Nexa Reports 2Q26 Net Income of US$98 Million and Adjusted EBITDA of US$286 Million
Rhea-AI Summary
Nexa (NYSE: NEXA) reported 2Q26 net income of US$98 million, up from US$13 million in 2Q25 and slightly below US$118 million in 1Q26. Adjusted EBITDA reached US$286 million, a 78% year-over-year increase, on net revenues of US$908 million, up 28% year-over-year, driven by higher zinc prices, stronger by-product contributions, greater self-supply of concentrate and lower operating costs.
Mining zinc production was 79kt (+8% YoY), while copper output declined to 6.3kt (-31% YoY). Smelting zinc production was 125kt (-10% YoY), impacted by the temporary suspension at Cajamarquilla after a May fire, with operations normalized in June. Net leverage improved to 1.40x on LTM Adjusted EBITDA of US$1,055 million.
The Cerro Lindo silver streaming threshold was reached, reducing the streamed share from 65% to 25% from May, enhancing recurring cash generation. Nexa increased total CAPEX for the Cerro Pasco Integration Project from US$138 million to US$180 million and shifted completion of the tailings pumping system to 1Q27, with pumping expected to start in early 3Q27. Shareholders approved a US$17.5 million share premium reimbursement and renewed board mandates. S&P reaffirmed Nexa’s BBB- rating with Stable outlook in June, then placed it on CreditWatch negative in July due to potential changes in control discussions involving Votorantim and Boliden.
Positive
- Net income US$98m vs US$13m in 2Q25
- Adjusted EBITDA US$286m, up 78% year-over-year
- Net revenues US$908m, up 28% year-over-year
- Net leverage improved to 1.40x LTM Adjusted EBITDA
- Reached Cerro Lindo silver stream stepdown to 25% in May
- Share premium reimbursement US$17.5m approved, US$0.132136 per share
Negative
- Copper production down to 6.3kt, -31% year-over-year
- Zinc metal and oxide production 125kt, -10% year-over-year
- Cerro Pasco CAPEX increased to US$180m from US$138m
- Cerro Pasco tailings system completion delayed to 1Q27 from 4Q26
- S&P placed BBB- rating on CreditWatch with negative implications
News Explained
No acquisition agreement has been disclosed, so Nexa’s ownership and control remain unchanged for now.
Nexa says Votorantim and Boliden have confirmed discussions about a potential acquisition of Votorantim’s controlling stake, but as of
That leaves the potential transaction at a discussion stage, with no disclosed change yet to Nexa’s ownership or control.
Separately, shareholders approved an increase in authorized share capital and renewed the Board’s authorization to increase issued share capital.
The release records authorization to increase issued share capital, rather than reporting that such an increase has occurred.
The next resolution point is whether Votorantim and Boliden enter an agreement, because its terms and timing would determine whether the potential control change advances beyond discussions.
News Market Reaction – NEXA
In the Aug 6 session, NEXA gained 1.78%, reflecting a mild positive market reaction. Argus tracked a peak move of +2.5% during that session. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 02 | Potential acquisition update | Neutral | +1.3% | Potential controlling-stake transaction remained uncertain despite a positive 1.3% price reaction. |
| Jun 25 | Shareholder meeting results | Positive | +3.1% | Shareholders approved governance resolutions and a US$17.5 million reimbursement. |
| May 29 | Smelter operations update | Positive | +6.9% | Cajamarquilla operations resumed while lost refined zinc volumes remained targeted for recovery. |
| May 13 | Smelter fire update | Negative | +6.4% | A Cajamarquilla fire temporarily suspended operations, but the subsequent price reaction was positive. |
| May 06 | 1Q26 earnings report | Positive | -16.7% | Higher earnings and EBITDA accompanied operational milestones, yet the stock fell 16.69%. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
NEXA's historical record showed positive reactions to operational updates but a sharp divergence after its prior earnings report, which was followed by -16.69%.
Key Terms
adjusted ebitda financial
silver streaming financial
block caving technical
creditwatch financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Adjusted EBITDA increased
78% year-over-year on higher mining and smelting results. - Aripuanã commissions and starts up fourth tailings filter.
- Cerro Lindo silver streaming stepdown became effective in May, supporting stronger cash generation going forward.
Luxembourg, Luxembourg--(Newsfile Corp. - August 5, 2026) - Nexa Resources S.A. (NYSE: NEXA), one of the world's largest zinc producers, today reported net income for the second quarter of 2026 of US
The year-over-year improvement was primarily driven by higher zinc prices, a stronger contribution from by-products, a higher share of zinc concentrate sourced from Nexa's own mines and lower operating costs. The recovery of Peruvian operations also supported improved mining performance during the quarter, with treated ore volumes increasing
The quarter also marked two important operational milestones for Nexa. At Aripuanã, the company commissioned its fourth tailings filter and ended June at
At Cajamarquilla, operations returned to normal levels in June following the May fire incident, while zinc cathode production continued throughout the restoration process. The company expects to recover the affected volumes in the second half of the year, and its 2026 guidance for mining production, smelting sales, costs, CAPEX, and exploration, project evaluation, and other expenses remains unchanged.
