Franco-Nevada (TSX: FNV) posted record Q2 2025 revenue at $369.4 million, a 42% jump from $260.1 million in Q2 2024, thanks to stronger gold prices as GEOs sold meekly rose 2% to 112,093 ounces.
Breaking it down, precious metals delivered $304.0 million, up from $193.0 million, on stronger gold prices and new and expanded assets. Precious metals contributed 82% of quarterly revenue (70% gold, 10% silver, 2% PGM), with 86% sourced from the Americas. Diversified revenue slipped to $62.7 million from $64.6 million as weaker commodity prices offset in-line volumes. Oil revenue also fell to $30.6 million from $35.9 million, while gas increased to $16.9 million from $10.8 million.
Gross profit climbed 53% to $271.9 million, lifting gross margin to 73.6% from 68.5%. Operating income also jumped 81% to $305.8 million, led by a $42.2 million gain on the sale of gold and silver bullion and a $4.1 million impairment reversal tied to Cobre Panama.
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Net income surged 211% to $247.1 million (or $1.28 per share) from $79.5 million (or $0.41 per share). On an adjusted basis, the figure rose 65% to $238.5 million (or $1.24 per share), with margin expanding to 64.6% from 55.7%.
Adjusted EBITDA increased 65% to $365.7 million (or $1.90 per share) from last year’s $221.9 million (or $1.15 per share), pushing margin to 99.0% versus 85.3% a year ago.
Operating cash flow more than doubled to a record $430.3 million from $194.3 million a year ago, aided by $147.1 million of bullion sale proceeds and modestly positive working-capital movements. Investment outflows dominated the quarter: net cash used in investing ballooned to $1.34 billion (from $36.7 million last year), driven by $1.36 billion spent on new royalty, stream, and working interests, including the Côté Gold royalty acquired June 24. Dividends further consumed $67.0 million, bringing total financing outflows to $66.1 million.
In total, net cash decreased by $967.8 million in the quarter, putting total cash outflow for H1 at $1.29 billion. Cash and cash equivalents were $160.3 million at quarter end, down from $1.45 billion at December 31, 2024.
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The board declared a quarterly dividend of $0.38 per share, payable September 25, 2025 to shareholders of record on September 11, 2025.
Total GEOs sold for H1 were 238,678 against full-year guidance of 465,000–525,000, implying 226,322–286,322 GEOs needed in H2. Precious metals H1 was 193,072 versus a 385,000–425,000 range, implying 191,928–231,928 to be sold in the second half.
Management expects lifts from Antapaccay, a first full quarter from Porcupine and Côté, and initial contributions from Vale’s Southeastern System. Approximately 10,000 GEOs are expected in H2 from Cobre Panama concentrate shipments approved under the Preservation and Safe Management plan.
Cobre Panama remains shut but produced near-term deliveries. The government approved shipment of 121 thousand dry metric tonnes of stored concentrate; Franco-Nevada expects ~10,000 GEOs, largely in Q3.
Franco-Nevada last traded at $236.09 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
