Cameco Expands Global Reach With Slovakia Deal: A Growth Catalyst?

Cameco CCJ has inked a long-term agreement to supply natural uranium hexafluoride (UF6) to Slovenské elektrárne (“SE”), Slovakia’s largest electricity producer. This agreement, running through 2036, marks Cameco’s entry into the Slovakia market and underscores its strategy of expanding its global commercial footprint in nuclear fuel.

SE is key to Slovakia’s energy landscape, generating more than 60% of the country’s electricity needs. The company shut down its last coal-fired power plant at the end of the first quarter of 2024, and since then, its electricity production has been free of direct carbon dioxide emissions. SE currently operates five nuclear reactors, 31 hydropower plants and two photovoltaic plants.

Cameco will provide both uranium and conversion services to SE. The material will support operations at SE’s Bohunice and Mochovce nuclear facilities, starting in 2028. 

Conversion, the process by which natural uranium is converted into a form suitable for enrichment and reprocessing, is considered a critical stage in the nuclear fuel cycle. Cameco’s expertise in this area positions it as a reliable partner. 

Cameco’s operations span the nuclear fuel cycle from exploration to fuel services, which include uranium production, refining, uranium dioxide and UF6 conversion services and CANDU fuel manufacturing for heavy water reactors. As of Dec. 31, 2024,the company had contracts to sell about 220 million pounds of uranium with 41 customers worldwide in the uranium segment, and about 85 million kilograms as UF6 conversion with 34 customers worldwide in the fuel services segment. 

Cameco controls roughly 20% of the world’s primary UF6 conversion capacity, making it a leading player alongside Orano, Rosatom and ConverDyn.
In 2024, its fuel services segment produced 13.5 million kgU, including 10,781 tonnes of UF6, and is targeting 13–14 million kgU in 2025. This segment is strategically important, supporting uranium production growth, deepening customer relationships and driving long-term contract opportunities — positioning Cameco well for sustained expansion.

CCJ & Peers’ Price Performance, Valuation & Estimates

So far this year, Cameco shares have gained 52% compared with the industry’s 21.5% growth. Meanwhile, the broader Zacks Basic Materials sector has moved up 21%, while the S&P 500 has climbed 12.8%. Other uranium producers like Energy Fuels UUUU and Centrus Energy LEU have gained 138.3% and 240.3%, respectively, year to date. 

CCJ stock is trading at a forward price-to-sales ratio of 13.48 compared with the industry’s 1.18. Energy Fuels is trading at a price-to-sales ratio of 27, while Centrus Energy is trading at 8.29.

The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2025 indicates year-over-year growth of 130.6%. The same for 2026 implies growth of 31.3%.  

The Zacks Consensus Estimate for Energy Fuels earnings for 2025 implies a decline of 17.86% and the same for 2026 indicates growth of 102.5%. Centrus Energy’s estimate indicates a decline of 5.4% for 2025 and a 20.6% decline in 2026.

The consensus estimate for Cameco’s earnings for fiscal 2025 has moved up over the past 60 days, while the estimate for 2026 has moved down, as shown in the chart below.

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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This article originally published on Zacks Investment Research (zacks.com).

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