Agnico Eagle (AEM) Earnings Call Transcript | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 13, 2026
AI-Generated Deep Dive Summary
Agnico Eagle (AEM) reported a strong financial performance in its latest earnings call, driven by record gold production and cash flow. The company exceeded its 2025 guidance, producing 3,450,000 ounces of gold, with stable quarterly output averaging approximately 841,000 ounces. Despite higher costs, including royalties and inflation, the firm achieved an all-in sustaining cost (AISC) of $1,339 per ounce for the year, slightly above guidance. Notably, free cash flow reached a record $4.4 billion in 2025, with $1.3 billion generated in the fourth quarter alone. The company also returned significant value to shareholders through dividends and buybacks, totaling $1.4 billion for the year, including a 12.5% increase in quarterly dividends.
Agnico Eagle's financial strength is further highlighted by its reduced net debt and strong cash position. By repaying approximately $950 million in debt, the company ended 2025 with $2.9 billion in cash—a nearly $2 billion year-over-year increase. This liquidity positions Agnico well to pursue growth opportunities, including its ambitious production targets. The firm remains on track to achieve annual gold production of 3.3–3.5 million ounces over the next three years, with a long-term goal of exceeding 4 million ounces by the early 2030s. Additionally, the company’s proven and probable reserves grew by 2.1% to 55.4 million ounces, while measured and indicated resources increased nearly 10% to 47.1 million ounces.
Investors should take note of Agnico Eagle's strategic initiatives, which aim to drive long-term growth and shareholder returns. The company plans to renew its buyback program with a $2 billion limit in May, potentially increasing direct shareholder returns to up to 40% of free cash flow. Capital expenditure guidance for 2026 is set at $2.1 billion, with the possibility of rising to $2.5 billion depending on project approvals and exploration activities. Key projects include accelerating development at Detour Lake Underground, targeting first production in 2028, and expanding operations at Canadian Malartic Complex and Hope Bay mine. These efforts align with management's goal of achieving 20%–30% production growth over the next decade.
Agnico Eagle’s performance underscores its ability to generate strong cash flow
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Originally published on The Motley Fool on 2/13/2026