On Monday, Franco-Nevada Corporation (NYSE:FNV) revealed second-quarter revenue that failed to meet analyst forecasts, even though the company posted record earnings and cash flow supported by rising gold prices.
Following the announcement, shares fell 4.71% in pre-market trading.
The company reported Q2 revenue of $369.4 million, slightly below the consensus estimate of $375.91 million, but still marking a 42% increase compared to last year. Adjusted earnings per share stood at $1.28, surpassing analyst estimates of $1.13. During the quarter, Franco-Nevada sold 112,093 gold equivalent ounces (GEOs), a 2% rise from the prior year.
The portfolio delivered record-breaking financials, with operating cash flow reaching $430.3 million — up 121% year-over-year — and adjusted EBITDA hitting $365.7 million, a 65% increase from the previous year. Revenue for the quarter was composed of 82% precious metals, 14% energy, and 4% iron ore and other assets.
“I am very pleased with our record financial results this quarter,” said CEO Paul Brink. “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.”
Franco-Nevada bolstered its growth prospects through strategic deals, including acquiring a royalty on IAMGOLD (NYSE:IAG)’s Côté Gold Mine and, after the quarter ended, another royalty on AngloGold’s Arthur Project in Nevada. These, alongside increasing output from Porcupine and Tocantinzinho, are anticipated to boost GEO sales in the latter half of 2025.
The company reaffirmed its 2025 forecast of total GEO sales between 465,000 and 525,000, with 385,000 to 425,000 ounces expected from precious metals. As of June 30, 2025, Franco-Nevada reported $1.1 billion in available capital and declared a quarterly dividend of $0.38 per share.
Additionally, the company highlighted positive progress in Panama, including shipment of the remaining copper concentrate from Cobre Panama, which should add around 10,000 GEOs in Q3 2025.
Franco-Nevada Corporation stock price
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