Industrias Peñoles (PE&OLES) Q3 2025 earnings summary

Executive summary

• Net sales rose 14.2% year-over-year in 3Q'25, driven by higher gold and silver prices, offsetting lower volumes in key metals.

• Precious metals prices surged: gold up 39.7%, silver up 34.4%, supporting higher revenues despite lower production volumes.

• Operating profit increased 57.8% year-over-year, with EBITDA up 27.5% to $726.6M in 3Q'25.

• After-tax income surged to $423.6M in 3Q'25 from $83.1M in 3Q'24, reflecting improved margins and favorable tax adjustments.

• Mining operations faced lower ore processed and milled volumes, mainly due to depletion at San Julián and operational issues at Herradura, Milpillas, and Tizapa.

Financial highlights

• 3Q'25 net sales: $1,978.5M; EBITDA: $726.6M; net income: $423.6M; EPS: $0.76.

• Gross profit rose 41.2% to $738.8M, with gross margin improving to 37.3% from 30.2%.

• EBITDA margin: 36.7% (up from 32.9%); operating margin: 27.9% (up from 20.2%).

• Net leverage ratio at ~0.1x; coverage ratio at ~16.7x; cash and equivalents at $2.7B.

• YTD 2025 net sales: $5,855.2M, up from $4,763.1M YTD 2024; EBITDA: $2,036.4M, up 71.5%.

Outlook and guidance

• Management continues transformational initiatives and ongoing exploration at key projects in Mexico and South America to strengthen performance and expand resources.

• Ongoing focus on cost control, operational efficiency, and capital discipline amid volatile metal prices.