Q2 FY2026
Filed Jul 30, 2026First Majestic reported sharply higher Q2 2026 revenue, mine operating earnings, EBITDA, net earnings and free cash flow, supported primarily by higher realized silver and gold prices.
Revenue increased 57%, mine operating earnings increased 353%, EBITDA increased 110%, net earnings attributable to owners increased 108%, and free cash flow increased 150% year-over-year. Treasury reached $1,252.7 million, while cash costs and AISC per attributable payable AgEq ounce were below guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Ore Processed / Tonnes Milledother | 1,040,314 | – | 4% |
| Silver Ounces Producedother | 3,799,823 | – | 3% |
| Gold Ounces Producedother | 34,660 | – | 2% |
| Cash Costs per Silver Equivalent Ouncenon-GAAP | $18.06 | – | 20% |
| AISC per Silver Equivalent Ouncenon-GAAP | $25.68 | – | 22% |
| Total Production Cost per Tonnenon-GAAP | $107.16 | – | 3% |
| Average Realized Silver Price per Silver Ouncenon-GAAP | $63.98 | – | 90% |
| Average Realized Gold Price per Gold Ouncenon-GAAP | $4,347 | – | 40% |
| Revenuesother | $415.5 million | – | 57% |
| Mine Operating Earningsother | $223.6 million | – | 353% |
| Net Earnings before Non-Controlling Interestother | $125.9 million | – | 123% |
| Net Earnings Attributable to Owners of the Companyother | $109.4 million | – | 108% |
| EPS - Basic & Dilutedother | $0.22 | – | 100% |
| Adjusted Net Earningsnon-GAAP | $101.6 million | – | – |
| Adjusted EPSnon-GAAP | $0.21 | – | 455% |
| Operating Cash Flows before Non-Cash Working Capital and Taxesother | $248.3 million | – | 116% |
| Capital Expendituresother | $65.1 million | – | 16% |
| Attributable Capital Expendituresother | $60.1 million | – | 7% |
| Cash and Cash Equivalentsother | $1,093.3 million | – | 184% |
| Restricted Cashother | $159.4 million | – | 27% |
| Treasuryother | $1,252.7 million | – | 34% |
| Working Capitalnon-GAAP | $876.0 million | – | 97% |
| EBITDAnon-GAAP | $252.3 million | – | 110% |
| Adjusted EBITDAnon-GAAP | $257.1 million | – | 105% |
| Free Cash Flownon-GAAP | $194.6 million | – | 150% |
| AISC Margin per AgEq ouncenon-GAAP | $40.27 per AgEq ounce | – | – |
| Silver Finished Goods Inventoryother | 1,007,450 silver ounces | – | – |
| Gold Finished Goods Inventoryother | 4,730 gold ounces | – | – |
| Silver Finished Goods Inventory Fair Market Valueother | $59.0 million | – | – |
| Gold Finished Goods Inventory Fair Market Valueother | $19.0 million | – | – |
| Overall Liquidityother | $1,035.8 million | – | – |
Capital returns
- The Company declared a cash dividend of $0.0152 per common share for the second quarter of 2026.
- The dividend will be paid on or about August 31, 2026, to holders of record of First Majestic's common shares as of the close of business on August 14, 2026.
- During the second quarter of 2026, the Company purchased and cancelled an aggregate of 1,200,000 common shares for US$22.7 million at an average price of CAD$26.18 per share pursuant to its current share repurchase program.
What drove it
- Revenue growth was driven by a 90% higher average realized silver price and a 40% higher average realized gold price compared to the second quarter of 2025.
- Revenue growth was also driven by 57% and 22% increases in silver ounces sold at La Encantada and Santa Elena, respectively, compared to the second quarter of 2025.
- The increase in mine operating earnings was largely driven by higher metal prices and increased silver ounces sold at La Encantada and Santa Elena.
- The increase in EBITDA was primarily attributable to higher realized metal prices.
- Silver production growth was primarily driven by strong performances at La Encantada and Santa Elena, while gold production growth was driven largely by strong production at Santa Elena.
Concerns
- Realized prices were impacted by approximately $40 million in mark-to-market adjustments on open concentrate sales, resulting from lower commodity prices at quarter-end compared to the preceding months.
- Cash costs per attributable payable AgEq ounce increased to $18.06 from $15.08, and AISC per attributable payable AgEq ounce increased to $25.68 from $21.02.
