Record Financial Results
Revenue increased 77% year-over-year to $650.7 million; adjusted EBITDA rose 84% to $591.9 million; adjusted net income was $458.3 million (up 123%) and adjusted net income per share was $2.38 (up 122%).
Franco-Nevada
· FNV
May 12th, 2026
Summary
- Earnings Call Date:
- 2026-05-12
- Change Since:
- -11.31%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call was decisively positive on operating and financial performance: record revenue, EBITDA and adjusted net income driven by a strong commodity price environment, meaningful asset contributions, significant available capital, dividend growth and ESG recognition. Challenges noted were largely operational timing, higher depletion/costs from recent acquisitions, contract-specific uncertainties (e.g., Cobre Panama, NPIs), and some reporting conversion effects, but these were described as manageable and do not overshadow the strong quarter and balance sheet strength.
Company Guidance
Management's forward guidance noted a WTI assumption of $70/barrel (and that a $10/bbl uplift to about $100 would raise oil revenue by ~12%), signaling a stronger Q2 and a generally stronger remainder of 2026 as energy prices and ramping contributors (Cote, Porcupine, Casa Berardi and Condestable) increase volumes; Condestable deliveries now follow a one‑quarter lag after switching to variable production in Q1. They reiterated the GEO conversion basis of $4,500/oz, said top‑line GEOs should grow through the year (Q1 GEOs were 136,353 with 117,980 precious‑metal GEOs), and noted margins per GEO remain elevated despite cash cost/Q1 rising to $341/GEO (from $304) while margin/Q1 rose to $4,534/GEO (from $2,559). Available capital to execute the pipeline was $3.4 billion at March 31 (cash $715M, parent credit capacity $1.5B incl. accordion, marketable securities $1.2B) plus a subsequent $500M subsidiary facility with a $250M accordion, and the company reaffirmed its progressive dividend of $0.44/quarter ($1.76 annualized) with $84.4M paid in Q1.
Strong Commodity Price Environment
Average gold price was ~70% higher year-over-year; silver and platinum led gains with increases of ~165% and ~128% respectively, materially boosting precious metal revenue and GEO margins.
Improved GEO Metrics and Volume
Total GEOs sold increased 8% to 136,353 (precious metal GEOs +17% to 117,980). Margin per GEO rose 77% to $4,534 while cash cost per GEO increased ~12% to $341, demonstrating strong operating leverage to higher metal prices.
Material Asset Contributions
Antamina revenue jumped from $21.3 million to $82.3 million due to higher silver prices and deliveries; South Arturo GEOs were up 322% driven by Phase 1 open pit production; Cote and Porcupine contributed ~6,500 GEOs or ~$31.5 million in revenue.
Strategic Transactions and Realized Gain
Partial buyback of Cascabel stream/royalty generated a gain of $63.8 million (50% royalty sold for $97.5 million; 50% stream proceeds $40.7 million delivered via ~10,000 oz of inventory). Company completed 4 acquisitions/ financings during the quarter (Casa Berardi stream with Orezone, i-80 and Minerals 260 financings, third-party royalty on AurMac).
Robust Liquidity and Financial Flexibility
Available capital totaled $3.4 billion at quarter end (cash $715 million, credit facility including accordion $1.5 billion, liquid marketable securities $1.2 billion). Subsequent to quarter end, subsidiary credit facility added $500 million with a $250 million accordion.
Sustained Shareholder Returns
Quarterly dividend increased 16% in January to $0.44 per share ($1.76 annualized); $84.4 million paid in the quarter. This marks the 19th consecutive year of dividend increases.
ESG and Portfolio Reporting Recognition
MSCI ESG rating upgraded from AA to AAA; published annual sustainability report and an asset handbook detailing 121 cash-flow producing assets and mine-life optionality (M&I resources supporting ~34 years of production; inferred resources ~12 additional years).
Operator
Good morning, and welcome to Franco-Nevada Corporation's First Quarter 2026 Results Conference Call and Webcast. This call is being recorded on May 13, 2026. [Operator Instructions] I would now like to turn the conference over to your host, Bonavie Tek, VP, Finance and Investor Relations. Please go ahead.
Bonavie Tek
Thank you, Vincent. Good morning, everyone. Thank you for joining us today to discuss Franco-Nevada's first quarter 2026 results. Accompanying this call is a presentation, which is available on our website at franco-nevada.com, where you will also find our full financial results. The presentation is also available to view on the webcast. During our call this morning, Paul Brink, President and CEO of Franco-Nevada, will provide introductory remarks; followed by Sandip Rana, Chief Financial Officer, who will provide a brief review of our results. This will be followed by a Q&A period. Our executive team is available to answer any questions.
Participants may submit questions by telephone or via the webcast. We would like to remind participants that some of today's commentary may contain forward-looking information. We refer you to our detailed cautionary note on Slide 2 of this presentation. I will now turn the call over to Paul Brink, President and CEO of Franco-Nevada.
Paul Brink
Thank you, Bonavie. Good day, everyone. At yesterday's AGM, David Harquail gave his last address as Chair before taking on the title of Chair Emeritus. As shareholders, we're all tremendously grateful to David for the incredible value he's created over 18 years at Franco-Nevada. On behalf of the Board and the ...
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