Nexa Reports 3Q26 Adjusted EBITDA of US$301 Million; Aripuanã Plant Utilization Reaches 90% in September
Mining production and smelting sales guidance remain unchanged despite higher planned capital spending and revised cost ranges.
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Rhea-AI Summary
Nexa Resources (NEXA) reported third-quarter 2026 adjusted EBITDA of US$301 million, up from both the prior year and preceding quarter. Adjusted EBITDA, an adjusted earnings measure, rose 62% year-over-year and 5% sequentially. Revenue increased 23% year-over-year to US$937 million, while the adjusted EBITDA margin reached 32.1%. A US$47 million net loss reflected a US$124 million non-cash impairment and a US$51 million non-cash silver-streaming remeasurement adjustment.
Free cash flow reached US$73 million, and net leverage fell to 1.24x. Aripuanã plant utilization averaged 84% and reached 90% in September. Nexa raised 2026 capital expenditure guidance 10% to US$420 million. Votorantim agreed to sell its 64.68% controlling stake to Boliden, with closing expected in 1Q27 subject to approvals. S&P lowered Nexa's long-term rating to BB+, triggering a requirement for a 2028 Notes tender offer after closing.
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Positive
- Moderate pointAdjusted EBITDA reached US$301 million, up 62% year-over-year and 5% quarter-over-quarter in 3Q26.
- Moderate pointRevenue reached US$937 million, up 23% year-over-year and 3% quarter-over-quarter.
- Moderate pointAdjusted EBITDA margin reached 32.1%, up 7.7 percentage points year-over-year and 0.6 points sequentially.
- Moderate pointFree cash flow reached US$73 million; operating activities generated US$185 million in net cash.
- Moderate pointNet leverage fell to 1.24x, versus 1.40x in 2Q26 and 2.21x in 3Q25.
- Moderate pointAvailable liquidity totaled US$735 million, including an undrawn US$320 million revolving credit facility.
- Moderate pointAripuanã utilization averaged 84%, versus 71% in 2Q26, reaching 90% in September.
- Moderate pointSmelting production reached 159kt, up 8% year-over-year and 28% quarter-over-quarter.
- Moderate pointCajamarquilla operated at full capacity, processing most cathode inventory accumulated after the May fire.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 mining cash cost guidance was lowered because of stronger by-product credits.
12 minor points
- Minor pointZinc production reached 85kt, up 1% year-over-year and 7% quarter-over-quarter.
- Minor pointLead production reached 18kt, up 4% year-over-year and 18% quarter-over-quarter.
- Minor pointSilver production reached 2.9 million ounces, broadly stable year-over-year and up 8% quarter-over-quarter.
- Minor pointSulfuric acid sales reached 178kt, up 18% quarter-over-quarter and broadly stable year-over-year.
- Minor pointSilver content sales reached 532koz, up 23% year-over-year and 14% quarter-over-quarter.
- Minor pointCopper cement sales reached 3.2kt, up 60% year-over-year and 14% quarter-over-quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Aripuanã mine development spending is being accelerated to support higher throughput in 2027.
- Minor pointCerro Pasco Phase I civil works and major equipment assembly were completed; mechanical completion remains expected by December 2026.
- Minor pointEl Porvenir Dam life was extended through September 2027, providing approximately two months of operational contingency.
- Minor pointTotal recordable injury frequency declined to 1.34 from 1.50 in 3Q25; there were no fatalities.
- Minor pointCerro Lindo cement consumption fell approximately 20% versus budget in the first nine months of 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.Boliden is expected to offer cash for remaining Nexa shares voluntarily following the controlling-stake transaction.
Negative
- Moderate pointNet loss totaled US$47 million, primarily reflecting non-cash impairment and silver-streaming remeasurement adjustments.
- Moderate pointCopper production fell to 6.0kt, down 30% year-over-year and 4% quarter-over-quarter.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 capital expenditure guidance rose 10% to US$420 million, reflecting accelerated investments and Brazilian real appreciation.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 smelting cash cost guidance increased to reflect higher zinc prices and the stronger Brazilian real.
