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 for zinc and by-products 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.

• Net revenues for Q4 were $903 million, adjusted EBITDA $300 million, and net income $81 million; full-year net revenues reached $3 billion, adjusted EBITDA $772 million, and net income $223 million, reversing a $187 million loss in 2024.

• Free cash flow was $51 million in Q4 but negative $105 million for the year, reflecting debt reduction, dividends, and higher capex.

• Strategic focus remains on deleveraging, disciplined capital allocation, advancing key business catalysts, and ongoing ESG initiatives.

Financial highlights

• Q4 net revenues rose 18% sequentially and 22% year-over-year to $903 million; full-year net revenues totaled $3 billion, up 8–9% from 2024.

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

• Full-year net income was $223 million ($1/share); Q4 net income was $81 million ($0.38/share).

• Free cash flow for the year was -$105 million, impacted by debt repayments, dividends, and higher capex.

• Total liquidity at year-end was $842 million, with an average debt maturity of 7.6 years and cost of debt at 6.49%.

Outlook and guidance

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

• Cerro Pasco Integration Project Phase 1 to be completed in 2026, with Phase 2 planning ongoing and high-grade reserve access expected in 1–2 years.

• 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 exploring copper growth opportunities.