Franco-Nevada Corporation
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.41%.
Did FNV Beat Earnings? Q2 2025 Results
Franco-Nevada delivered a strong second quarter, posting adjusted EPS of $1.24 against a consensus estimate of $1.12, a beat of 10.70%, while revenue of $369.40 million came in fractionally below the $371.84 million estimate despite surging 42.0% year over year. The primary engine behind that top-line growth was gold pricing, with the metal averaging $3,279 per ounce during the quarter, up 40.2% from a year ago, amplifying returns across a portfolio where precious metals accounted for 82% of revenue. Adjusted EBITDA reached $365.70 million at a 99.0% margin, and operating cash flow climbed 121% to $430.30 million, though the company drew $175.00 million on its credit facility in July as a busy acquisition cycle, including a $1.05 billion royalty on IAMGOLD's Côté Gold Mine, compressed available capital to $1.11 billion. Shares rose nearly 5% following the release, reflecting investor confidence in the portfolio's momentum. Looking ahead, Franco-Nevada maintained its full-year GEO guidance of 465,000 to 525,000, with second-half delivery expected to accelerate on contributions from Côté, Porcupine, and anticipated Cobre Panama concentrate shipments.
- Record gold prices averaging $3,279/oz in Q2 2025, up 40.2% YoY
- Contributions from recently acquired or commenced Precious Metal assets including Tocantinzinho, Western Limb Mining Operations, Yanacocha, and Porcupine
- Strong deliveries from Guadalupe-Palmarejo with GEOs nearly doubling YoY
- Significant NPI leverage at Hemlo and Musselwhite from higher gold prices
- Gain of $42.2 million on sale of gold bullion
- Lower income tax expense compared to Q2 2024 which included $49.1 million Barbados deferred tax remeasurement
“I am very pleased with our record financial results this quarter. Our portfolio largely produced as expected for the quarter and higher gold prices contributed to record revenue, operating cash flow, Adjusted EBITDA margins and earnings. We also saw constructive developments in Panama, including the shipment of the remaining copper concentrate from Cobre Panama. During the quarter, we acquired a royalty on IAMGOLD's Côté Gold Mine, one of Canada's newest large-scale gold mines and, post quarter-end, a royalty on AngloGold's Arthur Project, one of the largest gold discoveries in Nevada. We anticipate new contributions from Côté and growing contributions from Porcupine and Tocantinzinho to be the main drivers for higher GEOs in the second half of the year. Our acquisitions over the last 18 months have positioned us for strong long-term growth that may be further enhanced by a potential restart at Cobre Panama.”
Franco-Nevada CEO, on the earnings call
Forward Guidance & Outlook
Franco-Nevada maintains its 2025 GEO sales guidance of 465,000–525,000 total GEOs (385,000–425,000 precious metal GEOs), despite gold price outperformance compressing non-gold GEO conversions (each $100/oz increase in gold from the $2,800 assumption reduces GEOs by approximately 4,750). H2 2025 is expected to see higher GEO sales driven by increased deliveries from Antapaccay, a first full quarter of contributions from Porcupine and Côté, initial contributions from Vale's Southeastern System, and approximately 10,000 GEOs from Cobre Panama concentrate shipments. Commodity price assumptions for H2 2025 include $3,250/oz Au, $37/oz Ag, $65/bbl WTI oil, and $3.00/mcf natural gas. Depletion expense is expected at the higher end of the $265–$295 million range for 2025. The effective tax rate is expected between 19% and 22%. The company anticipates making the third Cascabel pre-construction payment of $23.3 million in late 2025.
FNV YoY Financials
FNV Revenue by Segment
FNV Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.