Nexa Reports 2Q26 Net Income of US$98 Million and Adjusted EBITDA of US$286 Million

Nexa delivers strong earnings growth and higher CAPEX, but copper output drops sharply.

Risk flags

• ●Copper production declined 31% year-over-year to 6.3kt, a material operational setback that could impact revenue and margins if not reversed. The announcement does not provide a clear explanation or mitigation plan for this drop.
• ●The Cerro Pasco Integration Project's CAPEX estimate increased from US$138 million to US$180 million, and the timeline for commissioning key infrastructure slipped from 4Q26 to 1Q27. Cost overruns and schedule delays are common risks in mining capital projects and can erode returns.
• ●Several operational and ESG claims, such as the normalization of Cajamarquilla operations and safety improvements, are not supported by detailed numerical evidence. This limits the ability to independently verify progress and assess the effectiveness of management responses to incidents.
• ●Net leverage improved to 1.40x, but the absence of a full balance sheet and cash flow statement means liquidity and debt servicing capacity cannot be fully assessed. Any deterioration in commodity prices or further operational disruptions could strain financial flexibility.
• ●Regulatory approvals for key projects, including environmental impact studies for El Porvenir and Atacocha, are still pending and expected in 1Q27. Delays or adverse decisions by SENACE could impact project timelines and future production.

Bottom line

Nexa's Q2 2026 results show clear financial improvement, with net income and EBITDA both up sharply year-over-year and net leverage down to 1.40x. The company is spending more on growth projects, notably raising the Cerro Pasco Integration Project's budget to US$180 million and pushing completion into 2027, which delays returns on this capital. Copper output is a weak spot, down 31% year-over-year, and the company provides little detail on how it will address this. While the share premium reimbursement and board renewals signal stability, the lack of granular segment data and unsubstantiated operational claims limit full transparency. The main takeaway is that Nexa is delivering on profitability and project investment, but faces execution and commodity risk, especially in copper. Investors should focus on copper recovery, project delivery against new timelines and budgets, and watch for more detailed disclosures on costs and cash flow to better assess sustainability of the current financial trajectory.

Announcement summary

(NYSE: NEXA) Nexa Resources S.A. reported net income for the second quarter of 2026 of US$98 million, compared to US$13 million in 2Q25 and US$118 million in 1Q26. Adjusted EBITDA reached US$286 million, up 78% year-over-year, while net revenues totaled US$908 million, up 28% year-over-year. Zinc production reached 79kt, up 8% year-over-year, and lead production increased 2% to 15kt, while copper production declined 31% year-over-year to 6.3kt. CAPEX totaled US$89 million in 2Q26, up 24% quarter-over-quarter and 3% year-over-year, with 2026 CAPEX guidance of US$381 million remaining unchanged. The company expects to recover affected volumes at Cajamarquilla in the second half of the year and maintains its 2026 guidance for mining production, smelting sales, costs, CAPEX, and exploration, project evaluation, and other expenses. Nexa increased the total estimated CAPEX for the Cerro Pasco Integration Project from US$138 million to US$180 million, with completion of the tailings pumping system now expected in 1Q27 and start of pumping operations in early 3Q27. Shareholders approved a share premium reimbursement of US$17.5 million, or US$0.132136 per share, payable on August 11, 2026, to shareholders of record as of July 28, 2026.

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