Cameco in 3 Years: What the Energy Supercycle Could Mean for This Stock

The world is entering a new supercycle of electrification, with peak electricity demand expected to increase by 40% by 2035, according to a 2025 report by the International Energy Agency. That's largely due to climate change, which has increased demand for cooling, but data centers and artificial intelligence (AI) play a role, particularly in the U.S.

The key question for many is, who benefits from this rising demand? Nearly all renewable energy companies, but one group that stands out is uranium producers, as nuclear fuel is increasingly used for steady power needs.

As the largest pure-play, publicly traded uranium producer in the world, Cameco (NYSE: CCJ) is uniquely positioned to capture the value created by a widening supply demand deficit. Its shares have risen by more than 27% so far this year.

Where will this stock be in three years? Let's take a look.

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Cameco's track record

As most investors know, past performance doesn't guarantee future returns. That's true, but you can often see where a company might be headed by looking at its financial trajectory.

Over the past five years, Cameco has increased its revenue by 76%, dividend by 93%, return on invested capital (ROIC) by 628%, and free cash flow by 134%. The last two are particularly interesting because they separate the energy companies that are just growing from those that are growing profitably.

In 2025, the Canadian mining company reported revenue of $3.48 billion, up 11%, and earnings per share (EPS) of $1.35, an increase of 246%. The company shored up its balance sheet, extinguishing the remaining $200 million on its U.S. term loan, and now has $1.2 billion in cash and cash equivalents compared to $1 billion in total debt.

Demand for the company's uranium remains high, and it has 230 million pounds committed under long-term contracts.

The Westinghouse investment is paying off

Beyond uranium mining, Cameco has transformed into an integrated nuclear fuel leader through its 2023 acquisition of a 49% stake in Westinghouse, with Brookfield Asset Management buying the remaining stake. The deal allows Cameco to benefit from uranium ore extraction, as well as from high-margin services, fuel fabrication, and maintenance of the global reactor fleet. This vertical integration buffers the company against the inherent cyclicality of raw commodity prices while providing exposure to the recurring revenue of the nuclear services market.

In 2025, Westinghouse delivered adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to Cameco of $219 million, up 51%. Westinghouse is building two nuclear power plants at the Dukovany site in the Czech Republic, which should fuel greater earnings for Cameco. In October, a partnership among Cameco, Brookfield, and Westinghouse was announced that will provide at least $80 billion in investment from the U.S. government to accelerate the building of Westinghouse reactors.

It has a moat that will drive growth

Cameco is not just a mining company; it is an infrastructure play on the electrification of the global economy. For an investor looking to capitalize on the energy supercycle, the company offers a rare combination of commodity upside, defensive utility-like characteristics, and a dominant competitive position in an industry needed to meet global climate and technical goals.

It is expensive to mine and refine uranium, requiring significant start-up costs. Cameco already has the majority interest in two Tier 1 operating mines in northern Saskatchewan, plus minority interests in several other mines, giving it an edge over any newcomers for the near future.

James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Asset Management and Cameco. The Motley Fool has a disclosure policy.