Reports emerged this week that the U.S. and Saudi Arabia signed a landmark nuclear cooperation agreement — a so-called "123 agreement" — laying the legal foundation for a decades-long, multibillion-dollar partnership . One of the biggest beneficiaries is Westinghouse, which designs nuclear reactors sold overseas . Cameco owns 49% of Westinghouse , making this Saudi pact a direct catalyst for the Canadian uranium giant's long-term earnings story. Yet the stock now screens as expensive on broad valuation checks , raising the question of how much future growth is already baked in.
A 30-Year Contract Locks In Demand Most Companies Can Only Dream About
The agreement would last for 30 years and allow U.S. companies, including Westinghouse, to help develop Saudi Arabia's civilian nuclear sector . Saudi Arabia currently has zero nuclear power plants. Each AP1000 reactor costs an estimated US$9 billion to US$13 billion to build , and Westinghouse's scope for an AP1000 project outside China is expected to be about 25% to 40% of total plant cost . Even a modest fleet of two reactors would channel billions directly through Westinghouse — and 49 cents of every profit dollar flows to Cameco's income statement.
Cameco Gets a Second Bite: Uranium Fuel for Every Reactor Built
Each new reactor deployment generates decades of uranium demand . Cameco isn't just an investor in Westinghouse; it's also one of the world's largest uranium producers. Every AP1000 Saudi Arabia operates will need fuel for its entire operating life, giving Cameco revenue from both the construction and supply sides.
Political Strings Could Stall the Timeline
The agreement requires congressional review, and President Trump added a rider that Saudi Arabia must normalize relations with Israel for it to be finalized. Senator Chris Murphy warned the agreement "will set off a nuclear race in the region." Congressional opposition or diplomatic breakdowns could delay — or kill — the deal before shovels ever touch sand.
The Valuation Already Reflects a Lot of Good News
Cameco's market capitalization sits at roughly C$60.8 billion , and the stock scores just 1 out of 6 on broader valuation checks . Revenue in 2025 was C$3.48 billion, up 11% , but the stock has returned about 5.2x over five years . Investors are paying a steep premium for a pipeline that is still largely prospective. Saudi Arabia adds a powerful new chapter to the Cameco thesis — but only if Washington and Riyadh can close the deal.