Nexa Resources (NEXA) Q3 2025 earnings summary

Executive summary

• Net income reached $100 million in Q3 2025, driven by strong operations, margin discipline, and a non-cash impairment reversal at Cerro Pasco, with EPS of $0.52 and free cash flow of $52 million.

• Net revenues were $764 million, up 8% sequentially and year-over-year, with adjusted EBITDA of $186 million (16% sequential increase, 2% year-over-year), and a 24% margin.

• Strategic catalysts include the Aripuanã ramp-up, Cerro Pasco Integration Project, and disciplined capital allocation, reinforcing long-term value creation and operational life extension.

• Continued focus on ESG leadership, with recognition for gender equity, environmental stewardship, renewable energy initiatives, and responsible sourcing.

• Fitch reaffirmed investment grade ratings with a stable outlook.

Financial highlights

• Adjusted EBITDA was $186 million in Q3 2025, with a 24% margin; mining segment EBITDA rose 28% year-over-year to $164 million, while smelting EBITDA fell 59% to $23 million.

• Net leverage improved to 2.2x, with net debt of $1,479 million and liquidity of $790 million.

• CapEx totaled $90 million in Q3 and $227 million year-to-date, mainly for sustaining activities and Cerro Pasco project.

• Free cash flow was $52 million in Q3 2025, driven by strong operations and favorable working capital movement.

• Mining cash cost net of by-products improved to $(0.49)/lb in Q3; smelting cash cost increased to $1.32/lb.

Outlook and guidance

• 2025 production, sales, and CapEx guidance remain unchanged, with full-year CapEx at $347 million and $88 million for exploration and project evaluation.

• Working capital expected to remain positive in Q4, with full-year position close to neutral.

• Targeting net leverage closer to 1x over the next four years, aiming to reduce gross debt by $500–$600 million.

• Cerro Pasco Integration Project expected to extend operational life by 15+ years and enhance profitability.

• Aripuanã’s fourth filter installation on track for commissioning in early 2026, enabling full capacity in H2 2026.