Pan American Silver Corp
Q2 2026 Earnings
Market Reaction
Did PAAS Beat Earnings? Q2 2026 Results
Pan American Silver delivered a mixed second quarter for fiscal 2026, posting adjusted EPS of $0.73 and revenue of $1.12 billion that fell short of Wall Street's expectations on both lines, missing the $0.84 consensus EPS estimate by 13.35% and the $1.14 billion revenue target by 1.52%, sending shares lower after hours. The headline miss obscures a genuinely strong underlying result, however; revenue surged 38.4% year-over-year from $812 million, powered by average realized silver prices of $70.97 per ounce and gold at $4,402 per ounce, alongside the contribution of the Juanicipio mine following the September 2025 MAG Silver acquisition. Free cash flow reached $344 million, enabling a record $300 million in shareholder returns through buybacks and dividends. Looking ahead, management reaffirmed its 2026 silver production outlook of 25 to 27 million ounces while flagging that gold output and gold-segment costs are tracking toward the less favorable ends of guidance ranges, with El Nino-related disruptions in Chile and Argentina adding further operational uncertainty for the remainder of the year.
- Higher precious metals prices driving revenue growth — silver at $70.97/oz vs $32.91/oz and gold at $4,402/oz vs $3,305/oz
- Juanicipio acquisition contributing 1.74 million silver ounces and $147 million attributable revenue
- Mine operating earnings increased to $457 million from $273 million year-over-year
- $192 million in dividends received from Juanicipio investment
- Cerro Moro gold production increased 61% and silver production increased 22% from higher-grade ore zones
- Silver Segment AISC improved to $17.80/oz from $19.66/oz year-over-year
- Revenue increase of $382 million from higher metal prices partially offset by $57 million from decreased quantities sold
- Attributable free cash flow of $344 million vs $234 million in Q2 2025
Forward Guidance & Outlook
The company reaffirmed its 2026 Operating Outlook for silver production (25.00-27.00 million ounces), gold production (700-750 thousand ounces), Silver Segment AISC ($15.75-$18.25/oz), Gold Segment AISC ($1,700-$1,850/oz), sustaining capital expenditures ($340-$360 million), and project capital expenditures ($240-$255 million). However, management expects full-year gold production at the low end and Gold Segment AISC at the high end of guidance ranges. Jacobina and El Peñon gold production are each expected approximately 10 thousand ounces below the low end of their original guidance ranges. Q3 2026 gold production is expected between three to six thousand ounces below the low end of the quarterly guidance range. Tax guidance was increased to $585-$635 million assuming H2 2026 silver at $60/oz and gold at $4,000/oz. El Niño-related weather disruptions in Chile and Argentina may continue through the remainder of the year.
PAAS YoY Financials
PAAS Revenue by Segment
PAAS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.