Free cash flow turned positive at $34.3M in Q2 2026, but cumulative operating cash flow of $838.6M over ten quarters far exceeds net income of $85.2M, highlighting volatile earnings conversion and working capital swings.
Nexa Resources S.A. (NEXA) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | 565.7M | 403.84M | 349.72M | 256.2M | 266.63M | 492.99M | 291.7M | 122.82M | 347.6M | 378.94M | 585.06M | 414.6M | 392.26M |
| Operating CF Margin % | - | 13.49% | 12.64% | 9.96% | 8.79% | 18.8% | 14.95% | 5.27% | 13.95% | 15.47% | 30.59% | 22.23% | 18.52% |
| Operating CF Growth % | 163.39% | 15.47% | 36.5% | -3.91% | -45.92% | 69% | 137.5% | -64.67% | -8.27% | -35.23% | 41.12% | 5.69% | - |
| Net Income | 277.61M | 132.63M | -205.03M | -296.08M | 227.38M | 309.29M | -559.25M | -215.88M | 131.9M | 271.46M | 208.89M | -178.57M | 456K |
| Depreciation & Amortization | 367.49M | 356.61M | 380.39M | 310.48M | 290.94M | 258.71M | 240.81M | 317.89M | 267.19M | 270.45M | 275.03M | 295.26M | 319.03M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 102.94M | 0 | 0 | 0 | 0 | -63.62M | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 86.92M | 101.95M | 155.97M | 37.64M | -48.6M | 8.78M | 517.67M | 88.59M | 143.2M | -77.82M | -79.93M | 235.61M | 196.89M |
| Working Capital Changes | -281.01M | -187.35M | 18.39M | 101.23M | -203.08M | -83.8M | 92.46M | -67.78M | 40.35M | -85.15M | 181.07M | 62.3M | -124.11M |
| Change in Receivables | -61.4M | -110.79M | -85.21M | 58.07M | 2.22M | -54.68M | -68.99M | -8.63M | 8.54M | -63.17M | -54.19M | 56.29M | 12M |
| Change in Inventory | -106.04M | -83.93M | -34.73M | 127M | -75.07M | -102.07M | 8.88M | -35.42M | 52.47M | -15.68M | -62.59M | 65.89M | -22.31M |
| Change in Payables | 119.77M | 118.67M | 139.09M | -451K | -32.48M | 44.88M | 84.11M | 18.82M | 57.41M | 47.57M | 23.12M | 21.79M | -110.45M |
| Cash from Investing | -385.04M | -320.88M | -237.61M | -270.35M | -378.93M | -469.27M | -382.59M | -335.39M | -158.1M | -328.37M | -201.42M | -156.66M | -432.1M |
| Capital Expenditures | -397.05M | -353.86M | -259.01M | -310.15M | -387.06M | -485.2M | -323.69M | -396.67M | -299.77M | -197.64M | -182.99M | -187.07M | -154.01M |
| CapEx % of Revenue | 11.56% | 11.82% | 9.36% | 12.05% | 12.76% | 18.5% | 16.59% | 17% | 12.03% | 8.07% | 9.57% | 10.03% | 7.27% |
| Acquisitions | 2.69M | 5.66M | 2.59M | 0 | -4.14M | 0 | -11.38M | -64.48M | 0 | -81.61M | -201.91M | 43.41M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -388.91K | 0 | 18.81M | 20.24M | 8.62M | 2.21M | 0 | 6.57M | 1.27M | -64.15M | -18.43M | 55.87M | -278.08M |
| Cash from Financing | -225.87M | -200.35M | 61.94M | -34.64M | -149.23M | -344.13M | 465.01M | -119.29M | -177.41M | 52.85M | -92.24M | -385.88M | 200.33M |
| Debt Issued (Net) | -124.01M | -110.42M | 85.91M | 14.15M | -74.58M | -291.61M | 529.06M | 73.51M | -464K | 293.34M | 67.87M | -257.26M | 202.31M |
| Equity Issued (Net) | 0 | 0 | 0 | -25M | -6.13M | 0 | 0 | -8.1M | -1.35M | 306.43M | 100.14M | -117.51M | 40K |
| Dividends Paid | -48.17M | -34.27M | -15.53M | -23.71M | -68.47M | -52.34M | -55.96M | -113.39M | -3.48M | -61.55M | -129.59M | -13.35M | -26.79M |
| Share Repurchases | 0 | 0 | 0 | -25M | -6.13M | 0 | 0 | -8.1M | -1.35M | 0 | 0 | -117.6M | 0 |
| Other Financing | -53.69M | -55.66M | -8.44M | -74K | -63K | -178K | -8.09M | -71.31M | -172.12M | -546.93M | -200.58M | 2.24M | 24.78M |
| Net Change in Cash | -32.57M | -104.67M | 163.28M | -40.57M | -245.99M | -342.35M | 387.55M | -334.32M | 13.9M | 103.46M | 294.16M | -129.26M | 160.51M |
| Free Cash Flow | 173.22M | 51.97M | 90.71M | -57.04M | -120.43M | 7.78M | -31.99M | -273.85M | 47.83M | 181.3M | 402.07M | 227.53M | 238.25M |
| FCF Margin % | 5.04% | 1.74% | 3.28% | -2.22% | -3.97% | 0.3% | -1.64% | -11.74% | 1.92% | 7.4% | 21.02% | 12.2% | 11.25% |
| FCF Growth % | 415.13% | -42.71% | 259.03% | 52.64% | -1647.78% | 124.32% | 88.32% | -672.61% | -73.62% | -54.91% | 76.71% | -4.5% | - |
| FCF per Share | 1.31 | 0.39 | 0.68 | -0.43 | -0.91 | 0.06 | -0.24 | -2.06 | 0.36 | 1.56 | 3.56 | 2.02 | 2.11 |
| FCF Conversion (FCF/Net Income) | 0.62x | 3.04x | -1.71x | -0.88x | 5.37x | 4.31x | -0.52x | -0.85x | 4.64x | 2.99x | 6.28x | -3.20x | -11.59x |
| Interest Paid | 0 | 0 | 139.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying NEXA stock.
