CAP (CAP) Q1 2026 earnings summary

Executive summary

• EBITDA grew 15% year-over-year to US$123m in 1Q26, driven by mining performance and improved cash generation, while net income remained stable at US$-13m due to higher depreciation and tax expenses.

• Revenue for Q1 2026 reached $493.5 million, up 14% year-over-year, driven by mining and infrastructure segments.

• Net loss attributable to owners was $13.4 million, with a total comprehensive loss of $30.0 million, reflecting operational and market headwinds.

• Normalized free cash flow reached US$85m, a significant improvement from US$-46m in 1Q25, supported by operational recovery and tax reimbursement.

• Net financial debt/EBITDA improved to 2.6x from 2.8x in 4Q25, reflecting ongoing deleveraging.

Financial highlights

• Consolidated revenues increased 14% year-over-year to US$493m, mainly from higher mining shipments and infrastructure activity.

• Mining EBITDA rose 19% to US$109m, driven by 15.1% higher shipments and a 13% reduction in C1 cash cost (US$49.1/t vs US$56.4/t in 1Q25).

• Infrastructure EBITDA increased 14% to US$16m, supported by higher desalinated water production and third-party port activity.

• Gross profit for Q1 2026 was $50.5 million, up from $44.3 million in Q1 2025.

• Cash and cash equivalents increased to $349.5 million as of March 31, 2026, from $311.4 million at year-end 2025.

Outlook and guidance

• Focus for the remainder of the year is on aggressive cost reduction, deleveraging, and advancing core strategic initiatives.

• Management expects continued pressure on margins due to commodity price volatility and operational adjustments.

• Recovery in mining output is anticipated in late 2025 as higher-grade ore is processed, offsetting production losses from mine phase suspensions.

• Plans include maximizing cash conversion, reducing working capital at Cintac, and executing non-core asset sales of up to US$30-35m.

• No interim dividends planned due to accumulated losses; future distributions depend on profitability and market conditions.