Nexa Resources (NEXA) Q2 2025 earnings summary

Executive summary

• Net revenues for Q2 2025 were $708 million, up 13% sequentially but down 4% year-over-year, with adjusted EBITDA of $161 million, a 28% increase from Q1 2025, driven by higher sales volumes and by-product prices.

• Net income was $13 million in Q2 2025, reflecting operational recovery after weather disruptions and proactive liability management initiatives that extended debt maturities and improved liquidity.

• Free cash flow reached $17 million, supported by improved working capital management and liability management actions.

• Strategic projects, including the fourth tailings filter at Aripuanã and phase one of the Cerro de Pasco integration, are progressing on schedule, with key milestones achieved.

• Exploration programs delivered positive results at Aripuanã, Cerro Lindo, Vazante, and Cerro de Pasco, supporting life-of-mine extensions.

Financial highlights

• Q2 2025 net revenues increased 13% quarter-over-quarter but declined 4% year-over-year; 1H 2025 revenues were $1,336 million, flat year-over-year.

• Adjusted EBITDA for Q2 2025 was $161 million, up 28% sequentially but down 22% year-over-year; H1 2025 adjusted EBITDA totaled $286 million, down 15% year-over-year.

• Adjusted EBITDA margin for Q2 2025 was 23%, up 2.7 percentage points sequentially but down 5.3 points year-over-year.

• CapEx in H1 2025 totaled $137 million, with $87 million in Q2, mainly for sustaining activities and $17–18 million for Cerro de Pasco integration.

• Available liquidity at quarter-end was $738 million, including an undrawn $320 million revolving credit facility; total cash was $418 million.

Outlook and guidance

• Full-year production and cost guidance revised to reflect Q1 operational challenges at Aripuanã, El Porvenir, and Vazante, but C1 cash cost guidance for Aripuanã and smelting sales guidance remain unchanged.

• Free cash flow and deleveraging expected to improve in H2 2025, supported by higher production, cost reduction, and margin improvements.

• 2025 CapEx guidance reaffirmed at $347 million; exploration and project evaluation guidance at $88 million.

• Working capital expected to normalize by year-end, reversing Q1 negative impact.

• Commodity price assumptions for H2 2025: zinc $1.24/lb, copper $4.27/lb, lead $0.89/lb, silver $35/oz, gold $3,253/oz.