Financial Data and Key Metrics Changes - The company reported annual revenue of approximately CAD 3.5 billion in 2025, an increase of 11% compared to 2024 [14] - Adjusted EBITDA was about CAD 1.9 billion, reflecting a 26% increase from the previous year [14] - Adjusted net earnings reached just under CAD 630 million, representing a 115% improvement compared to 2024 [14] - The balance sheet remains strong, ending the year with approximately CAD 1.2 billion in cash and short-term investments, and CAD 1 billion in total debt [15] Business Line Data and Key Metrics Changes - In the uranium segment, the company produced 21 million pounds on a consolidated basis in 2025, exceeding revised annual guidance [15] - The fuel services segment delivered strong performance, including record UF6 production at Port Hope [16] - The company has commitments to deliver an average of about 28 million pounds of uranium annually over the next five years [13] Market Data and Key Metrics Changes - Long-term contracting volumes in 2025 remained below replacement rate levels, indicating a need for continued discipline in supply [12] - Average realized prices improved, reflecting a strengthening long-term market environment [14] - The company ended the year with approximately 230 million pounds committed under long-term contracts [14] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to production and supply, focusing on long-term strategies despite market volatility [8][11] - Investments in next-generation enrichment and partnerships, such as with Westinghouse, are expected to enhance the company's position in the nuclear fuel cycle [10][18] - The company is strategically preserving uncommitted productive capacity to deploy as market fundamentals strengthen [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing geopolitical turmoil and market volatility but emphasized resilience and disciplined execution as key themes for 2025 [8] - The outlook for growth across the nuclear fuel cycle is expected to continue, driven by electrification, decarbonization, and energy security priorities [19] - The company anticipates producing between 19.5 million and 21.5 million pounds of uranium in 2026, with an average realized price between CAD 85 and CAD 89 [21] Other Important Information - The company is actively negotiating contracts to unlock value while preserving significant uncommitted volumes for future pricing opportunities [12][13] - The investment in Westinghouse is expected to yield strong performance, with an outlook for adjusted EBITDA from Westinghouse of approximately CAD 370 million to CAD 430 million in 2026 [22] Q&A Session Summary Question: Guidance framework for Westinghouse business - Management discussed the exciting opportunities in Westinghouse and the potential financial impact of projects, emphasizing a disciplined approach to guidance [28][32] Question: Average realized pricing outlook for uranium - Management explained the lack of immediate price appreciation is due to a disciplined marketing strategy, preserving pounds for when demand increases [34][36] Question: Production outlook at McArthur River - Management addressed delays at McArthur River and the decision to pace production according to market demand, emphasizing a systematic approach [50][52] Question: Technical risks around McArthur River - Management confirmed that risks are being managed proactively and that the current issues are not indicative of a riskier environment [62][64] Question: Future demand and production backfill - Management expressed confidence in the demand for uranium and the ability to prepare assets for future production needs [68][70] Question: Conversion market contracting - Management highlighted the importance of securing long-term contracts in the conversion market and the strategy to maximize value over time [78][80]

