Q2 FY2026
Filed Aug 11, 2026Franco-Nevada Reports Q2 2026 Results Tracking towards the upper half of annual guidance range
Q2 revenue increased 57%, GEOs sold increased 18%, net income increased 43%, and operating cash flow increased 12% versus Q2 2025. The Company is tracking towards the upper half of its 2026 Total GEOs guidance range, supported by anticipated Cobre Panamá stockpile-processing deliveries and elevated oil prices.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue from royalty, streams and working interestsother | $580.9 million | – | +57% |
| Interest revenueother | $0 million | – | – |
| Total revenueother | $580.9 million | – | +57% |
| GEOs soldother | 132,405 GEOs | – | +18% |
| Net GEOs soldother | 122,205 Net GEOs | – | +20% |
| Costs of salesother | $45.9 million | – | – |
| Depletion and depreciationother | $84.0 million | – | – |
| Total costs of salesother | $129.9 million | – | – |
| Gross profitother | $451.0 million | – | – |
| General and administrative expensesother | $7.8 million | – | – |
| Share-based compensation (recovery) expensesother | $(3.5) million | – | – |
| Impairment reversalother | $0 million | – | – |
| Gain on buy-back of royalty and stream interestsother | $0 million | – | – |
| Loss (gain) on sale of gold and silver bullionother | $1.0 million | – | – |
| Total other operating expenses (income)other | $5.3 million | – | – |
| Operating incomeother | $445.7 million | – | – |
| Foreign exchange gain and other incomeother | $7.1 million | – | – |
| Income before finance items and income taxesother | $452.8 million | – | – |
| Finance incomeother | $6.8 million | – | – |
| Finance expensesother | $(0.7) million | – | – |
| Net income before income taxesother | $458.9 million | – | – |
| Income tax expenseother | $104.9 million | – | – |
| Net incomeother | $354.0 million | – | +43% |
| Basic earnings per shareother | $1.84 | – | – |
| Diluted earnings per shareother | $1.83 | – | – |
| Adjusted Net Incomenon-GAAP | $349.2 million | – | +46% |
| Adjusted Net Income per sharenon-GAAP | $1.81 | – | – |
| Adjusted Net Income Marginnon-GAAP | 60.1% | – | – |
| Adjusted EBITDAnon-GAAP | $529.7 million | – | +45% |
| Adjusted EBITDA per sharenon-GAAP | $2.75 | – | – |
| Adjusted EBITDA Marginnon-GAAP | 91.2% | – | – |
| Net cash provided by operating activitiesother | $482.5 million | – | +12% |
| Cash flows used in investing activitiesother | $(101.4) million | – | – |
| Cash flows used in financing activitiesother | $(81.2) million | – | – |
| H1 revenue from royalty, streams and working interestsother | $1,231.6 million | – | +67% |
| H1 total revenueother | $1,231.6 million | – | +67% |
| H1 GEOs soldother | 268,758 GEOs | – | +13% |
| H1 Net GEOs soldother | 248,225 Net GEOs | – | +15% |
| H1 operating incomeother | $1,023.5 million | – | – |
| H1 net incomeother | $822.6 million | – | +80% |
| H1 basic earnings per shareother | $4.27 | – | – |
| H1 diluted earnings per shareother | $4.26 | – | – |
| H1 Adjusted Net Incomenon-GAAP | $807.5 million | – | +82% |
| H1 Adjusted Net Income per sharenon-GAAP | $4.19 | – | – |
| H1 Adjusted Net Income Marginnon-GAAP | 65.6% | – | – |
| H1 Adjusted EBITDAnon-GAAP | $1,121.6 million | – | +63% |
| H1 Adjusted EBITDA per sharenon-GAAP | $5.82 | – | – |
| H1 Adjusted EBITDA Marginnon-GAAP | 91.1% | – | – |
| H1 net cash provided by operating activitiesother | $1,002.9 million | – | +39% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| GoldHigher precious metal prices and strong contributions from Antapaccay, Antamina, South Arturo and Musselwhite, as well as incremental contributions from Côté Gold, Casa Berardi, Valentine and Porcupine. | $403.0 million | – | – |
| SilverHigher precious metal prices and higher deliveries from Antapaccay and Antamina. | $83.5 million | – | – |
| PGMPrecious Metal assets generated 114,111 GEOs in Q2 2026. | $12.2 million | – | – |
| Precious MetalsGEOs sold increased 23% to 114,111 GEOs, driven by higher deliveries and incremental contributions from recently acquired or commenced assets. | $498.7 million | – | – |
| Iron oreVale royalty revenue increased with the inclusion of sales from the Southeastern System, partly offset by higher transportation costs. | $9.1 million | – | – |
| Other mining assetsOther Mining assets include interests such as Vale, LIORC, Caserones, Copper World and Crawford. | $2.7 million | – | – |
| OilHigher realized oil prices and a higher share of production earned from Continental Resources interests supported U.S. Energy revenue. | $45.3 million | – | – |
| GasHigher natural gas liquids pricing across principal gas assets contributed to Energy revenue. | $19.8 million | – | – |
| NGLHigher natural gas liquids pricing across principal gas assets contributed to Energy revenue. | $5.3 million | – | – |
| DiversifiedRevenue increased from $62.7 million in Q2 2025, particularly from Weyburn and SCOOP/STACK interests. | $82.2 million | – | – |
2026 outlook
- Revenue$245 to $285 million in Diversified revenue
- NoteGold ounces sold: 360,000 to 400,000 oz
- NoteSilver ounces sold: 4,700,000 to 5,500,000 oz
- NotePGMs ounces sold: 32,000 to 37,000 oz
- NoteGEOs Sold: 510,000 to 570,000 oz
- NoteGuidance assumes: $4,500/oz Au, $75.00/oz Ag, $2,000/oz Pt, $1,650/oz Pd, $100/tonne Fe 62% CFR China, $70/bbl WTI oil and $3.00/mcf Henry Hub natural gas.
