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Remitly Global, Inc. (RELY +2.63%) Director Nigel W. Morris reported a sale of 8,938 shares of common stock on August 7, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$227,293Shares sold (directly held)8,938Post-transaction shares (directly held)1,882,056Post-transaction value$45.96 millionTransaction value based on SEC Form 4 weighted average sale price ($25.43); post-transaction value based on the August 7 market close ($24.42).

Key questionsWhat was the nature of this transaction?
Morris executed a direct open-market sale of 8,938 shares at a weighted average price of $25.43 per share. This was a discretionary move that did not involve tax-related withholding or a pre-arranged trading plan, according to the filing.How does this impact the insider's equity position?
The sale reduced the director's total direct equity stake by 0.5%. Despite the transaction, the reporting person maintains a substantial position of 1,882,056 shares with a market value of $45.96 million as of the August 7 close.What is the broader ownership context for Remitly Global?
The current holding reported by the director is held entirely in a direct capacity, with no indirect holdings or derivative securities disclosed in this specific filing.Where does the stock price sit relative to the transaction?
The shares were sold at $25.43, slightly above the market close of $24.42 on the day of the trade. As of the August 10 market close, the stock was priced at $23.14.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$23.14Market Capitalization$4.9 billionRevenue (TTM)$1.8 billionNet Income (TTM)$305.0 millionCompany SnapshotRemitly Global specializes in digital financial services for immigrants and their families, with a primary focus on international money transfers operating across 170 countries, generating revenue through transaction fees and value-added financial services.The company operates a digital-first platform that enables customers to send money internationally with competitive pricing and fast settlement times, monetizing through transaction fees, foreign exchange margins, and complementary financial products.Remitly's primary customers are immigrant workers and their families in developing markets who rely on remittances for household income, with a strategic focus on emerging markets where traditional banking infrastructure remains limited.Remitly Global is a leading digital remittance platform serving the global immigrant population with a market capitalization of $4.9 billion and TTM revenue of $1.8 billion. The company has established a scalable technology infrastructure that enables cross-border payments at lower costs than traditional money transfer operators, positioning itself as a disruptive alternative to legacy remittance channels. With a growing base of digital-native customers, Remitly maintains competitive advantages through its technology platform, operational efficiency, and deep understanding of emerging market customer needs.

What this transaction means for investorsMorris trimmed just half a percent of his stake and kept more than 1.8 million shares, which reads closer to a small housekeeping sale than a signal long-term investors should read into. Yes, this was a discretionary open-market trade, not tax withholding or a scheduled exercise, but in light of the transaction size, that simply makes the restraint more telling than the sale.

Meanwhile, Remitly has more than earned investor patience lately. It grew second-quarter revenue 20% to $495 million, crossed 10 million active customers for the first time, and lifted adjusted EBITDA 79% to a record $115 million. New CEO Sebastian Gunningham called the quarter "a direct reflection of" the company's strategy and share gains, with the stock roughly doubling off its lows this year. Even after that run, shares sit around 45% below their post-IPO highs, so it could be that Morris is waiting for the stock to finish closing that gap, and that’s ultimately a good indication for long-term investors, along with the firm’s latest earnings.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO--(BUSINESS WIRE)--Sherritt International Corporation (“Sherritt”, the “Corporation”) (TSX: S) today reported its financial results for the three and six months ended June 30, 2026. All amounts are in Canadian dollars unless otherwise noted.

“The second quarter was marked by significant challenges and disruption,” said Peter Hancock, Interim President and Chief Executive Officer. “Against this backdrop, we remained focused on preserving liquidity, maintaining safety, maximizing fertilizer production, and advancing stakeholder engagement and strategic initiatives necessary to prepare for a restart of our critical minerals mining and refining operations subject to U.S. government approval. We are continuing to work with urgency and discipline to deliver a solution that supports the long-term stability and viability of our business.”

SECOND QUARTER 2026 SELECTED DEVELOPMENTS(1)

Operational update

On May 7, 2026, as a result of the Executive Order issued by the U.S. administration on May 1, 2026 expanding its sanctions against persons and companies conducting business in Cuba (the “Executive Order”), Sherritt suspended its direct participation in both its Moa and Energas joint venture activities in Cuba.

As a result of fuel supply disruptions in Cuba and challenges procuring other input commodities and supplies at the mine site, feed inventory at the refinery in Fort Saskatchewan, Alberta was depleted on June 22, 2026. Mining and processing operations at the mine ceased near the end of the quarter.

During the refinery downtime, the Corporation will complete necessary maintenance activities that do not require significant capital investment. The Corporation continues to produce fertilizers and sulphuric acid for sale.

Operational performance

Finished nickel and cobalt production at the Moa Joint Venture (“Moa JV”) was 1,319 tonnes and 135 tonnes, respectively, (Sherritt’s share(1)). Finished nickel and cobalt sales were 1,720 tonnes and 167 tonnes, respectively(1). Fertilizer sales were 52,328 tonnes(1) as Sherritt prioritized initiatives to maximize fertilizer production at Fort Site. Net direct cash cost (“NDCC”)(2) of US$7.31/lb was primarily impacted by the higher sulphur prices and significantly lower nickel production and sales volumes. Electricity production was 207 GWh. Production was not affected by fuel supply disruptions to Cuba as Energas processes domestically sourced raw natural gas to generate electricity. Electricity unit operating cost(2) was $13.36/MWh primarily reflecting lower maintenance costs and higher electricity production and sales. Financial performance

Net loss from continuing operations was $71.1 million, or $(0.10) per share. Adjusted net loss from continuing operations(2) was $24.8 million or $(0.04) per share which primarily excludes the $38.6 million loss from operations of Sherritt’s Oil and Gas division, primarily due to a $36.1 million contractually obligated environmental rehabilitation cost update on legacy assets in Spain in Q2 2026. In addition, the current year period excludes a $6.8 million non-cash net loss on revaluation of the GNC(3) receivable and Energas payable pursuant to the Cobalt Swap agreement(4). Adjusted net loss from continuing operations for Q2 2025 primarily excludes a $32.4 million gain on the Debt and Equity Transactions(5). Adjusted EBITDA(2) was $(2.0) million. Available liquidity in Canada as at June 30, 2026 was $80.1 million. Organizational updates