Nexa Resources S.A. (NEXA) generated $403.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Nexa Resources S.A. (NEXA) generated $52.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Nexa Resources S.A. (NEXA) spent $353.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Nexa Resources S.A. (NEXA) returned $34.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High leverage and commodity volatility
Earnings Quality Masked by Working Capital Swings
Nexa's operating cash flow swung from -$183.3M in Q1 2025 to $307.1M in Q4 2025, per reported figures, with OCF/NI ranging from -15.5 to 92.3, indicating volatile earnings conversion.
The wide quarterly swings in OCF/NI, from -15.5 in Q1 2025 to 92.3 in Q2 2025, suggest that net income is not a reliable proxy for cash generation. Working capital changes, particularly in Q1 2025 (-$265.2M) and Q1 2026 (-$282.7M), appear to drive these fluctuations, likely reflecting inventory builds or receivable timing. Investors should monitor whether these swings are seasonal or indicative of structural inefficiencies in cash conversion.
Free Cash Flow Volatility Amid Ramp-Up
Free cash flow turned positive in Q2 2026 at $34.3M, but Q1 2026 saw -$127.3M, per financial statements, reflecting the lumpy nature of capex and working capital during Aripuanã's integration.
FCF margins have ranged from -37.3% in Q1 2025 to 23.6% in Q4 2024, indicating that the company is not yet generating stable free cash flow. The positive FCF in Q2 2026, despite heavy capex, suggests operational improvements, but the negative quarters highlight the ongoing capital intensity. The trajectory appears to be improving as Aripuanã ramps up, but sustainability remains uncertain given commodity price exposure.
Capital Intensity Reflects Growth Phase
Capex averaged 10.4% of revenue over the last ten quarters, per reported data, with peaks in Q4 2025 at 15.4%, indicating continued investment in growth projects like Aripuanã.
The capex-to-revenue ratio has remained elevated, suggesting that Nexa is still in a growth phase, investing heavily in its Brazilian operations. While this may limit near-term FCF, it could support future volume growth. However, the high capital intensity, combined with a strained balance sheet, implies that any commodity downturn could pressure liquidity.
Working Capital Swings Distort Cash Flow
Working capital changes ranged from -$282.7M in Q1 2026 to +$202.5M in Q4 2024, per financial statements, indicating significant volatility that obscures underlying cash generation.
The large negative working capital changes in Q1 2025 and Q1 2026 suggest inventory builds or receivable delays, possibly tied to Aripuanã ramp-up or seasonal factors. Conversely, Q4 2024 saw a large positive swing, likely from collections or inventory drawdowns. These swings make quarterly cash flow comparisons difficult and warrant monitoring for any structural deterioration in working capital efficiency.
Minimal Capital Returns Amid Deleveraging
Dividends were paid in most quarters but were modest, totaling $72.5M over ten quarters, per reported data, with no buybacks, indicating a focus on debt reduction and liquidity preservation.
Dividend payments have been inconsistent, with a notable $25.3M in Q1 2026, but overall, capital returns are minimal relative to operating cash flow. The absence of buybacks and the small acquisition activity suggest management is prioritizing balance sheet repair. Given the high debt/equity of 1.42, investors should expect continued conservative capital deployment.
Cumulative Cash Generation Outpaces Net Income
Over the last ten quarters, cumulative operating cash flow was $838.6M versus cumulative net income of $85.2M, per reported figures, indicating that cash generation has been stronger than accounting earnings.
The large cumulative gap between OCF and net income suggests that non-cash charges like D&A (averaging $90M per quarter) are significant, but also that working capital has been a source of cash in some periods. This divergence may indicate that earnings are understated relative to cash generation, but it also raises questions about the sustainability of working capital contributions. Investors should assess whether this gap will narrow as Aripuanã stabilizes.
What the Cash Flow Statement Obscures
Despite positive operating cash flow, Nexa's cash flow statement may obscure the impact of capitalized costs and asset retirement obligations, per reported figures, which could affect future cash needs.
The cash flow statement shows no stock-based compensation, but significant D&A and working capital swings may mask underlying cash generation. Capitalized costs related to Aripuanã and potential asset retirement obligations for Peruvian mines are not fully visible in the provided data, warranting further investigation. Investors should monitor these off-balance-sheet items as they could represent future cash outflows not captured in current OCF.