are supplemental measures, which are used as indicators of our
financial performance. Management believes that these non-IFRS measures provide useful supplemental information to
investors, securities analysts, lenders and other interested parties in assessing our operational performance and our ability to
generate cash flows to meet our cash requirements. These measures are not recognized measures under IFRS, do not have
standardized meanings, and are therefore unlikely to be comparable to similarly titled measures presented by other
companies. Accordingly, these measures should not be considered in isolation or as a substitute for the financial information
reported under IFRS. We are not able to reconcile our forward-looking non-IFRS guidance because we cannot predict the
timing and amounts of discrete items, which could significantly impact our IFRS results.
The following are the non-IFRS measures used in this document.
ADJUSTED NET EARNINGS
Adjusted net earnings is our net earnings attributable to equity holders, adjusted for non-operating or non-cash items such as
gains and losses on derivatives, unrealized foreign exchange gains and losses, share-based compensation, adjustments to
reclamation provisions flowing through other operating expenses, and bargain purchase gains, that we believe do not reflect
the underlying financial performance for the reporting period. In 2024, we revised our calculation of adjusted net earnings to
adjust for unrealized foreign exchange gains and losses as well as for share-based compensation because it better reflects
how we assess our operational performance. We have restated comparative periods to reflect this change. Other items may
also be adjusted from time to time. We adjust this measure for certain of the items that our equity-accounted investees make in
arriving at other non-IFRS measures. Adjusted net earnings is one of the targets that we measure to form the basis for a
portion of annual employee and executive compensation (see Measuring our results in our 2024 annual MD&A).
In calculating ANE we adjust for derivatives. We do not use hedge accounting under IFRS and, therefore, we are required to
report gains and losses on all hedging activity, both for contracts that close in the period and those that remain outstanding at
the end of the period. For the contracts that remain outstanding, we must treat them as though they were settled at the end of
the reporting period (mark-to-market). However, we do not believe the gains and losses that we are required to report under
IFRS appropriately reflect the intent of our hedging activities, so we make adjustments in calculating our ANE to better reflect
the impact of our hedging program in the applicable reporting period. See Foreign exchange in our 2024 annual MD&A for
more information.
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We also adjust for changes to our reclamation provisions that flow directly through earnings. Every quarter we are required to
update the reclamation provisions for all operations based on new cash flow estimates, discount and inflation rates. This
normally results in an adjustment to an asset retirement obligation asset in addition to the provision balance. When the assets
of an operation have been written off due to an impairment, as is the case with our Rabbit Lake and US ISR operations, the
adjustment is recorded directly to the statement of earnings as “other operating expense (income)”. See note 9 of our interim
financial statements for more information. This amount has been excluded from our ANE measure.
As a result of the change in ownership of Westinghouse when it was acquired by Cameco and Brookfield, Westinghouse’s
inventories at the acquisition date were revalued based on the market price at that date. As these quantities are sold,
Westinghouse’s cost of products and services sold reflect these market values, regardless of Westinghouse’s historic costs.
Our share of these costs is included in earnings from equity-accounted investees and recorded in cost of products and
services sold in the investee information (see note 6 to the financial statements). Since this expense is non-cash, outside of
the normal course of business and only occurred due to the change in ownership, we have excluded our share from our ANE
measure.
Westinghouse has also expensed some non-operating acquisition-related transition costs that the acquiring parties agreed to
pay for, which resulted in a reduction in the purchase price paid. Our share of these costs is included in earnings from equity-
accounted investees and recorded in other expenses in the investee information (see note 6 to the financial statements). Since
this expense is outside of the normal course of business and only occurred due to the change in ownership, we have excluded
our share from our ANE measure.
To facilitate a better understanding of these measures, the table below reconciles adjusted net earnings with our net earnings
for the first quarter of 2025 and compares it to the same period in 2024.
