CAP (CAP) Q2 2026 earnings summary

Executive summary

• Mining segment resilience offset industrial pressures, with improved EBITDA conversion and continued deleveraging in 2Q26.

• Consolidated EBITDA declined 13.2% year-over-year, mainly due to industrial segment challenges, while net income remained stable due to lower depreciation and financial expenses.

• Free cash flow reached $168m in 1H26, supported by operational recovery, tax reimbursement, and focused investment.

• Major milestones included the AZA-Huachipato green steel partnership, Penco Module environmental approval, and Cintac's plant expansion.

Financial highlights

• Mining EBITDA increased 5% YoY to $53m in 2Q26, driven by lower C1 cash costs and positive mark-to-market impact, despite a 7.2% drop in realized prices.

• Industrial EBITDA fell by $11.1m YoY, mainly due to modular project cost overruns and delays, and higher ramp-up costs.

• Infrastructure EBITDA decreased 8.4% YoY, impacted by tariff reductions and higher operational costs.

• Consolidated revenues were stable YoY, with mining revenue up 7.9% and industrial revenue down 15.3%.

• Net income for 2Q26 was a loss of $43m, similar to 2Q25, as mining gains were offset by industrial and infrastructure losses.

Outlook and guidance

• 2026 production guidance revised down by 0.5mt to 14.6–15.1mt due to severe rains, with C1 cash cost guidance unchanged at $49–53/t.

• Estimated EBITDA impact from weather event is $25–30m; no material impacts expected from 2027 onwards.

• Focus for 2H26 remains on cost reduction, deleveraging, and advancing strategic initiatives.