Franco-Nevada (FNV) Up 12.5% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Franco-Nevada (FNV). Shares have added about 12.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Franco-Nevada due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Franco-Nevada Corporation before we dive into how investors and analysts have reacted as of late.

Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y

Franco-Nevada reported adjusted earnings of $1.81 per share in the second quarter of 2026, up 46% year over year. However, the bottom line missed the Zacks Consensus Estimate of $1.95.

Revenues climbed 57.3% year over year to $581 million, aided by stronger precious metal and oil prices, and higher contributions from several assets. Gold-equivalent ounces (GEOs) sold increased 18.1% to 132,405.

FNV’s Precious Metals Revenues Jump

Revenues from Precious Metal assets totaled $498.7 million in the reported quarter, up from $304 million a year ago. These assets accounted for 86% of the quarterly revenues, comprising 70% of gold, 14% of silver and 2% of platinum group metals.

Precious Metal GEOs sold increased 23.4% year over year to 114,111. Results benefited from higher deliveries from Antapaccay, Antamina, South Arturo and Musselwhite, along with incremental contributions from Côté Gold, Casa Berardi, Valentine and Porcupine.

Franco-Nevada’s Profitability Margins Contract

Adjusted EBITDA advanced 44.8% year over year to $529.7 million. However, the adjusted EBITDA margin declined to 91.2% from 99% in the year-ago quarter. Gross profit rose to $451 million from $271.9 million.

Adjusted net income increased to $349.2 million from $238.5 million a year earlier. The adjusted net income margin was 60.1%, down from 64.6% in the prior-year quarter, indicating that the sharp revenue increase did not translate into comparable margin expansion.

FNV’s Q2 Financial Position

As of June 30, 2026, Franco-Nevada had $1.01 billion in cash and cash equivalents, up from $0.67 billion at the end of 2025. The company generated an operating cash flow of $482.5 million in the second quarter, up 12% year over year.

The company remained debt-free and had $4.3 billion in available capital at the end of the quarter. Franco-Nevada uses its free cash flow to expand its portfolio and pay out dividends.

Franco-Nevada’s 2026 Guidance Tracks Toward Upper Half

FNV expects total GEO sales of 510,000-570,000 for 2026 and is tracking toward the upper half of this range. The company sold 268,758 GEOs during the first half. Production is expected to be weighted toward the second half, reflecting anticipated production profiles at Candelaria, Tocantinzinho, Côté Gold, Greenstone and Valentine.

The outlook also incorporates anticipated deliveries from the processing of stockpiled ore at Cobre Panamá. Franco-Nevada expects stream deliveries from Cobre Panamá to total 23,100 gold ounces and 265,000 silver ounces, with deliveries expected to begin in the third quarter. 

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Franco-Nevada has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Franco-Nevada has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Franco-Nevada belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Royal Gold (RGLD), has gained 12.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Royal Gold reported revenues of $450.54 million in the last reported quarter, representing a year-over-year change of +114.9%. EPS of $2.56 for the same period compares with $1.81 a year ago.

Royal Gold is expected to post earnings of $2.20 per share for the current quarter, representing a year-over-year change of +6.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.7%.

Royal Gold has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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