Nexa Resources (NEXA) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA more than doubled year-over-year to $283 million, with a margin of nearly 32%, and net income reached $118 million or $0.67 per share.

• Net revenues grew 42% year-over-year to $888 million, driven by higher metal prices, improved sales volumes, and strong segment performance.

• Net leverage improved to 1.59x, down from 2.09x a year ago, reflecting stronger EBITDA and deleveraging efforts.

• Operational disruptions in Peru were resolved, with all mines returning to normal run rates and Aripuanã achieving record zinc production.

• Cerro Lindo silver streaming agreement reduced from 65% to 25%, expected to boost cash generation from 2Q26.

Financial highlights

• Net revenues totaled $888 million (+42% YoY, -2% QoQ); adjusted EBITDA was $283 million (+126% YoY, -6% QoQ), with a 31.8% margin.

• Net income was $118 million (+311% YoY, +46% QoQ); EPS $0.67 (+654% YoY, +77% QoQ).

• Operating cash flow before working capital was $308 million; CapEx was $72 million in 1Q26.

• Free cash flow was negative $126 million, reflecting seasonal working capital outflow.

• Liquidity stood at $716 million, including a $320 million undrawn revolving credit facility.

Outlook and guidance

• 2026 guidance reaffirmed for production, CapEx ($381 million), and costs across both mining and smelting segments.

• Free cash flow is expected to strengthen over the rest of 2026 as working capital unwinds.

• Net leverage target remains below 1.7x for 2026, with a long-term goal of 1x, depending on market conditions.

• Smelting segment margins expected to improve as Peruvian mines normalize and byproduct sales offset low TCs.

• Silver and gold markets projected to provide counter-cyclical support and diversification.