- Moderate pointS&P lowered long-term ratings to BB+ from BBB-, with a Stable outlook.
- Moderate pointFitch placed BBB- issuer ratings and senior unsecured notes on Rating Watch Negative following the transaction announcement.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2028 Notes require a tender offer at 101% of principal within 30 days after the Boliden transaction closes.
8 minor points
- Minor pointSmelting sales reached 146kt, down 2% year-over-year despite rising 9% quarter-over-quarter.
- Minor pointJuiz de Fora output declined following an unplanned September roaster stoppage.
- Minor pointQuarterly capital expenditure reached US$111 million, up 24% year-over-year and 25% quarter-over-quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Cerro Pasco tailings pumping depends on operating authorization, expected in 2Q27 before an expected early-3Q27 start.
- Minor pointEl Porvenir and Atacocha environmental approvals remain pending, expected in March and April 2027, respectively.
- Minor pointBoliden's controlling-stake purchase remains subject to corporate and regulatory approvals, with closing expected in 1Q27.
- Minor point. Forward-looking: it has not happened yet and may not happen.2034 and 2037 Notes could also trigger tender offers if Fitch downgrades them, producing the defined Rating Decline.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026–2027 El Niño forecasts indicate potentially strong to very strong conditions; no quarterly operational impacts occurred.
News Explained
The post-closing 2028 Notes offer is priced at 101% of principal; further tenders for the 2034 and 2037 Notes depend on a Fitch downgrade.
After the Boliden transaction closes, Nexa will be required to make a tender offer for the 2028 Notes within 30 days, at
Separate tender offers for the 2034 and 2037 Notes would be triggered only if Fitch also downgraded those notes, resulting in a Rating Decline under their indentures.
Key Figures
- Adjusted EBITDA
- US$301 million; up 62% year-over-year and 5% quarter-over-quarter
- 3Q26
- Net revenues
- US$937 million; up 23% year-over-year and 3% quarter-over-quarter
- 3Q26
- Net leverage
- 1.24x
- Compared with 1.40x in 2Q26
- Free cash flow
- US$73 million
- 3Q26
- Net loss
- US$47 million
- 3Q26; the article attributes it primarily to non-cash adjustments
- 2026 CapEx guidance
- US$420 million; increased 10%
- Revised 2026 guidance
- Aripuanã plant utilization
- 90%
- Reached in September
- Change-of-control tender offer price
- 101% of principal
- 2028 Notes; required within 30 days after transaction closing
Historical Context
-
Reported EBITDA and revenue growth, with improved net leverage and normalized Cajamarquilla operations.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
cash tender offer financial
change of control tender offer financial
indenture financial
rating watch negative financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Adjusted EBITDA increased
Luxembourg, Luxembourg--(Newsfile Corp. - October 29, 2026) - Nexa Resources S.A. (NYSE: NEXA), one of the world's largest zinc producers, reported Adjusted EBITDA of US
The year-over-year improvement in Adjusted EBITDA was primarily driven by higher zinc prices and a stronger by-products contribution, while sequential results also benefited from the recovery of smelting sales volumes at Cajamarquilla, along with higher zinc and copper prices. Adjusted EBITDA margin expanded to
Free Cash Flow reached US
Aripuanã made good progress during the quarter, with average plant utilization increasing to
Nexa revised its 2026 CapEx guidance upward by
Commenting on the results, Ignacio Rosado, CEO of Nexa, said: "While the zinc concentrate market remained tight, Nexa's integrated business model allowed us to capture value across the value chain. Higher zinc prices supported mining results, while stronger contributions from by-products sustained our smelting margins."
In August, Votorantim signed a definitive agreement to sell its controlling stake in Nexa to Boliden. Closing is expected in the first quarter of 2027, subject to customary regulatory approvals. Until closing, Nexa will continue to operate as a separate company, with no changes to its strategy, capital allocation priorities or commitments to stakeholders.
