v3.26.1
Income taxes
12 Months Ended
Dec. 31, 2025
Income taxes [Abstract]  
Income taxes
20.
Income taxes
A.
Significant components of deferred tax assets and liabilities
Recognized in earnings
As at December 31
2025
2024
2025
2024
Assets
Property, plant and equipment
$
(158,359)
$
(41,454)
$
316,516
$
475,008
Provision for reclamation
(4,247)
(11,237)
184,175
188,422
Inventories
(976)
(4,979)
5,584
6,561
Foreign exploration and development
(267)
(398)
1,924
2,191
Income tax losses (gains)
12,080
(8,108)
97,749
85,668
Defined benefit plan actuarial losses
-
-
5,664
5,233
Long-term investments and other
(25,193)
14,880
54,845
80,048
Deferred tax assets
(176,962)
(51,296)
666,457
843,131
Liabilities
Property, plant and equipment
-
-
-
-
Inventories
-
-
-
-
Deferred tax liabilities
-
-
-
-
Net deferred tax asset (liability)
$
(176,962)
$
(51,296)
$
666,457
$
843,131
Deferred tax allocated as
2025
2024
Deferred tax assets
$
666,457
$
843,131
Deferred tax liabilities
-
-
Net deferred tax asset
$
666,457
$
843,131
Cameco has recorded a deferred tax asset of $
666,457,000
(2024 - $
843,131,000
). The realization of this deferred tax asset is
dependent upon the generation of future taxable income in certain jurisdictions during the periods in which the Company’s
deferred tax assets are available. The Company considers whether it is probable that all or a portion of the deferred tax assets
will be realized. In making this assessment, management considers all available evidence, including recent financial
operations, projected future taxable income and tax planning strategies. Based on projections of future taxable income over
the periods in which the deferred tax assets are available, realization of these deferred tax assets is probable and
consequently the deferred tax assets have been recorded.
B.
Movement in net deferred tax assets and liabilities
2025
2024
Deferred tax asset at beginning of year
$
843,131
$
892,860
Expense for the year in net earnings
(176,962)
(51,296)
Recovery for the year in other comprehensive income
431
969
Effect of movements in exchange rates
(143)
598
End of year
$
666,457
$
843,131
C.
Significant components of unrecognized deferred tax assets
2025
2024
Income tax losses
$
394,462
$
379,695
Property, plant and equipment
2,386
2,496
Provision for reclamation
81,752
81,984
Long-term investments and other
123,505
162,278
Total
$
602,105
$
626,453
D.
Tax rate reconciliation
The provision for income taxes differs from the amount computed by applying the combined expected federal and provincial
income tax rate to earnings before income taxes. The reasons for these differences are as follows:
2025
2024
Earnings before income taxes
$
777,261
$
256,716
Combined federal and provincial tax rate
26.9%
26.9%
Computed income tax expense
209,083
69,057
Increase (decrease) in taxes resulting from:
Difference between Canadian rates and rates
applicable to subsidiaries in other countries
18,699
(4,482)
Change in unrecognized deferred tax assets
(5,893)
75,923
Non-taxable portion of capital loss
-
6,775
Income in equity-accounted investees
(50,577)
(60,343)
Other taxes
8,305
15,453
Foreign exchange permanent differences
12,305
(14,939)
Other permanent differences
(4,203)
(2,570)
Income tax expense
$
187,719
$
84,874
E.
Earnings and income taxes by jurisdiction
2025
2024
Earnings (loss) before income taxes
Canada
$
783,843
$
401,080
Foreign
(6,582)
(144,364)
$
777,261
$
256,716
Current income taxes
Canada
$
2,100
$
24,149
Foreign
8,657
9,429
$
10,757
$
33,578
Deferred income taxes (recovery)
Canada
$
180,805
$
39,115
Foreign
(3,843)
12,181
$
176,962
$
51,296
Income tax expense
$
187,719
$
84,874
Cameco has operations in countries where the global minimum top-up tax has been enacted or substantively enacted effective
January 1, 2024, including: Canada, Australia, Barbados, Germany, Luxembourg, Switzerland and the United Kingdom. The
exposure is currently only in Switzerland, as all other constituent entities have effective tax rates higher than 15% and the
transitional safe harbour rules are expected to be met. As a result of this exposure, additional income tax expense of
$
3,307,800
(2024 - $
4,005,000
) has been recorded relating to the profits earned in Switzerland.
F.
Reassessments
Canada
On February 18, 2021, the Supreme Court of Canada (Supreme Court) dismissed Canada Revenue Agency’s (CRA)
application for leave to appeal the June 26, 2020 decision of the Federal Court of Appeal (Court of Appeal). The dismissal
means that the dispute for the 2003, 2005 and 2006 tax years is fully and finally resolved in the Company’s favour.
In September 2018, the Tax
Court of Canada (Tax Court) ruled that the marketing and trading structure involving foreign
subsidiaries, as well as the related transfer pricing methodology used for certain intercompany uranium sales and purchasing
agreements, were in full compliance with Canadian law for the tax years in question. Management believes the principles in
the decision apply to all subsequent tax years, and that the ultimate resolution of those years will not be material to Cameco’s
financial position, results of operations or liquidity in the year(s) of resolution.
As CRA continues to pursue reassessments for tax years subsequent to 2006, Cameco is utilizing its appeal rights under
Canadian federal and provincial tax rules.
G.
Income tax losses
At December 31, 2025, income tax losses carried forward of $
1,960,169,000
(2024 - $
1,827,706,000
) are available to reduce
taxable income. These losses expire as follows:
Date of expiry
Canada
US
Other
Total
2026
$
-
$
-
$
14,830
$
14,830
2027
-
-
248
248
2028
-
-
64
64
2029
47
-
12,728
12,775
2030
-
-
2,047
2,047
2031
-
22,040
40,723
62,763
2032
272
23,738
36,640
60,650
2033
-
36,485
-
36,485
2034
-
16,933
5,083
22,016
2035
-
7,718
8,037
15,755
2036
-
47,205
6,331
53,536
2037
27
35,359
3,317
38,703
2038
-
-
355
355
2039
66
-
155
221
2040
37
-
423
460
2041
77
-
188
265
2042
49
-
198
247
2043
71
-
-
71
2044
56
-
-
56
No expiry
-
582,774
1,055,848
1,638,622
$
702
$
772,252
$
1,187,215
$
1,960,169
Included in the table above is $
1,634,391,000
(2024 - $
1,542,137,000
) of temporary differences related to loss carry forwards
where no future benefit has been recognized.