Eldorado Gold Corporation (EGO) Income Statement

The 5.2% sequential revenue decline from 2026Q1's $532.4M appears to be a normalization after a record quarter, but the year-over-year growth remains robust. The acceleration from 13.2% in 2024Q1 to nearly 40% in 2026Q2 suggests that both volume and realized prices are contributing, with the company benefiting from a favorable gold price environment. Investors should monitor whether this growth rate is sustainable as gold prices stabilize and Skouries ramps up.

The gross margin trajectory shows a clear upward trend, with a peak of 59.7% in 2024Q4, though recent quarters have moderated. The 2026Q2 margin of 46.2% is still strong, suggesting that the company's low-cost Turkish assets and the Lamaque mine are performing well. However, the volatility in margins (from 31.2% to 59.7%) indicates sensitivity to gold prices and input costs, and investors should watch for potential compression if energy or reagent costs rise.

The operating margin of 43.3% in 2026Q2 is among the highest in the peer group, reflecting the company's ability to scale revenue without proportionate increases in overhead. SG&A as a percentage of revenue has declined from 11.0% in 2024Q2 to 3.0% in 2026Q2, suggesting disciplined cost management. This leverage is likely to persist as Skouries adds incremental revenue with minimal additional SG&A, though investors should monitor for any cost overruns during construction.

The decline in COGS ratio suggests improved operational efficiency, likely from higher grades at Lamaque and the low-cost heap leach at Kisladag. SG&A has remained relatively flat in absolute terms, indicating tight overhead control. However, the company's cost structure is exposed to inflationary pressures on energy and reagents, and the transition to underground mining at Kisladag could increase costs. Investors should monitor AISC trends for a more comprehensive view.

The 2024Q4 quarter saw a dramatic improvement in profitability, with net income more than doubling from the previous quarter. This inflection likely reflects the full impact of the Lamaque acquisition and the stabilization of Turkish operations. The subsequent quarters have maintained elevated margins, suggesting that the improvement is structural rather than a one-time event. The company's ability to sustain this level of profitability will depend on gold prices and the successful ramp-up of Skouries.