Largo (LGO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 68.5% year-over-year to $44 million, driven by higher vanadium prices, increased production, and improved commercial execution, despite elevated input costs from Middle East disruptions.

• Vanadium production rose 28.5% to 2,900 tonnes, with sales up 53.5% to 2,773 tonnes, reflecting stronger mine operations and market access.

• Initiated copper-PGM concentrate production, diversifying revenue streams and leveraging existing infrastructure.

• Secured a $60.1 million U.S. Defense Logistics Agency order, reinforcing strategic positioning in critical minerals.

• Restructured $82.2 million in debt, extending maturity to 2030 and improving liquidity.

Financial highlights

• Revenue rose 68.5% year-over-year to $44 million, with $42 million from vanadium and $1.4 million from ilmenite.

• Adjusted EBITDA was $2.7 million, up from $34,000 a year ago; mining operations adjusted EBITDA increased 64.8% to $4.4 million.

• Cash provided before working capital items more than tripled to $6.6 million.

• Reported net loss of $22.7 million, mainly due to non-cash write-downs and deferred tax expense.

• Ended Q2 with $5.1 million in cash and $114.2 million in debt.

Outlook and guidance

• Full-year vanadium production guidance: 10,500–12,000 tonnes; sales: 7,500–9,500 tonnes.

• Adjusted cash operating cost guidance maintained at $3.50–$4.50 per pound.

• Initial copper-PGM concentrate guidance: 300–380 tonnes/month, with average grades of 15% copper and 41 g/t PGMs.

• Revenue diversification expected to strengthen overall economics and lower vanadium production costs.

• Management monitoring geopolitical and trade-related uncertainties, with potential for guidance revision if conditions change.