On April 7, 2026, the Corporation completed a non-brokered private placement of common shares, issuing approximately 207 million shares at $0.21 per share for total gross proceeds of $43.6 million. In April 2026, foreign currency payments from the Moa JV to Energas pursuant to the Moa Swap ceased as a result of reduced operations at the Moa JV which reduced the Moa JV’s cash available in major foreign currencies. Dividends from Energas to the Corporation in Canada ceased. On May 1, 2026, the Executive Order was issued by the U.S. administration expanding its sanctions against persons and companies conducting business in Cuba. Sherritt International Corporation, the legal entity, has not, nor has any of its officers or directors, been sanctioned following issuance of the Executive Order. On May 7, 2026 Sherritt announced: It suspended its direct participation in both its Moa and Energas joint venture activities in Cuba, and that it took steps to repatriate Sherritt’s expatriate employees on assignment in Cuba and requested that partners repatriate their expatriate personnel on assignment in Canada. Brian Imrie, Richard Moat and Brett Richards resigned from its board of directors (the “Board”). On May 13, 2026, Sherritt announced: Deloitte LLP resigned as the Corporation’s external auditor, effective May 12, 2026. The resignation was not the result of any disagreement between the Corporation and Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. Deloitte’s reports on the Corporation’s previously issued financial statements did not contain any adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principles. Sherritt commenced a request for proposal process for external audit services to identify a successor auditor. Yasmin Gabriel resigned as Chief Financial Officer. On May 14, 2026, Sherritt announced that pursuant to its application in the Ontario Superior Court of Justice, Commercial List, it was granted (i) an order under the Canada Business Corporations Act (the “CBCA”) permitting the Corporation’s Board to continue to act with two directors until no later than September 30, 2026, (ii) an order under the CBCA permitting the Corporation to continue to operate without an external auditor until no later than September 30, 2026, and (iii) an order extending the time for Sherritt to call its annual meeting of shareholders to not later than September 30, 2026. On May 15, 2026, Sherritt announced that in light of the May 1, 2026 Executive Order, it intended to invoke its dissolution rights under the Moa Shareholders’ Agreement and Energas Association Agreement and seek relief from the Alberta Court of King’s Bench to facilitate accelerated dissolution to the extent possible. The intended outcome was to allow Sherritt to most definitively address the Executive Order by eliminating Sherritt’s Cuban interests. Further, the separation from Cuba was intended to assist Sherritt in addressing issues that could arise from the Executive Order such as difficulties in obtaining an auditor or banking services. On May 19, 2026, following further and ongoing consultation with its advisors, stakeholders and relevant governmental authorities, and in light of additional information available to the Corporation, it would no longer proceed with the dissolution and disclaimer steps relating to its interests in Cuba and would not proceed with its application to the Alberta Court of King’s Bench. On May 20, 2026, Sherritt announced that it had entered into a non-binding term sheet with Gillon Capital, LLC (“Gillon Capital”) with respect to a proposed private placement of a common share purchase warrant (the “Warrant”), exercisable for up to that number of common shares of the Corporation such that, immediately upon exercise in full of the Warrant, Gillon Capital would own 55% of the common shares then issued and outstanding (the “Gillon Private Placement”). The Warrant will be exercisable at a price to be agreed by the parties for a period ending nine months from the closing date, subject to satisfaction of certain conditions precedent, including compliance with the Corporation’s existing contractual arrangements and debt agreements. Given the current circumstances of the Corporation, management expects that such exercise price will be at a discount to the closing price of the common shares on May 15, 2026. The Gillon Private Placement remains subject to the execution of definitive documentation and the transaction is expected to be subject to the satisfaction of customary conditions and the receipt of all required regulatory approvals, including approval of the Toronto Stock Exchange. In connection with the Gillon Private Placement, Sherritt engaged constructively with the United States Department of State, which confirmed that the Department of State and Department of Treasury do not object to Gillon Capital’s engagement in negotiations with the Corporation and, based on the information provided to date, do not consider such negotiations to be contrary to U.S. law. Any subsequent transaction will be subject to approval of the Department of State and Department of Treasury.
On June 15, 2026, Sherritt entered into an exclusivity agreement with Gillon Capital providing for a 120-day period of exclusive negotiations with respect to the non-binding term sheet regarding the Gillon Private Placement. The period of exclusivity was entered into to allow the parties to complete their respective due diligence reviews and negotiate a definitive agreement with respect to the Gillon Private Placement. On May 22, 2026, Sherritt announced that its principal regulator, the Ontario Securities Commission, issued a failure-to-file cease trade order (“FFCTO”) against the Corporation, effective May 21, 2026, as a result of the Corporation’s failure to file its first quarter 2026 interim financial statements, management’s discussion and analysis and related officer certifications (collectively, the “Q1 Filing“).by the filing deadline on May 15, 2026. The Corporation was unable to complete the filings as a result of operational and governance disruptions following the Executive Order. The Q1 Filing was made on June 25, 2026 and the FFCTO was revoked on July 9, 2026 with shares commencing trading on July 10, 2026. On June 3, 2026, Sherritt announced it had appointed Fitzroy Richardson as Interim Chief Financial Officer to provide experienced financial leadership as the Corporation works to complete its outstanding quarterly filings, an important step toward seeking a revocation of the FFCTO. Mr. Richardson is a seasoned finance executive with nearly 30 years of experience at Sherritt, where he has held a range of senior finance and treasury roles. On June 14, 2026, Sherritt appointed Tabrez Khan as an independent director, bringing deep M&A, financial and strategic advisory experience to the Board. Mr. Khan was nominated to the Board by Kyma Capital Opportunities Master Fund Limited (“Kyma”), pursuant to Kyma’s nomination right under the investor rights agreement dated as of April 22, 2025 between the Corporation and Kyma. Concurrent with Mr. Khan’s appointment to the Board, he was appointed to the audit committee of the Board (the “Audit Committee”). Following Mr. Khan’s appointment, the Audit Committee consists of Dr. Peter Hancock, Ms. Chih-Ting Lo, and Mr. Khan. As Dr. Hancock is the interim Chief Executive Officer of Sherritt, he is not considered independent under National Instrument 52-110 – Audit Committees (“NI 52-110”). Sherritt is relying on the temporary exemption provided in Section 3.5 of NI 52-110 for Dr. Hancock’s membership on the Audit Committee. Following Mr. Khan’s appointment, the Audit Committee is compliant with the requirements of NI 52-110 and the rules of the Toronto Stock Exchange. In respect of the Corporation’s Credit Facility: As a result of the issuance of the Executive Order, a material adverse change to the Corporation's business occurred which would give the administrative agent (on behalf of the lenders) the ability to call an event of default under the Credit Facility and demand repayment of all indebtedness currently owing thereunder. On May 31, 2026, the borrowing base of the Credit Facility was $76.3 million, which was below the then aggregate borrowings of $79.5 million including outstanding letters of credit. As a result of this deficiency, the lenders issued a notice of excess borrowing and required the Corporation to repay the difference of $3.2 million during the three months ended June 30, 2026. During the three months ended June 30, 2026, the Corporation was not in compliance with the EBITDA-to-Interest Expense covenant, as defined in the Credit Facility agreement. The Corporation does not have the ability to make further draws on the Credit Facility at this time. Refer to the Liquidity section of the Corporation’s Management’s Discussion and Analysis for the three and six months ended June 30, 2026 (“MD&A”) for further details. DEVELOPMENTS SUBSEQUENT TO THE QUARTER

