Nexa Resources Reports Adjusted EBITDA of US$772 Million, and US$223 Million Net Income in 2025
Nexa Resources (NYSE: NEXA) reported a significant turnaround in its financial performance for the year 2025, achieving a net income of US$223 million, a stark contrast to the net loss of US$187 million recorded in 2024. This improvement was bolstered by a robust operational execution and a favorable pricing environment for zinc and its key by-products. The company’s adjusted EBITDA reached US$772 million, reflecting an 8% increase from the previous year, driven by higher zinc prices and a stronger contribution from by-products. In the fourth quarter alone, Nexa generated net revenues of US$903 million, an 18% increase from the third quarter, underscoring the positive momentum in both production and pricing.
Nexa's operational history has been marked by strategic investments and a commitment to enhancing its production capabilities. In 2025, the company invested US$352 million, slightly exceeding its guidance of US$347 million, primarily in sustaining expenditures and the Cerro Pasco Integration Project, which is critical for future growth. The company has consistently focused on operational efficiency, safety, and cost discipline, as evidenced by CEO Ignacio Rosado's remarks on the strong performance in the fourth quarter. The successful execution of the Cerro Pasco project, alongside improvements at the Aripuanã mine, highlights Nexa's strategic direction towards enhancing its production profile and extending the life of its mining operations.
From a financial perspective, Nexa's balance sheet reflects a positive trajectory, with a net debt to LTM adjusted EBITDA ratio improving to 1.7x from 2.2x in the previous quarter. This reduction in debt, alongside a total debt decrease of US$128 million, illustrates the company's strengthened financial resilience. The company’s ability to generate substantial cash flow from operations, evidenced by the US$772 million adjusted EBITDA, positions it well to fund ongoing capital expenditures and future growth initiatives. The operational performance in 2025, including achieving consolidated mining production guidance, further supports Nexa's financial stability and growth potential.
In terms of peer comparison, Nexa operates in a competitive landscape of mid-tier zinc producers. Direct peers include companies such as Teck Resources Limited (NYSE: TECK), which has a market capitalisation of approximately US$20 billion and is involved in zinc production alongside copper and coal. Another comparable company is Hudbay Minerals Inc. (NYSE: HBM), with a focus on zinc and copper, and a market cap around US$1.5 billion. Additionally, Zinc One Resources Inc. (TSXV: Z) is a smaller player in the zinc space, focusing on exploration and development, with a market cap of approximately US$50 million. These companies, while varying in scale, provide a relevant context for assessing Nexa's operational and financial metrics.
The significance of Nexa's recent performance lies in its ability to de-risk its assets and enhance its value creation pathway. The positive financial results and operational achievements not only reflect the company's effective management strategies but also position it favorably against its peers in the zinc sector. The ongoing advancements in key projects, such as the Cerro Pasco Integration Project, are expected to further bolster Nexa's production capabilities and extend its operational life. As the company continues to navigate the complexities of the mining sector, its recent financial performance and strategic initiatives suggest a promising outlook for future growth and shareholder value.