Sigma Lithium Announces Record Results for 1Q26: 39% EBITDA Margin; 26% Profitability; 21% of Total Debt Repaid

Rhea-AI Summary

Sigma Lithium (NASDAQ: SGML) reported record 1Q26 profitability, with 61% gross margin, 39% EBITDA margin and 26% net margin. Revenue reached US$42 million from 23,000 tonnes of lithium concentrate, up 150% from 4Q25. Total debt fell to US$134 million, down 21% year-over-year and 33% over two years. Cash and equivalents reached US$28 million by May 15, 2026. The company is on track for 240,000 t/year annualized production and targets capacity expansions to 520,000 t and 770,000 t by year-end 2027. Updated cost guidance reflects higher diesel prices and Brazilian real appreciation.

AI-generated analysis. Not financial advice.

Positive

• Record 1Q26 margins: 61% gross, 39% EBITDA, 26% net
• 1Q26 revenue US$42M, up 150% versus 4Q25
• Realized high-grade lithium price US$1,790/t SC5 (US$2,150 SC6)
• Total debt reduced to US$134M, down 21% YoY and 33% in two years
• Cash and equivalents US$28M as of May 15, 2026
• On track for 240,000 t/year production, with plans to reach 770,000 t capacity

Negative

• 1Q26 revenue US$42M below 1Q25 level of US$48M
• Total debt remains significant at US$134M despite reductions
• Cost-per-tonne guidance raised due to higher diesel and stronger Brazilian real

Key Figures

Gross margin: 61% EBITDA margin: 39% Net margin: 26% +5 more

8 metrics

Gross margin 61% 1Q26 profitability highlight

EBITDA margin 39% 1Q26 operating performance

Net margin 26% 1Q26 profitability

Revenue US$42M 1Q26 sales of lithium oxide concentrate

Total debt US$134M End of 1Q26, after 21% reduction in one year

Debt reduction (1 year) 21% Total debt decline over last year

Sales volume 23,000 tonnes 1Q26 lithium oxide concentrate equivalent (5% Li2O)

AISC Phase 1 US$710/t Estimated all-in sustaining cost per tonne, Phase 1

Market Reality Check

Price: $16.82 Vol: Volume 3,271,865 is close...

normal vol

$16.82 Last Close

Volume Volume 3,271,865 is close to 20-day average 3,360,345 (relative volume 0.97x). normal

Technical Price 17.87 is trading above 200-day MA at 10.95, despite a -5.12% daily decline.

Peers on Argus

SGML fell 5.12% while key peers were mixed: LAC -3.93%, UAMY -2.84%, SLI +0.25%,...

2 Down

SGML fell 5.12% while key peers were mixed: LAC -3.93%, UAMY -2.84%, SLI +0.25%, CRML +3.11%, NEXA +5.79%. Momentum scanner flagged UAMY -5.97% and USAS -5.31%, but no broad, same-direction sector move.

Historical Context

5 past events · Latest: May 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 12	Operations & safety	Positive	+2.9%	Update on safety record and ramp-up toward 240,000 tpy guidance.
May 05	Earnings timing	Neutral	-0.2%	Announcement of date and call details for 1Q26 earnings release.
Apr 02	Financing & expansion	Positive	+21.5%	US$100M bank guarantee to support construction of Plant 2 expansion.
Mar 30	Full-year results	Positive	+14.0%	Full year 2025 results with strong cash flow and offtake agreements.
Mar 29	Earnings call notice	Neutral	+14.0%	Notification of 2025 full-year earnings presentation call schedule.

Pattern Detected

Recent operational and financing updates have often coincided with positive price reactions, suggesting the stock has historically responded favorably to strong fundamental news.

Recent Company History

Over the last few months, Sigma Lithium has highlighted ramped production toward 240,000 tpy, major offtake and bank guarantee agreements, and strong cash generation with debt reduction. News on safety milestones and expansion of capacity to 520,000 tonnes has also been frequent. These updates typically saw double‑digit positive moves. Today’s record margin announcement extends this narrative of scaling output while improving the balance sheet.

Market Pulse Summary

This announcement emphasized record profitability, with a 61% gross margin, 39% EBITDA margin and US...

Analysis

This announcement emphasized record profitability, with a 61% gross margin, 39% EBITDA margin and US$42M in 1Q26 revenue from 23,000 tonnes of concentrate. Total debt fell to US$134M, while production remains on track for 240,000 tpy and longer‑term capacity steps to 520,000 and 770,000 tonnes. Investors may watch realized lithium prices, cost per tonne versus updated guidance, and progress on the multi‑phase expansion plan.

Key Terms

ebitda margin, net margin, all-in sustaining cost, cif china cash cost, +3 more

7 terms

ebitda margin financial

"Sigma Lithium achieved the highest profitability in its history: 61% gross margin.39% EBITDA margin."

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

net margin financial

"39% EBITDA margin.26% net margin.Generated US$42M in revenues"

Net margin is the percentage of revenue a company keeps as profit after paying all costs, interest, taxes and one-time items — think of it as the slice of each dollar of sales that ends up in the company’s pocket. Investors use it like a yardstick to compare how efficiently different businesses turn sales into actual profit; higher net margins mean more profit per dollar of revenue and generally indicate stronger financial health or pricing power.

all-in sustaining cost financial

"All-In Sustaining Cost* | ($710) | ($620) | ($610)"

All-in sustaining cost (AISC) is a per-unit measure that shows the full, ongoing cost to produce a commodity, typically an ounce of metal, including direct mining costs, sustaining capital (ongoing equipment and mine upkeep), royalties, and general overhead. For investors it matters because AISC reveals the durable earning power and true profit margin of a producer—like calculating the total monthly cost to own and operate a car to judge whether selling rides is profitable over time.

cif china cash cost financial

"CIF China Cash Cost | ($624) | ($571) | ($571)"

CIF China cash cost is the per‑unit out‑of‑pocket price of a commodity or product after adding the cost of getting it shipped and insured to a Chinese port (CIF = cost, insurance, freight). Think of it as the final grocery bill for delivering a bulk item to China: it shows what an importer actually pays in cash, excluding non‑cash items like depreciation. Investors use it to compare import competitiveness, estimate margins for producers or traders, and gauge price pressure in Chinese demand centers.

maintenance capex financial

"Maintenance Capex | ($6) | ($6) | ($6)"

Maintenance capex is the cash a company spends to repair, replace or upkeep existing physical assets—like machines, buildings, vehicles or IT—so the business can keep operating at current levels rather than grow. Investors watch it because higher maintenance costs reduce the cash a company can use for dividends, paying down debt or funding expansion; think of it like ongoing repairs on an older car that consume your budget and limit new purchases.

accounts receivable financial

"resulted in an accounts receivable balance of US$22 million, which has since"

Money a company is owed by its customers for goods or services already delivered but not yet paid for. Think of it like a stack of IOUs or open tabs: it represents future cash the business expects to collect. Investors watch accounts receivable because large or growing balances can signal strong sales or potential cash shortfalls if customers don’t pay, affecting liquidity, working capital and the company’s financial health.

working capital offtake agreement financial

"from the previously announced US$96 million working capital offtake agreement, as well as"

A working capital offtake agreement is a contract where a buyer agrees to purchase a company’s future output and provides advance payments or steady orders that the seller can use as short-term cash to run day-to-day operations. Think of it like a large customer paying ahead to keep a bakery stocked: it frees the company from immediate financing needs but ties revenue and cash flow to one or a few partners, so investors should watch counterparty risk, margin terms and how dependent the business becomes on that support.

AI-generated analysis. Not financial advice.

HIGHLIGHTS

• Sigma Lithium achieved the highest profitability in its history:
  • 61% gross margin.
  • 39% EBITDA margin.
  • 26% net margin.
• Generated US$42M in revenues from the sale of 23,000t of lithium oxide concentrate equivalent:
  • Realized price of $1,790 (SC5).
• Significantly deleveraged, decreasing total debt:
  • By 21% over the last year
  • By 33% over the last 2 years.
• Cash position of US$28M as of May 15, 2026, the highest since year end 2024.
• On track to achieve 240,000t of annualized production, with the successful completion of mining operations ramp-up following a successful restructuring:
  • Fleet upgrade, capacity increase and modernization.

Conference Call Information

The Company will hold a conference call to discuss its financial results for the first quarter of 2026 at 8:30a.m. ET on Friday, May 15, 2026. Register for the call at https://ir.sigmalithiumcorp.com/events

São Paulo, Brazil--(Newsfile Corp. - May 15, 2026) - Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) (BVMF: S2GM34) ("Sigma Lithium" or the "Company"), the largest producer of lithium oxide concentrate in the Americas¹ and dedicated to industrializing socially and environmentally sustainable lithium materials to supply global producers of batteries for energy security, announces the Company's results for the three months ended March 31, 2026 and provides an update on recent developments.

POSTED RECORD MARGINS

In 1Q26, Sigma Lithium achieved the highest profitability in the Company's history, posting record margins, with gross margin of 61%, EBITDA margin of 39% and net margin of 26%. The Company delivered solid sales volumes, maintained its low cost position and benefited from higher lithium prices. Sales volume in 1Q26 was 23,000 tonnes of both low grade and high grade lithium oxide concentrate, calculated on an equivalent basis for 5% Li2O content. The realized price for high-grade lithium oxide in 1Q26 was US$1,790 per tonne SC5 (US$2,150 SC6), which compares with 3Q25, the last quarter before the Company's restructuring of mining operations, with US$630 per tonne SC5 (US$756 SC6).

