CCJ's Adjusted EBITDA Fell 42% in Q226: Is There a Recovery Ahead?

Cameco Corporation’s CCJ second-quarter 2026 results reflected a significant slowdown from the strong growth reported in the first quarter, with adjusted EBITDA falling 42% year over year to CAD 391 million ($282 million). This reversed the 44% increase to CAD 509 million reported in the first quarter. The decline primarily stemmed from lower uranium sales volumes and a sharp reduction in equity earnings from Westinghouse.

Cameco’s second-quarter revenues decreased 7% year over year to CAD 814 million ($588 million), as both its Uranium and Fuel Services segments reported weaker results.

Uranium revenues fell 7% to CAD 659 million ($469 million), as sales volumes declined 18% to 7.1 million pounds. The decrease reflected normal quarterly delivery timing and the company’s disciplined contracting strategy, which calls for lower planned deliveries in 2026. The impact was partly offset by a 15% increase in the average realized price to CAD 93.13 per pound, supported by market-priced contracts.

Segment costs increased around 3%, as a 26% rise in the average unit cost of sales was partly offset by lower sales volumes. Higher costs reflected increased purchased material expenses, product loan impacts and the Cigar Lake maintenance shutdown. Consequently, adjusted EBITDA declined 28% year over year to CAD 252 million ($181 million).

Fuel Services revenues declined 6% to CAD 152 million ($108 million), as an 18% drop in sales volumes more than offset higher realized prices. Costs increased 1%, with a 21% rise in the average unit cost of sales, driven by product and service mix, largely offset by lower volumes. Adjusted EBITDA fell 26% to CAD 42 million ($30 million).

Westinghouse was another drag in the quarter. Cameco’s share of Westinghouse’s adjusted EBITDA was $163 million in the second quarter of 2026, a 54% plunge year over year. The comparison was impacted by a $170 million increase in Cameco’s share of Westinghouse’s second-quarter 2025 revenues related to its participation in the construction of two nuclear reactors at the Dukovany power plant in the Czech Republic. The impact was partly offset by higher fuel volumes in Westinghouse’s core business and increased AP1000 project activity compared with the prior-year quarter.

For 2026, Cameco expects total revenues of CAD $3.32-$3.57 billion, implying a roughly 1% decline from 2025. Uranium deliveries are projected at 29-32 million pounds, while uranium revenues are expected at CAD $2.7-$2.9 billion, based on a higher realized price assumption of CAD $91-$96 per pound. At the midpoint, uranium revenues would decline about 2% year over year, primarily due to lower delivery volumes. Fuel Services revenues are projected at CAD $610-$650 million, implying roughly 12% growth.

Despite near-term weakness, Cameco’s longer-term outlook remains supported by firm uranium prices amid structurally tight supply and rising nuclear energy demand. Fuel Services should provide stable growth, while Westinghouse offers significant upside through its pipeline of 91 potential AP1000 reactor opportunities totaling 105 GWe globally. A potential Westinghouse IPO could further unlock shareholder value, strengthen financial flexibility and improve business visibility, providing an additional catalyst for Cameco investors.

CCJ’s Price Performance, Valuation & Estimates

In the past year, Cameco shares have gained 27.7% compared with the industry’s 7.5% growth. Uranium peers Energy Fuels UUUU gained 43.5% while Centrus Energy LEU rose 4.7%. 

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CCJ stock is trading at a forward price-to-sales ratio of 16.49 compared with the industry’s 5.13. Energy Fuels is trading higher at 19.67, while Centrus Energy is trading lower at 8.18.

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The Zacks Consensus Estimate for Cameco’s earnings for 2026 of $1.27 per share indicates year-over-year growth of 23.3%. The same for 2027 implies growth of 69.4%.

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The consensus estimate for Cameco’s earnings for 2026 has moved down over the past 60 days, while the same for 2027 has moved up, as shown in the chart below.

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The company currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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