Ero Copper (ERO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operational and financial performance, with copper production up nearly 40% year-over-year to 17,287 tonnes and gold production at 5,495 ounces, supported by infrastructure upgrades and cost controls.

• Revenue and adjusted EBITDA more than doubled year-over-year, driven by higher copper and gold prices, increased production, and robust cash flow from operations.

• Net debt leverage ratio improved to 1.0x from 2.4x year-over-year, with available liquidity at $146.2 million.

• Strategic focus on risk management, cost control, and currency hedging helped offset sector-wide inflation and BRL appreciation.

• Safety milestone achieved at Tucumã: four years without a lost time injury, over 11 million hours worked.

Financial highlights

• Q1 2026 revenue was $263.2 million, with adjusted EBITDA at $125.2 million and cash flow from operations at $92.8 million.

• Adjusted net income attributable to shareholders was $72.4 million, or $0.69 per diluted share.

• Consolidated copper C1 cash cost was $2.39/lb, and gold C1 cash cost was $2,120/oz.

• Net debt decreased by $71.1 million year-over-year to $490.7 million.

• Working capital improved to $66.2 million from $15.5 million in Q4 2025.

Outlook and guidance

• Full-year 2026 production, operating cost, and capital expenditure guidance reaffirmed for all operations.

• Copper production expected to be back-half weighted, with 24% of full-year midpoint achieved in Q1.

• Copper C1 cash cost guidance: $2.15–$2.35/lb, expected to decrease in H2 2026.

• Xavantina gold production and costs expected to improve significantly in H2 as ventilation upgrades complete.

• FX hedge program covers over 70% of estimated 2026 BRL-denominated expenses, with expected hedge gains of $45–$50 million for the year.