Sigma Lithium (SGML) Q1 2026 earnings summary

Executive summary

• Achieved record profitability in Q1 2026 with gross margin of 61%, EBITDA margin of 39%, and net profit margin of 26%, the highest since production began three years ago.

• Operational efficiency improved through a modernized mining fleet and advanced plant technology, supporting record recoveries and sustainable production.

• Maintained industry-leading safety, reaching 1,010 days with zero accidents and no fatalities in 14 years.

• Positioned for significant near-term growth with construction of Plant 2 underway and plans for Plant 3, aiming to triple production capacity by end of 2027.

• Production and sales cadence of high-grade lithium oxide on track, with successful ramp-up post-restructuring.

Financial highlights

• Q1 2026 gross margin reached 61%, EBITDA margin 39%, and net profit margin 26%, all at historical highs.

• Revenue for Q1 2026 was $48M, with net income of $11M and EBITDA of $16M.

• Revenue increased 150% sequentially from the previous quarter, reaching $42M in Q1 2026.

• Cash position rose to $28M as of May 15, 2026, with net inflows of $34M in Q1 2026.

• Total debt reduced by 33% over two years and 21% over the last year, from $201M in Q1 2024 to $134M in Q1 2026.

Outlook and guidance

• Production guidance for 2026 is 240,000 tons, with expansions planned to reach 520,000 tons (Phase 2) and 770,000 tons (Phase 3) by end of 2027.

• Cash flow forecasts for the next 12 months range from $130M (at $1,500/ton) to $330M (at $2,500/ton), with current prices above $2,900/ton.

• Cost guidance: all-in sustaining cost forecasted at $710/t for Phase 1, $620/t for Phase 2, and $610/t for Phase 3.

• Construction of Plant 2 to resume in H2 2026, with commissioning expected by mid-2027; Plant 3 could proceed in parallel or sequentially.

• Forecasted robust cash flow generation for 2026, with estimates up to $761M for Phases 1 & 2 and up to $1,135M at $2,500/t for full expansion.