Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y

FNV’s Precious Metals Revenues Jump

Revenues from Precious Metal assets totaled $498.7 million in the reported quarter, up from $304 million a year ago. These assets accounted for 86% of the quarterly revenues, comprising 70% of gold, 14% of silver and 2% of platinum group metals.

Precious Metal GEOs sold increased 23.4% year over year to 114,111. Results benefited from higher deliveries from Antapaccay, Antamina, South Arturo and Musselwhite, along with incremental contributions from Côté Gold, Casa Berardi, Valentine and Porcupine.

Franco-Nevada’s Profitability Margins Contract

Adjusted EBITDA advanced 44.8% year over year to $529.7 million. However, the adjusted EBITDA margin declined to 91.2% from 99% in the year-ago quarter. Gross profit rose to $451 million from $271.9 million.

Adjusted net income increased to $349.2 million from $238.5 million a year earlier. The adjusted net income margin was 60.1%, down from 64.6% in the prior-year quarter, indicating that the sharp revenue increase did not translate into comparable margin expansion.

FNV’s Q2 Financial Position

As of June 30, 2026, Franco-Nevada had $1.01 billion in cash and cash equivalents, up from $0.67 billion at the end of 2025. The company generated an operating cash flow of $482.5 million in the second quarter, up 12% year over year.

The company remained debt-free and had $4.3 billion in available capital at the end of the quarter. Franco-Nevada uses its free cash flow to expand its portfolio and pay out dividends.

Franco-Nevada’s 2026 Guidance Tracks Toward Upper Half

FNV expects total GEO sales of 510,000-570,000 for 2026 and is tracking toward the upper half of this range. The company sold 268,758 GEOs during the first half. Production is expected to be weighted toward the second half, reflecting anticipated production profiles at Candelaria, Tocantinzinho, Côté Gold, Greenstone and Valentine.

The outlook also incorporates anticipated deliveries from the processing of stockpiled ore at Cobre Panamá. Franco-Nevada expects stream deliveries from Cobre Panamá to total 23,100 gold ounces and 265,000 silver ounces, with deliveries expected to begin in the third quarter.

FNV Stock’s Price Performance & Zacks Rank

The company’s shares have gained 32.7% in the past year compared with the industry’s growth of 52%.

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Franco-Nevada currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Mining-Gold Stocks in Q2

Kinross Gold Corporation KGC reported adjusted earnings of 71 cents per share for the second quarter of 2026, surging 61.4% from 44 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 66 cents by 7.6%.

Kinross Gold’s revenues increased 29.5% year over year to $2.2 billion but missed the consensus estimate of $2.3 billion by 2%.

Agnico Eagle Mines Limited AEM posted second-quarter 2026 earnings of $3.05 per share, up 57.2% from $1.94 a year ago. The figure surpassed the Zacks Consensus Estimate of $2.89. 

Agnico Eagle Mines generated revenues of $3,802.8 million, up 35% year over year. The top line missed the Zacks Consensus Estimate of $3,863.2 million.

Newmont Corporation NEM reported second-quarter 2026 adjusted earnings of $2.10 per share, up 46.9% from $1.43 in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $2.05.  

Newmont’s revenues for the second quarter were $6.12 billion, up 15.1% from the prior-year quarter. The figure missed the Zacks Consensus Estimate of $6.35 billion.

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