Cameco(US:CCJ) ZACKS·2026-02-18 17:56Core Insights - Cameco (CCJ) reported a 38% year-over-year increase in adjusted earnings per share to 36 cents, surpassing the Zacks Consensus Estimate by 24% [1][10] - The company experienced a 2% decline in uranium production, totaling 6 million pounds in Q4 2025, with mixed performance from its mines [2] - Total revenues increased by 1.5% year-over-year to CAD 1,201 million ($862 million), driven by a rise in fuel services segment revenues [4] Production and Sales - Uranium production from Cigar Lake rose by 4% to 2.6 million pounds, while output from McArthur River/Key Lake fell by 8% to 3.3 million pounds [2] - The company sold 11.2 million pounds of uranium, a decrease of 12.8% compared to Q4 2024, leading to a 1% decline in uranium revenues to CAD 1,027 million ($750 million) [3] Financial Performance - Total cost of sales decreased by 0.5% to approximately CAD 928 million ($677 million), with uranium segment costs down by 2% [5] - Cameco's total gross profit increased by 9% to CAD 273 million ($199 million) [5] - Cash and cash equivalents at the end of Q4 stood at CAD 1.2 billion ($0.88 billion), with long-term debt of CAD 1 billion ($0.73 billion) [6] Future Projections - For 2026, Cameco anticipates uranium production of 19.5-21.5 million pounds, a slight decrease from 2025's 21 million pounds [7] - Uranium revenues for 2026 are projected to be CAD 2.54–2.73 billion, based on an average realized price of CAD 85.00-89.00 per pound [8] - Total revenue guidance for 2026 is set at CAD 3.13-3.37 billion [9] Strategic Developments - Cameco has secured long-term contracts for approximately 230 million pounds of uranium, ensuring delivery visibility over the next five years [11] - The company entered a strategic partnership with the U.S. Government to support the deployment of Westinghouse nuclear reactors, with an investment value of at least $80 billion [13] Market Position and Valuation - Cameco's shares have increased by 142.7% over the past year, outperforming the industry average of 35.7% [17] - The stock is currently trading at a forward price-to-sales ratio of 19.54, indicating a stretched valuation compared to the industry average of 4.62 [18] - The company holds a significant position in the global uranium market, accounting for nearly 15% of worldwide output [23] Growth Drivers - Rising energy security concerns and a global push for low-carbon energy are expected to drive sustained demand for nuclear power [25] - Cameco's investments in production expansion and long-term contracts position the company well for future growth in the nuclear energy sector [26]