Nexa Resources (NEXA) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA rose 78% year-over-year to $286 million, with a margin of 31–31.5%.

• Net income reached $98 million, or $0.52 per share, driven by higher metal prices, by-product contributions, and operational improvements.

• Net leverage improved to 1.4x, supported by strong EBITDA and debt reduction.

• Results benefited from production recovery in Peru, improved Brazilian smelter performance, and normalization after setbacks.

• Key milestones included commissioning the fourth tailings filter at Aripuanã and implementing block caving at Cerro Lindo.

Financial highlights

• Net revenues totaled $908 million, up 28% year-over-year and 2% quarter-over-quarter.

• Adjusted EBITDA was $286 million, up 78% year-over-year, with a 31–31.5% margin.

• Net income was $98 million, or $0.52 per share.

• Free cash flow was negative $10 million due to a $131 million tax settlement payment in Peru; excluding this, it would have been positive $120 million.

• Net leverage improved to 1.4x from 2.28x a year ago.

Outlook and guidance

• Production guidance for mining and smelting segments remains unchanged, with expectations for increased production in the second half.

• Positive cash flow is anticipated in upcoming quarters, supported by operational improvements and resilient pricing.

• Net leverage targeted to approach 1x by year-end while maintaining investment-grade rating.

• Cost control initiatives and higher throughput expected to bring smelter conversion costs back within guidance.

• Capex guidance for 2026 reaffirmed at $381 million.