Franco-Nevada Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Franco-Nevada Corporation FNV reported record adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate of $1.00. The bottom line increased 51% year over year.

Franco-Nevada’s EBITDA Margin Rises Y/Y

The company generated record revenues of $368 million in the reported quarter, up 43.5% year over year. The upside was driven by higher GEOs sold and record gold prices. In the March-end quarter, 79% of revenues were sourced from Precious Metal assets (67% gold, 10% silver and 2% platinum group metals).

FNV sold 100,623 GEOs from Precious Metal assets in the reported quarter, up 8% from the prior-year quarter. The upside was driven by lower deliveries from Cobre Panama (as the mine remains in preservation and safe management) and Antamina, partially offset by higher contributions from Antapaccay, Guadalupe-Palmarejo and Subika.

In the reported quarter, adjusted EBITDA was up 49% year over year to $322 million. Adjusted EBITDA margin was 87.4% in the quarter, indicating an expansion from 84.2% in the first quarter of 2024.

FNV’s Q1 Financial Position

At the end of first-quarter 2025, Franco-Nevada had $1.13 billion cash in hand, down from $1.45 billion as of the end of 2024. It recorded an operating cash flow of $289 million in the quarter under review, up from $179 million in the year-ago quarter.

Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay out dividends. It now has an available capital of $2.1 billion.

Franco-Nevada Stock’s Price Performance

The company’s shares have gained 27.9% in the past year compared with the industry’s growth of 45.7%.

FNV’s Zacks Rank

Franco-Nevada currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Franco-Nevada’s Peer Performances in Q1

Royal Gold, Inc. RGLD reported an adjusted EPS of $1.51 in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.37. The bottom line increased 66% year over year.

Royal Gold generated revenues of $193 million, up 30% year over year.

B2Gold Corp BTG reported adjusted earnings per share (EPS) of 9 cents for first-quarter 2025, beating the Zacks Consensus Estimate of 8 cents. The bottom line improved 50% year over year.

B2Gold generated revenues of $532 million in first-quarter 2025 compared with the prior-year quarter’s $461 million.

Kinross Gold Corporation KGC posted adjusted earnings of 30 cents per share, up from the prior-year quarter’s 10 cents. The bottom line beat the Zacks Consensus Estimate of 22 cents.

Kinross Gold’s revenues rose 38.4% year over year to $1.49 billion in the fourth quarter. KGC topped the Zacks Consensus Estimate of $1.29 billion.

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

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