A month has gone by since the last earnings report for Franco-Nevada (FNV). Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Franco-Nevada due for a breakout? Well, first let's take a quick look at the 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 Q4 Earnings Beat Estimates, Revenues Surge 86% Y/Y
Franco-Nevada reported adjusted earnings of $1.85 per share in fourth-quarter 2025, beating the Zacks Consensus Estimate of $1.68. The bottom line increased 95% year over year.
Franco-Nevada’s EBITDA Margin Rises Y/Y
FNV generated revenues of $597 million in the reported quarter, marking a year-over-year surge of 86.1%. The upside was driven by record gold and silver prices, and strong production from Antamina and South Arturo. In the December-end quarter, 90% of revenues were sourced from Precious Metal assets (71% gold, 17% silver and 2% platinum group metals).
Franco-Nevada sold 127,959 Gold Equivalent Ounces (GEOs) from Precious Metal assets in the reported quarter, up 34% from the prior-year quarter.
In the reported quarter, adjusted EBITDA rose 95.1% year over year to $541 million. The adjusted EBITDA margin was 90.6% in the quarter under review compared with 86.4% in the prior-year quarter.
FNV’s Q4 Financial Position
At the end of 2025, Franco-Nevada had $0.67 billion in cash in hand, down from $1.45 billion as of the end of 2024. It recorded an operating cash flow of record $1.49 billion in 2025, up from $0.83 billion in 2024.
The company is debt-free and uses its free cash flow to expand the portfolio and pay out dividends.
Franco-Nevada’s 2025 Results
FNV reported adjusted earnings per share of $5.58 in 2025 compared with $3.21 in the prior year. The company’s 2025 earnings beat the Zacks Consensus Estimate of $5.31.
Revenues surged 64% year over year to a record $1.82 billion. The metric surpassed the Zacks Consensus Estimate of $1.67 billion.
FNV’s 2026 Guidance
Franco-Nevada expects total GEOs between 510,000 and 570,000 for 2026, indicating a 4% increase at the mid-point from the 2025 reported figure. The upside will be driven by the first full year of contribution from Cote Gold, Porcupine and Valentine Gold. The continued ramp-up of Salares Norte and Greenstone, along with recent acquisitions, will also aid growth.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
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 has a grade of F on the value side, putting it in the bottom 20% quintile for value investors.
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. Interestingly, Franco-Nevada has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Franco-Nevada Corporation (FNV): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).