Franco-Nevada (FNV) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with GEOs sold up 18% year-over-year, revenue up 57%, and significant profitability growth, driven by higher production at key assets, new contributions from Côté Gold and Casa Berardi, and the start of Valentine Gold production.

• Maintained a diversified revenue base across commodities, geographies, and asset types, with 86% of Q2 revenue from precious metals and 88% sourced from the Americas.

• Record gold and oil prices contributed to robust financial performance, with the company tracking toward the upper half of its annual guidance range.

• Portfolio growth supported by new royalty acquisitions in Australia and Canada, mine expansions, resource growth, and exploration success.

• Recognized as one of Corporate Knights' Best 50 Corporate Citizens in Canada for 2026 and achieved an A rating from CDP.

Financial highlights

• Q2 2026 revenue reached $580.9 million, up 57% year-over-year, with 132,405 GEOs sold (+18%), and precious metal GEOs sold up 23%.

• Adjusted EBITDA was $529.7 million (+45%), and Adjusted Net Income was $349.2 million ($1.81/share), up 46% year-over-year.

• Net income for Q2 2026 was $354.0 million, up from $247.1 million in Q2 2025.

• Cost of sales increased to $45.9 million from $32.5 million, and depletion rose to $84 million from $64 million due to recent acquisitions.

• Operating cash flow for Q2 2026 was $482.5 million (+12%), and for H1 2026 was $1,002.9 million (+39%).

Outlook and guidance

• Tracking toward the upper half of 2026 annual guidance of 510,000–570,000 GEOs sold, with stronger H2 performance expected from Candelaria, Tocantinzinho, Côté, Greenstone, and Valentine.

• Anticipates 9,000–10,000 GEOs from Cobre Panama in H2 2026 as stockpile processing resumes; expected to deliver 23,100 gold ounces and 265,000 silver ounces in 2026.

• Gold ounces sold guidance: 360,000–400,000; Silver: 4.7M–5.5M; PGMs: 32,000–37,000.

• Energy revenue expected to remain strong due to sustained high oil and NGL prices; $10 increase in WTI price estimated to boost oil revenue by 12%.

• Estimated depletion: $310M–$340M; tax rate: 20%–23%; funding commitments include $10M–$20M for Continental Royalty Acquisition Venture and $12M for Cascabel Stream.