Franco-Nevada (TSX: FNV) reported record Q3 2025 revenue of $487.7 million, up 77% year over year from $275.7 million.
Costs of sales rose 56% to $134.2 million, including depletion and depreciation of $87.0 million versus $54.2 million a year ago. Gross profit then expanded 86% to $353.5 million from $189.6 million.
Operating income also jumped 87% to $341.0 million from $182.0 million. Foreign exchange and other income swung to a $14.2 million gain from a $1.3 million loss.
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Net income then rose 89% to $287.5 million from $152.7 million, translating to $1.49 earnings per share, up from $0.79.
Adjusted net income rose 79% to $275.0 million while adjusted EBITDA reached $427.3 million, up 81% year over year.
Cash costs increased to $47.2 million from $31.9 million and cash cost per GEO rose 17% to $340 from $290.
Operating cash flow strengthened 63% to $348.0 million, supported by $392.7 million of pre-working capital operating cash flow and partially offset by higher receivables and other current assets. Investing cash outflows were $208.0 million, while financing cash outflows were $64.2 million.
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Cash and cash equivalents ended the quarter at $236.7 million versus $1.45 billion at December 31, 2024, after funding acquisitions earlier in the year and briefly drawing then repaying the corporate revolver. Royalty, stream and working interests increased to $6.09 billion from $4.10 billion and investments to $774.2 million from $325.5 million.
GEOs sold rose 26% to 138,772. Precious metals contributed 85% of revenue, including gold at $351.6 million versus $177.6 million last year, silver at $55.4 million versus $28.5 million, and PGM at $9.5 million versus $5.6 million.
Diversified assets added $67.1 million versus $61.2 million, with iron ore up to $15.1 million from $12.1 million and natural gas up to $14.3 million from $8.4 million, partly offset by lower oil at $30.4 million from $32.5 million, and NGL at $4.7 million from $5.5 million.
Cobre Panama contributed 11,208 GEOs in the quarter tied to the sale of concentrate stockpiles, and management expects about 1,000 GEOs in Q4 2025 or early Q1 2026. The company recorded a $0.7 million impairment reversal in Q3 ($4.8 million year-to-date) related to expected stream deliveries from those sales. First Quantum has commenced pre-commissioning of the site power plant with the first 150 MW unit anticipated to synchronize to the Panamanian grid in November 2025.
The company now guides precious metal GEO sales of 420,000 to 440,000 versus the initial 385,000 to 425,000. Total GEO sales guidance is narrowed to 495,000 to 525,000 versus 465,000 to 525,000, trending toward the high end after nine-month totals of 312,181 precious metal GEOs and 377,450 total GEOs.
Franco-Nevada last traded at $264.40 on the TSX.
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