Strategic Partnership & Investment - A strategic partnership between Cameco, Brookfield, and the US Department of Commerce aims to accelerate the global deployment of Westinghouse nuclear technologies[9] - The US Government will facilitate financing and approvals for new Westinghouse reactors in the US, with an aggregate investment value of at least $80 billion (US)[9] - The US Government will receive 20% of cash distributions exceeding $17.5 billion (US) from Westinghouse upon vesting[9] - An IPO of Westinghouse may be required if its valuation reaches at least $30 billion (US) by January 2029[9] Production & Sales Outlook - McArthur River/Key Lake's annual production outlook (Cameco's share) is projected to be 9.8-10.5 million lbs[17] - Cigar Lake's production is expected to reach up to 20 million lbs (100% basis)[17] - Fuel Services anticipates producing 13-14 million kgU of combined products[17] - The company projects uranium sales/delivery volume of 32 to 34 million lbs[19] - Fuel Services sales/delivery volume is expected to be 13 to 14 million kgU[19] Financial Performance - Revenue is projected to be $3,300-3,550 million, with uranium contributing $2,800-3,000 million and Fuel Services $500-550 million[19] - The average realized uranium price is estimated at $87.00/lb[19] - Adjusted EBITDA for Westinghouse is projected to be $525-580 million[19] - Cameco received $171.5 million (US) from Westinghouse related to the Dukovany reactor project[20, 26]

Core Insights - Cameco, a Canada-based uranium refiner, reported third-quarter earnings that missed analyst estimates, with EPS at 5 cents, an improvement from a slight loss a year ago, while revenue fell 16% to $436.7 million [1] Group 1: Company Performance - Cameco's Q3 EPS of 5 cents indicates a recovery from the previous year's loss, but the revenue decline of 16% to $436.7 million raises concerns about its sales performance [1] - Despite the earnings miss, Cameco maintains a strong position in the nuclear sector, claiming to be "at the forefront of the global nuclear resurgence" [1] Group 2: Market Context - The nuclear sector is experiencing a resurgence, with Cameco positioned to benefit from this trend, highlighting the potential for future growth despite current earnings challenges [1] - Related news indicates that BWX Technologies, another player in the nuclear sector, reported third-quarter earnings, suggesting ongoing activity and interest in the industry [2]

Core Viewpoint - Hadron Energy, Inc. is nearing a $1.2 billion SPAC merger with GigCapital7 Corp., highlighting its proactive licensing strategy with the U.S. Nuclear Regulatory Commission (NRC) [1] Company Overview - Hadron Energy is focused on a light-water reactor design, which is advantageous due to the NRC's extensive experience in licensing this technology [1] - The NRC currently oversees 94 operational nuclear power plants in the United States, indicating a robust regulatory framework for Hadron's technology [1]

Core Insights - Terrestrial Energy has appointed Sarfraz M. Taj as Vice President of Business Development, bringing over 20 years of nuclear industry experience from Constellation Energy [1][2] - The company aims to accelerate the commercialization of its Integral Molten Salt Reactor (IMSR) technology following its public listing [1][3] Company Developments - Sarfraz Taj's role will focus on expanding strategic partnerships and customer relationships, both in the U.S. and globally [2] - His previous experience includes significant contributions to major strategic transactions and initiatives in new nuclear development and advanced clean technologies at Constellation Energy [2] - Terrestrial Energy has made several key appointments recently, including David O'Keefe as Vice President of Business Development and Project Management, who has over 25 years of experience in the energy sector [3] Technology and Market Position - The IMSR technology is positioned as a future solution for clean, reliable, and cost-competitive nuclear power, utilizing Standard Assay Low-Enriched Uranium fuel and a capital-efficient business model [3][4] - IMSR plants are designed for distributed supply of low-cost, reliable, and clean energy, extending the application of nuclear energy beyond traditional electric power markets [4] - The company is engaged with regulators and industrial partners to build and license the first IMSR plants in the early 2030s, supporting global decarbonization efforts [4]

Group 1 - BWX Technologies (BWXT) is set to report third-quarter earnings and revenue, with analysts expecting Q3 EPS to grow by 2.4% to 85 cents and sales to increase by 18% to $793.4 million [1] - Analysts have advised investors to build up exposure to the nuclear sector, indicating a positive outlook for BWX Technologies [1] - Cameco has announced a nuclear partnership with the U.S. government, which is expected to enhance its position in the nuclear energy market [2] Group 2 - Cameco's stock is experiencing significant gains, attributed to its strong performance in the uranium sector and favorable market conditions [4] - Clean energy stocks, including those in the nuclear sector, are outperforming fossil fuels despite challenges related to ESG concerns [4] - Palantir Technologies is recognized among tech leaders and has been elevated to best stock lists, indicating strong market performance [4]