THREE MONTHS
ENDED MARCH 31
($ MILLIONS) 2025 2024
Net earnings (loss) attributable to equity holders 70 (7)
Adjustments
Adjustments on derivatives (12) 33
Unrealized foreign exchange gains (4) (18)
Share-based compensation (2) 8
Adjustments on other operating expense (income) 1 (15)
Income taxes on adjustments 4 (9)
Adjustments on equity investees (net of tax):
Inventory purchase accounting - 38
Acquisition-related transition costs 1 14
Unrealized foreign exchange losses 10 1
Long-term incentive plan 2 1
Adjusted net earnings 70 46
The following table shows the drivers of the change in adjusted net earnings (non-IFRS measure, see above) in the first
quarter of 2025 compared to the same period in 2024.
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THREE MONTHS
ENDED MARCH 31
($ MILLIONS) IFRS ADJUSTED
Net earnings (loss) – 2024 (7) 46
Change in gross profit by segment
(We calculate gross profit by deducting from revenue the cost of products and services sold, and depreciation and amortizatio n (D&A))
Uranium Impact from sales volume changes (7) (7)
Higher realized prices ($US) 47 47
Foreign exchange impact on realized prices 35 35
Higher costs (40) (40)
Change – uranium 35 35
Fuel services Impact from sales volume changes 11 11
Higher realized prices ($Cdn) 20 20
Lower costs 19 19
Change – fuel services 50 50
Other changes
Lower (higher) administration expenditures 1 (10)
Higher exploration and research and development expenditures (6) (6)
Change in reclamation provisions (18) (2)
Higher (lower) earnings from equity-accounted investees 19 (22)
Change in gains or losses on derivatives 32 (13)
Change in unrealized foreign exchange gains or losses (17) (3)
Lower finance income (2) (2)
Lower finance costs 8 8
Change in income tax recovery or expense (22) (9)
Other (3) (2)
Net earnings – 2025 70 70
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EBITDA
EBITDA is defined as net earnings attributable to equity holders, adjusted for the costs related to the impact of the company’s
capital and tax structure including depreciation and amortization, finance income, finance costs (including accretion) and
income taxes.
ADJUSTED EBITDA
Adjusted EBITDA is defined as EBITDA, as further adjusted for the impact of certain costs or benefits incurred in the period
which are either not indicative of the underlying business performance or that impact the ability to assess the operating
performance of the business. These adjustments include the amounts noted in the ANE definition.
In calculating adjusted EBITDA, we also adjust for items included in the results of our equity-accounted investees that are not
adjustments to arrive at our ANE measure. These items are reported as part of other expenses within the investee financial
information and are not representative of the underlying operations. These include gains/losses on undesignated hedges,
transaction, integration and restructuring costs related to acquisitions and gains/losses on disposition of a business.
The company may realize similar gains or incur similar expenditures in the future.
ADJUSTED FREE CASH FLOW
Adjusted free cash flow is defined as adjusted EBTIDA less capital expenditures for the period.
ADJUSTED EBITDA MARGIN
Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue for the appropriate period.
EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-IFRS measures which allow us and other users to assess
results of operations from a management perspective without regard for our capital structure. To facilitate a better
understanding of these measures, the table below reconciles earnings before income taxes with EBITDA and adjusted
EBITDA for the first quarter of 2025 and 2024.
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For the quarter ended March 31, 2025:
FUEL
($ MILLIONS) URANIUM SERVICES WESTINGHOUSE OTHER TOTAL
Net earnings (loss) before income taxes 227 68 (62) (163) 70
Depreciation and amortization 51 7 - 2 60
Finance income - - - (4) (4)
Finance costs - - - 30 30
Income taxes - - - 53 53
278 75 (62) (82) 209
Adjustments on equity investees
Depreciation and amortization - - 96 - 96
Finance expense - - 49 - 49
Income taxes - - (17) - (17)
Net adjustments on equity investees - - 128 - 128
EBITDA 278 75 66 (82) 337
Loss on derivatives - - - (12) (12)
Other operating expense 1 - - - 1
Share-based compensation - - - (2) (2)
Unrealized foreign exchange gains - - - (4) (4)
279 75 66 (100) 320
Adjustments on equity investees
Acquisition-related transition costs - - 1 - 1
Other expenses - - 19 - 19
Unrealized foreign exchange losses 7 - 3 - 10
Long-term incentive plan - - 3 - 3
Net adjustments on equity investees 7 - 26 - 33
Adjusted EBITDA 286 75 92 (100) 353