10-Q · May 5, 2026
Hecla Mining Company reported Q1 2026 revenue of $411.4 million and EPS of $0.25, both falling short of consensus estimates. However, the company achieved record operating cash flow of $182.9 million, thanks to strong…
Earnings analysis · 10-Q
HL earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Hecla's Q2 continuing-operations performance improved substantially year over year, with sales up 52% to $333.9M, gross margin expanding to 53.9%, and EPS reaching $0.17. Higher realized metal prices drove the gain,…
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Hecla's Q2 continuing-operations performance improved substantially year over year, with sales up 52% to $333.9M, gross margin expanding to 53.9%, and EPS reaching $0.17. Higher realized metal prices drove the gain, while production fell at Greens Creek and Keno Hill and sequential revenue and margin retreated from Q1 levels. Liquidity improved materially following the Casa Berardi sale and $263.0M note redemption, but Keno Hill's tailings, waste-rock and permitting timelines pose material production-continuity risks beginning as early as October 2026 and mid-2027.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.17
- Gross margin
- 53.9%
What stood out
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Revenue up sharply year over year, lower sequentially
Q2 sales rose 52.5% year over year to $333.9M from $219.0M, led by a $95.7M silver-price benefit and $112.9M aggregate price benefit across metal sales. Sequentially, sales declined 18.9% from implied Q1 sales of $411.4M (derived from $745.3M six-month sales).
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Profitability expanded year over year
Gross profit increased to $179.8M from $85.3M, lifting gross margin to 53.9% from 38.9% a year earlier; however, it declined from an implied 61.6% in Q1 2026. Diluted EPS was $0.17, above Q2 2025's $0.09 and versus a $0.03 loss in Q1 2026.
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Lucky Friday delivered strong volume and profit growth
Lucky Friday was the largest operational growth contributor: sales increased $59.0M to $123.2M and gross profit rose $49.3M to $71.3M. Silver production rose to 1.53M ounces from 1.34M ounces as grades improved to 15.6 from 12.5 ounces per ton.
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Cash generation strengthened liquidity
Continuing-operations cash flow was $357.8M for the first six months, up $221.8M from $136.0M, while six-month capital investments were $78.4M. Cash and equivalents increased to $483.5M at June 30 from $241.6M at December 31.
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Asset-sale proceeds supported deleveraging
The company redeemed $263.0M of Senior Notes in April 2026, helping reduce quarterly interest expense by $8.5M year over year. It had no borrowings under its $225M revolver and $221.5M remaining availability at June 30.
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Prices offset lower output at two mines
Greens Creek and Keno Hill production weakened despite higher pricing: Greens Creek silver output fell to 2.05M ounces from 2.42M and Keno Hill fell to 625,236 ounces from 750,712 ounces. Their gross profits nevertheless improved to $101.1M and $6.8M, respectively, on higher realized prices.
What to watch
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Keno Hill tailings capacity creates near-term risk
Keno Hill's Phase 2E tailings area is expected to reach capacity in approximately October 2026, while management projects tailings storage could run out in Q2 2028 at current milling rates. It states curtailed production or interruptions are possible if additional storage is not developed.
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Keno Hill permitting could halt production
At current mining rates, Keno Hill's waste-rock production limit could be reached by approximately mid-2027; management says mine production could stop then if permits are not amended. The broader QML and water-license amendment process is estimated to complete around mid-2029, subject to regulatory uncertainty.
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New growth projects remain unapproved and uncertain
The newly added Growth Projects risk factor says the Greens Creek pyrite circuit may contribute production only as soon as late 2027 or the first half of 2028, and none of the projects has construction approval. Development is exposed to uncertain permitting, metallurgy, capital costs and metals prices.
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Underlying production volumes declined
Quarterly silver production fell to 4.21M ounces from 4.51M ounces and gold production fell to 14,199 ounces from 17,750 ounces. Lower throughput and grades at Greens Creek, plus lower Keno Hill grades, leave earnings more dependent on metal prices.
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Commodity and provisional-pricing volatility
Revenue remains exposed to commodity pricing and provisional settlement volatility: the company recorded $13.1M of net negative provisional-price adjustments in Q2 2026 versus $4.2M of positive adjustments in Q2 2025. A 10% price change on hedged concentrate at June 30 would change value by about $8.5M.
Management's outlook
The 10-Q provides no revenue or EPS outlook. Management estimates 2026 capital investments of approximately $208M-$223M and exploration/pre-development expenditures of approximately $55M; spending may change with metals prices, liquidity and operating conditions.
Earlier filings 1
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