Sherritt International (S) Q2 2026 earnings summary

Executive summary

• Q2 2026 was marked by significant operational disruption due to expanded U.S. sanctions on Cuba, leading to the suspension of direct participation in Moa and Energas joint ventures and a halt in mining and refining operations near quarter-end.

• Liquidity preservation, safety, and maximizing fertilizer production were prioritized, with ongoing efforts to secure U.S. government approval for a potential restart of critical minerals operations.

• Leadership and governance changes included board and CFO resignations, auditor resignation, and new interim appointments.

Financial highlights

• Net loss from continuing operations was $71.1 million (Q2 2025: $10.4 million net earnings); adjusted net loss was $24.8 million, excluding significant one-time items.

• Adjusted EBITDA was $(2.0) million, down from $2.6 million in Q2 2025.

• Combined revenue was $132.1 million, down 3% year-over-year; metals revenue fell 6% to $117.5 million, while power revenue rose 37% to $14.5 million.

• Cash provided by continuing operations for operating activities was $38.9 million, up from $5.6 million in Q2 2025.

• Available liquidity in Canada as of June 30, 2026 was $80.1 million.

Outlook and guidance

• The company is focused on preserving liquidity, managing expenditures, and exploring funding options while seeking regulatory approval for a restart of mining and refining operations.

• Guidance updates and the timing of operational restarts remain uncertain, dependent on U.S. government decisions and supply chain stabilization.