"Safety remains a priority for us: our injury frequency rate improved in the quarter and there were no fatalities. We are preparing our operations for the 2026-2027 El Niño event, which official forecasts indicate could reach strong to very strong intensity. There was no operational impact in the quarter. As part of our preparedness efforts, we built strategic zinc concentrate inventories to support smelter continuity under different scenarios. As we monitor political and macroeconomic developments in our key markets, including trade policy, our priorities remain clear: operating safely, maximizing free cash flow, reducing gross debt, and creating long-term value for our shareholders and the communities where we operate," stated Mr. Rosado.
Operational Highlights
- Mining: zinc production reached 85kt, up
1% year-over-year and7% quarter-over-quarter, supported by higher treated ore volumes and zinc grades. Lead production increased4% year-over-year and18% quarter-over-quarter to 18kt, also supported by higher grades. Copper production declined30% year-over-year and4% quarter-over-quarter to 6.0kt, mainly reflecting lower head grades at Cerro Lindo and Aripuanã. Silver production totaled 2.9 million ounces, broadly stable year-over-year and up8% quarter-over-quarter, supported by higher throughput and grades, particularly at Aripuanã.
- Smelting: zinc metal and oxide production totaled 159kt, up
8% year-over-year and28% quarter-over-quarter, while sales reached 146kt, down2% year-over-year and up9% quarter-over-quarter. The sequential increase in production was mainly driven by the operational recovery at Cajamarquilla, with the unit operating at full capacity and processing most of the cathode inventory accumulated after the May fire incident, partially offset by lower output at Juiz de Fora following an unplanned roaster stoppage in September, during which scheduled maintenance was brought forward. Year-over-year performance primarily reflects the processing at Cajamarquilla of cathode inventory accumulated during the temporary suspension of operations in 2Q26.
- By-products: sulfuric acid sales totaled 178kt, up
18% quarter-over-quarter, primarily reflecting higher sales at Cajamarquilla, and remained broadly stable year-over-year. Silver content sales rose23% year-over-year and14% quarter-over-quarter to 532koz, mainly driven by higher production and improved silver recovery rates at Cajamarquilla. Copper cement sales increased60% year-over-year and14% quarter-over-quarter to 3.2kt, also reflecting higher production and improved copper recovery rates.
Capital Allocation and Balance Sheet
- CapEx totaled US
$111 million in 3Q26, up25% quarter-over-quarter and24% year-over-year, primarily reflecting higher investments in Tailings Storage Facilities and increased mine development expenditures. Investments included US$15 million allocated to Phase I of the Cerro Pasco Integration Project, bringing cumulative investments in the project to US$31 million in the first nine months of 2026.
- We generated US
$185 million in net cash from operating activities and US$73 million in free cash flow. Cash, cash equivalents and financial investments totaled US$415 million at quarter-end, and total available liquidity, including the undrawn US$320 million revolving credit facility, reached US$735 million .
- Net leverage, measured as net debt to last twelve months ("LTM") Adjusted EBITDA, improved to 1.24x, compared to 1.40x in 2Q26 and 2.21x in 3Q25, primarily driven by stronger LTM Adjusted EBITDA of US
$1,169 million and lower net debt.
Cerro Pasco Integration Project
- Phase I of the Cerro Pasco Integration Project continued to advance during the quarter. All civil works, major equipment assembly, the access road and the Atacocha Dam raise to elevation level 4131 were completed, while electromechanical assembly and commissioning activities progressed as planned.
- Mechanical completion remains expected by December 2026, followed by commissioning activities through 1Q27. Following operating authorization from Peru's General Directorate of Mining - Ministry of Energy and Mines (DGM-MINEM), currently expected in 2Q27, tailings pumping is expected to start in early 3Q27.
