Earnings call transcript: Nexa Resources Q1 2026 misses EPS forecast, stock dips – Image for illustrative purposes only (Image credits: Unsplash)
Nexa Resources reported its first-quarter 2026 results in early May, showing revenue that topped analyst estimates while earnings per share fell short. The diversified mining company, focused on zinc and copper, posted solid operational gains driven by higher metal prices and improved output at key sites. Investors responded by sending shares lower in after-hours trading, reflecting concerns over the earnings shortfall despite broader strength in the quarter.
Key Financial Results
Revenue reached $888.3 million, exceeding forecasts of roughly $873 million and marking a 42 percent increase from the same period a year earlier. Adjusted EBITDA more than doubled to $283 million, achieving a margin of 31.8 percent, while net income totaled $118 million. Earnings per share came in at $0.67, below some analyst projections of $0.79 but above others around $0.59. Net leverage improved to 1.59 times from 2.09 times a year earlier, supported by stronger trailing EBITDA. The company maintained its full-year capital expenditure and exploration guidance, signaling continued focus on deleveraging and project execution.
| Metric | Actual | Forecast |
|---|---|---|
| Revenue | $888.3 million | $873 million |
| Adjusted EBITDA | $283 million | Not specified |
| EPS | $0.67 | $0.79 |
Operational Drivers
Mining operations stood out during the quarter, with zinc production rising 18 percent year over year to 79,000 tons. Record output at the Aripuanã mine in Brazil contributed to the gains, alongside higher sales volumes and favorable by-product credits from silver and gold prices. Smelting cash costs edged above guidance at $1.40 per pound, pressured by lower treatment charges, while mining cash costs net of by-products remained favorable at negative $0.76 per pound. Management highlighted ongoing improvements in operational performance and the positive impact of elevated commodity prices across the portfolio. These factors helped offset sequential challenges such as weather-related disruptions and temporary constraints at certain Peruvian sites.
Market Response and Forward View
Shares of Nexa Resources fell approximately 16.7 percent in aftermarket trading to around $13.36 following the release, closing near the lower end of the recent trading range. The reaction underscored investor sensitivity to the EPS miss even amid revenue and EBITDA strength. Analysts noted that upcoming quarters may see more normalized earnings, with forecasts ranging from $0.52 to $0.58 per share. The company reaffirmed its 2026 guidance and pointed to continued momentum from higher metal prices and project timelines, positioning it for potential recovery in investor sentiment as the year progresses.