Credit Facility update

On June 30, 2026, the borrowing base of the Credit Facility was $43.1 million, which was below the amount of the then aggregate borrowings of $76.3 million including outstanding letters of credit. As a result of this deficiency, the lenders issued a notice of excess borrowing and the Corporation repaid 50% of the June 30, 2026 borrowing base deficiency amounting to $16.6 million subsequent to period end in return for the lenders agreeing not to act on the Corporation’s default to pay the full amount of the deficiency. As of August 12, 2026, the administrative agent under the Credit Facility has not issued a notice of an event of default and no demand for repayment of the loan obligations has been made, other than the notices of excess borrowings noted above. Q2 2026 FINANCIAL HIGHLIGHTS

For the three months ended

  For the six months ended

$ millions, except per share amount

2026
June 30

2025
June 30

Change

2026
June 30

2025
June 30

Change

      Revenue

$

59.3

  $

43.7

36

%

  $

93.3

  $

82.1

14

%

Combined revenue(1)

132.1

  135.6

(3

%)

  238.7

  261.3

(9

%)

Loss from operations and joint venture

(52.7

)

  (19.4

)

(172

%)

  (64.8

)

  (51.2

)

(27

%)

Net (loss) earnings from continuing operations

(71.1

)

  10.4

(784

%)

  (80.3

)

  (30.2

)

(166

%)

Net (loss) earnings for the period

(71.1

)

  10.2

(797

%)

  (80.3

)

  (30.4

)

(164

%)

Adjusted EBITDA(1)

(2.0

)

  2.6

(177

%)

  5.6

  7.0

(20

%)

Adjusted loss from continuing operations(1)

(24.8

)

  (25.6

)

3

%

  (36.7

)

  (47.8

)

23

%

Net (loss) earnings from continuing operations ($ per share)

(0.10

)

  0.02

(600

%)

  (0.14

)

  (0.07

)

(100

%)

Adjusted loss from continuing operations ($ per share)(1)

(0.04

)

  (0.06

)

33

%

  (0.06

)

  (0.11

)

45

%

      Cash provided by continuing operations for operating activities

38.9

  5.6

595

%

  25.8

  6.6

291

%

Combined free cash flow(1)

35.0

  2.8

nm(2)

  30.3

  (3.8

)

897

%

Average exchange rate (CAD/US$)

1.384

  1.384

-

  1.378

  1.409

(2

%)

$ millions, as at

2026
June
30

2025
December
31

Change

  Cash and cash equivalents

  Canada

$

80.1

  $

13.4

498

%

Cuba(3)

119.8

  109.4

10

%

Other

3.9

  2.1

86

%

203.8

  124.9

63

%

  Loans and borrowings

323.2

  316.0

2

%

  The Corporation's share of cash and cash equivalents in the Moa Joint Venture, not included in the above balances:

$

5.4

  $

12.8

(58

%)

Cash and cash equivalents were $203.8 million as at June 30, 2026 compared to $123.6 million at March 31, 2026. As at June 30, 2026, total available liquidity in Canada was $80.1 million, composed of cash and cash equivalents in Canada. The Corporation did not have availability under its Credit Facility at the end of the quarter.

During the quarter, Sherritt received $42.5 million in net proceeds from the common share private placement completed on April 7, 2026.

As well during the three months ended June 30, 2026, the Corporation received $128.7 million of cash receipts for nickel, cobalt and fertilizer sales and other working capital items from the Moa JV in the Corporate and Other segment in response to the Executive Order and the Corporation’s suspension of its direct participation in joint venture activities in Cuba effective May 7, 2026 and is being used to fund working capital. The cash receipts are recognized as accounts payable to the Moa JV and included in trade accounts payable and accrued liabilities and settled through the incurrence of costs by the Corporation on behalf of the Moa JV’s Canadian operations.

See the Liquidity section of the MD&A for additional details on the Credit Facility and cash flows.

REVIEW OF OPERATIONS

Metals

For the three months ended

  For the six months ended

$ millions (Sherritt's share), except as otherwise noted

2026
June 30

  2025
June 30

Change

  2026
June 30

  2025
June 30

Change

      FINANCIAL HIGHLIGHTS(1)

      Revenue

$

117.5

  $

124.7

(6

%)

  $

211.3

  $

238.4

(11

%)

Cost of sales

130.8

  130.1

1

%

  232.5

  249.2

(7

%)

Loss from operations

(14.9

)

  (7.4

)

(101

%)

  (24.1

)

  (16.0

)

(51

%)

Adjusted EBITDA(2)

0.3

  7.8

(96

%)

  6.0

  13.3

(55

%)

      CASH FLOW(1)

      Cash (used) provided by continuing operations for operating activities(2)

