Cameco (CCO) Q4 2024 earnings summary

Executive summary

• Delivered strong 2024 results with record uranium production, robust Westinghouse segment performance, and disciplined financial and operational strategies, despite lower net and adjusted net earnings due to purchase accounting impacts from the Westinghouse acquisition.

• Maintained financial discipline, increased annual dividend, and successfully refinanced and repaid significant debt, supporting a strong balance sheet.

• Positive outlook for 2025, driven by supportive nuclear sector fundamentals, energy security concerns, and durable demand for nuclear fuel.

• Strategic focus on full-cycle value capture, disciplined supply management, and prudent investment in existing and future supply sources.

Financial highlights

• Adjusted EBITDA rose 73% year-over-year to $1.53 billion in 2024, with annual net earnings of $172 million and adjusted net earnings of $292 million, reflecting higher sales volumes, improved realized prices, and a return to Tier One production levels.

• Revenue for 2024 was $3.14 billion, up from $2.59 billion in 2023; gross profit increased to $783 million from $562 million.

• Produced 23.4 million pounds of uranium and delivered just under 34 million pounds in 2024; McArthur River/Key Lake set a new annual production record with 20.3 million packaged pounds.

• Liquidity at year-end included $600 million in cash and $1 billion undrawn credit facility; total debt at $1.3 billion.

• Westinghouse contributed $483 million in adjusted EBITDA, despite a net loss due to purchase accounting and transition costs.

Outlook and guidance

• Expect continued strong performance in 2025, with production plans of 18 million pounds each at McArthur River/Key Lake and Cigar Lake, and fuel services production guidance of 13–14 million kgU.

• Dividend growth plan targets an annual increase of at least $0.04 per share in 2025 and 2026, aiming to double the 2023 dividend by 2026.

• Westinghouse adjusted EBITDA for 2025 is forecast at $355–$405 million (Cameco share), with a 6–10% CAGR in core business revenue over five years.

• Anticipate strong cash flow generation and a robust balance sheet in 2025.

• Monitoring US tariffs; no material impact expected on 2025 financial results if implemented.