Cameco Corp. shareholders could see another dividend increase as the Saskatoon-based uranium miner prepares to benefit from a planned initial public offering of its nuclear reactor manufacturing partner, Westinghouse Electric Co.
Pittsburgh-based Westinghouse, one of the world’s leading builders of nuclear reactors, is moving ahead with a stock market listing this fall. Analysts estimate the company could be valued at between US$30-billion and US$50-billion when it goes public, as global demand for nuclear power continues to climb. In July, Westinghouse said utilities worldwide have ordered up to 91 of its AP1000 reactors for delivery over the next two decades.
Cameco and Brookfield Renewable Partners jointly own Westinghouse, having acquired the company in 2023 for US$8.3-billion, including assumed debt. Brookfield Renewable, a subsidiary of Brookfield Corp., holds a 51-per-cent stake, while Cameco owns the remaining 49 per cent. In late July, the two owners confirmed plans to list Westinghouse on a U.S. stock exchange and have hired several investment banks to lead the offering.
A History of Bankruptcy to Blockbuster Listing
Westinghouse’s path to a public listing follows a turbulent history. The company had filed for bankruptcy before Brookfield’s private equity arm purchased it from Toshiba Corp. for US$4.6-billion in 2018. Its planned IPO now comes as it reports strong reactor demand, including orders for 22 AP1000 units from U.S. customers — two of which are earmarked for the restart of the V.C. Summer power plant in South Carolina, a Brookfield-led project — along with seven additional reactors sold to buyers in Poland, Bulgaria and Ukraine.
Analysts say that if the IPO proceeds, Cameco is expected to return part of the proceeds from any sale of its Westinghouse stake to shareholders by raising its common stock dividend. The company already doubled its common dividend between 2023 and 2025, lifting the payout from 12 cents to 24 cents per share — a target it reached a year ahead of schedule. Cameco’s board said the increase was made possible in part because Westinghouse made its first cash payment to owners in 2025, sending the miner US$220.5-million, followed by an additional US$49-million earlier this year.
Analysts Weigh In on Valuation and Cash Flow
“We anticipate further improvements to dividends ahead,” said Orest Wowkodaw, an analyst at Bank of Nova Scotia, in a recent report. He projected that Westinghouse’s reactor sales, combined with Cameco’s rising uranium production, could drive a five-fold increase in the mining company’s free cash flow, reaching $1.3-billion by 2028.
Brookfield Renewable is also expected to benefit from the listing. RBC Capital Markets analyst Nelson Ng said in a report that the company stands to gain from growing demand for carbon-free baseload power generation and a potential valuation boost tied to the IPO.
Katie Lachapelle, a mining analyst at Canaccord Genuity Capital Markets, said in a report that while timelines and valuation remain uncertain, there is potential for a significant valuation if Westinghouse’s stated pipeline of new reactor builds materializes in the 2030s. She said she expects an “uplift” in Cameco’s stock price as more details of the IPO emerge.
Cameco Dividend and Westinghouse Cash Payments
New Technology and Bank Involvement
Westinghouse is also developing newer nuclear technologies, including small modular reactors and micro reactors. RBC Capital Markets analyst Andrew Wong noted in a report that development costs for these projects are relatively moderate, at roughly US$1.2-billion. He said Westinghouse should be viewed as a unique asset with no direct publicly traded peer, which he said justifies a premium valuation. Following the publication of that report, RBC Capital Markets placed Cameco on a restricted list and paused further research coverage — a step commonly taken when an investment bank is engaged in corporate finance work, such as advising on an IPO, for a client.
According to media reports, Westinghouse has selected Citigroup Inc. and Goldman Sachs Group Inc. to lead its IPO, alongside JPMorgan Chase & Co. and the investment banking divisions of Canadian Imperial Bank of Commerce and Royal Bank of Canada.
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