$

(26.2

)

  $

20.0

(231

%)

  $

(27.9

)

  $

41.9

(167

%)

Free cash flow(2)

(28.0

)

  6.4

(538

%)

  (35.1

)

  17.8

(297

%)

      PRODUCTION VOLUMES (tonnes)

      Mixed sulphides ("MSP")(4)

934

  3,238

(71

%)

  2,745

  6,395

(57

%)

Finished nickel

1,319

  3,431

(62

%)

  3,204

  6,378

(50

%)

Finished cobalt

135

  389

(65

%)

  348

  712

(51

%)

Fertilizer

56,344

  65,207

(14

%)

  109,348

  121,027

(10

%)

      NICKEL RECOVERY(5) (%)

74

%

  83

%

(11

%)

  79

%

  84

%

(6

%)

      SALES VOLUMES (tonnes)

      Finished nickel

1,720

  3,256

(47

%)

  3,964

  6,695

(41

%)

Finished cobalt

167

  380

(56

%)

  370

  836

(56

%)

Fertilizer

52,328

  44,614

17

%

  79,700

  77,734

3

%

      AVERAGE-REFERENCE PRICE(6) (US$ per pound)

      Nickel

$

8.22

  $

6.88

19

%

  $

8.05

  $

6.97

15

%

Cobalt

26.50

  17.50

51

%

  26.24

  15.24

72

%

      AVERAGE-REALIZED PRICE(2) (CAD)

      Nickel ($ per pound)

$

11.27

  $

9.57

18

%

  $

10.93

  $

9.78

12

%

Cobalt ($ per pound)

34.51

  18.19

90

%

  33.54

  15.51

116

%

Fertilizer ($ per tonne)

701.78

  674.44

4

%

  630.62

  591.10

7

%

      UNIT OPERATING COST(2) (US$)

      Nickel - net direct cash cost (US$ per pound)

$

7.31

  $

5.27

39

%

  $

7.13

  $

5.64

26

%

      SPENDING ON CAPITAL(2)(CAD)

      Sustaining

      Moa JV (50% basis), Fort Site (100% basis)

$

-

  $

7.6

(100

%)

  $

0.7

  $

16.4

(96

%)

Moa JV - Tailings facility (50% basis)

1.8

  5.0

(64

%)

  6.5

  9.8

(34

%)

Growth - Moa JV (50% basis)

-

  2.3

(100

%)

  -

  4.0

(100

%)

$

1.8

  $

14.9

(88

%)

  $

7.2

  $

30.2

(76

%)

On May 7, 2026, Sherritt announced that it suspended its direct participation in both its Moa and Energas joint venture activities in Cuba in response to the Executive Order issued by the U.S. administration on May 1, 2026.

Revenue

Metals revenue was $117.5 million compared to $124.7 million in the prior year period.

Nickel revenue was $42.8 million compared to $68.6 million in the prior year period primarily due to lower nickel sales volume partly offset by higher average-realized price(1). Sales volume of 1,720 tonnes compared to 3,256 tonnes in the prior year period primarily as a result of lower finished production outlined below. The average-realized price(1) of nickel of $11.27/lb was 18% higher compared to the prior year period.

Cobalt revenue was $12.8 million compared to $15.2 million in the prior year period primarily due to lower sales volume partly offset by higher average-realized price(1). Sales volume was 167 tonnes compared to 380 tonnes in the prior year period primarily as a result of lower finished production outlined below. The average-realized price(1) of cobalt of $34.51/lb was 90% higher compared to the prior year period.

Fertilizer revenue was $36.8 million compared to $30.0 million in the prior year period primarily due to higher sales volume and average-realized price(1). Sales volume of 52,328 tonnes compared to 44,614 tonnes in the prior year period. The average-realized price(1) of fertilizers of $701.78/tonne was 4% higher compared to the prior year period. The Corporation continues to produce fertilizers and sulphuric acid for sale.

Other revenue includes 450 tonnes (50% basis) of mixed sulphides sales following Sherritt’s suspension of its direct participation in its joint venture activities in Cuba.

Production

As a result of fuel supply disruptions in Cuba and challenges procuring other input commodities and supplies at the mine site, only small quantities of mixed sulphides were produced during the quarter. Mixed sulphides production at the Moa JV was 934 tonnes compared to 3,238 tonnes in the prior year period. Mining and processing operations at the mine ceased near the end of the quarter.

At the refinery in Fort Saskatchewan, Alberta, metals production was maintained at reduced rates during the quarter until June 22, 2026 when the mixed sulphides inventory was depleted and metals refining activity stopped. Sherritt’s share of finished nickel and cobalt production was 1,319 tonnes and 135 tonnes, compared to 3,431 tonnes and 389 tonnes, respectively, in the prior year period.