- Temporary operational disruptions at Los Gatos following a rockfall event on the main ramp and labour disruptions at San Dimas elevated cash costs per attributable AgEq ounce, although the Company stated these disruptions are now resolved.
- The strengthening of the Mexican peso against the U.S. dollar, higher contractor, haulage, maintenance and reagent costs, higher royalty payments, production taxes, worker participation costs, and sustaining development and PP&E costs contributed to higher costs.
- Total revenue excluded 1,007,450 oz of silver and 4,730 oz of gold held in inventory at quarter-end, with a fair value of $78.0 million.
- Net earnings were impacted by a one-time current tax expense of $10.1 million relating to a historic tax dispute with the Mexican tax authority for First Majestic Plata, S.A. de C.V., which has now been settled.
What to watch
- Cash costs and AISC per attributable payable AgEq ounce relative to guidance.
- The effect of metal prices and mark-to-market adjustments on open concentrate sales.
- Conversion of finished-goods bullion inventory with a fair value of $78.0 million into revenue.
- Operational performance at Los Gatos and San Dimas following the resolved rockfall and labour disruptions.
- The timing of the announced dividend payment on or about August 31, 2026.
Balance sheet and cash flow
- The Company ended the second quarter with $1,252.7 million in cash and in treasury.
- Cash in treasury includes $159.4 million that is held in restricted cash.
- Working capital reached a record high of $876.0 million, excluding $159.4 million in restricted cash.
- The overall liquidity, defined as working capital plus undrawn lines of credit, of the Company as at June 30, 2026 was $1,035.8 million.
- The Company generated $194.6 million in free cash flow in the second quarter of 2026 after paying $46.8 million in cash income taxes.
- Attributable capital expenditures consisted of $23.9 million in underground development, $13.2 million in exploration, and $18.7 million in property, plant and equipment ("PP&E").
Analysis
First Majestic delivered substantially stronger year-over-year financial results in Q2 2026. Revenues increased 57% to $415.5 million, mine operating earnings increased 353% to $223.6 million, and EBITDA increased 110% to $252.3 million. The release attributes the gains principally to a 90% increase in the average realized silver price and a 40% increase in the average realized gold price, with higher silver ounces sold at La Encantada and Santa Elena also contributing.
Production growth was comparatively modest, with silver ounces produced up 3% to 3,799,823 and gold ounces produced up 2% to 34,660. The price-led earnings expansion was reflected in AISC margin of $40.27 per AgEq ounce versus $13.60 per AgEq ounce in Q2 2025. However, unit costs increased, as cash costs per Silver Equivalent Ounce rose to $18.06 from $15.08 and AISC rose to $25.68 from $21.02. The company cited the changed AgEq conversion ratio, temporary Los Gatos and San Dimas disruptions, a stronger Mexican peso, higher mining activity costs, royalties and production taxes.
Cash generation and liquidity strengthened materially. Operating cash flows before non-cash working capital and taxes were $248.3 million, while free cash flow was $194.6 million after $46.8 million in cash income taxes. Treasury was $1,252.7 million, including $159.4 million of restricted cash, and overall liquidity was $1,035.8 million. Capital expenditures were $65.1 million on a 100% basis, while attributable capital expenditures were $60.1 million.
Capital returns included a $0.0152 per-common-share quarterly dividend and the repurchase and cancellation of 1,200,000 common shares for US$22.7 million. The release also disclosed $78.0 million of silver and gold finished-goods inventory excluded from quarterly revenue. No numerical 2026 guidance was included in the supplied release, though the company stated that updated 2026 guidance would be discussed on its conference call.
Not in the filing
stated, not guessed- Numerical forward guidance for revenue, gross margin, operating expenses, tax rate, production, costs, capital expenditures or any other metric was not provided in the supplied release.
- Previous-release outlook was not provided.
- Gross profit and gross margin were not reported.
- Operating income was not reported.
- Debt and net debt were not reported.
- Operating cash flow after changes in working capital and taxes was not reported.
- Revenue by mine or operating segment was not reported.
- Prior-quarter comparisons for the reported financial and operating metrics were generally not reported.
- The release contains an inconsistency for Q2 2025 net earnings in narrative text: the highlights table and net-earnings highlight report $52.5 million, while a later narrative paragraph states $54.8 million.
AlphAI 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.