- NoteThe Company is tracking towards the upper half of its 2026 Total GEOs guidance range.
Capital returns
- Quarterly dividend declared: US$0.44 per share.
- Dividend payment date: September 24, 2026.
- Shareholders of record date: September 10, 2026.
- Payment of dividends: $80.6 million for the three months ended June 30, 2026.
- Payment of dividends: $161.1 million for the six months ended June 30, 2026.
- The Company will issue additional common shares through treasury at a 1% discount to the Average Market Price under the DRIP.
What drove it
- Revenue benefited from higher precious metal and oil prices compared to Q2 2025.
- Strong contributions came from Antapaccay, Antamina, South Arturo and Musselwhite.
- Incremental contributions came from Côté Gold, Casa Berardi, Valentine and Porcupine.
- Precious Metal assets accounted for 86% of Q2 2026 revenue, including 70% gold, 14% silver and 2% PGM.
- Revenue was sourced 88% from the Americas, including 40% South America, 25% Canada, 16% U.S. and 7% Central America & Mexico.
- U.S. Energy revenue was $46.2 million compared to $38.5 million in Q2 2025, supported by Continental Resources interests, stronger realized oil prices and higher natural gas liquids pricing.
- Canadian Energy revenue was $24.2 million compared to $14.0 million in Q2 2025, due to higher realized oil prices and increased revenue from Weyburn interests.
- The Government of Panama authorized stockpile processing at Cobre Panamá, and first copper concentrate was produced after the first processing train was commissioned.】【：】【“】【],
- concerns
- Q3 2026 deliveries to Franco-Nevada from Antamina are expected to be lower based on lower concentrator throughput at the mine in Q2 2026.
- Cobre Panamá remains in Preservation and Safe Management with production halted, while the Government of Panama evaluates the mine’s future.
- Candelaria Q2 2026 GEOs sold were lower than Q2 2025 because mine production was lower compared to the prior year, which benefited from higher-grade Phase 11 ore.
- Guadalupe-Palmarejo GEOs sold were slightly lower than Q2 2025 due to processing of a larger quantity of higher-grade ore in the previous year.
- Hemlo earned fewer GEOs in Q2 2026 as access to higher-grade stopes was delayed based on mining sequence.
- Caserones production was affected subsequent to quarter-end by severe winter storms that restricted site access and disrupted power supply for 13 days.
- Adjusted EBITDA Margin declined to 91.2% from 99.0%, and Adjusted Net Income Margin declined to 60.1% from 64.6%.
Concerns
- Q3 2026 deliveries to Franco-Nevada from Antamina are expected to be lower based on lower concentrator throughput at the mine in Q2 2026.
- Cobre Panamá remains in Preservation and Safe Management with production halted, while the Government of Panama evaluates the mine’s future.
- Candelaria Q2 2026 GEOs sold were lower than Q2 2025 because mine production was lower compared to the prior year, which benefited from higher-grade Phase 11 ore.
- Guadalupe-Palmarejo GEOs sold were slightly lower than Q2 2025 due to processing of a larger quantity of higher-grade ore in the previous year.
- Hemlo earned fewer GEOs in Q2 2026 as access to higher-grade stopes was delayed based on mining sequence.
- Caserones production was affected subsequent to quarter-end by severe winter storms that restricted site access and disrupted power supply for 13 days.
- Adjusted EBITDA Margin declined to 91.2% from 99.0%, and Adjusted Net Income Margin declined to 60.1% from 64.6%.
What to watch
- Commencement of Cobre Panamá stream deliveries in Q3 2026. One-third of deliveries are anticipated in H2 2026.
- First Quantum estimates Cobre Panamá will produce between 30,000 and 40,000 tonnes of copper in 2026, with a total of approximately 70,000 tonnes including 2027 processing.
- Expected Cobre Panamá stream deliveries of approximately 23,100 gold ounces and 265,000 silver ounces.
- Production weighted to H2 2026 at Candelaria, Tocantinzinho, Côté Gold, Greenstone and Valentine.
