Cameco Q1 Earnings Call Highlights

Key Points

• Cameco said Q1 results were broadly in line with its plan and reiterated full-year 2026 guidance, while management flagged strong industry momentum and a robust balance sheet that gives the company flexibility to manage risk.
• Operations are on track — a planned extended third-quarter shutdown at the Key Lake mill will tie in new infrastructure, Inkai production is steady, and Cameco used product loans (borrowing an additional 750,000 pounds) as part of a flexible sourcing approach while market-related contracting has pushed implied contract ceilings into the mid‑$150s with floors around the $70 range.
• Cameco highlighted growing global interest in Westinghouse’s AP1000 and active U.S. new‑build work on two tracks (a DOC-backed ~$80 billion AP1000 pathway and a DOE lending pathway), with about 20 reactors under discussion, while Global Laser Enrichment (GLE) is at TRL‑6 and could enable a “tails re‑enrichment” case of roughly 4–5 million pounds of uranium per year.

Cameco NYSE: CCJ executives said first-quarter 2026 results were in line with the company’s annual plan and reiterated full-year guidance, while offering extensive commentary on the outlook for nuclear power, uranium contracting, and growth opportunities tied to Westinghouse’s AP1000 reactor technology.

Management reiterates 2026 plan and highlights industry momentum

Chief Executive Officer Tim Gitzel said the tone across the nuclear sector has shifted toward “delivery,” citing increased focus on execution at the Canadian Nuclear Association’s 2026 conference. Gitzel framed nuclear generation as critical infrastructure amid rising electricity demand and geopolitical uncertainty, describing the broader industry backdrop as “as constructive as I have seen it at any point in my over 40-year career.”

On Cameco’s own results, Gitzel said quarterly performance reflected “the variable timing of customer deliveries and the sales mix,” adding that year-over-year improvements were “driven largely by timing and improved uranium pricing.” He emphasized that the company is managing for “long-term sustainability, not short-term headlines,” and said 2026 guidance is unchanged, with performance expected to “rebalance” over the year.

Gitzel also pointed to Cameco’s balance sheet strength, saying liquidity remains “robust,” providing flexibility to manage risk and respond to market changes.

Operations: Canada on track; Key Lake shutdown planned; Inkai steady

Gitzel said Canadian uranium production was on track to meet full-year expectations. He noted the company is preparing for an “extended third quarter shutdown planned at the Key Lake Mill” to connect new infrastructure intended to enhance future supply flexibility.

At the JV Inkai operation in Kazakhstan, Gitzel said production progressed in line with plan and described Inkai as part of Cameco’s “operationally flexible and disciplined approach to supply,” supported by inventory management that can include production, purchases, and product loans.

Asked about tightening sulfuric acid supplies globally, Gitzel said Cameco has not seen meaningful impacts in Saskatchewan because it buys molten sulfur and produces its own acid, though it is seeing some cost increases. He said the situation could be “a different movie” in Kazakhstan, where in-situ recovery production relies on acid, and added the company is watching the issue closely.

President and COO Grant Isaac said JV Inkai has continued to receive preferential access to scarce supplies, noting Kazatomprom’s approach of allocating constrained resources to top-performing joint ventures. Isaac said shortages could weigh on broader national output, but he characterized Inkai as well-positioned.

Fuel services and Westinghouse: conversion market tight; AP1000 interest builds

Gitzel said Cameco’s fuel services segment delivered solid production aligned with expectations, while average realized prices declined modestly year over year due to “normal contract timing dynamics.” He said the conversion market remains tight, supported by demand and renewed emphasis on supply security.

Gitzel said Westinghouse posted improved underlying performance versus the prior-year quarter, citing higher adjusted EBITDA, though it reported a net loss due to “normal quarterly variability” and ongoing amortization of acquisition-related intangible assets. He said Cameco remains confident in the long-term outlook for the Westinghouse segment, noting growing global interest in AP1000 technology and that results may remain “lumpy” due to the timing and scale of large projects.

U.S. new-build efforts: two tracks, supply-chain work, and “electron super cycle”

Executives provided detailed updates on discussions related to U.S. nuclear new-build activity. Responding to questions about definitive agreements tied to a previously announced U.S. government term sheet, Gitzel said the parties continue working through the process and are engaged with the U.S. government frequently.

