Sherritt International (S) Q1 2026 earnings summary

Executive summary

• Operations were severely impacted by fuel supply constraints in Cuba, leading to reduced production at the Moa JV and a refinery shutdown in Alberta after quarter-end.

• U.S. sanctions expanded in May 2026, forcing suspension of direct participation in Cuban joint ventures and creating significant uncertainty for ongoing operations.

• Liquidity remains strained, with available cash below covenant thresholds until a post-quarter equity raise; ongoing discussions with lenders and a proposed private placement are underway.

Financial highlights

• Q1 2026 consolidated revenue was $34.0 million, down 11% year-over-year; combined revenue (including Moa JV) was $106.6 million, down 15%.

• Net loss from continuing operations was $9.2 million (or $(0.02) per share), a significant improvement from a $40.6 million loss in Q1 2025.

• Adjusted EBITDA rose to $7.6 million from $4.4 million year-over-year.

• Cash used by continuing operations was $13.1 million, compared to $1.0 million provided in Q1 2025.

• Available liquidity in Canada as of March 31, 2026 was $23.3 million.

Outlook and guidance

• No updated 2026 guidance issued due to operational uncertainty; full resumption of operations depends on restoration of fuel supply and regulatory clarity.

• The company is pursuing additional equity and debt financing, including a proposed private placement with Gillon Capital.