Nexa Q2 Earnings Surge: Net Income Hits $98M, Leverage Drops to 1.40x, Block Caving Begins
NEXA has more than doubled off its 52-week low of $4.7.
Summary
Nexa Resources reported Q2 2026 net income of $97.9 million and Adjusted EBITDA of $286 million, with leverage improving to 1.40x. The company initiated block caving at Cerro Lindo and benefited from a favorable silver streaming stepdown, while managing the aftermath of the Cajamarquilla fire.
Key Events · Earnings and Guidance · NEXA
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Earnings Surge on Metal Prices
Q2 2026 net income reached US$97.9 million, up from US$13.3 million in Q2 2025, with Adjusted EBITDA of US$286 million (78% YoY increase) on revenues of US$908 million.
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Leverage Improves to 1.40x
Net debt to LTM Adjusted EBITDA fell to 1.40x from 2.28x a year ago, supported by stronger earnings and a slight reduction in net debt to US$1,476 million.
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Cajamarquilla Fire Contained, Output Normalized
The May 2026 fire affected the casting house but not upstream processing; operations resumed gradually and returned to normal in June, with cathode inventory built to recover volumes in 2H26.
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Block Caving Starts at Cerro Lindo
Cerro Lindo initiated block caving operations in July 2026, expected to lower unit costs, improve access to higher-grade copper, and enhance safety through reduced personnel exposure.
Analysis · NEXA · Energy & Transportation
A standout quarter for Nexa saw net income climb to $97.9 million from $13.3 million a year ago, fueled by higher metal prices and a 78% surge in Adjusted EBITDA to $286 million. The balance sheet strengthened as net leverage fell to 1.40x. Operationally, the Cajamarquilla smelter fire was contained and production normalized by June, while the landmark start of block caving at Cerro Lindo and the stepdown in the silver streaming agreement promise lower costs and higher cash generation ahead. Against this backdrop, the potential change of control discussions with Boliden add strategic uncertainty, reflected in S&P's CreditWatch placement.
At the time of this filing, NEXA was trading at $14.23 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $4.70 to $16.89. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.