Agnico Eagle Posts $852 Million in Free Cash Flow as Quarterly Profit Rises
Key Facts
Agnico Eagle reported free cash flow of $852 million in the third quarter of 2026, down from $1.190 billion a year earlier, despite higher revenue and earnings. The company said cash generated from operating activities totaled $1.755 billion, compared with $1.816 billion in the same period of 2025. Net income, however, rose to $1.353 billion, or $2.67 per share, from $1.055 billion and $2.10 per share. Adjusted net income was $1.324 billion, or $2.62 per share, compared with $1.085 billion and $2.16 per share a year earlier, according to the company’s measure. The results highlight expanding profits as gold prices rose, alongside lower free cash flow and production and higher costs.
The company’s average realized gold price rose to $4,264 an ounce in the quarter, from $3,476 in the third quarter of 2025. Revenue from mining operations increased to $3.584 billion, compared with about $3.060 billion a year earlier. Investing.com estimated adjusted earnings per share at $2.62, above analysts’ estimate of $2.53. Revenue was $3.58 billion, versus a consensus estimate of $3.57 billion, according to the site. The results beat estimates even as free cash flow declined, reflecting operating factors and development spending as well as the impact of working capital.
Gold production totaled 814,012 ounces, compared with 866,936 ounces in the same quarter last year. In the same period, total cash costs rose to $1,133 an ounce from $952. All-in sustaining costs also increased to $1,648 an ounce, from $1,331 a year earlier. Chief Executive Officer Ammar Al-Joundi said full-year production would remain near the low end of its range and costs would stay within the range despite inflationary pressures. The year-over-year comparison reflects lower production and higher costs alongside a higher realized gold price.
Agnico Eagle attributed the decline in free cash flow to unfavorable changes in non-cash working capital items, as well as increased development spending at Hope Bay, Odyssey and Detour Lake. Before the impact of working capital changes, free cash flow was $1.057 billion, up from $1.035 billion a year earlier. Capital expenditures totaled $848 million, while capitalized exploration was $73 million, bringing the quarter’s total to $921 million. In the first nine months of 2026, operating cash rose to $5.245 billion from $4.706 billion. Free cash flow for the same period, however, fell to $2.919 billion from $3.089 billion, in line with the year-over-year trend in total quarterly free cash flow.
The company returned $478 million to shareholders during the quarter through dividends and share repurchases. It said it expects to return more than 50% of 2026 free cash flow to shareholders, based on current spot gold prices and subject to operating requirements. As of September 30, cash and cash equivalents totaled $3.613 billion, net cash was $3.416 billion, and total debt was $197 million. These returns came in a quarter when the company spent $921 million on capital expenditures and capitalized exploration. The reported balances provide a picture of its cash position alongside its plan to return part of its cash flow to shareholders.
Agnico Eagle maintained its 2026 payable gold production guidance at between 3.3 million and 3.5 million ounces, near the low end of the range. It expects total cash costs to come in near the high end of its annual range of $1,020 to $1,120 an ounce. It also expects all-in sustaining costs of between $1,400 and $1,550 an ounce, near the high end of the range. The company said its all-in sustaining cost outlook reflects the revised production plan and input cost pressures, particularly diesel. After the quarter ended, the company increased its unsecured revolving credit facility from $2 billion to $3 billion, with maturity on October 28, 2031.
The company’s shares closed at $183.11 on October 28, according to Investing.com data published on the results date. The stock rose 26.05% in the three months ended on that date and 16.79% over 12 months. The third-quarter results call is scheduled for today, October 29, 2026, at 11:00 a.m. Eastern Time. The call gives the company an opportunity to discuss its quarterly results and its production and cost outlook for the year. Annual guidance remains near the low end for production and the high end for costs, according to the company’s update.