Largo Inc. (LGO): Financial results for Q2 2026
Largo Inc. (LGO) furnished an SEC Form 6-K — earnings release. Press Release August 14, 2026 Largo Reports Q2 2026 Financial Results Reflecting 68% Revenue Growth and Positive Adjusted EBITDA, Despite Raw Material Input Cost Pressures; and Provides Guidance for New Copper-Platinum Group Metals Production All amounts expressed are in U.S. dol
How this was made
The 30-second read
Why it matters
The earnings beat and new defense contract provide a fresh catalyst for the stock, while cost pressures and a widened net loss temper optimism.
Market read
Earnings surprise and contract win could drive short‑term price movement; sector peers may see spillover effects.
What to watch
Potential supply disruptions in the Middle East and rising sulfuric acid prices could erode profitability.
Largo Reports Q2 2026 Financial Results Reflecting 68% Revenue Growth and Positive Adjusted EBITDA, Despite Raw Material Input Cost Pressures; and Provides Guidance for New Copper-Platinum Group Metals Production
Revenue, vanadium sales volumes and V₂O₅ production rose sharply, and Adjusted EBITDA turned positive, but the Company reported a larger net loss, higher cash operating costs, $5.1 million of cash and $114.2 million of debt.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenuesother | $44.0 million | – | 68.5% |
| Vanadium sales revenueother | $42.6 million | – | 67.3% |
| Ilmenite sales revenueother | $1.4 million | – | 114.4% |
| Operating costsother | $48,031 | – | 59.8% |
| Net lossother | $22.7 million | – | 295.3% |
| Basic loss per shareother | $0.21 | – | 133.3% |
| Adjusted EBITDAnon-GAAP | $2.7 million | – | – |
| Mining Operations Adjusted EBITDAnon-GAAP | $4.4 million | – | 64.8% |
| Cash provided before working capital itemsother | $6.6 million | – | 206.2% |
| Revenues per pound sold of V₂O₅ equivalentnon-GAAP | $6.96 | 20.0% | 8.9% |
| Cash operating costs excluding royaltiesnon-GAAP | $5.10/lb sold | – | 10.2% |
| Adjusted cash operating costs excluding royaltiesnon-GAAP | $4.12/lb | – | 29.6% |
| V₂O₅ equivalent producedother | 2,900 tonnes | – | 28.5% |
| V₂O₅ equivalent salesother | 2,773 tonnes | – | 53.5% |
| Total ore minedother | 712,198 tonnes | – | 46.6% |
| Total mined - dry basisother | 3,914,026 tonnes | – | -8.2% |
| Effective grade of ore minedother | 0.50% V₂O₅ | – | -2.4% |
| Global recoveryother | 82.5% | – | – |
| Ilmenite concentrate producedother | 7,205 tonnes | – | -11.6% |
| Ilmenite concentrate soldother | 10,059 tonnes | – | 67.0% |
| V₂O₅ equivalent produced, six months ended June 30, 2026other | 5,516 tonnes | – | 55.2% |
| Revenues, six months ended June 30, 2026other | $68,405 | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $(1,645) | – | – |
| Mining Operations Adjusted EBITDA, six months ended June 30, 2026non-GAAP | $2,100 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Vanadium salesHigher sales volumes and stronger realized vanadium pricing. | $42.6 million | – | 67.3% |
| Ilmenite salesSales of ilmenite concentrate increased to 10,059 tonnes from 6,024 tonnes. | $1.4 million | – | 114.4% |
2026 outlook
- NoteAnnual V₂O₅ equivalent production: 10,500 - 12,000 tonnes
- NoteAnnual V₂O₅ equivalent sales: 7,500 - 9,500 tonnes
- NoteAdjusted cash operating costs excluding royalties: $3.50 - $4.50 per pound
- NoteQ3 production: 2,600 - 3,100 tonnes V₂O₅
- NoteQ4 production: 3,000 - 3,200 tonnes V₂O₅
- NoteQ3 sales: 2,000 - 2,500 tonnes V₂O₅
- NoteQ4 sales: 2,000 - 2,500 tonnes V₂O₅
- NoteCopper-PGM concentrate production: approximately 300 to 380 tonnes per month
- NoteExpected average copper grade: approximately 15% Cu
- NoteExpected PGM grade: 41 grams per ton of PGMs
- NoteExpected gold grade: 13 grams per ton
- NoteExpected platinum grade: 16 grams per ton
- NoteExpected palladium grade: 12 grams per ton
- NoteExpected silver grade: 53 grams per ton
What drove it
- Higher ore availability and operational stability in the industrial plant supported V₂O₅ production.
- V₂O₅ equivalent sales increased 53.5%, reflecting stronger commercial execution and improved market access.
- The average European V₂O₅ benchmark price was $6.03/lb versus $5.13/lb in Q2 2025.
- The average U.S. FeV benchmark price was $21.65/lb versus $14.85/lb in Q2 2025.
- Brazil's National Mining Agency approved production and sale of copper, PGMs, nickel and cobalt as by-products, and full-scale copper-PGM concentrate production commenced on August 7, 2026.
- On July 7, 2026, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency Strategic Materials under a five-year contract.
Concerns
- Cash operating costs excluding royalties rose to $5.10/lb sold from $4.63/lb, reflecting higher diesel fuel, explosives and sulfur-derived reagent costs.
- Adjusted cash operating costs excluding royalties rose to $4.12/lb from $3.18/lb.
- The net loss widened to $22.7 million from $5.8 million, primarily reflecting a write-down of vanadium assets, deferred income tax expense, higher production costs, professional and management costs, and finance costs.
