Agnico Eagle, Eldorado Gold post Q1 earnings beat with capital returns a standout
Agnico Eagle Mines Ltd (TSX:AEM) and Eldorado Gold Corp (TSX:ELD) both reported first quarter results that beat earnings expectations and delivered solid capital returns, according to analysts at Bank of America. The analysts wrote that ‘Buy’-rated Agnico Eagle generated adjusted EBITDA of...
Agnico Eagle Mines Ltd(TSX:AEM) View Price & Profile Agnico Eagle, Eldorado Gold post Q1 earnings beat with capital returns a standout
Published: 15:16 01 May 2026 EDT
Agnico Eagle Mines Ltd (TSX:AEM) and Eldorado Gold Corp (TSX:ELD) both reported first quarter results that beat earnings expectations and delivered solid capital returns, according to analysts at Bank of America.
The analysts wrote that ‘Buy’-rated Agnico Eagle generated adjusted EBITDA of $3.01 billion in the first quarter, ahead of forecasts near $2.86 to $2.92 billion, while adjusted earnings per share of $3.41 also topped expectations.
Free cash flow reached $732 million despite a significant working capital outflow, supporting share repurchases of $150 million. Combined with dividends, total capital return for the quarter reached approximately $375 million, or about 51% of free cash flow, exceeding the company’s annual target, which analysts highlighted as stronger than expected.
Operationally, Agnico Eagle’s gold production and unit costs were broadly in line with expectations, while sales and overhead costs came in better than anticipated. The company reiterated its full-year production and cost guidance.
The analysts wrote that Agnico Eagle highlighted “cost uncertainty” tied to geopolitical developments but expects its regional operating strategy to help mitigate those pressures. The company ended the quarter with net cash of $2.9 billion, up from $2.67 billion at the end of 2025, and continues to advance key projects, including a potential construction decision at Hope Bay expected this month.
Bank of America maintained a positive view on Agnico Eagle, citing its asset base in top-tier jurisdictions, consistent operational performance, and growth pipeline.
Eldorado Gold also delivered a first-quarter earnings beat, with adjusted EBITDA of $336 million surpassing expectations in the range of $283 million to $309 million, the analysts noted.
Adjusted earnings per share of $0.95 exceeded forecasts, supported by stronger production, higher gold sales volumes, and lower cash costs, along with reduced depreciation and tax expenses.
Gold production totaled 100,400 ounces, above expectations, while unit costs also came in lower than anticipated.
The company reaffirmed its 2026 guidance, though analysts noted an increase in capital expenditures for the Skouries project, which is now expected to cost $1.32 billion, up by $155 million. First production at Skouries remains on track for the third quarter of 2026.
Despite the stronger operating performance, Eldorado reported negative free cash flow of approximately $188 million in the quarter, reflecting higher capital spending and working capital requirements. Net debt increased to $601 million from $406 million at the end of last year. The company repurchased $84 million of shares during the period.
The analysts maintained a more cautious stance on Eldorado with an ‘Underperform’ rating, pointing to elevated execution risk related to the Skouries project and additional complexity following its recent acquisition of Foran, which expands its exposure to base metals.
Shares of Eldorado Gold were down 1.9% post-earnings, while Agnico Eagle shares also fell 2%.