Cameco Posts Strong Q2 Revenue Gains: Will Momentum Last Through 2025?

Cameco Corporation’s CCJ second-quarter revenues rose 47% year over year to CAD 705 million ($509 million), driven by higher sales volumes and an increase in the Canadian dollar average realized price. Cameco sold 8.7 million pounds of uranium, 40% higher than the 6.2 million pounds sold in the second quarter of 2024. Despite a 17% decline in the average U.S. dollar spot price for uranium, the Canadian dollar average realized price increased 5% to CAD 81.03 per pound due to the impact of fixed price contracts on the portfolio.For the first half of 2025, Cameco’s uranium revenues reached CAD 1.324 billion, marking a 27% year-over-year increase, driven by a 16% rise in sales volumes and a 10% increase in the average realized Canadian dollar price.Cameco has delivered 15.6 million pounds of uranium so far in 2025, reaching the halfway mark of its full-year target of 31–34 million pounds. In 2024, CCJ delivered 33.6 million pounds of uranium, generating revenues of CAD 2.68 billion ($2.29 billion). For 2025, uranium revenues are forecast at CAD 2.8–3.0 billion. The company now expects the average realized price to be higher at approximately $87.00 per pound (previously $84.00 per pound).Cameco benefited from fixed-price contracts while revenues of peers, Energy Fuels UUUU and Ur Energy URG, have been more volatile, reflecting their strategies to withhold sales when prices are low. In the first quarter of 2025, Energy Fuels’ revenues moved down 33.5% year over year to $16.9 billion. The decline was primarily due to the company’s decision to defer uranium sales in response to lower prices. Instead, revenues were driven by Heavy Mineral Sands as the company sold 6,836 tons of rutile, 12,852 tons of ilmenite and 1,429 tons of zircon. Energy Fuels recently announced that during the second quarter, it sold 50,000 pounds of uranium on the spot market for an average price of $77.00 per pound.Ur Energy also did not sell uranium in the first quarter amid low prices. The company recently announced that it has sold 165,000 pounds of uranium in the second quarter of 2025, at an average price of $63.20 per pound. The sales resulted in revenues of $10.4 million for Ur Energy.CCJ’s Price Performance, Valuation & EstimatesSo far this year, Cameco shares have gained 52.7% compared with the industry’s 12.4% growth. Meanwhile, the broader Zacks Basic Materials sector has moved up 9.7%, while the S&P 500 has climbed 7.9%.Image Source: Zacks Investment ResearchCCJ stock is trading at a forward price-to-sales ratio of 12.99 compared with the industry’s 1.24. It is above its five-year median of 6.60.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Cameco’s earnings for fiscal 2025 indicates year-over-year growth of 120.4%. The same for 2026 implies growth of 49.6%. The consensus estimate for Cameco’s earnings for fiscal 2025 has moved up over the past 60 days, while the estimate for 2026 has moved down, as shown in the chart below.Image Source: Zacks Investment ResearchThe company currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cameco Corporation (CCJ): Free Stock Analysis Report Ur Energy Inc (URG): Free Stock Analysis Report Energy Fuels Inc (UUUU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks