Westinghouse Electric, the nuclear technology joint venture of Cameco (TSX: CCO; NYSE: CCJ) and Brookfield Renewable Partners, has confidentially submitted a draft registration statement on Form S-1 with the U.S. Securities and Exchange Commission for a proposed initial public offering, Cameco announced on Friday alongside its second-quarter results.

The number of shares to be offered and the price range have not yet been determined. The proposed offering remains subject to market and other conditions, Cameco said.

Saskatoon-based Cameco, one of the world's largest publicly traded uranium producers, holds a 49% stake in Westinghouse, while Brookfield Renewable Partners controls 51%. The partners acquired the manufacturer of AP1000 nuclear reactors in a 2022 transaction valued at approximately $7.9 billion (C$11 billion), which closed in 2023. The deal combined Cameco's nuclear industry expertise with Brookfield Renewable's clean energy platform. Westinghouse had previously been owned by Toshiba, which acquired it in 2006; the unit filed for Chapter 11 bankruptcy protection in 2017 after multibillion-dollar cost overruns on U.S. reactor projects before Brookfield led its restructuring and emergence from bankruptcy.

Analyst Reaction

Desjardins Securities mining analyst Bryce Adams described the IPO filing as "a normal progression of a process contemplated since October 2025 and a reminder of the potential value-creation opportunity at Westinghouse," in a Friday research note.

"With no details provided on valuation or timing, the potential IPO window remains broad and could extend as far as 2029," Adams wrote. He values Cameco's share of Westinghouse at approximately C$15.1 billion ($10.8 billion).

Scotia Capital mining analyst Orest Wowkodaw noted in a separate note that "the timing for a potential IPO is several years earlier than anticipated," adding that despite a softer quarterly performance, "a potential Westinghouse Electric IPO is likely to be positively received by investors."

Q2 Results Show Decline

Cameco reported adjusted net earnings of $77 million, or 18 cents per share, for the second quarter — half the 36-cent average analyst estimate. In the same period a year earlier, the company earned $308 million, or 77 cents per share, on the same basis. Detailed financial information is available in Cameco's Q2 management discussion and analysis.

Westinghouse currently contributes approximately 25% of Cameco's annual earnings before interest, taxes, depreciation, and amortization (EBITDA). Cameco said its share of Westinghouse's adjusted second-quarter EBITDA was $163 million, down from $352 million in the second quarter of 2025. Westinghouse also swung to a net loss of $10 million in the quarter, compared with a profit of $126 million a year earlier.

U.S. Government Partnership

In October, Westinghouse announced a partnership with the U.S. government targeting at least $80 billion in new AP1000 reactor construction across the country. The agreement followed a May 2025 executive order from U.S. President Donald Trump aimed at quadrupling the nation's nuclear energy capacity to approximately 400 gigawatts by 2050. The push reflects a broader resurgence of interest in nuclear power, driven by surging electricity demand from artificial intelligence data centers and industrial electrification alongside clean energy decarbonization goals.

In June, the U.S. Department of Energy announced plans to provide $17.5 billion in loans to accelerate the construction of 10 large-scale commercial nuclear reactors by up to three years. Under the arrangement, Westinghouse will partner with selected companies to procure long-lead items at a fixed price and hold joint ownership in each project.

TD Cowen analysts said in an October industry note that Westinghouse is "well positioned to benefit from an expansion of nuclear capacity," and that the AP1000 model "is likely to be the large reactor of choice for many Western installations." The AP1000 is currently the only Generation III+ reactor design operating commercially in the United States, with four units in service at Southern Company's Vogtle plant in Georgia.

Share Price Movement

Cameco shares declined 3.7% to C$118.98 in Friday morning trading on the Toronto Stock Exchange, giving the company a market capitalization of approximately C$52 billion. Over the past year, the stock has traded in a range between C$95.60 and C$182.72.