- Côté Gold updated Mineral Reserve estimate and updated mine plan expected in Q4 2026.
- Greenstone production is expected to be higher quarter-over-quarter for the balance of 2026.
- The effect on Energy revenue if oil prices remain elevated. A $10 increase relative to the assumed WTI price of $70 per barrel is estimated to increase oil revenue by approximately 12%.
- Further actions by the high-level ministerial commission evaluating the future of Cobre Panamá.
Balance sheet and cash flow
- Cash and cash equivalents: $1,014.2 million as at June 30, 2026, compared to $670.9 million as at December 31, 2025.
- Available Capital: $4.3 billion as at June 30, 2026.
- Available Capital includes equity investments of $1,041.2 million, corporate revolving credit facilities totaling $1.5 billion and their accordions of $750.0 million.
- Total assets: $8,922.2 million as at June 30, 2026.
- Total liabilities: $681.5 million as at June 30, 2026.
- Total shareholders’ equity: $8,240.7 million as at June 30, 2026.
- Net cash provided by operating activities: $482.5 million for Q2 2026 and $1,002.9 million for H1 2026.
- Acquisition of royalty, stream and working interests: $(80.3) million for Q2 2026 and $(529.7) million for H1 2026.
- Net cash used in investing activities: $(101.4) million for Q2 2026 and $(499.3) million for H1 2026.
- Net change in cash and cash equivalents: $299.5 million for Q2 2026 and $343.3 million for H1 2026.
Analysis
Franco-Nevada reported a strong Q2 2026 under IFRS Accounting Standards. Revenue from royalty, streams and working interests was $580.9 million, up 57% from $366.7 million in Q2 2025, while GEOs sold increased 18% to 132,405 GEOs. Net income rose 43% to $354.0 million and Adjusted Net Income increased 46% to $349.2 million. The H1 result also set records cited by the Company, with $1,231.6 million in revenue, $1,002.9 million in operating cash flow and $822.6 million in net income.
The quarter benefited from higher precious metal and oil prices, as well as stronger portfolio contributions. Precious Metals generated $498.7 million in revenue and accounted for 86% of revenue, while Diversified revenue increased to $82.2 million from $62.7 million. Higher deliveries from Antapaccay, Antamina, South Arturo and Musselwhite, plus incremental production or acquired-asset contributions from Côté Gold, Casa Berardi, Valentine and Porcupine, supported volume. Energy also contributed, with U.S. Energy revenue of $46.2 million and Canadian Energy revenue of $24.2 million.
Profitability remained high but non-GAAP margins were lower year over year. Adjusted EBITDA was $529.7 million, up 45%, and Adjusted EBITDA Margin was 91.2% compared with 99.0%. Adjusted Net Income Margin was 60.1% compared with 64.6%. Operating cash flow increased to $482.5 million from $430.3 million despite the Company recording higher costs of sales, depletion and depreciation, and income tax expense versus Q2 2025.
Capital deployment included $80.3 million of Q2 acquisitions of royalty, stream and working interests, including Greenstone, Youanmi and the Victoria Gold royalty portfolio, with the Comet Vale royalty acquired subsequent to quarter-end for $8.4 million plus a contingent payment of $2.1 million. Cash and cash equivalents were $1,014.2 million as at June 30, 2026, and available capital was $4.3 billion. The Board declared a quarterly dividend of US$0.44 per share, payable on September 24, 2026.
Management maintained its 2026 operating guidance and stated it is tracking toward the upper half of the 510,000 to 570,000 GEOs Sold range. The key expected H2 contributor is Cobre Panamá stockpile processing, where First Quantum expects deliveries to Franco-Nevada to commence in Q3 2026. Portfolio production is also expected to be weighted to H2 2026 at Candelaria, Tocantinzinho, Côté Gold, Greenstone and Valentine. Important offsets include lower expected Q3 deliveries from Antamina, continued halted mine production at Cobre Panamá, and the uncertainty around the Government of Panama’s evaluation of the mine’s future.
Management, verbatim
Our portfolio is set to benefit from strong organic growth evidenced by resource increases, planned mine expansions and project advancements.
Paul Brink, President & CEO
With $4.3 billion in available capital, the Company is also well positioned to take advantage of a strong pipeline of deal opportunities.
Paul Brink, President & CEO
Not in the filing
stated, not guessed- Prior outlook was not provided, so no comparison of reported results against prior guidance is available.
- Free cash flow was not reported.
- Gross margin was not reported.
- A debt balance was not reported in the condensed consolidated interim statements of financial position.
- Q2 2026 tax rate was not reported.
- Prior-quarter comparative figures and quarter-over-quarter changes were not reported for the listed key metrics.
- Year-over-year percentage changes were not reported for individual commodity revenue lines, operating income, gross profit, gross margins, expense lines, earnings per share, or cash-flow investing and financing line items.
- No forward guidance was reported for total revenue, gross margin, operating expenses, tax rate, net income, EPS, operating cash flow, free cash flow, or capital returns.
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.