Core Insights - A significant increase in global power demand is anticipated, primarily driven by the energy requirements of artificial intelligence, leading to what experts term a "historic energy transition" [1] Group 1: Power Demand Projections - Global power demand is expected to rise by 30% by 2035, with data centers' share of total power use projected to increase from 1.5% to 3.5% [1] - The growth in electricity demand from data centers alone is estimated at 1,000 Terawatt-hours, comparable to the growth of the entire residential or transport sectors [6] Group 2: Beneficiaries in the Energy Sector - Independent Power Producers (IPPs) are emerging as key beneficiaries of this energy boom, with companies like Vistra Corp. reporting a year-to-date performance increase of 28.99% [2] - The nuclear energy sector is also benefiting, with stocks like Cameco Corp. experiencing a year-to-date surge of 93.35% [3] Group 3: Performance of Energy Stocks - Notable year-to-date performances of energy stocks include: - NextEra Energy Inc. (14.20%) - First Solar Inc. (42.49%) - Vistra Corp. (28.99%) - GE Vernova Inc. (71.49%) - Cameco Corp. (93.35%) [4] - Broader clean energy funds, such as the iShares Global Clean Energy ETF, have gained 51.72% year-to-date, contrasting with the flat performance of broader energy ETFs [4][5] Group 4: Concentration of Demand - The U.S. and China currently account for approximately 50% of global power use, highlighting the concentrated nature of this new demand [7] - Innovative solutions are being proposed to address the energy crisis in AI, including floating data centers and orbital data centers to harness solar power [8]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - AI data centers consume energy equivalent to that of small cities, leading to concerns about power grid strain and rising electricity prices [2] Company Profile - The company in focus is not a chipmaker or cloud platform but is positioned as a crucial player in the energy sector, particularly in nuclear energy infrastructure [7] - It is capable of executing large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including oil, gas, and renewable fuels [7] Financial Position - The company is noted for being completely debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization [8] - It is trading at less than 7 times earnings, indicating a potentially undervalued position in the market [10] Market Trends - The company is poised to benefit from the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration [5][14] - There is a growing recognition on Wall Street of this company's potential, as it quietly capitalizes on multiple favorable market trends without the high valuations seen in other sectors [8][6] Future Outlook - The demand for AI is expected to continue growing, with a talent influx ensuring ongoing innovation and advancements in the field [12] - The company is positioned to profit from the anticipated energy spike driven by AI data centers, making it a strategic investment opportunity [3][11]

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $866 million, up 29% year-over-year, with organic revenue growth of 12% excluding acquisitions [19][24] - Adjusted EBITDA was $151 million, reflecting a 19% increase year-over-year, driven by strong performance in commercial operations and a modest increase in government operations [19][24] - Adjusted earnings per share increased by 20% to $1, supported by strong operating performance [19] - Free cash flow for the quarter was $95 million, with an anticipated full-year free cash flow of approximately $285 million [21][22] Business Line Data and Key Metrics Changes - Government operations revenue increased by 10%, with adjusted EBITDA up 1%, driven by naval propulsion and special materials [23][24] - Commercial operations revenue grew by 122%, with organic revenue growth of 38%, primarily due to the Kinectrics acquisition and strong growth in commercial nuclear power and medical isotopes [14][24] - Adjusted EBITDA in commercial operations was $36 million, up 163%, resulting in an adjusted EBITDA margin of 14.2% [24] Market Data and Key Metrics Changes - The total backlog reached $7.4 billion, up 23% from the previous quarter and 119% year-over-year, driven by large multi-year national security contracts [5][6] - The company expects government operations revenue to grow mid-single digits organically in 2025, with commercial operations anticipated to grow approximately 60% compared to the previous year [24][30] Company Strategy and Development Direction - The company is focused on operational excellence and leveraging artificial intelligence and advanced manufacturing to improve productivity and margin performance [7][32] - Strategic investments include a $1.5 billion defense fuels contract and a $1.6 billion contract for high purity depleted uranium, both aimed at enhancing domestic uranium enrichment capabilities [11][12] - The company is expanding into advanced nuclear technologies and microreactors, with ongoing projects like Project PELE and collaborations for TRISO nuclear fuel production [9][10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of financial strength, with expectations for record financial results and continued growth in both government and commercial sectors [6][31] - The company highlighted strong demand in nuclear solutions driven by decarbonization and electrification trends, positioning itself well for future opportunities [32] - Management acknowledged potential risks, including government shutdowns and timing of commercial nuclear opportunities, but remains optimistic about growth prospects [76][82] Other Important Information - The company is actively pursuing additional acquisitions that align with its strategic goals, having successfully integrated Kinectrics and AOT [122][124] - The company is also exploring localization opportunities for manufacturing in response to trends in commercial nuclear power [69] Q&A Session Summary Question: Did the company book any revenue on the two new contracts in the quarter? - The contribution from the new contracts was very modest, with seasonality affecting the fourth quarter due to timing of material procurements [36] Question: What is the approach for the Janus program? - The company intends to compete for the Janus program, typically not owning and operating reactors but finding the right partners for the opportunity [40] Question: What are the key takeaways from the Kinectrics acquisition? - Kinectrics is outperforming expectations, particularly in transmission and distribution, offshore wind cable testing, and licensing support for large reactor projects [44] Question: How does the revenue cadence roll out for the uranium enrichment and depleted uranium contracts? - Revenue will be distributed over the contract periods, with lower margins expected initially due to infrastructure investments [52][54] Question: What are the main risks to achieving the 2026 outlook? - Risks include potential delays in commercial nuclear opportunities and the impact of government shutdowns, but the company has good visibility into its revenue streams [76][82]