Isaac described the U.S. as being in an “electron super cycle,” pointing to electricity demand growth from hyperscalers, industrial onshoring, and electrification. He outlined two separate avenues for potential AP1000 deployment:

• Department of Commerce (DOC) pathway: Isaac said the DOC effort involves a commitment for the U.S. government to finance, permit, license, and reach final investment decision (FID) on a minimum “$80 billion spend on AP1000,” and includes work on ordering long-lead items and developing build/ownership/financing models.
• Department of Energy (DOE) pathway: He said multiple utilities are pursuing a more traditional approach through the DOE’s lending arm, which he referred to as the Office of Energy Dominance Financing, including consideration of ordering long-lead items.

Isaac said the total number of reactors being discussed across these avenues is “actually 20, it’s not 10,” while cautioning that the scale requires substantial contracting and coordination.

On what Brookfield has described as key work streams, Isaac said the work is consistent with the complexity of bringing multiple parties together in an industry-led, government-enabled U.S. model. He highlighted standing up the supply chain and structuring frameworks that could allow long-lead procurement in parallel with site and model selection. He also referenced a U.S. government objective tied to an executive order calling for “a minimum 10 large nuclear power plants under construction by 2030.”

Gitzel added that Cameco is also engaging globally, citing discussions in countries including Poland and Bulgaria, as well as activity in Canada. He referenced Ontario’s plans for four large units at Bruce and OPG’s interest in 10 units at Wesleyville, along with Saskatchewan and Alberta evaluating large reactors.

Contracting, product loans, and enrichment: market-related pricing and GLE progress

Isaac discussed Cameco’s use of multiple sourcing levers to meet sales commitments, including production, inventory, market purchases, and borrowing under product loans. He said Cameco borrowed an additional 750,000 pounds during the quarter because it “made sense” versus spot purchases when financial buyers tightened the spot market, and later increased buying when additional spot supply emerged. “We’re just constantly reacting to what the market gives us,” he said.

Isaac also addressed how market-related contracting affects uranium price transparency. He said the long-term price commonly cited (he referenced an average of $91.50) is informed only by base-escalated contracts, while market-related contracts do not feed into that published price discovery. He said in 2025 about 30% of contracted volumes were base-escalated, with the remainder market-related. Isaac said market-related contract ceilings are now “in the mid $150 getting to $160 escalated,” with floors “typically in the $70 escalated,” and argued that the implied midpoint suggests pricing already in the triple digits.

On an India uranium contract, Gitzel said the deal had been “in the works probably for the last five years” and had been delayed by political issues, adding it was done on “commercial terms, market terms at time of delivery.” Isaac said sovereign buyers such as India and China tend to prefer market-related pricing, while some traditional buyers have interest in fixed base-escalated structures.

In enrichment, Isaac said Global Laser Enrichment (GLE) remains a key strategic project and that the technology is currently at Technology Readiness Level 6, which he said verifies performance at nuclear reliability requirements. He said Cameco views the initial commercial case largely as a “tails re-enrichment” opportunity involving DOE depleted UF6 inventory, describing it as an “above-ground mine” that could produce “4 to 5 million pounds of uranium per year.” Isaac said Cameco owns 49% of GLE, with Silex holding 51%, and that Cameco has rights to increase ownership to 70%–75% but said “that time is not now” as the project advances through TRL 7–9.

Gitzel also noted the company is seeing some cost increases tied to disrupted global trade routes amid Middle East conflict, but said Cameco does not directly rely on materials sourced from the region and does not expect those cost increases to be material to 2026 results at present.

As a community milestone, Gitzel said Cameco has surpassed $5 billion in goods and services procured from Indigenous and Northern Saskatchewan contractors since 2004.

About Cameco NYSE: CCJ

Cameco Corporation NYSE: CCJ is a leading producer of uranium and a supplier to the global nuclear power industry. Headquartered in Saskatoon, Saskatchewan, Canada, the company is engaged in the exploration, mining, milling and sale of uranium concentrate, commonly known as yellowcake, which is used as fuel for nuclear reactors. Cameco also participates in services and activities that support the front end of the nuclear fuel cycle, including processing and marketing of uranium to utilities under long‑term and spot contracts.

The company's operations have historically centered in Canada and the United States, where it operates and develops uranium mining and processing properties.

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