First Majestic Announces Q3 2026 Financial Results and Quarterly Dividend Payment

First Majestic delivered record Q3 revenue, earnings, and liquidity on higher metal prices.

What the company is saying

First Majestic Silver Corp. highlights a 38% year-over-year surge in Q3 2026 revenue to $394.1 million, attributing the gain to higher realized silver and gold prices. The company emphasizes margin expansion, with mine operating earnings up 72% to $170.1 million and EBITDA up 78% to $228.8 million. Net earnings reached $74.5 million (EPS $0.15), while adjusted EPS was $0.19, both showing substantial growth from the prior year. Management frames operational efficiency and disciplined capital allocation as key drivers, noting free cash flow of $85.5 million after $73.7 million in cash taxes and settlements. The announcement stresses a strong liquidity position, ending the quarter with $1.23 billion in treasury, and a 176% year-over-year increase in the quarterly dividend to $0.0142 per share. The company also spotlights share buybacks and resolution of a historic $30.7 million tax dispute, while acknowledging ongoing negotiations with Mexican tax authorities over legacy issues. The tone is confident, focusing on realized financial improvements and operational execution.

What the data suggests

The disclosed figures show a marked improvement in financial and operational performance. Revenue rose 38% year-over-year to $394.1 million, with 62% from silver and 28% from gold sales. Mine operating earnings increased to $170.1 million from $99.1 million, and EBITDA climbed to $228.8 million from $128.6 million. Net earnings of $74.5 million and adjusted net earnings of $92.5 million both more than doubled from Q3 2025. Free cash flow was $85.5 million after significant tax payments, and treasury grew by $295.9 million since year-end to $1.23 billion. Working capital reached $882.3 million, and overall liquidity stood at $1.04 billion. Production volumes were 3,440,447 silver ounces and 29,552 gold ounces, with cash costs per silver equivalent ounce at $21.75 and AISC at $30.45. The AISC margin improved to $31.95 per ounce, up $13.82 year-over-year. Capital expenditures rose to $101.9 million, reflecting investments in mine development and expansion. The company met 72% and 75% of revised annual silver and gold production guidance midpoints, respectively, by quarter-end. The data supports management's claims of operational efficiency and financial strength, with realised gains across all key metrics.

Analysis

The announcement is highly factual and supported by detailed, realised financial and operational data for Q3 2026. All major claims—revenue, net earnings, EBITDA, free cash flow, production, and cost metrics—are substantiated with precise figures and period-over-period comparisons. The only forward-looking statement relates to ongoing tax negotiations, which is clearly separated from the realised results. There is no evidence of narrative inflation or exaggerated tone; the language is proportionate to the strong operational and financial performance disclosed. Capital expenditures are reported as already incurred, and there is no attempt to overstate future benefits or downplay risks. The dividend increase and share repurchases are also fully quantified and realised. Overall, the gap between narrative and evidence is negligible.

Risk flags

• ●Rising cash costs and all-in sustaining costs per silver equivalent ounce (AISC $30.45, up 46% year-over-year) could pressure future margins if metal prices weaken, as cost inflation was driven by lower production and operational disruptions.
• ●Production volumes for both silver and gold declined year-over-year (silver down 11%, gold down 17%), in part due to a 12-day labour dispute at San Dimas and sequencing changes at Los Gatos, highlighting operational risk from labour relations and mine planning.
• ●A one-time $30.7 million settlement resolved a historic tax dispute, but the company continues to negotiate with Mexican tax authorities on a separate legacy advance pricing agreement, leaving some regulatory and financial uncertainty unresolved.
• ●Capital expenditures more than doubled year-over-year to $101.9 million, driven by major investments at Jerritt Canyon and Santa Elena, raising the risk of future returns not matching outlays if operational targets are missed or commodity prices fall.
• ●Inventory levels remain significant, with $54.1 million in silver and gold bullion not yet sold, exposing the company to potential price volatility and working capital swings if market conditions reverse.

