The Saudi Nuclear Deal Isn’t a Uranium Story for Cameco. It’s a Westinghouse Story.

Cameco, the uranium miner with a 49% stake in Westinghouse, has emerged as a significant player in the US-Saudi Arabia nuclear deal. While the agreement between the two countries opens up opportunities for US companies to sell reactor technology and equipment to Saudi Arabia, Cameco’s connection to Westinghouse gives it an edge over its competitors.

The company benefits from the sale of not just uranium but also reactor technology, thanks to its stake in Westinghouse, which is building the AP1000 reactors at the center of this deal. This strategic partnership has already been tested: when Westinghouse signed an $80 billion U.S. reactor deal last October, Cameco’s stock jumped 23% in a single day.

Cameco’s valuation, with a forward price-to-earnings ratio of 66.8 times, may seem steep compared to the five-year average. However, this metric doesn’t account for the recent shift in Cameco’s business model – it is no longer just a uranium miner but also a reactor technology provider.

The company’s earnings growth outlook supports its premium valuation. Analysts expect earnings to surge 30% in fiscal 2026 and 54% in fiscal 2027, driven primarily by demand for nuclear power and Westinghouse’s reactor deals. Cameco’s balance sheet is also in good shape, with a healthy cash position of around $790 million against roughly $726 million in debt.

The Saudi deal is just the beginning – other countries are already eyeing this technology. For Cameco investors, this presents both an opportunity and a risk: while the company’s unique business model offers significant growth potential, it also means that its valuation will be closely tied to the success of its reactor deals.

As the US-Saudi Arabia nuclear deal marks a turning point for Cameco, the company is poised to take on an even more significant role in the industry. With its Westinghouse connection and growing demand for nuclear power, investors must decide whether they are willing to pay the premium for a stake in Cameco’s future growth.