STRONG REVENUE GENERATION

In 1Q26, Sigma Lithium generated solid revenues of US$42 million, up 150% from 4Q25, when sales were impacted by the above mentioned mining restructuring, and represent the highest quarterly revenues achieved by the Company since 1Q25 (US$48 million). Revenue generation in 1Q26 was achieved almost exclusively through the sales of lithium oxide concentrate of different grades, with only a small about of shipping service revenues. This compares with 4Q25, when revenue was made up primarily of positive adjustments on provisionally priced sales and a substantial amount in shipping service revenue.

CONTINUED TO DELEVERAGE

In 1Q26, Sigma Lithium continued to reduce debt. Total debt at the end of 1Q26 stood at US$134 million, having declined by 21% in one year and by 33% in two years. The reduction was achieved despite lithium market volatility and via a strategy of progressively paying down higher cost short term export financing lines, which fell from a two-year high at the end of 2Q24 at US$102 million to US$13 million at the end of 1Q26.

SIGNIFICANT INCREASE IN CASH POSITION

Today, May 15, 2026, Sigma Lithium's position in cash and equivalents is US$28 million, which is the largest amount the Company has recorded since year end 2024. Sigma Lithium ended 1Q26 with US$4 million in cash and equivalents, but the strong sales in the quarter resulted in an accounts receivable balance of US$22 million, which has since been mostly translated into the Company's cash balances. The Company also continued to receive advanced payments for sales of high-grade lithium oxide concentrate, including from the previously announced US$96 million working capital offtake agreement, as well as from the sales of high purity low grade materials.

ON TRACK TO DELIVER PRODUCTION OF 240,000t

Sigma Lithium successfully concluded a full ramp up of mining operations following the restructuring started in October 2025 and is on track to achieve the production guidance provided at the end of 1Q26 of an annualized 240,000 tonnes per year of high-grade lithium oxide concentrate.

Sigma Lithium remains committed to deliver high near-term growth and now expects the next two phases of the Company's development to be concluded by year end 2027. These are the expansions Phase 2, designed to take nominal annual capacity from the current 270,000 tonnes of high-grade lithium oxide concentrate to 520,000 tonnes, and Phase 3, designed to lift annual capacity further to 770,000 tonnes.

Sigma Lithium adjusted the guidance previously provided for costs per tonne to reflect higher diesel prices and an appreciation of the Brazilian Real against the U.S. Dollar, which are shown in the table below. The forecasts do not incorporate savings from higher efficiency in mine operations following the recent restructuring, but the Company continues to expect these to be achieved over time.

Production Volumes and Costs per Tonne (US$/t)	Estimated 12 Month Period (Phase 1)	Estimated Phases 1 & 2	Estimated Phases 1, 2 & 3
Production Volumes	240,000	520,000	770,000
CIF China Cash Cost	($624)	($571)	($571)
Maintenance Capex	($6)	($6)	($6)
Sales and Administrative Expenses	($80)	($43)	($33)
All-In Sustaining Cost*	($710)	($620)	($610)
Cash Flow Forecasts at Various Realized Lithium Prices (US$ M)*
Cash Flow @ US$1,500 /t	$130	$327	$493
Cash Flow @ US$ 2,000/t	$230	$544	$814
Cash Flow @ US$2,500/t	$330	$761	$1,135
* Excludes environmental, social and financial expenses.
**Prices shown for concentrate with 6% Li2O content (SC6) adjusted for Sigma Lithium's average of 5%.

 

ABOUT SIGMA LITHIUM

Sigma Lithium Corporation (NASDAQ: SGML) (TSXV: SGML) (BVMF: S2GM34), ("Sigma Lithium" or "the Company") is the largest producer of lithium oxide concentrate in the Americas¹ and dedicated to industrializing socially and environmentally sustainable lithium materials to supply global producers of batteries for energy security.

The Company runs one of the world's largest lithium production sites—the fifth-largest industrial-mineral complex for lithium oxide concentrate—at its Grota do Cirilo operation in Brazil. Sigma Lithium is at the forefront of environmental and social sustainability in the electric battery materials supply chain. The Company's Greentech Industrial Plant combines the reuse of 100% of water, zero use of toxic chemicals, zero tailings and the use of 100% renewable electricity. For more than two years Sigma Lithium has not experienced an accident with lost time.