Financial Data and Key Metrics Changes - Annual revenue increased to approximately CAD 3.5 billion in 2025, up 11% compared to 2024 [14] - Adjusted EBITDA was about CAD 1.9 billion, which was up 26% from the previous year [14] - Adjusted net earnings of just under CAD 630 million represent a 115% improvement compared to 2024 [14] - The balance sheet remains strong, ending the year with approximately CAD 1.2 billion in cash and short-term investments, CAD 1 billion in total debt [15] Business Line Data and Key Metrics Changes - Uranium segment produced 21 million pounds on a consolidated basis in 2025, exceeding revised annual guidance [15] - Fuel services segment delivered strong performance, including record UF6 production at Port Hope [16] - JV Inkai met its annual production target, delivering 3.7 million pounds for 2025 [16] Market Data and Key Metrics Changes - Average realized prices improved, reflecting a strengthening long-term market environment [14] - Approximately 230 million pounds committed under long-term contracts by year-end [14] - Long-term contracting volumes in 2025 remained below replacement-rate levels, indicating a need for continued discipline [12] Company Strategy and Development Direction - The company focuses on disciplined execution and long-term strategy, adapting to market volatility [8] - Continued investment in next-generation enrichment and partnerships, including a strategic partnership with Westinghouse and the U.S. government [10][18] - Plans to ramp up uranium production in 2026, with commitments to deliver an average of about 28 million pounds annually over the next five years [13][21] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing geopolitical turmoil but emphasized resilience and adaptation within the industry [8] - The outlook for growth across the nuclear fuel cycle is driven by electrification, decarbonization, and energy security priorities [19] - The company expects to produce between 19.5 million and 21.5 million pounds of uranium in 2026, with an average realized price between CAD 85 and CAD 89 [21] Other Important Information - The company maintains significant uncommitted productive capacity to deploy as market fundamentals strengthen [14] - The investment in Westinghouse is expected to yield strong performance, with an outlook for adjusted EBITDA from Westinghouse of approximately $370 million-$430 million in 2026 [22] Q&A Session Summary Question: Guidance framework for Westinghouse business - Management discussed the potential financial impact of projects and the excitement around the Gen III reactor opportunities, emphasizing discipline in guidance [28][30] Question: Average realized pricing outlook for 2026 - Management explained the lack of significant price appreciation is due to a disciplined marketing strategy, preserving pounds for when demand increases [34][36] Question: Production outlook at McArthur River - Management acknowledged delays and emphasized a systematic approach to development, aligning production with market demand [50][52] Question: Technical risks around McArthur River - Management clarified that risks are being managed proactively and are not indicative of a riskier environment, focusing on disciplined production strategy [62][64] Question: Potential stresses on production capacity - Management expressed confidence in meeting future demand and emphasized the importance of disciplined production planning [68][70] Question: Westinghouse EBITDA guidance - Management noted that the guidance reflects core business drivers and the timing of regulatory approvals impacting immediate orders [74][76] Question: Conversion market contracting - Management highlighted the importance of securing long-term contracts at historic prices and the strategic approach to maximizing asset value [78][80]

Financial Data and Key Metrics Changes - Annual revenue increased to approximately CAD 3.5 billion in 2025, up 11% compared to 2024 [12] - Adjusted EBITDA was about CAD 1.9 billion, which was up 26% from the previous year [12] - Adjusted net earnings of just under CAD 630 million represent a 115% improvement compared to 2024 [12] - The balance sheet remains strong, ending the year with approximately CAD 1.2 billion in cash and short-term investments, CAD 1 billion in total debt [13] Business Line Data and Key Metrics Changes - Uranium segment produced 21 million pounds on a consolidated basis in 2025, exceeding revised annual guidance [13] - Fuel services segment delivered strong performance, including record UF6 production at Port Hope [14] - JV Inkai met its annual production target, delivering 3.7 million pounds for 2025 [14] Market Data and Key Metrics Changes - Long-term contracting volumes in 2025 remained below replacement rate levels, indicating a need for continued discipline [11] - Average realized prices continue to improve, reflecting a strengthening long-term market environment [12] - Approximately 230 million pounds committed under long-term contracts by year-end [12] Company Strategy and Development Direction - The company focuses on disciplined execution and long-term strategy, looking past near-term volatility [7] - Continued investment in next-generation enrichment through Global Laser Enrichment and partnerships with Westinghouse to enhance nuclear fuel demand [9][16] - The strategic partnership with the U.S. government aims to accelerate the deployment of Westinghouse reactor technology, backed by at least $80 billion in planned investment [16] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing geopolitical turmoil and market volatility but emphasized resilience and disciplined execution [7] - Expectations for growth across the nuclear fuel cycle driven by electrification, decarbonization, and energy security priorities [17] - Anticipated production of between 19.5 million and 21.5 million pounds of uranium in 2026, with an average realized price between CAD 85 and CAD 89 [18] Other Important Information - The company maintains significant uncommitted productive capacity to deploy as market fundamentals strengthen [12] - The investment in Westinghouse is expected to continue delivering strong performance, with an outlook for adjusted EBITDA from Westinghouse of approximately $370 million-$430 million in 2026 [19] Q&A Session Summary Question: Guidance framework for Westinghouse business - Management discussed the exciting opportunities in Westinghouse and the potential for multiple reactors in the U.S. and other countries, emphasizing disciplined guidance [26][27] Question: Average realized pricing outlook for 2026 - Management explained the discipline in pricing strategy, indicating that the market is not yet at replacement rates, which affects pricing appreciation [32][34] Question: Production outlook at McArthur River - Management addressed delays at McArthur River and the decision to pace production according to market demand, indicating no immediate incentive to accelerate production [50][52] Question: Technical risks around McArthur River - Management confirmed that technical risks are being managed systematically and that production plans are aligned with market demand [60][62] Question: Opportunities with the U.S. government - Management highlighted the strong long-term relationship with the U.S. government and ongoing interest in projects like Global Laser Enrichment [82]

