Agnico Eagle Mines (AEM) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly free cash flow of $1.335 billion and record shareholder returns of $625 million in Q2 2026, driven by strong operational performance and disciplined cost control, with gold production of 856,000 ounces, above budget for the second consecutive quarter.

• Net income reached $1.6 billion ($3.19/share), with adjusted net income of $1.541 billion ($3.07/share), and adjusted EBITDA of $2.738 billion.

• Advanced key growth projects, including the go-ahead for Hope Bay and significant progress at Malartic, Detour, Upper Beaver, and completed major consolidation in Finland.

• Maintained strong net cash position of $3.267 billion and received a Fitch credit rating upgrade to A- in April 2026.

• Returned 48% of free cash flow to shareholders in H1 2026, exceeding the 40% target.

Financial highlights

• Q2 2026 revenue from mining operations was $3.8 billion, with gross profit of $2.4 billion and net income margin of 42%.

• Total cash costs were $1,054/oz and all-in sustaining costs $1,459/oz, both below guidance and industry average.

• Free cash flow reached $1.335 billion, with cash provided by operating activities at $2.144 billion.

• Returned $625 million to shareholders in Q2 via dividends and $400 million in share repurchases.

• Net cash position as of June 30, 2026: $3.267 billion; total debt: $197 million.

Outlook and guidance

• Full-year 2026 gold production expected near the lower end of 3.3–3.5 million ounces due to reduced output at Canadian Malartic.

• Total cash costs per ounce and AISC per ounce guidance for 2026 remain at $1,020–$1,120 and $1,400–$1,550, respectively.

• Capital expenditures for 2026 (excluding exploration) raised to $2.6–$2.8 billion, reflecting Hope Bay construction approval.

• Targeting 20–30% production growth over the next decade, supported by organic pipeline and recent acquisitions.

• Effective tax rate for 2026 expected at 34–36%, with remaining cash taxes to be paid in quarterly installments.