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TORONTO - On Monday, Franco-Nevada Corporation (NYSE:FNV) reported second-quarter revenue that missed analyst expectations, despite posting record earnings and cash flow driven by higher gold prices.
The gold-focused royalty and streaming company’s shares fell 4.71% in pre-market trading after the release.
The company reported Q2 revenue of $369.4 million, falling short of the $375.91 million consensus estimate, though it represented a 42% increase YoY. Adjusted earnings per share came in at $1.28, exceeding analyst expectations of $1.13. The company sold 112,093 gold equivalent ounces (GEOs) during the quarter, up 2% from the same period last year.
Franco-Nevada’s portfolio delivered record financial results, with operating cash flow reaching $430.3 million (up 121% YoY) and adjusted EBITDA hitting $365.7 million (up 65% YoY). The company’s revenue mix for the quarter comprised 82% precious metals, 14% energy, and 4% iron ore and other assets.
"I am very pleased with our record financial results this quarter," stated Paul Brink, CEO. "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."
The company strengthened its growth outlook through strategic acquisitions, including a royalty on IAMGOLD (NYSE:IAG)’s Côté Gold Mine and a post-quarter acquisition of a royalty on AngloGold’s Arthur Project in Nevada. These acquisitions, along with growing contributions from Porcupine and Tocantinzinho, are expected to drive higher GEOs in the second half of 2025.
Franco-Nevada maintained its 2025 guidance of 465,000 to 525,000 total GEO sales, with 385,000 to 425,000 coming from precious metals. The company reported having $1.1 billion in available capital as of June 30, 2025, and declared a quarterly dividend of $0.38 per share.
The company also noted positive developments in Panama, including the shipment of remaining copper concentrate from Cobre Panama, which is expected to contribute approximately 10,000 GEOs in Q3 2025.
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