Nexa Resources (NEXA) Q1 2026 earnings summary

Executive summary

• Net revenues reached $888 million in 1Q26, up 42% year-over-year, driven by higher metal prices, improved sales volumes, and operational gains, especially at Aripuanã.

• Adjusted EBITDA was $283 million, up 126% year-over-year, with a margin of nearly 32%.

• Net income totaled $118 million or $0.67 per share, up 311% year-over-year, reflecting strong operational and market performance.

• Operational disruptions in Peru were resolved, with all mines returning to normal run rates.

• Cerro Lindo silver streaming agreement transitioned from 65% to 25%, expected to boost cash generation from Q2 2026.

Financial highlights

• Net revenues: $888 million (+42% YoY, -2% QoQ).

• Adjusted EBITDA: $283 million (+126% YoY, -6% QoQ); margin 31.8%.

• Mining segment: net revenues $460 million, Adjusted EBITDA $231 million, 50% margin.

• Smelting segment: net revenues $609 million, Adjusted EBITDA $51 million, 8% margin.

• Free cash flow was negative at $126 million, reflecting seasonal working capital outflow.

Outlook and guidance

• 2026 guidance reaffirmed for production, CapEx ($381 million), and costs across both mining and smelting segments.

• Free cash flow expected to strengthen over the year as working capital unwinds.

• Production expected to recover in 2H26 as Peruvian operations normalize and Aripuanã ramps up with new tailings filter.

• Net leverage target remains below 1.7x for 2026, with a long-term goal of 1x for financial flexibility.

• Smelting margins expected to remain under pressure due to low treatment charges, but operational improvements and by-product sales should support results.