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Cameco: a play on the nuclear renaissance

Cameco, a C$54 billion nuclear-industry supplier, is positioned to benefit from rising uranium demand and a global push for zero-carbon baseload power. The company has long-term supply contracts, a stake in Westinghouse, and expects supply to fall below demand by 2033.

  • Cameco was the second-largest uranium producer in 2025 with 15% of production.
  • Planned uranium production is expected to fall below demand in 2033 and be only 50% of demand by 2041.
  • In March 2026, Cameco signed a nine-year agreement to supply India with nearly 22 million pounds of uranium ore, valued at an estimated C$2.6 billion.

Cameco, a C$54 billion (£28.8 billion) nuclear-industry supplier, is positioned to benefit from the global push for zero-carbon baseload power. The company covers the spectrum from uranium mining and refining to reactor design and servicing.

Geopolitical tensions, including the Iran war and potential conflicts involving China or Russia, have highlighted supply chain risks. This, alongside demand from AI data centres, is strengthening the case for nuclear power. There are currently 436 nuclear reactors worldwide, with 70 under construction and another 115 planned.

Cameco's planned production is expected to fall below demand by 2033, reaching only 50% of demand by 2041. The company focuses on long-term supply contracts with utilities rather than the spot market. In March 2026, it signed a nine-year agreement with India to supply nearly 22 million pounds of uranium ore, with an estimated value of C$2.6 billion.

The company also holds a 49% stake in Westinghouse Electric Company, which has 30 AP1000 reactors under construction and 16 planned. In October 2025, the US government agreed to facilitate financing for new reactors worth at least $80 billion to power AI-heavy data centres, raising the prospect of a separate initial public offering for Westinghouse.

Cameco's 2025 results showed revenue up 11% to $3.5 billion and adjusted diluted earnings per share up 321% to C$1.44. The average uranium price in the fourth quarter of 2025 was C$91.3 per pound, compared with C$80.9 in the same period of 2024.

Why this matters: Cameco is a key supplier in the nuclear industry, which is seeing renewed interest as a source of secure, zero-carbon power amid geopolitical tensions and rising electricity demand from data centres.

What this means for you: Investors may see Cameco as a way to gain exposure to the nuclear energy sector, with the company's long-term contracts and rising uranium prices potentially supporting its share price. The possibility of a Westinghouse IPO could also provide a capital return.

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