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Cameco's Bet on Westinghouse Pays Off: Can It Keep Delivering?

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Key Takeaways

  • {\"0\":\"CCJ\'s Q2 net earnings jumped 792% to CAD 321M, driven by gains from its Westinghouse investment.\",\"1\":\"Cameco\'s share of Westinghouse adjusted EBITDA rose to CAD 352M from CAD 121M a year ago.\",\"2\":\"CCJ expects its Westinghouse EBITDA share to reach up to CAD 580M in 2025, up from prior guidance.\"}

Cameco Corporation (CCJ - Free Report) delivered a stellar second quarter 2025 performance, with net earnings surging 792% year over year to CAD 321 million. This was attributed mainly to stronger equity earnings from its 49% investment in Westinghouse Electric Company. Cameco’s share in Westinghouse reported net earnings for the quarter came in at CAD 126 million against the net losses of CAD 47 million in the year-ago quarter.

The improvement stems from Westinghouse’s participation in the construction project for two nuclear reactors at the Dukovany power plant in the Czech Republic. This contributed to a $170 million boost to Cameco’s share of Westinghouse’s second-quarter 2025 second-quarter revenues. 

Consequently, Cameco’s share of Westinghouse’s adjusted EBITDA rose to CAD 352 million compared with $121 million in the second quarter of 2024. Backed by this development, for 2025, Cameco expects its share of adjusted EBITDA from Westinghouse to be $525-$580 million (previously $355-405 million). The expected share of Westinghouse’s net earnings has also improved from $30 million to $80 million. It was previously at a net loss of $20-$70 million. Looking ahead,

Cameco expects significant future financial benefits for Westinghouse, as a subcontractor, over the term of the construction project and related to the provision of the fuel fabrication services for both reactors. Over the next five years, Cameco’s share of adjusted EBITDA is projected to witness a compound annual growth rate of 6-10%. This, however, excludes the $170 million boost in the second quarter of 2025.

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

BWX Technologies (BWXT - Free Report) , a key supplier of precision-engineered components and services to the commercial nuclear power industry, reported impressive second-quarter 2025 results. Earnings per share rose 24% year over year to $1.02 and revenues climbed 12% to $764 million.

BWX Technologies saw growth in both operating segments- Government and Commercial. BWX Technologies highlighted growing momentum across its core markets, with accelerating demand for nuclear solutions in global security, clean energy and medical applications.

CCJ’s Price Performance, Valuation & Estimates

So far this year, Cameco shares have gained 45.2% compared with the industry’s 14.4% growth. Meanwhile, the broader Zacks Basic Materials sector has moved up 11.7%, while the S&P 500 has climbed 6.9%.

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CCJ stock is trading at a forward price-to-sales ratio of 12.45 compared with the industry’s 1.24.

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The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2025 indicates year-over-year growth of 149%. The same for 2026 implies growth of 28.5%.

The consensus estimate for Cameco’s earnings for fiscal 2025 has moved up over the past 60 days, while the estimate for 2026 has moved down, as shown in the chart below.

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Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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