First Majestic Silver (NYSE: AG)(TSX: AG) generated revenue of $415.5 million in the second quarter, a 57% increase over the $264.2 million recorded a year earlier, as realized silver prices climbed 90% year over year to $63.98 per ounce and realized gold rose 40% to $4,347.
Roughly $40 million in mark-to-market adjustments on open concentrate sales trimmed the top line after metal prices softened into quarter end. A further $78.0 million of finished silver and gold inventory was held back and excluded from revenue entirely.
Net earnings were $109.4 million, or $0.22 per share, against $52.5 million and $0.11 in the second quarter of 2025. Adjusted net earnings reached $101.6 million, or $0.21 per share, compared with $18.4 million and $0.04.
Adjusted EBITDA came in at $257.1 million, up 105% year over year, while mine operating earnings of $223.6 million compared with $49.4 million and improved at all four operations.
Free cash flow of $194.6 million, struck after $46.8 million in cash income taxes, was up from $77.9 million a year ago. The treasury ended the quarter at $1,252.7 million, 34% above the $937.7 million held at the end of 2025, with $159.4 million of that restricted. Working capital nearly doubled to $876.0 million.
WATCH: First Majestic’s Santa Elena: Two Discoveries, One Bright Future
The company also repurchased 1.2 million shares for $22.7 million, and declared a dividend of $0.0152 per share payable August 31, more than three times the year ago payment under a policy targeting 2% of net quarterly revenue.
Silver production rose 3% to 3.8 million ounces and gold gained 2% to 34,660 ounces, with La Encantada and Santa Elena driving the increase and each setting a quarterly milling record. Los Gatos absorbed an April rockfall on its main ramp and San Dimas a stretch of labour disruption, both since resolved.
Cash costs of $18.06 per silver equivalent ounce and all in sustaining costs of $25.68 came in above the $15.08 and $21.02 reported a year earlier, though the comparison is distorted by a silver equivalent conversion ratio of 75:1 against 98:1 in the prior year. On last year’s assumptions, both figures would have been 13% lower. Each also landed below full year guidance of $19.27 to $19.85 and $27.69 to $28.77, and AISC margin widened to $40.27 per ounce from $13.60.
First half output of 7.3 million silver ounces and 69,001 gold ounces sits near the midpoints of guidance the company raised in July, to 14.6 million to 15.5 million silver ounces and 128,000 to 135,000 gold ounces. Capital spending guidance was lifted at the same time to $318 million to $344 million to support growth projects including the restart of the Jerritt Canyon Gold Mine in Nevada, USA ($75M in 2026) and the commencement of construction of the Santo Nino & Navdiad portals for near-term mining.
A conference call is scheduled for 8:30 a.m. (PT) / 11:30 a.m. (ET) today, which can be found here.
First Majestic Silver last traded at $21.41 on the TSX.