During the quarter, Nexa reached the delivery threshold under the Cerro Lindo silver streaming agreement, reducing the streamed share of production from
Commenting on the results, Ignacio Rosado, CEO of Nexa, said: "The zinc concentrate market remains tight, with spot TCs in China deep in negative territory. The same conditions that pressure merchant smelters support our mining segment, and our own feed and by-product credits cushion the rest. Our mines supplied
In July, Votorantim and Boliden publicly confirmed discussions regarding a potential acquisition of Votorantim's controlling stake in Nexa. As of the date of this release, whether any agreements, including any agreements involving the company, will be entered into in connection with a potential transaction, and the timing and terms of any such agreements remain uncertain.
"Our responsibility is unchanged: to operate our assets in Brazil and Peru to the highest standards, prioritizing safety, operational excellence, sustainability, innovation, and responsible production while ensuring long-term value is preserved for our shareholders. That is what our results for this quarter reflect, and it is what we will continue to strive for in the second half of the year," stated Mr. Rosado.
Operational Highlights
- Mining: zinc production reached 79kt, up
8% year-over-year on higher grades, and broadly stable sequentially. Lead production increased2% both year-over-year and quarter-over-quarter to 15kt. Copper production declined31% year-over-year and2% quarter-over-quarter to 6.3kt, reflecting lower head grades at Cerro Lindo and Aripuanã. Silver production totaled 2.7 million ounces, up1% year-over-year and17% quarter-over-quarter, supported by the recovery of our Peruvian operations from 1Q26 setbacks.
- Smelting: zinc metal and oxide production totaled 125kt, down
10% year-over-year and15% quarter-over-quarter, while sales reached 134kt, down7% year-over-year and8% quarter-over-quarter, primarily reflecting the temporary suspension of operations at Cajamarquilla following the May fire incident.
- By-products: sulfuric acid production increased
9% year-over-year to 202kt, driven by higher throughput of sulfide concentrate. Silver content sales rose22% to 468koz, primarily on higher silver content in the concentrate feed and recovery improvements at Cajamarquilla, alongside the consumption of calcine inventory with higher silver content at Juiz de Fora. Copper cement sales increased38% to 2.8kt.
Capital Allocation and Balance Sheet
- CAPEX totaled US
$89 million in 2Q26, up24% quarter-over-quarter and3% year-over-year, primarily reflecting higher mine development investments and accelerated project disbursements. Spending was directed mainly toward mine development and Tailings Storage Facilities, including US$9 million invested in Phase I of the Cerro Pasco Integration Project. Nexa's 2026 CAPEX guidance of US$381 million remains unchanged.
- Net leverage measured by the net debt to LTM Adjusted EBITDA ratio, improved to 1.40x, compared to 1.59x in 1Q26 and 2.28x in 2Q25, primarily driven by stronger last twelve months ("LTM") Adjusted EBITDA of US
$1,055 million . Net debt was broadly stable quarter-over-quarter and down3% year-over-year.
Cerro Pasco Integration Project
- Nexa completed the main civil works of Phase I during the quarter and advanced to the electromechanical assembly stage, including installation of the tailings thickener. All main equipment has been manufactured, tested and remains available according to the project sequence.
- Following a review of the project's long-term configuration, Nexa increased the total estimated CAPEX for the Cerro Pasco Integration Project from US
$138 million to US$180 million . The more favorable metal price environment supported a reassessment of certain operating parameters at the Atacocha open pit mine, including the review of economically mineable areas, which are expected to enable the extension of the open-pit operation beyond previous expectations. This led to a revised development sequence for tailings and waste storage facilities. The revised scope also incorporates geomembrane lining, which was not part of the original design and strengthens the project's environmental and regulatory risk profile. CAPEX guidance for the project in 2026 remains unchanged, with the incremental investment allocated to 2027 and subsequent years.
- Completion of the tailings pumping system is now expected in 1Q27, compared with 4Q26 previously, reflecting adjustments to the construction sequence and space constraints at the site, while the start of pumping operations is expected in early 3Q27. Following completion of the tailings pumping system, Nexa will begin the process of obtaining operating authorization from Peru's General Directorate of Mining – Ministry of Energy and Mines (DGM-MINEM).
- The second Environmental Impact Study Modification (MEIA) for El Porvenir and the third MEIA for Atacocha remain under evaluation by SENACE, with approvals still expected in 1Q27.
