Cameco (CCO) Q3 2024 earnings summary

Executive summary

• Strong operational performance in uranium and fuel services supported a return to a tier one cost structure, improved cash flow, and dividend growth, with stable and rising market prices.

• Board approved a dividend increase to $0.16 per share for 2024, with a plan to double to $0.24 by 2026.

• Strategic acquisition of 49% of Westinghouse enhances participation across the nuclear fuel cycle and is expected to be accretive on key metrics.

• Long-term contracting activity is gaining momentum, with contracts in uranium and fuel services spanning more than a decade.

• Company is well-positioned to benefit from growing demand for nuclear power, supported by positive government and industry sentiment.

Financial highlights

• Q3 2024 revenue rose 25% year-over-year to $721 million; gross profit increased 13% to $171 million.

• Adjusted EBITDA for the first nine months nearly doubled to $992 million; Q3 adjusted EBITDA rose 32% to $308 million.

• 2024 consolidated revenue guidance: $3.01–$3.16 billion; uranium segment: $2.55–$2.68 billion; fuel services: $440–$470 million.

• Liquidity at $197 million cash and $1 billion undrawn credit facility as of September 30, 2024; total debt at $1.3 billion.

• Additional $100 million repaid on Westinghouse acquisition loan in Q3, totaling $400 million year-to-date.

Outlook and guidance

• 2024 uranium production outlook increased to up to 23.1 million lbs (Cameco's share), with total production up to 37 million lbs; Key Lake/McArthur forecast at 19 million lbs, Inkai JV reduced to 7.7 million lbs due to supply chain issues.

• Average realized uranium price for 2024 expected at $77.80/lb; consolidated revenue guidance increased.

• Westinghouse 2024 adjusted EBITDA guidance raised to $460–$530 million.

• Annual uranium deliveries expected between 32–34 million lbs; fuel services sales volume guidance: 12–13 million kgU.

• Strong Q4 expected for both uranium and Westinghouse segments due to seasonality and delivery schedules.