EarningsQ2 2026 Earnings Report
DE:HGR Q2 2026 EPS Results
Actual EPS€0.07
Consensus EPS€0.01
Beat/MissBeat by +€0.06
One Year Ago EPS€0.01
DE:HGR Q2 2026 Revenue Results
Actual Revenue€28.44M
Expected Revenue€13.90M
Beat/MissBeat by +€14.54M
YoY Revenue Growth+94.82%
Earnings Announcement Details
QuarterQ2 2026
Date09/02/2026
TimeBefore Open
Conference CallWednesday, September 2, 2026
DE:HGR Upcoming Earnings
Ecora Royalties PLC's next earnings date is estimated for March 31, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, driven by 75% portfolio contribution growth, a fivefold increase in adjusted earnings, substantial deleveraging, improved tax efficiency, strong base metals performance, and a broad pipeline of potential expansion and development catalysts. The main challenges were lower Mantos Blancos volumes, planned Voisey's Bay maintenance, the delayed Nifty royalty entitlement, and pending financing for the Piaui project, but these were outweighed by the reported operating and financial improvements.Company Guidance
Strong Portfolio Contribution Growth
Total portfolio contribution increased 75%, from $17.9 million to $31.3 million in the first half of 2026, benefiting from volume growth and a strong commodity price environment.
Adjusted Earnings Increased Fivefold
Adjusted earnings increased by 509%, or 5x, reflecting the scalability of the royalty model and the improving efficiency of the portfolio as Kestrel reduces.
Base Metals Portfolio Surge
Base metals portfolio contribution increased 159%, or just under 160%, compared with the first half of 2025 and was the key driver of top-line revenue growth.
Significant Net Debt Reduction
Net debt declined to $75 million as of June 30, 2026, from $125 million a year earlier and a peak of $125 million 15 months previously. Based on consensus pricing, net debt is expected to reduce toward $50 million by year-end.
Improved Free Cash Flow Conversion
The reduced contribution from Kestrel and the higher efficiency of the rest of the portfolio positively impacted free cash flow conversion and enabled meaningful deleveraging.
Dividend Growth
The company declared a first-half dividend of $0.019 per share, more than 3x the comparable period in 2025 and almost equal to the dividend paid for the entirety of 2025.
Voisey's Bay Operational Ramp-Up
Voisey's Bay experienced a near doubling of volumes as the operation approached steady-state capacity. Second-quarter production throughput was above annualized nameplate capacity levels.
Voisey's Bay Cobalt Pricing and Guidance
The average realized cobalt price was $28.50 per pound, compared with $16.50 per pound in the same period last year. Ecora received 266 tonnes of cobalt in the first half and remains on track for full-year guidance of 500 to 560 tonnes.
Potential Voisey's Bay Expansion
Vale Base Metals is exploring the potential to increase Voisey's Bay mill throughput from 2.8 million to 3.8 million tonnes per year, representing around 35% additional mill capacity in and around 2030. Resource extensions and further underground resource growth could also extend the mine life.
Mantos Blancos Royalty Revenue Growth
Despite lower volumes at Mantos Blancos, record copper prices led to a 26% increase in royalty revenue to $4.8 million, equivalent to almost a 20% cash yield on an annualized basis.
Potential Mantos Blancos Phase 2 Expansion
Capstone Copper submitted an environmental impact assessment and is targeting release of a Phase 2 expansion study later this year. The expansion could increase copper concentrate and copper cathode production, with expanded capacity expected between 2030 and 2031 following approvals and approximately one year of construction.
Mimbula Growth and SX Commissioning
Mimbula benefited from six months of income in the first half of 2026 versus three months in the first half of 2025, as well as copper prices approximately 37% higher than in H1 2025. Commissioning of new SX capacity is expected to drive near-term volume growth.
Four Mile and EVBC Contribution
Four Mile benefited from a normalized sales profile compared with the first quarter of 2025, when the operator continued to stockpile rather than sell. EVBC benefited from strong gold prices, resulting in an 80% increase in contribution during the period.
