Cameco's Dual Engine: Record Earnings and a $2.6 Billion Indian Deal

Cameco reports Q1 adjusted EPS of C$0.47, beating estimates, as uranium sales surge 15% and a landmark India supply deal boosts long-term outlook.

The Canadian uranium giant is firing on all cylinders. Cameco has delivered a first-quarter earnings beat that surprised even the most optimistic analysts, while simultaneously locking in a massive long-term supply agreement with India that underscores the shifting dynamics of global nuclear fuel markets.

For the three months ended March 31, 2026, the Saskatoon-based producer reported adjusted earnings per share of C$0.47, comfortably ahead of the C$0.38 consensus estimate. Adjusted EBITDA surged 44% to C$509 million, driven by a potent combination of higher realized uranium prices and disciplined inventory management. Net income climbed to C$131 million, an 87% jump from the same period last year, on revenue of C$845 million—up 7%.

The Uranium Engine Roars

The core uranium segment remains the primary profit driver. Segment revenue advanced 15% to C$712 million, with Cameco delivering 7.8 million pounds of uranium during the quarter while producing 6.2 million pounds on its own account. The company achieved an average realized sales price of more than C$91 per pound, reflecting the favorable pricing environment.

Management has left its full-year production guidance unchanged at 19.5 million to 21.5 million pounds for the uranium segment, alongside 13 million to 14 million kilograms in the fuel services division. A scheduled maintenance outage at the Key Lake mill in the third quarter is expected to temporarily slow output, but the broader production trajectory remains intact.

Westinghouse: A Hidden Gem

Cameco's 49% stake in Westinghouse continues to pay dividends—literally and figuratively. The nuclear technology company contributed C$122 million to adjusted EBITDA, a 32% year-over-year improvement. While Westinghouse itself remains in the red, its losses are narrowing, and the business received a cash distribution of nearly C$50 million from the joint venture during the quarter.

The AP1000 reactor technology is generating significant interest, particularly as a reliable baseload power solution. CEO Tim Gitzel highlighted the growing demand from artificial intelligence data centers, with major tech companies increasingly locking in nuclear capacity to power their operations. This structural demand shift is providing a powerful tailwind for the entire uranium complex.

Market chatter about a potential Westinghouse initial public offering continues to swirl. While Cameco has made no formal announcement, an IPO would crystallize the value of the stake and potentially reset the parent company's valuation.

The India Factor

Beyond the quarterly numbers, Cameco unveiled a blockbuster long-term supply agreement with India. The contract covers approximately 22 million pounds of uranium to be delivered through 2035, with a total value of C$2.6 billion. The deal underscores India's ambitions to expand its nuclear fleet and secure fuel supplies for decades to come.

Balance Sheet Strength

Cameco ended March with C$1.1 billion in cash and short-term investments against total debt of C$1.0 billion, leaving the company with a net cash position. An undrawn C$1.0 billion credit facility provides additional financial flexibility. The spot uranium price has recently firmed to around $86 per pound, near a two-month high, providing further support to the company's outlook.

Analysts have taken note of the operational progress. National Bank raised its price target to C$180 and maintained its buy recommendation, citing favorable political tailwinds from new nuclear strategies in both Canada and the United States.