Cameco Reports Expected Increase in Its Share of Westinghouse 2025 Adjusted EBITDA

Cameco (CCO) anticipates a roughly $170 million (US) increase in its share of Westinghouse Electric Company's 2025 adjusted EBITDA due to Westinghouse's involvement in the Dukovany nuclear plant construction project in the Czech Republic; this increase will factor into Cameco's 2025 distribution from Westinghouse. Beyond 2025, Westinghouse expects significant financial benefits as a subcontractor for the project and from fuel fabrication services, maintaining its adjusted EBITDA compound annual growth rate outlook of 6% to 10% over the next five years, excluding the one-time Dukovany impact. The company cautions that these expectations are forward-looking and subject to risks, including potential issues with Westinghouse's project participation and EBITDA growth.

Analysis

Cameco Corporation (TSX: CCO; NYSE: CCJ) anticipates a substantial financial benefit from its 49% equity interest in Westinghouse Electric Company, projecting an approximate $170 million (US) increase in its share of Westinghouse's 2025 second quarter and annual adjusted EBITDA. This expected uplift is directly linked to Westinghouse's participation in the construction of two nuclear reactors at the Dukovany power plant in the Czech Republic, and this increase will be factored into the 2025 distribution Westinghouse pays to Cameco. Beyond this specific 2025 financial boost, Westinghouse is expected to realize significant ongoing financial benefits as a subcontractor throughout the Dukovany project's duration, including from the provision of fuel fabrication services. Notably, Westinghouse maintains its outlook for a compound annual growth rate for adjusted EBITDA of 6% to 10% over the next five years, excluding the impact of the aforementioned $170 million (US) increase, indicating solid underlying growth prospects. Cameco has highlighted that these projections are forward-looking and subject to material risks, including Westinghouse's ability to successfully participate in the Dukovany project and achieve the anticipated financial benefits and EBITDA growth.

Key Decisions for Investors

• Investors should recognize the $170 million (US) projected increase in Cameco's share of Westinghouse's 2025 adjusted EBITDA as a significant positive development, potentially enhancing Cameco's earnings and distributions.
• It is advisable to monitor updates on Westinghouse's involvement and progress in the Dukovany nuclear project, as successful execution is critical to realizing these projected financial gains.
• Consider that Westinghouse's sustained underlying adjusted EBITDA growth forecast of 6-10% CAGR, separate from the Dukovany project's impact, further supports the long-term value proposition of Cameco's investment in Westinghouse, while remaining mindful of the inherent risks associated with forward-looking statements.