Industry Overview - Nuclear energy is experiencing a revival as countries seek to expand their nuclear power capabilities, with the U.S. aiming to quadruple its nuclear energy capacity by 2050 [1] - The demand for nuclear energy is increasing while supply is tightening due to geopolitical risks, particularly concerning uranium supplies from Russia [1] Company: Cameco - Cameco is a North American uranium miner with high-grade mines, including MacArthur River and Cigar Lake, which contribute significantly to the global high-quality uranium supply [5] - The stock of Cameco has surged by 395% since the beginning of 2023, driven by rising demand for nuclear energy and geopolitical factors affecting uranium imports [6] - Cameco holds a 49% stake in Westinghouse, which provides services to nuclear plants and is involved in new reactor technologies, supported by an $80 billion commitment from the U.S. government for nuclear reactor construction [7] Company: Centrus Energy - Centrus Energy specializes in providing nuclear fuel components, including low-enriched uranium (LEU) and natural uranium hexafluoride, essential for nuclear reactors [8] - The company currently sources uranium from global suppliers, including Orano in France and TENEX in Russia, and has a waiver to import LEU, highlighting the urgent need to replace Russian-sourced enriched uranium, which constitutes about 25% of U.S. imports [9]

Core Insights - Fermi Inc. (NASDAQ:FRMI) has seen significant stock performance, attributed to its partnerships with South Korean companies for nuclear energy development [1][2]. Group 1: Partnerships and Contracts - Fermi Inc. has signed a deal with Doosan Enerbility to develop nuclear equipment, including reactor pressure vessels and steam generators, for Westinghouse Electric's AP1000 reactor projects [2]. - The company has also partnered with Hyundai Engineering & Construction for a major engineering contract related to the design of four AP1000 nuclear reactors under Project Matador, which aims to create a hypergrid energy campus with a capacity of 11 GW from various energy sources [3]. Group 2: Strategic Vision and Market Position - Fermi Inc.'s co-founder and CEO, Toby Neugebauer, emphasized the importance of collaborating with allies experienced in large-scale nuclear projects to enhance America's nuclear energy capabilities [4]. - Neugebauer noted that the commitment from Doosan Enerbility and Hyundai E&C positions Fermi America to effectively contribute to the development of clean nuclear power, aligning with the demands of the U.S. government [5].

Core Insights - The U.S. Government has formed a strategic partnership with Westinghouse Electric Company, Cameco Corporation, and Brookfield Asset Management to construct at least $80 billion worth of new nuclear reactors, aimed at accelerating nuclear power and artificial intelligence deployment in the U.S. [1][2][3] Industry Overview - The partnership is expected to reinvigorate the nuclear power industrial base in the U.S., making nuclear energy a central pillar of the country's strategy to maintain global leadership in nuclear power development and AI [2][4] - The construction of new reactors will create or sustain approximately 45,000 manufacturing and engineering jobs per two-unit Westinghouse AP1000 project, with a national deployment projected to generate over 100,000 construction jobs [4] Company Contributions - Westinghouse is recognized as a global leader in nuclear energy, with its technology serving as the foundation for more than half of the world's operating nuclear power fleet [7][11] - The AP1000 reactor, developed by Westinghouse, is noted for its advanced safety systems and modular construction design, with six reactors currently operational and additional units under construction [8] Strategic Goals - The partnership aims to enhance U.S. energy sovereignty, create high-paying jobs, and position the country at the forefront of a nuclear renaissance [3][4] - Brookfield Asset Management plans to double its investment in critical infrastructure over the next decade, supporting the growth of AI and meeting increasing electricity demand [3][4] Financial Mechanisms - The partnership includes profit-sharing mechanisms that allow all parties, including the American public, to benefit from the long-term financial and strategic value generated by the growth of nuclear energy and AI capabilities [6]