Franco-Nevada (FNV) Up 10.3% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Franco-Nevada (FNV). Shares have added about 10.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Franco-Nevada due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Franco-Nevada Q2 Earnings Beat Estimates, Revenues Rise 42% Y/Y

Franco-Nevada reported adjusted earnings of $1.24 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $1.10. The bottom line increased 65% year over year.

Franco-Nevada’s Q2 EBITDA Margin Rises Y/Y

The company generated record revenues of $369 million in the reported quarter, up 42% year over year. The upside was driven by record gold prices and contributions from Precious Metal assets. In the June-end quarter, 82% of revenues were sourced from Precious Metal assets (70% gold, 10% silver and 2% platinum group metals).

The company sold 92,449 Gold Equivalent Ounces (GEOs) from Precious Metal assets in the reported quarter, up from the prior-year quarter’s 82,350 GEOs. 

In the reported quarter, adjusted EBITDA surged 64.8% year over year to a record $366 million. The adjusted EBITDA margin was 99% in the quarter under review compared with the prior-year quarter’s 85.3%.

FNV’s Q2 Financial Position

The company had $0.16 billion in cash on hand at the end of the second quarter of 2025, down from $1.45 billion at the end of 2024. It recorded an operating cash flow of $719 million in the first half of 2025, up from $373 million in the prior-year period.

FNV now has an available capital of $1.1 billion.

Franco-Nevada’s 2025 Outlook

Backed by a rise in deliveries from Antapaccay, the first full quarter contributions from Porcupine and Côté, and initial contributions from Vale’s Southeastern System, the company expects an increase in GEO sales for the second part of 2025. 

FNV expects total GEO sales to be in the range of 465,000 to 525,000 GEOs for 2025.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 10.78% due to these changes.

VGM Scores

Currently, Franco-Nevada has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Franco-Nevada has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Franco-Nevada belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Royal Gold (RGLD), has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Royal Gold reported revenues of $209.64 million in the last reported quarter, representing a year-over-year change of +20.4%. EPS of $1.81 for the same period compares with $1.25 a year ago.

Royal Gold is expected to post earnings of $2.15 per share for the current quarter, representing a year-over-year change of +46.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Royal Gold. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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