Fertilizer production was 56,344 tonnes, compared to 65,207 tonnes in the prior year quarter. Fertilizer production was lower in the current year period primarily due to lower metals production. Sherritt expects to conduct a planned acid plant maintenance shutdown in the third quarter 2026.

NDCC(1)

NDCC(1) per pound of nickel sold was US$7.31/lb compared to US$5.27/lb in the prior year period. Higher NDCC(1), and its components, were, in part, impacted by significantly lower nickel sales volume compared to the prior year period.

Mining, processing and refining costs per pound of nickel sold (“MPR/lb”) was higher primarily as a result of higher input commodity prices and the impact of the higher allocation of fixed costs over the significantly lower nickel sales volume. Sulphur, diesel and natural gas prices were 78%, 59% and 27% higher, respectively, while fuel oil prices were 29% lower in the current year period compared to Q2 2025. The joint venture did not purchase additional sulphur during the quarter.

Cobalt by-product credits were higher primarily as a result of the higher average-realized price(1) of cobalt.

Fertilizer net by-product credits were higher primarily as a result of the impact of significantly lower nickel sales volume on marginally higher net contribution from fertilizer sales during the current year quarter compared to Q2 2025.

Spending on capital(1)

Sustaining spending on capital was nil compared to $7.6 million and spending on capital related to the tailings facility was $1.8 million compared to $5.0 million, respectively. Spending on capital was lower in the current year period as Metals deferred non-essential capital spending to manage liquidity and the impact of the Executive Order which limited the joint venture’s ability to procure or receive delivery of capital assets.

Power

For the three months ended

  For the six months ended

$ millions (33 ⅓% basis), except as otherwise noted

2026
June 30

  2025
June 30

Change

  2026
June 30

  2025
June 30

Change

      FINANCIAL HIGHLIGHTS

      Revenue

$

14.5

  $

10.6

37

%

  $

27.1

  $

22.0

23

%

Cost of sales

3.2

  5.0

(36

%)

  7.2

  11.9

(39

%)

Earnings from operations

9.8

  4.3

128

%

  17.2

  7.0

146

%

Adjusted EBITDA(1)

10.4

  5.0

108

%

  18.4

  8.4

119

%

      CASH FLOW

      Cash provided by continuing operations for operating activities(1)

$

22.8

  $

16.0

43

%

  $

35.7

  $

16.9

111

%

Free cash flow(1)

22.7

  15.2

49

%

  35.4

  16.0

121

%

      PRODUCTION AND SALES

      Electricity (GWh(2))

207

  176

18

%

  416

  346

20

%

      AVERAGE-REALIZED PRICE(1)

      Electricity ($/MWh(2))

$

52.58

  $

52.56

-

  $

52.35

  $

53.53

(2

%)

      UNIT OPERATING COSTS(1)

      Electricity ($/MWh)

$

13.36

  $

24.80

(46

%)

  $

15.09

  $

31.03

(51

%)

      SPENDING ON CAPITAL(1)

    Sustaining

$

0.1

  $

0.8

(88

%)

  $

0.3

  $

0.9

(67

%)

      On May 7, 2026, Sherritt announced that it suspended its direct participation in both its Moa and Energas joint venture activities in Cuba in response to the Executive Order issued by the U.S. administration on May 1, 2026.

Revenue

Revenue was $14.5 million compared to $10.6 million in the prior year period. primarily due to increased electricity production as discussed below.

Production

Production volume was 207 GWh compared to 176 GWh in the prior year period primarily as a result of lower maintenance activities in the current year period. Energas processes domestically sourced raw natural gas to generate electricity and has not been affected by fuel supply disruptions in Cuba.

Unit operating cost(1)

Unit operating cost(1) was $13.36/MWh compared to $24.80/MWh in the prior year period primarily as a result of lower maintenance costs. As a result of the discontinuation of the Moa Swap in April, the joint venture prioritized and deferred certain planned maintenance activities to preserve liquidity and access to foreign currencies.

Spending on capital(1)

Spending on capital(1) was $0.1 million.

Dividends from Energas

In April 2026, foreign currency payments from the Moa JV to Energas facilitated by the Moa Swap ceased as a result of reduced operations at the Moa JV which reduced the Moa JV’s cash available in major foreign currencies. Dividends from Energas to the Corporation in Canada ceased.

FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS (“MD&A”)

Sherritt’s condensed consolidated financial statements and MD&A for the three and six months ended June 30, 2026 are available at www.sherritt.com or on SEDAR+ at www.sedarplus.ca. and should be read in conjunction with this news release. Financial and operating data can also be viewed in the investor relations section of Sherritt’s website.

