Industrias Peñoles (PE&OLES) Q2 2026 earnings summary

Executive summary

• Achieved strong financial and operational results for 2Q 2026, driven by higher realized prices for silver and gold, and improved production at key mining units following the resumption of operations at Tizapa.

• Precious metals saw a technical correction in 2Q26 after historic highs, but prices remained elevated: silver averaged 118.6% higher and gold 37.4% higher year-over-year, while copper and zinc also posted strong gains due to demand and supply constraints.

• Mining operations improved, with ore milled and processed up 4.3% and ore deposited up 1.0% year-over-year, driven by the resumption of Tizapa and higher activity at Herradura, offsetting declines at other units.

• Quarterly production of all metals increased, notably lead (+28.7%), copper in concentrates (+27.7%), zinc (+14.2%), gold (+6.5%), and silver (+2.4%), while copper cathodes fell 36.7% due to lower ore at Milpillas.

• Metallurgical operations saw declines in refined gold (-29.0%), silver (-23.4%), and zinc (-33.9%) due to plant shutdowns and scheduled maintenance.

Financial highlights

• Net sales for 2Q 2026 reached $2,886.9 million, up 38.9% year-over-year; YTD net sales rose 63.0%.

• EBITDA for 2Q 2026 was $1,444.3 million, up 112.3% year-over-year; YTD EBITDA increased 135.1%.

• Operating profit for 2Q 2026 was $1,285.0 million, a 150.8% increase year-over-year.

• Gross margin improved to 53.2% (from 33.9%); EBITDA margin rose to 50.0% (from 32.7%).

• Net income attributable to controlling interest was $642.0 million, up 92.6% year-over-year.

Outlook and guidance

• Continued focus on operational efficiency and cost control amid volatile metal prices and inflationary pressures.

• Exploration focused on five priority base metal projects in Mexico, Peru, and Chile, with significant drilling progress and resource expansion plans.

• Ongoing operational improvements and project development are expected to support future growth.

• Strategy to prioritize production of more profitable chemical products remains in place.