Financial Data and Key Metrics Changes - Third quarter revenue was $866 million, up 29% year-over-year, with organic revenue growth of 12% excluding acquisitions [12][3] - Adjusted EBITDA increased to $151 million, a 19% year-over-year growth, driven by strong performance in commercial operations [12][3] - Adjusted earnings per share rose to $1, reflecting a 20% increase [12] - Free cash flow for the quarter was $95 million, with an anticipated full-year free cash flow of approximately $285 million [13][12] Business Line Data and Key Metrics Changes - Government operations revenue increased by 10%, with adjusted EBITDA up 1%, driven by naval propulsion and special materials [14][4] - Commercial operations revenue grew by 122%, with organic revenue growth of 38%, attributed to the Kinectrics acquisition and strong performance in commercial nuclear power and medical isotopes [15][9] - Adjusted EBITDA in commercial operations was $36 million, up 163%, resulting in an adjusted EBITDA margin of 14.2% [15][16] Market Data and Key Metrics Changes - The total backlog reached $7.4 billion, up 23% from the previous quarter and 119% year-over-year, driven by national security contracts [3] - The company is experiencing unprecedented demand in nuclear solutions for global security, clean energy, and medical end markets [3][20] - The commercial power market is expanding, with significant opportunities in CANDU life extensions and small modular reactors (SMRs) [10][11] Company Strategy and Development Direction - The company is focused on operational excellence and leveraging artificial intelligence and advanced manufacturing to improve productivity and margins [4][20] - Strategic investments are being made in microreactors and advanced nuclear technologies, with ongoing projects like Project PELE and collaborations for TRISO fuel production [5][6] - The company aims to exceed medium-term financial targets and anticipates record financial results in 2026 [4][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of financial strength, with a robust backlog and good visibility into future demand [4][19] - The company highlighted the importance of decarbonization and electrification trends as tailwinds for growth in nuclear solutions [20] - Management acknowledged potential risks, including government shutdowns and timing of commercial nuclear opportunities, but remains optimistic about future growth [60][56] Other Important Information - The company is transitioning to manage the Strategic Petroleum Reserve contract and is in the preferred bidder period for Canadian Nuclear Laboratories [5] - The company is building a centrifuge manufacturing facility in Oak Ridge, Tennessee, to support defense uranium enrichment capabilities [8] - The medical revenue segment is expected to continue growing, driven by PET and therapeutic isotopes [9][10] Q&A Session Summary Question: Did the company book any revenue on the two new contracts in the quarter? - The company reported very modest contributions from the new contracts, with seasonality affecting fourth-quarter expectations [24][25] Question: What is the approach for the Janus program? - The company intends to compete for the Janus program, typically not owning and operating reactors but finding the right partners [27][28] Question: What are the key takeaways from the Kinectrics acquisition? - Kinectrics is outperforming expectations, particularly in transmission and distribution, and is well-positioned for growth in offshore wind cable testing [30][31] Question: What are the main risks to achieving the 2026 outlook? - Risks include potential government shutdowns, timing of commercial nuclear opportunities, and defense spending [55][60]

Our Purpose: We employ nuclear technology to solve some of the world's most important problems Our Mission: We provide safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine, and space exploration Commitment to innovation, operational excellence, a strong safety record, and a focus on ensuring the highest ESG standards BWX Technologies, Inc. ("BWXT") cautions that statements in this presentation that are forward-looking and provide other than hist ...