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.

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

• Strategic focus on operational discipline, deleveraging, balanced capital allocation, and advancing ESG initiatives and growth projects.

• 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 US$903 million, up 18% sequentially and 22% year-over-year; full-year revenues were US$3.0 billion, up 9% from 2024.

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

• Full-year net income was US$223 million (US$1.00/share), reversing a US$187 million loss in 2024.

• Free cash flow was positive US$51 million in Q4, but negative US$105 million for the year due to debt reduction and higher capex.

• Net leverage improved to 1.7x at year-end, with net debt/adjusted EBITDA down from 2.2x in the previous quarter.

Outlook and guidance

• 2026 guidance anticipates continued operational discipline, with all metals meeting 2025 production targets.

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

• 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 Q2 2026, increasing realized silver exposure and EBITDA leverage.

• Capital expenditures for 2026 will focus on sustaining investments and strategic projects.