Nexa Resources (NEXA) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results, with operational execution, disciplined cost management, and higher realized prices driving performance in a supportive pricing environment.

• Achieved record quarterly zinc production and stable smelting output, with Aripuanã reaching its highest production to date and a new quarterly ore treatment record.

• Full-year net income reached $223 million, a significant turnaround from a net loss in 2024, and adjusted EBITDA was $772 million, up 8% year-over-year.

• Strategic focus on operational discipline, deleveraging, balanced capital allocation, and advancing key business catalysts, including asset integration and ESG initiatives.

• Outperformed full-year cost guidance, with mining C1 cash cost and smelting conversion cost below the lower end of guidance.

Financial highlights

• Q4 net revenues were $903 million, up 18% sequentially and 22% year-over-year; full-year revenues were $3 billion, up 9% from 2024.

• Q4 adjusted EBITDA was $300 million (33% margin), up significantly quarter-over-quarter and year-over-year; full-year adjusted EBITDA was $772 million (26% margin), up 8% year-over-year.

• Net income for Q4 was $81 million ($0.38/share); full-year net income was $223 million ($1/share), reversing a $187 million loss in 2024.

• Free cash flow for the year was negative $105 million, reflecting debt reduction, higher capex, and dividend payments.

• Net leverage improved to 1.7x at year-end, strengthening the balance sheet.

Outlook and guidance

• Aripuanã expected to reach full capacity in H2 2026 with the fourth filter commissioning.

• Cerro Pasco Integration Project Phase 1 to complete in 2026; Phase 2 planning ongoing, with high-grade resource drilling continuing.

• Silver streaming agreement at Cerro Lindo steps down from 65% to 25% in 2026, increasing realized silver exposure and EBITDA leverage.

• 2026 guidance anticipates continued operational discipline, with all metals meeting 2025 production targets and capital expenditures focused on sustaining investments and strategic projects.

• Focus remains on deleveraging, disciplined capital allocation, and selective growth opportunities, especially in copper.