Largo (LGO) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong operational improvements at Maracás Menchen Mine, with vanadium pentoxide (V205) production reaching the upper end of guidance, supported by better ore availability and plant stability.

• Sales were impacted by high U.S. tariffs on Brazilian imports early in the quarter, but tariff reductions in February improved access to the U.S. market, especially for high-purity vanadium and ferrovanadium.

• The company expects the benefits of improved market conditions and tariff relief to be reflected in Q2 2026 results.

Financial highlights

• Q1 2026 revenues were $27.5 million, down 2.5% year-over-year, with $25.8 million from vanadium and $1.7 million from ilmenite sales.

• Net loss narrowed to $4.7 million from $9.2 million in Q1 2025, driven by a 19% decrease in operating costs and a 28% reduction in general and administrative expenses.

• Adjusted EBITDA was negative $4.3 million, compared to negative $2.8 million in Q1 2025.

• Cash operating costs excluding royalties fell 35% to $4.25/lb, and adjusted cash operating costs excluding royalties remained flat at $3.90/lb.

• Cash balance at quarter-end was $11.2 million, with debt at $108.4 million.

Outlook and guidance

• 2026 guidance reaffirmed: annual V205 equivalent production of 10,500–12,000 tonnes, sales of 7,500–9,500 tonnes, and adjusted cash operating costs excluding royalties of $3.50–$4.50/lb.

• Q2 2026 expected to show stronger revenue realization due to lagged price realization and sales of high-purity inventories following tariff reduction.

• The company is monitoring market, geopolitical, and trade-related uncertainties and may revise guidance if conditions change materially.