This week has brought significant developments for the nuclear sector, particularly for Cameco and Constellation Energy. Cameco’s shares have surged by 5%, while Constellation prepares to announce its earnings tomorrow.
Cameco’s Strong Performance
Cameco reported impressive earnings for Q4 2025, with earnings per share (EPS) at $0.37, surpassing consensus estimates by 14%. The company achieved a revenue of $877 million, a 9% surprise from expectations. Despite a minor initial decline in share price following the report, Cameco’s stock regained momentum throughout the week, rising from a low of $112.94 to $121.35.
Stock Movement and Key Metrics
| Ticker | Company | Weekly Change | Year-to-Date Change |
|---|---|---|---|
| CCJ | Cameco | +5.08% | +29.66% |
| NRG | NRG Energy | +3.39% | +12.26% |
| CEG | Constellation Energy | +1.65% | -17.00% |
| VST | Vistra | -1.99% | +4.18% |
| SMR | NuScale Power | -12.58% | -11.71% |
| SPY | S&P 500 | +0.15% | +0.13% |
Reasons Behind the Success
A key factor driving Cameco’s performance was its investment in Westinghouse, where it holds a 49% stake. This investment produced $780 million CAD in adjusted EBITDA, reflecting a 61% increase from the previous year. Additionally, uranium prices rose by 9%, reaching $91.44 CAD per pound, contributing to a full-year net earnings of $590 million CAD, up from $172 million in 2024.
CEO Tim Gitzel emphasized the importance of nuclear energy in addressing long-term global energy challenges, highlighting a trend of growth supported by electrification and energy security priorities.
Constellation Energy’s Upcoming Earnings Report
Constellation Energy’s shares increased by 1.65% this week, climbing to $293.20. The boost comes amid discussions on direct power agreements between nuclear generators and data centers, with a notable deal involving Constellation and CyrusOne. Major financial institutions like Wells Fargo and Barclays continue to endorse the stock, maintaining buy ratings with price targets of $460.
Market Context and The Future
Utilities are increasing capital spending due to rising demand from data centers. Southern Company has raised its spending plans by 7%, while Evergy boosted its capital investments by 24% to $21.6 billion after securing contracts with major tech companies.
Despite the recent uptick, Constellation is facing challenges, down 17% year-to-date. The upcoming earnings report, expected tomorrow morning, is anticipated to reveal adjusted earnings of $2.25 per share, which could influence investor sentiment further.