NON-GAAP AND OTHER FINANCIAL MEASURES

Management uses the following non-GAAP and other financial measures in this press release and other documents: combined revenue, adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), average-realized price, unit operating cost/net direct cash cost (NDCC), adjusted net earnings/loss from continuing operations, adjusted net earnings/loss from continuing operations per share, spending on capital, combined cash provided (used) by continuing operations for operating activities and combined free cash flow.

Management uses these measures to monitor the financial performance of the Corporation and its operating divisions and believes these measures enable investors and analysts to compare the Corporation’s financial performance with its competitors and/or evaluate the results of its underlying business. These measures are intended to provide additional information, not to replace IFRS® Accounting Standards (“IFRS”) measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies.

The non-GAAP and other financial measures are reconciled to their most directly comparable IFRS measures in the Appendix below.

ABOUT SHERRITT

Sherritt is a world leader in using hydrometallurgical processes to mine and refine nickel and cobalt – metals deemed critical for the energy transition. Leveraging its technical expertise and decades of experience in critical minerals processing, Sherritt is committed to expanding domestic refining capacity and reducing reliance on foreign sources. The Corporation operates a strategically important refinery in Alberta, Canada, recognized as the only significant cobalt refinery and one of just three nickel refineries in North America.

Sherritt’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. Forward-looking statements can generally be identified by the use of statements that include such words as “believe”, “expect”, “anticipate”, “intend”, “plan”, “forecast”, “likely”, “may”, “will”, “could”, “should”, “suspect”, “outlook”, “potential”, “projected”, “continue” or other similar words or phrases. Specifically, forward-looking statements in this document include, but are not limited to the reduction or cessation of mining operations at Moa; the timing and ability to secure necessary fuel and other input commodities and supplies in Cuba following the issuance of the Executive Order; the anticipated duration of the shut down at the Fort Saskatchewan refinery; the potential impact of fuel and other input commodity supply disruption on production levels; measures to preserve and maximize liquidity, including managing expenditures and exploring potential sources of temporary funding support; the timing of updated 2026 guidance and the resumption of full operations of the mine at Moa and refinery at Fort Saskatchewan; sales volumes; revenue, costs and earnings; the amount and timing of dividend distributions from the Moa JV, including in the form of finished cobalt or cash under the Cobalt Swap; the amount and timing of dividend distributions from Energas; growing shareholder value; sufficiency of working capital management and capital project funding; strengthening the Corporation’s capital structure; amounts of certain other commitments; the auditor request for proposal process; the appointment of a new external auditor; statements regarding the Gillon Private Placement, including the completion and timing thereof, the terms on which it may be completed and the receipt of all required approvals; the ability of the parties to complete their respective due diligence reviews and negotiate a definitive agreement during the period of exclusivity; the ability of the parties to resolve the legal, regulatory and commercial complexities identified through due diligence; the ongoing engagement with relevant governmental and regulatory authorities and other stakeholders in furtherance of the regulatory approvals and other matters required to complete the Gillon Private Placement.

Forward-looking statements are not based on historical facts, but rather on current expectations, assumptions and projections about future events, including commodity and product prices and demand; the level of liquidity and access to funding; share price volatility; nickel, cobalt and fertilizer production results; realized prices for production; earnings and revenues; risks related to the U.S. government policy toward Cuba, including impacts of the Executive Order; current and future economic conditions in Cuba; the level of liquidity and access to funding; global demand for electric vehicles and the anticipated corresponding demand for cobalt and nickel; revenues and net operating results; environmental risks and liabilities; compliance with applicable environmental laws and regulations; advancements in environmental and greenhouse gas (“GHG”) reduction technology; GHG emissions reduction goals and the anticipated timing of achieving such goals, if at all; statistics and metrics relating to Environmental, Social and Governance (“ESG”) matters which are based on assumptions or developing standards; environmental rehabilitation provisions; environmental risks and liabilities; compliance with applicable environmental laws and regulations; Sherritt share price volatility; and certain corporate objectives, goals and plans for 2026. By their nature, forward-looking statements require the Corporation to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that the assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections.

