Cameco (CCJ) Q3 2024 earnings summary

Executive summary

• Strong operational performance in uranium and fuel services segments in Q3 2024, supporting a return to a tier one cost structure and improved cash flow generation.

• Adjusted EBITDA for the first nine months approached $1 billion, with Q3 adjusted EBITDA up 32% to $308 million.

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

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

• Strategic Westinghouse acquisition (49% Cameco, 51% Brookfield) enhances nuclear fuel value chain exposure.

Financial highlights

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

• 2024 consolidated uranium production (owned/operated) outlook up to 23.1 million lbs; Key Lake/McArthur River output forecast raised to 19 million lbs.

• JV Inkai production outlook reduced to 7.7 million lbs due to sulfuric acid supply timing.

• Fuel services segment Q3 production up 60% year-over-year, with sales/delivery guidance of 13.5–14.5 million kgU and revenue guidance of $440–470 million.

• Cash and equivalents were $197 million, with $1.3 billion in total debt and a $1.0 billion undrawn credit facility as of September 30, 2024.

Outlook and guidance

• 2024 uranium production outlook increased to up to 23.1 million pounds (Cameco's share), with total production up to 37 million pounds.

• Expected uranium average realized price for 2024 raised to $77.80/lb, and consolidated revenue guidance increased to $3.01–$3.16 billion.

• Westinghouse 2024 adjusted EBITDA guidance raised to $460–$530 million; growth guidance held at 6%-10% over the next five years.

• Annual uranium deliveries expected between 32–34 million pounds remain unchanged.

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