Franco-Nevada Corporation (TSX: FNV) now expects to land in the middle of its 2026 guidance range, a step back from the upper half it pointed to three months ago, after weaker precious metals deliveries held third quarter revenue to US$549.3 million.
Revenue was up 13% from the same period last year but down from US$580.9 million in the second quarter. Net income went the other way, rising to US$395.5 million, or US$2.05 per share, from US$354.0 million, or US$1.84 per share, in the prior quarter. A US$10.3 million partial impairment reversal tied to Cobre Panamá helped that increase.
Adjusted net income rose to US$364.5 million, or US$1.89 per share, from US$1.81 per share in the second quarter. Adjusted EBITDA fell to US$493.9 million from US$529.7 million, and operating cash flow dropped to US$429.2 million from US$482.5 million.
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Cash and cash equivalents reached US$1.23 billion at the end of September, nearly double the December 2025 balance of US$670.9 million. The company has no debt, and available capital rose to US$4.8 billion from US$4.3 billion at the end of June.
The company sold 130,435 gold equivalent ounces in the quarter, compared with 132,405 in the second quarter and 138,772 a year earlier. Precious metals made up 110,904 GEOs, down from 114,111 in the prior quarter. Heavy rain and lower grade stockpile feed cut deliveries from Candelaria, while weather delays to construction materials affected Guadalupe-Palmarejo. Lower concentrator throughput reduced silver from Antamina.
Cash costs came to US$43.1 million, or roughly US$330 per GEO, down from about US$347 per GEO in the second quarter.
Lower output from those two operations led Franco-Nevada to cut its gold guidance to between 355,000 and 385,000 ounces, from 360,000 to 400,000 ounces. It also raised its diversified revenue outlook to between US$300 million and US$330 million because of stronger oil and natural gas liquids prices. Total GEO guidance was narrowed to between 525,000 and 555,000.
“Precious metal GEO deliveries were slightly below expectations in the period, although strong oil prices boosted our diversified revenue,” said President and CEO Paul Brink. He added that the company is “now tracking towards the mid-range of our annual guidance.” With 399,193 GEOs sold so far this year, Franco-Nevada has reached about 74% of the new midpoint with one quarter left.
IAMGOLD has also exercised its option to buy back half of Franco-Nevada’s Côté Gold royalty. The company expects to receive at least US$525.0 million in cash, and the royalty rate will drop to 3.75% from 7.5% starting January 1, 2027.
Franco-Nevada Corporation last traded at $354.26 on the TSX.
