Cameco Posts Strong Q2 Revenue Gains: Will Momentum Last Through 2025?

Core Insights - Cameco Corporation's second-quarter revenues increased by 47% year over year to CAD 705 million ($509 million), driven by higher sales volumes and an increase in the Canadian dollar average realized price [1][8]. Revenue and Sales Performance - Cameco sold 8.7 million pounds of uranium in Q2 2025, a 40% increase from 6.2 million pounds in Q2 2024. The average realized price in Canadian dollars rose by 5% to CAD 81.03 per pound, despite a 17% decline in the average U.S. dollar spot price for uranium [2][8]. - For the first half of 2025, Cameco's uranium revenues reached CAD 1.324 billion, marking a 27% year-over-year increase, driven by a 16% rise in sales volumes and a 10% increase in the average realized Canadian dollar price [3]. - Cameco has delivered 15.6 million pounds of uranium so far in 2025, reaching nearly half of its full-year target of 31–34 million pounds [3]. Future Projections - For 2025, uranium revenues are forecasted to be between CAD 2.8 billion and CAD 3.0 billion, with the average realized price expected to rise to approximately $87.00 per pound [4]. - The Zacks Consensus Estimate for Cameco's earnings for fiscal 2025 indicates a year-over-year growth of 120.4%, while the estimate for 2026 implies growth of 49.6% [10]. Market Comparison - So far this year, Cameco shares have gained 52.7%, outperforming the industry's growth of 12.4% and the broader Zacks Basic Materials sector's increase of 9.7% [7]. - Cameco's stock is trading at a forward price-to-sales ratio of 12.99, significantly higher than the industry's 1.24 and above its five-year median of 6.60 [9].