Cameco (TSX: CCO) delivered a sharp jump in first quarter earnings, with higher sales volumes, firmer uranium prices and a stronger contribution from its Westinghouse stake combining to lift results well above the same period last year.
The uranium producer reported net earnings of $131 million for the quarter ended March 31, up from $70 million a year earlier. Adjusted net earnings nearly tripled to $203 million, while adjusted EBITDA climbed 44% to $509 million. Revenue rose 7% to $845 million.
Chief Executive Officer Tim Gitzel described the quarter as consistent with the company’s annual expectations, and Cameco left its 2026 guidance unchanged. “We are on track in our uranium, fuel services and Westinghouse segments, reinforcing the value of our disciplined contracting and operating strategy that aligns marketing, production and capital decisions with strengthening industry fundamentals,” said Gitzel.
The uranium segment did most of the heavy lifting. Earnings before taxes in the segment rose to $358 million from $227 million, and adjusted EBITDA reached $423 million versus $286 million a year earlier. Sales volumes increased 13% to 7.8 million pounds of U3O8, while the average realized price climbed 6% to US$66.21 per pound, or $91.26 in Canadian dollars, as market related contracts repriced higher.
Production was steady. McArthur River and Key Lake packaged 5.0 million pounds of U3O8 during the quarter, of which 3.5 million pounds were Cameco’s share. Cigar Lake produced 4.9 million pounds, with 2.7 million pounds attributable to Cameco. JV Inkai in Kazakhstan turned out 2.5 million pounds on a 100% basis. Total attributable production for the quarter came in at 6.2 million pounds.
On the cost side, total production costs rose modestly to $34.05 per pound from $32.69, with cash costs at $23.02. Including purchased material, Cameco bought 0.2 million pounds at an average $110.42 per pound and borrowed another 750,000 pounds under product loan facilities, produced and purchased costs averaged $36.44 per pound, down from $44.93 a year earlier as the company leaned less heavily on higher-priced third-party purchases. Uranium inventory stood at 9.1 million pounds at quarter end at an average cost of $50.24 per pound.
The full year production target remains 19.5 million to 21.5 million pounds of U3O8 on an attributable basis. Management flagged an extended third quarter maintenance shutdown at the Key Lake mill, during which new infrastructure will be tied in to support future supply flexibility. A fresh collective agreement covering Key Lake and McArthur River workers, reached in April, runs through December 2028.
Contracting activity continues to build. Cameco said it has commitments averaging more than 28 million pounds of U3O8 per year over the next five years, weighted more heavily toward 2026 through 2028. The company expects to keep adding volumes using market related pricing as conditions improve.
Fuel services was the soft spot. Earnings before taxes in the segment fell to $44 million from $68 million, and adjusted EBITDA dropped to $54 million from $75 million, pressured by a lower average realized price of $48.53 per kgU. Production of 3.3 million kgU keeps full year output on track for the 13 million to 14 million kgU range.
Westinghouse swung to a smaller net loss of $46 million on Cameco’s share, an improvement from a $62 million loss a year earlier, with adjusted EBITDA rising to $122 million from $92 million. The investment continues to outperform the original acquisition case after a strong 2025 that saw full year adjusted EBITDA grow roughly $398 million to $1.9 billion across the broader company.
Cameco closed the quarter with $1.1 billion in cash, cash equivalents and short-term investments against $1.0 billion in debt, plus an undrawn $1.0 billion revolving credit facility. A US$49 million distribution from Westinghouse landed during the quarter, and a US$124 million dividend from JV Inkai followed shortly after the period closed.
Cameco last traded at $161.22 on the TSX.
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