Ero Copper (ERO) Q4 2025 earnings summary

Executive summary

• Achieved record operational and financial performance in Q4 2025, with consolidated copper production of 19,706 tonnes and gold production of 13,837 ounces, supported by strong safety and operational improvements across all sites.

• Adjusted EBITDA reached $186.7 million in Q4, with cash flow from operations at $129.1 million for the quarter.

• Exited a major investment cycle, transitioning to a focus on cash generation and high-return growth projects, including the Furnas Copper-Gold Project.

• Announced a maiden PEA for Furnas, highlighting a 24-year mine life, low capital intensity, and robust project economics.

• Net income attributable to owners was $77.0 million for Q4 and $263.7 million for the year; adjusted net income for the year was $220.4 million.

Financial highlights

• Q4 2025 revenue reached a record $320.2 million, with gross profit of $177.1 million and adjusted EBITDA of $186.7 million.

• Full-year revenues totaled $785.8 million, gross profit $344.6 million, and adjusted EBITDA $409.7 million.

• Q4 adjusted net income was $108.4 million ($1.04 per diluted share); full-year adjusted net income was $220.4 million ($2.12 per share).

• Liquidity at year-end was $150.4 million, including $105.4 million in cash and $45 million undrawn on the revolver.

• Net debt at year-end was $501.7 million, with net debt/EBITDA ratio improving to 1.2x from 2.6x a year earlier.

Outlook and guidance

• 2026 consolidated copper production guidance: 67,500–77,500 tonnes, with production weighted to H2 due to mine sequencing.

• 2026 copper C1 cash costs expected at $2.15–$2.35/lb, higher in H1 and declining in H2.

• Xavantina 2026 gold production guidance: 40,000–50,000 ounces, with Q1 expected to be the lowest due to rainy season.

• Capital expenditures for 2026 are projected at $275–$320 million, including $80 million for Pilar Mine shaft and growth at Xavantina.

• Capital allocation priorities: pay down revolver, reduce net debt/EBITDA below 1x, then consider capital returns.