Largo (LGO) Q4 2025 earnings summary

Executive summary

• Produced 9,150 tonnes of vanadium pentoxide (V2O5) equivalent in 2025, within guidance, with a global recovery rate of 80.1%.

• Sold 8,686 tonnes of V2O5 equivalent, including 298 tonnes of purchased products and 780 tonnes under an inventory supply agreement.

• Net loss for 2025 was $68.7 million, compared to a net loss of $50.6 million in 2024, driven by a 12% decrease in revenues and higher finance costs.

• Cash balance at year-end was $9.7 million, with total debt of $107.1 million and a working capital deficit of $75.9 million.

• Implemented an operational turnaround plan and cost optimization initiatives at the Maracás Menchen Mine.

Financial highlights

• Revenues decreased 12% year-over-year to $109.9 million, primarily due to lower vanadium prices and sales volumes.

• Operating costs decreased 9% to $132.6 million, with direct mine and production costs down 23% to $52.6 million.

• Adjusted EBITDA was negative $7.3 million, down from negative $2.1 million in 2024.

• Cash operating costs excluding royalties per pound of V2O5 sold were $4.53, down from $4.84 in 2024.

• Deferred income tax expense of $17.1 million was recognized due to derecognition of a deferred tax asset.

Outlook and guidance

• 2026 production guidance: 10,500–12,000 tonnes of V2O5 equivalent; sales guidance: 7,500–9,500 tonnes.

• Adjusted cash operating costs excluding royalties per pound expected at $3.50–$4.50.

• Ongoing focus on operational improvements, cost control, and liquidity enhancement.

• Monitoring geopolitical and trade risks, including tariffs and market volatility.