Ero Copper (ERO) Q2 2026 earnings summary

Executive summary

• Net debt leverage ratio improved to 0.8x at quarter-end, down from 2.6x at the start of 2025, with net debt reduced by $100 million over 18 months.

• Company-wide initiatives and operational improvements drove safer operations, higher cash flows, and annualized savings of $10–$15 million, with over $20 million in improved smelting/refining terms expected in 2026.

• Cash flow from operations rose nearly 50% quarter-on-quarter to $137.9 million, with adjusted EBITDA at $144 million for Q2 2026.

• Infrastructure upgrades at Xavantina and throughput increases at Tucumã supported higher mining and processing rates.

• Furnas Project advanced with Phase 2 and 3 drilling, confirming high-grade continuity and ongoing pre-feasibility work.

Financial highlights

• Q2 2026 revenue was $284.3 million, up 8% from Q1, with consolidated copper production of 17,315 tonnes and gold production of 20,553 ounces.

• Cash flow from operations for Q2 was $137.9 million; adjusted EBITDA was $144 million; adjusted net income was $87.4 million.

• Net debt declined by $38 million in Q2 to $452.7 million; available liquidity increased to $182 million.

• Hedge program generated $13 million in realized gains in Q2, totaling $20 million for H1 2026, with full-year gains expected at $40–$45 million.

• Adjusted EBITDA margin for Q2 was approximately 50.7%.

Outlook and guidance

• 2026 copper production guidance reaffirmed at 67,500–77,500 tonnes, with higher H2 output expected at both copper operations.

• Copper C1 cash cost guidance maintained at $2.15–$2.35/lb; gold production guidance at Xavantina is 40,000–50,000 ounces, with C1 cash cost of $1,100–$1,350/oz and AISC of $2,200–$2,700/oz.

• Capital expenditure guidance increased to $285–$330 million, reflecting new infrastructure investments and power line at Xavantina.

• Hedge program expected to generate $40–$45 million in gains for 2026, offsetting BRL strength.

• 2026 guidance reaffirms robust production and disciplined capital allocation.