First Majestic Revenue Rises 38%, Misses Estimates
The silver miner reported adjusted earnings of 19 cents per share as higher metal prices offset lower output and a labor disruption at its San Dimas mine.
Updated on Nov. 6, 2026 in Corporate Finance
First Majestic Silver reported adjusted earnings of 19 cents per share for the third quarter, matching expectations. Quarterly revenue rose 38% year over year to $394.1 million, though it fell short of the $423 million consensus estimate.
Why it matters
Higher realized silver and gold prices lifted mine operating earnings and EBITDA even as production declined. The results show how price gains are currently offsetting operational setbacks at the company's mines.
Average realized silver prices rose 59% and realized gold prices climbed 23%, lifting mine operating earnings to $170.1 million from $99.1 million. Companywide silver production fell 11% to 3.44 million ounces, and the outcome of the San Dimas labor talks remains unresolved.
The players
First Majestic Silver
A Vancouver-based silver producer with mines in Mexico and the United States, including the San Dimas and Santa Elena operations.
The details
A labor disruption at the San Dimas mine began Sept. 18, centering on a union demand that the company cover 100% of workers' income taxes on bonuses. Management has rejected the demand, is pursuing legal proceedings, and is holding daily discussions to restore operations.
Timeline
Sept. 18: San Dimas labor disruption began.
Q3 2026: Quarterly results reported, with 12 production days lost to the disruption.
Nov. 5, 2026: Results were reported and shares fell that Thursday.
Market Dynamics
Silver and gold price gains have been the dominant driver of precious metals miners' margins, and First Majestic's results show that pattern holding even as output declines. Whether higher prices can keep offsetting production losses over the coming quarters remains an open question.
Shareholders are weighing a quarter that beat on earnings but missed on revenue, with shares falling 4.48% at publication. Investors tracking silver-exposed equities will be watching whether the San Dimas dispute is resolved before the next reporting period.
The takeaway
Higher metal prices can mask operational weakness for a time, but labor and production problems ultimately determine whether that cushion lasts. Investors should track production recovery alongside price trends.
What happens next
The company expects to release exploration results in the coming weeks, and ore is expected to reach the Santo Niño mill by late 2027.
Further reading
For more on how earnings like these are evaluated, see Corporate Finance coverage.
Source note: This article includes information reported by Benzinga.
