Ero Copper (ERO) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 copper production of 19,706 tonnes and gold production of 13,837 ounces, with strong operational performance and commencement of gold concentrate sales driving quarterly revenue to $320 million, up $143 million from Q3.

• Operational improvements across all mines, with Caraíba and Tucumã setting throughput and production records, and Xavantina benefiting from mechanization and gold concentrate program.

• Cash flow from operations reached $129.1 million in Q4 and $395.1 million for the year, up 171.7% year-over-year.

• Advanced the Furnas project with a maiden PEA, outlining a 24-year mine life, robust economics, and positioning it as a cornerstone for long-term growth.

• Exited a major investment cycle, with declining capital requirements and increasing cash generation capacity.

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.

• Adjusted net income attributable to owners was $108.4 million for Q4 and $220.4 million for the year, or $1.04 and $2.12 per share, respectively.

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

• Net debt declined to $501.7 million at year-end, with net debt to EBITDA ratio improving to 1.2x from 1.9x in Q3 and 2.6x at end of 2024.

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

Outlook and guidance

• 2026 consolidated copper production guidance is 67,500–77,500 tonnes, with production weighted to the second half due to mine sequencing.

• Xavantina mine production guidance for 2026 is 40,000–50,000 ounces of gold, with Q1 expected to be the softest quarter due to the rainy season.

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

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

• Capital allocation priorities include debt reduction and maintaining a strong cash position, targeting net debt to EBITDA below 1x before initiating capital returns.