- The second Environmental Impact Study Modification (MEIA) for El Porvenir and the third MEIA for Atacocha remain under evaluation by Peru's National Environmental Certification Service for Sustainable Investments (SENACE). Approvals are currently expected in March and April 2027, respectively.
- The life-of-mine of the El Porvenir Dam at elevation level 4070 was extended through September 2027, providing approximately two months of operational contingency ahead of the planned start of tailings pumping operations.
ESG and Corporate Highlights
In 3Q26, Nexa continued to advance key initiatives across safety, sustainability, innovation, community engagement and corporate governance. The Company strengthened operational preparedness for the 2026-2027 El Niño event, advanced resource-efficiency and circular economy initiatives, and expanded programs focused on health, education and community engagement. Nexa also continued to reinforce its governance practices and industry participation while supporting the safe and sustainable operation of its assets.
Safety & Operational Excellence
- Safety performance improved during the quarter, with the total recordable injury frequency rate ("TRIFR") declining to 1.34 from 1.50 in 3Q25, despite approximately
19% more hours worked. - At the Cerro Pasco Complex, Nexa advanced initiatives focused on critical risk management, including the installation of fatigue and drowsiness monitoring cabins and the launch of the "Line of Fire" campaign at El Porvenir and Atacocha.
- At Três Marias, the action plan established following the fire event was completed, with all planned actions executed and monitored by senior management.
Climate Resilience & El Niño Preparedness
- Nexa continued to strengthen preparedness for the 2026-2027 El Niño and Coastal El Niño events. Official forecasts indicate the potential for strong to very strong conditions. No operational impacts were recorded during the quarter.
- The Company engaged a specialized climate-risk consultancy to assess potential impacts across its operations in Brazil and Peru, covering droughts, wildfires, flooding, landslides and heat waves. Preparedness and response measures were reviewed across operating units and corporate functions.
- In Peru, preparedness efforts included increasing inventories of critical materials, building strategic zinc concentrate inventories to support smelter continuity, expanding storage capacity and transportation alternatives, and enhancing geotechnical inspections and monitoring of areas exposed to flooding and landslides.
- Nexa does not expect energy costs to be materially affected by the event. In Peru,
100% of the Company's energy requirements, including for 2027, are contracted, while uncovered energy positions in Brazil represent less than10% of expected 2027 consumption.
Innovation & Circular Economy
- At Cerro Lindo, the backfill optimization project commissioned in March 2026 reduced cement consumption by approximately
20% versus budgeted levels in the first nine months of the year. - At Aripuanã, the fourth tailings filter continued to support higher processing rates, with plant utilization reaching
90% in September, and expanded the operation's dry-stack tailings capacity, enabling greater water recovery and reuse. - At Juiz de Fora, Nexa continued to advance circular economy initiatives through the development of Geojar, a jarosite-based additive designed to replace lime or cement in the stabilization of tailings for dry stacking.
- At Juiz de Fora, Nexa supplied approximately 3,000 tonnes of Waelz Aggregate for road paving projects in partnership with local municipalities, replacing virgin crushed stone and avoiding an estimated 44 tCO₂e.
- At Cerro Lindo, the Company completed pyrite concentration tests and advanced studies to support future commercialization opportunities.
Communities, Inclusion & Social Development
- In 3Q26, Nexa conducted two community health campaigns in Peru, serving 466 patients through five days of free medical care across 11 specialties. In 9M26, the Company conducted eight campaigns near its Cajamarquilla, Cerro Lindo and Cerro Pasco operations, serving 1,446 patients across 12 specialties.
- Over the same period, Nexa's scholarship program in Peru supported 1,168 higher education students, with financial assistance tailored to community needs, including student housing, academic materials and transportation.
- Since its launch in June 2026, Nexa's Community Contact Channel for its operations in Brazil has received 236 contacts, including requests, complaints, grievances and inquiries, with an average response time of two business days. The Company continues to promote the channel to strengthen community engagement and grievance management.
