Largo (LGO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 68.5% year-over-year to $44.0 million, driven by higher vanadium prices and increased production, despite elevated raw material costs due to Middle East disruptions.

• Vanadium production rose 28.5% to 2,900 tonnes, and sales increased 53.5% to 2,773 tonnes, reflecting improved mine operations and commercial execution.

• Initiated copper-PGM concentrate production, diversifying revenue streams and leveraging existing infrastructure.

• Secured a $60.1 million delivery order from the U.S. Defense Logistics Agency, reinforcing strategic positioning in critical minerals.

Financial highlights

• Revenues increased 68.5% to $44.0 million from $26.1 million year-over-year.

• Adjusted EBITDA improved to $2.7 million from $34 thousand; Mining Operations Adjusted EBITDA rose 64.8% to $4.4 million.

• Net loss widened to $22.7 million from $5.8 million, mainly due to non-cash write-downs and higher costs.

• Cash provided before working capital items rose 206.2% to $6.6 million.

• Ended Q2 with $5.1 million in cash and $114.2 million in debt.

Outlook and guidance

• 2026 vanadium production guidance maintained at 10,500–12,000 tonnes; sales guidance at 7,500–9,500 tonnes.

• Adjusted cash operating costs excluding royalties expected at $3.50–$4.50/lb for 2026.

• Initial copper-PGM concentrate production guidance set at 300–380 tonnes/month, with average grades of 15% copper and 41 g/t PGMs.

• Management monitoring geopolitical and trade-related uncertainties, with potential for guidance revision if conditions change.