Why Cameco's Ugly Earnings Miss Might Be Good News in Disguise

2 weeks ago 25

Matt DiLallo, The Motley Fool

Sat, August 8, 2026 astatine 11:50 AM CDT 4 min read

Cameco (NYSE: CCJ) precocious reported disfigured second-quarter results. The atomic substance supplier's gross fell 7%, portion its adjusted net per stock missed the analysts' statement estimation by a mile (0.18 Canadian dollars per stock vs. CA$0.36 per share, oregon $0.13 to $0.26).

However, things for the uranium institution weren't arsenic atrocious arsenic they initially looked. The net miss was astir wholly owed to little equity net from its concern successful Westinghouse Electric, which it co-owns with Brookfield Renewable. That inclination could rapidly reverse arsenic its owners are preparing to instrumentality Westinghouse public, which could unlock important worth for Cameco.

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Weighed down by Westinghouse

Cameco bought a 49% involvement successful Westinghouse successful precocious 2023, with Brookfield Renewable purchasing the remaining 51% stake. The woody valued Westinghouse astatine CA$8.2 cardinal ($5.9 billion) astatine the clip of its closing.

As a co-owner of Westinghouse, Cameco accounts for its involvement successful the concern connected its fiscal results utilizing the equity method of accounting successful Canadian dollars. During the 2nd quarter, Cameco reported a CA$10 cardinal ($7.2 million) nonaccomplishment attributable to its Westinghouse share. That was down from CA$126 cardinal ($90.4 million) successful net successful the year-ago period. However, that was wholly owed to immoderate lumpiness successful Westinghouse's business. Cameco's equity net from Westinghouse were higher successful 2025 owed to its information successful the operation of 2 atomic reactors astatine a powerfulness works successful the Czech Republic.

Westinghouse: A hidden asset, not a liability

While Westinghouse's net declined successful the 2nd quarter, its aboriginal is bright. Its exertion level operates crossed much than fractional the planetary atomic fleet. Meanwhile, the institution has a pipeline of up to 91 of its AP1000 reactor opportunities, which volition thrust request for Cameco's uranium and substance services businesses. The planetary atomic resurgence has made Westinghouse much invaluable since Cameco bought its stake. According to an estimation by Desjardins Securities, Westinghouse is present worthy astir CA$10.8 cardinal ($7.8 billion).

Westinghouse is inactive successful the aboriginal stages of going public, having lone precocious filed a Form S-1 with the Securities and Exchange Commission regarding its projected IPO. It hasn't yet acceptable a price, nor an IPO date. Further, it mightiness not spell done with the IPO if marketplace conditions deteriorate.

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