$CCO (-6,86%) Reports Earnings of Q3-2025:
- non-GAAP EPS of C$0.07 (Est. $0.20) ❌
- Revenue of C$615M -14.7% YoY (Est. $533.44M) ❌
Financial insight:
- Revenue Growth (3Y): 24.7%
- Operating Margin: 17.81%
- Net Margin: 14.95%
- Gross Margin: 26.54%
- EBITDA Margin: 31.4%
- Dividend: Increase to $0.24 per share from $0.11
Despite the lower income, Cameco remains financially very healthy, with a debt/equity ratio of 0.15 and a current ratio of 2.96 ✅
Cameco's valuation is close to its historical high with a P/E ratio of 111.11
2025 Outlook Update:
- Production: As a result of the changes in our production plans noted above, we now expect our share of production of U3O8 to be up to 20 million pounds for 2025.
- Market purchases: We have reduced our outlook for market purchases to up to 1 million pounds (previous outlook up to 3 million pounds) as a result of our utilization of standby product loan facilities to offset the impact of the expected reduction in our 2025 production on our inventory balance.
- Sales/delivery volumes: We have narrowed our guidance for the sales/deliveries volumes in our uranium segment to 32 to 34 million pounds (previously 31 to 34 million pounds) as we have greater confidence in the timing of potential uranium deliveries as we approach the end of the year.
Additional Highlights:
- Strategic Partnership with US Government: A strategic partnership has been entered into with Brookfield and the US government to facilitate the expansion of Westinghouse reactors in the US. With the $80b deal, the government will actively support financing, permitting and licensing.
- Changes to the executive team, effective 01.01.2026
- Lisa Aitken becomes senior vice-president & CMO
- David Doerksen will hold the position of Senior Advisor until retirement (31.03.26)
The share price of $CCO (-6,86%) continues to go up for the time being, my plan to buy at a lower price has unfortunately come to an end. We are close to the upper end of the 52-week range, which I had feared, partly because of the Cameco deal, which still has a lot of upside potential and is therefore generally valued highly.
I had hoped to be able to strike again here before the end of the year, at around EUR 70. In the meantime, I no longer believe it.
With an RSI of 59.33, the stock appears to be neither oversold nor undersold. I think there is still momentum here and the prospects are good. I will probably keep an eye on it for a short time and probably add to it before we get back above $100.