Sigma Lithium currently has a nameplate capacity to produce 270,000 tonnes of lithium oxide concentrate on an annualized basis (approximately 38,000-40,000 tonnes of LCE) at its mine and state-of-the-art Greentech Industrial Plant. The Company has initiated a Phase 2 expansion designed to close to double production capacity to 520,000 tonnes. For more information about Sigma Lithium, visit our website.

(1) USGS.

FOR ADDITIONAL INFORMATION PLEASE CONTACT

Anna Hartley, Vice President of Global Banking and Investor Relations
anna.hartley@sigmalithium.com.br
+44 7866 458 093

Mariana Bengtson, Investor Relations Manager
mariana.bengtson@sigmalithium.com.br
+55 11 9 2144 2750

Sigma Lithium

LinkedIn: Sigma Lithium

Instagram: @sigmalithium

X: @SigmaLithium 

FORWARD-LOOKING STATEMENTS

This news release includes certain "forward-looking information" under applicable Canadian and U.S. securities legislation, including but not limited to statements relating to timing and costs related to the general business and operational outlook of the Company, the environmental footprint of tailings and positive ecosystem impact relating thereto, donation and upcycling of tailings, timing and quantities relating to tailings and Green Lithium, achievements and projections relating to the Zero Tailings strategy, achievement of ramp-up volumes, production estimates and the operational status of the Grota do Cirilo Project, and other forward-looking information. All statements that address future plans, activities, events, estimates, expectations, or developments that the Company believes, expects, or anticipates will or may occur is forward-looking information, including statements regarding the potential development of mineral resources and mineral reserves which may or may not occur. Forward-looking information contained herein is based on certain assumptions regarding, among other things: general economic and political conditions; the stable and supportive legislative, regulatory and community environment in Brazil; demand for lithium, including that such demand is supported by growth in the electric vehicle market; the Company's market position and future financial and operating performance; the Company's estimates of mineral resources and mineral reserves, including whether mineral resources will ever be developed into mineral reserves; and the Company's ability to operate its mineral projects including that the Company will not experience any materials or equipment shortages, any labor or service provider outages or delays or any technical issues. Although management believes that the assumptions and expectations reflected in the forward-looking information are reasonable, there can be no assurance that these assumptions and expectations will prove to be correct. Forward-looking information inherently involves and is subject to risks and uncertainties, including but not limited to that the market prices for lithium may not remain at current levels; and the market for electric vehicles and other large format batteries currently has limited market share and no assurances can be given for the rate at which this market will develop, if at all, which could affect the success of the Company and its ability to develop lithium operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, except as required by law. For more information on the risks, uncertainties and assumptions that could cause our actual results to differ from current expectations, please refer to the current annual information form of the Company and other public filings available under the Company's profile at www.sedarplus.ca.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297619

FAQ

How did Sigma Lithium (NASDAQ: SGML) perform financially in Q1 2026?

Sigma Lithium delivered record Q1 2026 profitability, with 61% gross margin, 39% EBITDA margin, and 26% net margin. According to Sigma Lithium, revenue was US$42 million, driven mainly by sales of 23,000 tonnes of lithium oxide concentrate at higher realized prices.

What were Sigma Lithium’s Q1 2026 revenues and lithium sales volumes (SGML)?

Sigma Lithium reported Q1 2026 revenue of US$42 million from selling 23,000 tonnes of lithium oxide concentrate equivalent. According to Sigma Lithium, this revenue was up 150% versus Q4 2025, when sales were affected by a mining operations restructuring and different revenue mix.

How much debt did Sigma Lithium repay by Q1 2026 and what is the current balance?

Sigma Lithium’s total debt fell to US$134 million at the end of Q1 2026. According to Sigma Lithium, this represents a 21% reduction over one year and 33% over two years, including a sharp decrease in short-term export financing lines.

What is Sigma Lithium’s cash position as of May 15, 2026 (SGML)?

Sigma Lithium reported cash and equivalents of US$28 million as of May 15, 2026. According to Sigma Lithium, this is the highest cash level since year-end 2024, supported by strong Q1 2026 sales and collection of accounts receivable balances.

What production levels is Sigma Lithium targeting for 2026 and beyond?

Sigma Lithium is on track to reach 240,000 tonnes per year of high-grade lithium concentrate on an annualized basis. According to Sigma Lithium, expansions Phase 2 and 3 aim to lift nominal capacity to 520,000 tonnes and 770,000 tonnes by year-end 2027.

How has Sigma Lithium updated its cost guidance per tonne for future phases?

Sigma Lithium raised its cost-per-tonne guidance to reflect higher diesel prices and a stronger Brazilian real. According to Sigma Lithium, estimated all-in sustaining costs are US$710/t for Phase 1, US$620/t for Phases 1 and 2, and US$610/t for Phases 1–3.