ESG and Corporate Highlights
In 2Q26, Nexa advanced key initiatives across safety, innovation, sustainability, community engagement and corporate governance. The company strengthened operational risk controls and accelerated the adoption of automation and artificial intelligence across its operations, while progressing circular economy projects aimed at creating value from industrial residues. Nexa also expanded its engagement with local communities, reinforced governance and risk management practices, and maintained its commitment to transparency, responsible production and long-term value creation.
Safety & Operational Excellence
- Nexa strengthened safety controls following fire incidents at its Três Marias and Cajamarquilla smelters. The company concluded the investigation into the Três Marias event and implemented improvements covering maintenance procedures, hot work controls, workforce training and operational planning. The investigation into the Cajamarquilla fire remains ongoing, with measures focused on the safe resumption of operations.
- At Cerro Lindo, Nexa centralized underground blasting through remote operation from a surface control room. The block caving operation is supported by equipment automation, remote operation and real-time geotechnical instrumentation, which further reduce personnel exposure in production and caving zones.
Innovation & Circular Economy
- Nexa advanced several circular economy initiatives during the quarter, including the pyrite commercialization project in Peru, the development of Waelz Aggregate for road paving applications, and initiatives in Brazil to convert industrial residues into agricultural inputs.
- The company also expanded the use of artificial intelligence in its operations through the AI Vazante project, focused on flotation optimization, and finalized development of an AI-based automated process control model at Cajamarquilla aimed at improving process stability and increasing silver recovery.
Communities, Inclusion & Social Development
- In Brazil, Nexa launched a 24/7 Community Contact Channel across its areas of influence, providing a dedicated platform for inquiries, requests, suggestions and grievances while strengthening stakeholder engagement and grievance management.
- The company delivered more than 2,500 medical services to over 900 patients through community health campaigns near its Cerro Lindo and Pasco operations and distributed more than 12,000 school kits to students across more than 60 communities in Peru.
- Nexa continued advancing its diversity and inclusion agenda through industry engagement, employee resource groups and leadership initiatives, including participation in Diversibram 2026 and the XVI International Mining Conference.
Governance & Industry Leadership
- Nexa strengthened its corporate governance framework through enhancements to advisory committees and governance tools integrated with its Enterprise Risk Management (ERM) framework.
- The company was awarded the Gold Seal of the Brazilian GHG Protocol Program for its 2025 greenhouse gas inventory and hosted Zinc College 2026 in Lima, bringing together industry participants to discuss the zinc value chain, market applications and the future of the industry.
- At the 17th Opex Workshop, Nexa received the 28th Mining and Metallurgical Industry Excellence Award for projects developed by its Aripuanã and Vazante teams, including the Cash Flow Control program focused on operational efficiency and financial predictability.
Financial & Corporate Highlights
- At the Annual and Extraordinary General Meetings of Shareholders held on June 25, 2026, shareholders renewed the mandates of all members of the Board of Directors, approved an increase in the authorized share capital and renewed the Board's authorization to increase the issued share capital. Shareholders also approved a share premium reimbursement of US
$17.5 million , or US$0.132136 per share, payable on August 11, 2026, to shareholders of record as of July 28, 2026. - In June 2026, S&P Global Ratings reaffirmed Nexa's investment-grade credit rating of 'BBB-' with a 'Stable' outlook.
- In July 2026, S&P placed Nexa's 'BBB-' issuer credit rating on CreditWatch with negative implications, following the announcements confirming ongoing discussions between Votorantim S.A. and Boliden AB regarding a potential acquisition of Votorantim's controlling stake in Nexa. S&P indicated that the action reflects the potential change of control rather than Nexa's operating or financial performance and stated its intention to resolve the CreditWatch upon the conclusion of the potential transaction. Nexa's ratings from Fitch Ratings and Moody's remain unchanged.
About Nexa
Nexa Resources is one of the world's leading zinc mining companies, with over 65 years of experience across mining and smelting operations. Nexa operates in Brazil and Peru, and maintains offices in Luxembourg and the United States, supplying products to customers on every continent. Driven by strong commitment to sustainability, innovation and operational excellence, Nexa's employees work every day to build the mining that changes with the world. This commitment is grounded in the highest standards of safety, respect for people, and environmental stewardship. Since 2017, Nexa Resources has been listed on the New York Stock Exchange, with Votorantim S.A. as its controlling shareholder. For more information about Nexa, as well as its ESG strategy and commitments, please visit our website.
For a full version of the 2Q26 Earnings Release document, please visit our Investor Relations website at: http://ir.nexaresources.com
For further information, please contact our teams:
| NEXA | Investor Relations | NEXA | Communications & Corporate Affairs |
| E-mail: ir@nexaresources.com | E-mail: bruno.carrilho@nexaresources.com |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308260