Bottom line

First Majestic's Q3 2026 results confirm strong realised financial and operational gains, with revenue, earnings, and liquidity all reaching record levels on the back of higher silver and gold prices. The company is generating robust free cash flow and has increased its dividend and share buybacks, signalling confidence in its financial position. However, rising costs per ounce and lower production volumes highlight ongoing operational and inflationary challenges. The settlement of a major tax dispute removes a key overhang, but negotiations on a separate legacy tax issue remain unresolved and could impact future cash flows. Investors should focus on the company's ability to sustain current margins, manage cost pressures, and resolve remaining regulatory risks. The most important takeaway is that First Majestic is currently delivering on profitability and liquidity, but future performance will depend on operational discipline and the external pricing environment.

Announcement summary

(NYSE: AG) (TSX: AG) (FSE: FMV) First Majestic Silver Corp. announced its unaudited condensed interim consolidated financial results for the third quarter ended September 30, 2026. Third quarter revenues increased 38% year-over-year to $394.1 million, driven by higher realized silver and gold prices. Silver and gold bullion inventories totaled $54.1 million at quarter end. Net earnings for the quarter were $74.5 million, with earnings per share (EPS) of $0.15 and adjusted EPS of $0.19. Free cash flow generated in the quarter was $85.5 million, after paying $73.7 million in cash income taxes and settlements. The company ended the quarter with $1.23 billion in treasury, a 32% increase from $937.7 million at the end of 2025. Mine operating earnings were $170.1 million, up from $99.1 million in Q3 2025. EBITDA for the quarter was $228.8 million, a 78% increase from $128.6 million in Q3 2025. Adjusted net earnings were $92.5 million, compared to $32.4 million in Q3 2025. Cash costs per attributable payable silver equivalent ounce were $21.75, and all-in sustaining costs (AISC) were $30.45 per ounce. The company generated an AISC margin of $31.95 per AgEq ounce, up from $18.14 per ounce in Q3 2025. Operating cash flow before changes in working capital and taxes was $214.3 million, or $0.43 per share. The company declared a cash dividend of $0.0142 per share for the third quarter of 2026, a 176% increase year-over-year. During the three and nine months ended September 30, 2026, the company repurchased 100,000 and 1,300,000 shares at an average price of CAD$21.00 and CAD$25.78, respectively, under its share repurchase program renewed on October 14, 2026. Finished goods inventory at September 30, 2026, included 760,832 silver ounces and 1,960 gold ounces, with a fair market value of $46.0 million for silver and $8.1 million for gold. Ore processed/tonnes milled in Q3 2026 was 1,088,708, with 3,440,447 silver ounces and 29,552 gold ounces produced. Attributable capital expenditures were $101.9 million, up from $47.6 million in Q3 2025. Working capital reached $882.3 million, excluding $162.9 million in restricted cash. The company’s four producing mines—Los Gatos, San Dimas, Santa Elena, and La Encantada—contributed to consolidated results. Base metal production at Los Gatos included 13,277,264 lbs zinc, 7,839,182 lbs lead, and 221,111 lbs copper (70% attributable basis). The company settled a historic tax dispute with the Mexican tax authority (SAT) relating to Minera La Encantada, S.A. de C.V., with a one-time settlement expense of $30.7 million. The company continues to work with SAT on settling a legacy tax issue relating to an advance pricing agreement for Primero Empresa Minera, S.A. de C.V. Attributable capital expenditures to the end of Q3 2026 represented 62% of the 2026 capital expenditures guidance midpoint. The company produced 3.4 million silver ounces and 29,552 gold ounces in Q3 2026, reaching 72% and 75% of revised annual guidance midpoints, respectively. Cash in treasury included $162.9 million held in restricted cash. The company’s overall liquidity, defined as working capital plus undrawn lines of credit, was $1.04 billion as at September 30, 2026.

Disagree with this article?