Governance & Industry Leadership
- In September 2026, Nexa participated in Exposibram 2026 in Brazil, where the Company presented its inclusive safety helmet prototype, and in EXPOMINA Perú 2026, where it led the Logistimin Forum on supply chain resilience.
- In October 2026, Nexa announced that Carlos Alberto Hilário de Andrade, Vice President of Human Resources and Corporate Affairs, will retire after serving in the role since April 2025. Livia Desenso Monteiro was appointed as his successor and will assume the position of Human Resources and Corporate Affairs Officer effective November 1, 2026.
Financial & Corporate Highlights
- On August 27, 2026, Nexa announced that Votorantim S.A. had entered into a definitive agreement to sell its
64.68% controlling stake in the Company to Boliden. Following closing, Boliden is expected to launch a voluntary cash tender offer for all remaining Nexa shares, at a price determined by reference to the same exchange ratio, as well as mandatory tender offers for the remaining shares of certain Nexa subsidiaries in Peru. Nexa is expected to remain a separate company incorporated under the laws of Luxembourg, with its existing management team remaining in place. Closing is expected in the first quarter of 2027, subject to customary closing conditions, including corporate and regulatory approvals. - On August 31, 2026, Fitch Ratings placed Nexa's 'BBB-' Long-Term Foreign and Local Currency Issuer Default Ratings and senior unsecured notes on Rating Watch Negative following the announcement of the transaction, citing limited visibility on the ties between Nexa and its prospective controlling shareholder, while affirming the National Scale Long-Term Ratings of Nexa and Nexa Recursos Minerais S.A. at 'AAA(bra)' with a Stable Outlook.
- On October 27, 2026, S&P Global Ratings lowered its long-term ratings on Nexa and its senior unsecured notes to 'BB+' from 'BBB-', with a 'Stable' outlook, and affirmed its 'A-3' short-term issuer credit rating. According to S&P, the downgrade reflects its view that, while Nexa will be a strategically important subsidiary of its prospective parent, Boliden, Nexa's relationship with Boliden is one category weaker than with its current parent, Votorantim. As a result of this downgrade, Nexa will be required to make a change of control tender offer for the 2028 Notes at a price of
101% of their principal amount, pursuant to the indenture governing the 2028 Notes, within 30 days after closing of the transaction with Boliden. A change of control tender offer would only be triggered under the indentures governing the 2034 and 2037 Notes if Fitch were also to downgrade such notes, resulting in a Rating Decline as defined in the indentures. The Company continues to evaluate alternatives for its outstanding debt, including the 2028 Notes, as part of its ongoing liability management and gross debt reduction strategies for 2026. - Moody's rating remains 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 3Q26 Earnings Release document, please visit our Investor Relations website at: https://ir.nexaresources.com.
For further information, please contact our teams:
| NEXA | Investor Relations E-mail: ir@nexaresources.com | NEXA | Communications & Corporate Affairs E-mail: bruno.carrilho@nexaresources.com |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321650
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Nexa's third-quarter 2026 earnings results?
Nexa reported US$301 million in adjusted EBITDA and a US$47 million net loss. Adjusted EBITDA rose 62% year-over-year and 5% quarter-over-quarter. The loss primarily reflected a US$124 million non-cash impairment related to Brazilian smelting assets and a US$51 million non-cash silver-streaming remeasurement adjustment.
How is Nexa preparing its energy supply for the 2026–2027 El Niño event?
Nexa has contracted 100% of its energy requirements in Peru, including for 2027, while uncovered Brazilian positions represent less than 10% of expected 2027 consumption. The company does not expect the event to materially affect energy costs.
What is Nexa's Cerro Pasco Integration Project commissioning schedule?
Mechanical completion remains expected by December 2026, followed by commissioning through 1Q27. Operating authorization from Peru's DGM-MINEM is currently expected in 2Q27, with tailings pumping expected to begin in early 3Q27 after authorization. Phase I investment totaled US$31 million in the first nine months of 2026.