Cameco shares drop on earnings miss

Investing.com -- Cameco Corp. (NYSE: CCJ) shares fell 4% after the uranium producer reported third-quarter adjusted earnings that fell well short of analyst expectations, despite posting stronger-than-expected revenue.

The Canadian nuclear fuel company reported adjusted earnings of C$0.07 per share for the quarter, significantly below the C$0.23 per share that analysts had forecast. Revenue came in at C$615 million, surpassing the consensus estimate of C$568 million but down 15% from C$721 million in the same period last year.

The earnings miss came as Cameco faced production challenges at its McArthur River/Key Lake operations, which led the company to reduce its 2025 production outlook to 14-15 million pounds of uranium (100% basis) from the previous target of 18 million pounds.

"While the development delays at McArthur River and Key Lake that we announced in August have reduced our consolidated production forecast, we expect to meet our delivery commitments - just as we always have," said Tim Gitzel, Cameco’s chief executive officer.

To offset the production shortfall, Cameco utilized product loan facilities to borrow 2 million pounds of uranium during the quarter, while also purchasing 1.4 million pounds at an average cost of C$82.51 per pound.

Despite the quarterly setback, Cameco highlighted its strengthening position in the nuclear industry, including a recent transformative partnership with Brookfield Asset Management and the U.S. government to accelerate Westinghouse reactor deployment. The partnership is expected to facilitate financing and approvals for new reactors with an aggregate investment value of at least $80 billion (US).

"Nuclear energy is gaining momentum worldwide with its reliability, scalability, and carbon-free attributes," Gitzel added. "That strength is reflected in Cameco’s improving performance as we navigate challenges and seize opportunities."

For the first nine months of 2025, Cameco reported net earnings of C$391 million, significantly higher than the C$36 million reported in the same period of 2024, with adjusted EBITDA rising 33% to C$1.3 billion.

The company also announced it would accelerate its planned dividend increase, raising the quarterly payment to C$0.24 per share, payable on December 16, 2025.

You May Also Be Interested In

• BofA sees Micron EPS topping $230 by FY30, calls peak fears overblown
• XP Inc eyes US banking license as next business step
• Royal Unibrew reports higher interim first-half profit as margins improve