Hecla Mining Company (HL) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenue of over $1.4 billion and net income of $321 million ($0.49/share), with all mines generating positive free cash flow and substantial deleveraging to a gross debt/Adjusted EBITDA ratio of 0.4x.

• Portfolio optimization included the pending sale of Casa Berardi for up to $593 million, sharpening the focus on core silver assets and enhancing financial flexibility.

• Positioned as North America's premier silver producer, with operations in top jurisdictions and a robust project pipeline.

• Operational excellence, investment discipline, and organic growth were emphasized, with all operations generating positive free cash flow.

• Net leverage ratio improved to 0.1x from 1.6x, with net debt reduced by over 93% to $34 million.

Financial highlights

• Record adjusted EBITDA of $670 million, operating cash flow of $563 million, and free cash flow of $310 million, an 82x increase year-over-year.

• Cash on hand increased from $27 million to $242 million year-over-year, with no draws on the revolving credit facility.

• Gross debt reduced to $276 million; gross debt to Adjusted EBITDA ratio at 0.4x.

• Gross profit increased to $622 million, a three-fold rise over the prior year, benefiting from higher prices and volumes.

• Quarterly cash dividend of $0.00375 per share declared for common stock; $0.875 per share for Series B preferred stock.

Outlook and guidance

• 2026 consolidated silver production guidance: 15.1–16.5 million ounces; gold: 51–72 thousand ounces.

• Silver cash cost guidance (after by-product credits) at ($1.50)–($1.25)/oz; AISC at $15.00–$16.25/oz.

• Capital investment guidance for 2026 is $204–$238 million, with exploration and pre-development spending nearly doubling to $55 million.

• Casa Berardi included in 2026 guidance for Q1 only due to pending sale, expected to close in Q1 2026.

• Path to debt-free status in 2026 at current prices, with projected free cash flow of ~$850 million at $100/oz silver and $5,500/oz gold.