Lower Kestrel Concentration
Kestrel generated $1.3 million of income from approximately 100,000 tonnes of second-quarter sales, representing less than 5% of overall portfolio contribution. Most of the 2026 volume is expected in the third quarter, which is benefiting from a much higher coking coal price environment.
Lower Effective Tax Burden
In the first half of 2025, $1.9 million of tax on $31.3 million of contribution resulted in $3.2 million of adjusted earnings and a 37% effective tax rate on pretax adjusted earnings. In the first half of 2026, with Kestrel contributing less than 5%, the effective tax rate was less than 5%, supported by inherited Voisey's Bay tax losses and reactivated wider-group tax losses.
Operating Leverage
Overheads remained broadly flat despite foreign exchange movements while portfolio contribution increased 75%, demonstrating the scalability of the royalty model.
Adjusted EPS Growth
Adjusted earnings per share reached $0.078 in the first half of 2026, 5x the first-half 2025 figure and close to the $0.088 reported for the entirety of 2025.
Strong Balance Sheet and Funding Capacity
Net leverage was 1.35x at June 30, compared with permitted leverage of 3.5x. The company has a $180 million headline facility plus a $45 million accordion, providing total borrowing capacity of $225 million to fund further growth.
Balance Sheet Value Does Not Reflect Commercial Value
Approximately 87% of royalties are held on the balance sheet at the lower of fair value or amortized cost and are never revalued upwards. Management stated that the balance sheet value is not reflective of commercial value, particularly given potential Voisey's Bay and Mantos Blancos expansions.
Critical Minerals Portfolio Exposure
Base metals royalties and streams represented 85% of royalty assets at the end of June. The portfolio's contribution from base metals increased from approximately 50% in the first half of 2025 to more than 70% in the first half of 2026.
Mimbula, Santo Domingo, and Nifty Development Milestones
Mimbula's Phase 2 expansion reached the milestone of commissioning new SX capacity. At Santo Domingo, remaining workstreams are advancing toward a final investment decision targeted for the fourth quarter of 2026. At Nifty, Phase 1 was approaching practical and mechanical completion, with first cathode expected in the second half of 2026.
Specialty Metals and Uranium Portfolio Progress
Largo delivered strong operational improvements at the Maracas Menchen mine and higher sales subject to Ecora's royalty entitlements. Largo also secured an approximately $60 million order of vanadium products from the U.S. Defense Logistics Agency. Phalaborwa's definitive feasibility study is progressing, and Rainbow Rare Earth remains well funded following a first-half equity raise.
Patterson Corridor East Exploration Progress
NextGen reported outstanding drilling results at Patterson Corridor East. The mineralized footprint and high-grade subdomain expanded during the period, remained open in nearly all directions, and the 2026 drill campaign is continuing with a fifth drill rig.
Vanadium Tariff Exemptions
Vanadium oxide and hydroxide imports from Brazil received specific U.S. tariff exemptions, preserving Maracas Menchen's cost competitiveness and access to the U.S. market in the future.
Organic Growth Pipeline
The producing portfolio is forecast to generate approximately $70 million in the current year based on consensus forecasts. Potential growth includes Voisey's Bay and Mantos Blancos expansions, new mines and restart operations targeted by operator partners within the next five years, and longer-term opportunities including Canariaco and Patterson Corridor East.
Capital Allocation and Acquisition Strategy
Ecora adopted a growth-focused capital allocation framework and intends to continue using its revolving credit facility to grow and diversify the business, supported by a clear deleveraging plan for leverage-funded transactions. Acquisition focus includes opportunities toward the front end of the development curve or already in production, earlier-stage opportunities with lower investment amounts, critical minerals with a preference for copper and other base metals, established mining jurisdictions, and experienced counterparties.
Positive Near-Term Outlook
Management said the company is on track to deliver volume growth from key base metals royalties during 2026, is positioned for multiple near-term catalysts potentially as soon as the second half of the year, expects further debt reduction, and has the financial flexibility to continue growing and diversifying the business.
DE:HGR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed