(Kitco News) - Royalty and streaming companies are riding the wave of higher gold prices, with Franco-Nevada Corporation (TSX: FNV) reporting record results in the second quarter of 2025.
The royalty giant posted earnings per share (EPS) of $1.28, beating analyst forecasts of $1.13, while adjusted net income rose 65% from a year earlier to $1.24 per share — both all-time highs. Revenue surged 452% year-over-year to a record $369.4 million.
Margins expanded sharply, with gross profit climbing 53% to $271.9 million and gross margin increasing to 73.6% from 68.5% a year ago. Adjusted EBITDA rose 65% to $365.7 million, boosting margins to 99.0% from 85.3%. Operating cash flow more than doubled to $430.3 million, supported by $147.1 million in bullion sales.
“I am very pleased with our record financial results this quarter,” said CEO Paul Brink. “Our portfolio largely produced as expected, and higher gold prices contributed to record revenue, operating cash flow, Adjusted EBITDA margins, and earnings.”
During the quarter, Franco-Nevada acquired a royalty on IAMGOLD’s Côté Gold Mine in Canada. After quarter-end, it secured a royalty on AngloGold’s Arthur Project, one of Nevada’s largest gold discoveries. Brink said recent acquisitions position the company for “strong long-term growth,” potentially boosted by a restart at Cobre Panama.
The board declared a quarterly dividend of $0.38 per share, payable September 25, 2025.
Precious metals assets generated 82% of Q2 revenue, with gold accounting for 70%, silver 10%, and Platinum Group Metals 2%. The remaining 18% came from base metals, including iron ore and energy commodities.
Geographically, 86% of revenue came from the Americas: 38% from South America, 20% from Canada, 16% from the U.S., and 12% from Central America and Mexico.
At the halfway point of the year, Franco-Nevada has sold 238,678 gold equivalent ounces (GEOs) against full-year guidance of 465,000–525,000, implying a heavy H2 production load.