- Global recovery declined to 82.5% from 84.9%, and effective ore grade declined to 0.50% V₂O₅ from 0.51%.
- Ilmenite concentrate production was temporarily suspended in June while the Company transitioned flotation capacity toward copper-PGM concentrate production.
- The Company stated it continues to monitor geopolitical and trade-related uncertainties, operating conditions and input costs and may revise guidance if assumptions or market conditions materially change.
What to watch
- Progressive stabilization of copper-PGM concentrate production within the approximately 300 to 380 tonnes per month range.
- Commercial terms for Largo's first copper-PGM concentrate shipment with potential smelters and traders.
- Timing and quantity of deliveries under the $60.1 million U.S. Defense Logistics Agency delivery order.
- V₂O₅ production and sales execution against Q3 guidance of 2,600 - 3,100 tonnes and 2,000 - 2,500 tonnes, respectively.
- Raw-material input costs, including sulfuric acid, fuel oil, diesel fuel, explosives and sulfur-derived reagents.
- Potential application of additional U.S. tariffs to ferrovanadium supplied from Canada to the U.S.
Balance sheet and cash flow
- Cash balance as of June 30, 2026: $5.1 million
- Debt as of June 30, 2026: $114.2 million
- Cash as of June 30, 2026: $5,103; as of December 31, 2025: $9,716
- Debt as of June 30, 2026: $114,249; as of December 31, 2025: $107,066
- Cash provided before working capital items: $6.6 million, compared with $2.2 million in Q2 2025
- In January 2026, Largo launched an at-the-market equity offering program with total gross proceeds of up to $60 million.
- Since the beginning of the year, Largo has raised approximately $24.8 million in net proceeds.
Analysis
Largo reported materially higher Q2 revenue under IFRS, with revenues increasing 68.5% to $44.0 million. Vanadium sales revenue increased 67.3% to $42.6 million and ilmenite sales revenue increased 114.4% to $1.4 million. The commercial improvement was supported by a 53.5% increase in V₂O₅ equivalent sales to 2,773 tonnes and an 8.9% increase in revenue per pound sold of V₂O₅ equivalent to $6.96.
Mine performance improved in volume terms. V₂O₅ production increased 28.5% to 2,900 tonnes, supported by better ore availability and operational stability, while total ore mined increased 46.6% to 712,198 tonnes. The production result was near the upper end of quarterly guidance of 2,500 to 3,000 tonnes. Offsetting factors included lower effective ore grade of 0.50% V₂O₅ and global recovery of 82.5%, compared with 0.51% and 84.9%, respectively, in Q2 2025.
The earnings and cost profile remains pressured. Adjusted EBITDA improved to $2.7 million from $34 thousand, and Mining Operations Adjusted EBITDA increased to $4.4 million from $2.7 million. However, cash operating costs excluding royalties rose to $5.10/lb sold and adjusted cash operating costs excluding royalties rose to $4.12/lb. Largo recorded a net loss of $22.7 million, compared with a net loss of $5.8 million, citing a write-down of vanadium assets, deferred income tax expense and higher operating, professional, consulting, management and finance costs.
Liquidity remains a central focus. The Company ended the quarter with $5.1 million of cash and $114.2 million of debt, while cash provided before working capital items increased to $6.6 million. Largo raised approximately $24.8 million in net proceeds through its at-the-market program since the beginning of the year. Subsequent to quarter-end, the Company secured a $60.1 million U.S. Defense Logistics Agency delivery order and began full-scale copper-PGM concentrate production on August 7, 2026 using existing ilmenite flotation infrastructure.
Largo reiterated its 2026 vanadium production, sales and adjusted cost guidance. The new copper-PGM operation is intended to diversify revenue and generate by-product credits, but ilmenite production was temporarily suspended to maximize copper-PGM output and commercial terms for the first shipment are still under discussion. Management identified geopolitical and trade-policy uncertainty, operating conditions and raw-material costs as factors that could affect the remainder of 2026.
Management, verbatim
Our second-quarter performance reflects the continued improvement of operations at the Maracás Menchen Mine and higher vanadium prices, which were partly offset by a rise in raw material input costs caused by war related disruptions in the Middle East.
Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo
The significant increase in revenue, together with positive Adjusted EBITDA and improved Mining Operations Adjusted EBITDA despite temporary cost pressures, demonstrates the value of pairing stronger production with improved commercial execution.
Mr. Jim Bannantine, Co-Chief Executive Officer of Largo
Not in the filing
stated, not guessed- Gross profit and gross margin
- Operating income or loss
- Diluted loss per share
- Operating cash flow after working capital items
- Free cash flow
- Capital expenditures
- Dividend information
- Share repurchase information
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Prior-release outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Largo Inc., the world's largest primary vanadium producer, filed its Q2 2026 earnings via SEC Form 6‑K.
Ticker impact
Q2 2026 earnings release showing 68% revenue growth, $44M revenue and positive adjusted EBITDA.
Potential upside of 5‑10% if market digests revenue beat and new defense contract.
Revenue beat and $60M defense order are material for a small‑cap miner; guidance on copper‑PGM adds growth catalyst.
Market effects
Highlights strength in vanadium and critical minerals sector, may boost peer miners.
Positive for North American mining stocks and U.S. defense suppliers.
Adds to global demand narrative for vanadium and PGM amid aerospace and infrastructure growth.
Counterpoint
Higher input costs and net loss could pressure margins; investors may remain cautious.
Key entities
- companyLargo Inc.
Primary vanadium producer reporting Q2 2026 results.
- government_customerU.S. Defense Logistics Agency
Awarded a $60M order to Largo.