The Corporation cautions readers of this press release not to place undue reliance on any forward-looking statement as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, risks related to Sherritt’s operations in Cuba; risks related to the U.S. government policy toward Cuba, including the Executive Order, U.S. embargo on Cuba and the Helms-Burton legislation, including litigation under Title III thereof; level of liquidity of Sherritt, including access to capital and financing; commodity risks related to the production and sale of nickel cobalt and fertilizers; the impact of global conflicts; changes in the global price for nickel, cobalt, fertilizers or certain other commodities; security market fluctuations and price volatility; the ability of the Moa Joint Venture to pay dividends; the risk to Sherritt’s entitlements to future distributions (including pursuant to the Cobalt Swap) from the Moa Joint Venture; risk of future non-compliance with debt restrictions and covenants; political, economic and other risks of foreign operations; uncertainty in the ability of the Corporation to enforce legal rights in foreign jurisdictions; uncertainty regarding the interpretation and/or application of the applicable laws in foreign jurisdictions; risks related to environmental liabilities including liability for reclamation costs, tailings facility failures and toxic gas releases; compliance with applicable environment, health and safety legislation and other associated matters; risks associated with governmental regulations regarding climate change and greenhouse gas emissions; risks relating to community relations; maintaining social license to grow and operate; uncertainty about the pace of technological advancements required in relation to achieving ESG targets; risks to information technologies systems and cybersecurity; risks associated with the operation of large projects generally; risks related to the accuracy of capital and operating cost estimates; the possibility of equipment and other failure; potential interruptions in transportation; identification and management of growth opportunities; the ability to replace depleted mineral reserves; risks associated with the Corporation’s joint venture partners; variability in production at Sherritt’s operations in Cuba; risks associated with mining, processing and refining activities; uncertainty of gas supply for electrical generation; reliance on key personnel and skilled workers; growth opportunity risks; uncertainty of resources and reserve estimates; the potential for shortages of equipment and supplies, including diesel; supplies quality issues; risks related to the Corporation’s corporate structure; foreign exchange and pricing risks; credit risks; competition in product markets; future market access; interest rate changes; risks in obtaining insurance; uncertainties in labour relations; legal contingencies; risks related to the Corporation’s accounting policies; uncertainty in the ability of the Corporation to obtain government permits; failure to comply with, or changes to, applicable government regulations; bribery and corruption risks, including failure to comply with the Corruption of Foreign Public Officials Act or applicable local anti-corruption law; the ability to accomplish corporate objectives, goals and plans for 2026; and the ability to meet other factors listed from time to time in the Corporation’s continuous disclosure documents.

The Corporation, together with its Moa Joint Venture is pursuing a range of growth and expansion opportunities, including without limitation, process technology solutions, development projects, commercial implementation opportunities, life of mine extension opportunities and the conversion of mineral resources to reserves. In addition to the risks noted above, factors that could, alone or in combination, prevent the Corporation from successfully achieving these opportunities may include, without limitation: identifying suitable commercialization and other partners; successfully advancing discussions and successfully concluding applicable agreements with external parties and/or partners; successfully attracting required financing; successfully developing and proving technology required for the potential opportunity; successfully overcoming technical and technological challenges; successful environmental assessment and stakeholder engagement; successfully obtaining intellectual property protection; successfully completing test work and engineering studies, prefeasibility and feasibility studies, piloting, scaling from small scale to large scale production, procurement, construction, commissioning, ramp-up to commercial scale production and completion; and securing regulatory and government approvals. There can be no assurance that any opportunity will be successful, commercially viable, completed on time or on budget, or will generate any meaningful revenues, savings or earnings, as the case may be, for the Corporation. In addition, the Corporation will incur costs in pursuing any particular opportunity, which may be significant.

Additional risks, uncertainties and other factors include, but are not limited to, the ability of the Corporation to achieve its financial goals; the ability of the Corporation to continue to realize its assets and discharge its liabilities and commitments; the Corporation’s future liquidity position, and access to capital, to fund ongoing operations and obligations (including debt obligations); the ability of the Corporation to stabilize its business and financial condition; the ability of the Corporation to implement and successfully achieve its business priorities; and the ability of the Corporation to comply with its contractual obligations, including without limitation, its obligations under debt arrangements. Readers are cautioned that the foregoing list of factors is not exhaustive and should be considered in conjunction with the risk factors described in the Corporation’s other documents filed with the Canadian securities authorities, including without limitation the “Managing Risk” section of the Management’s Discussion and Analysis for the three months and year ended December 31, 2025 and the Annual Information Form of the Corporation dated March 23, 2026 for the period ending December 31, 2025, which is available on SEDAR+ at www.sedarplus.ca.

The Corporation may, from time to time, make oral forward-looking statements. The Corporation advises that the above paragraph and the risk factors described in the MD&A and in the Corporation’s other documents filed with the Canadian securities authorities should be read for a description of certain factors that could cause the actual results of the Corporation to differ materially from those in the oral forward-looking statements. The forward-looking information and statements contained in this press release are made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any oral or written forward-looking information or statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

APPENDIX – NON-GAAP AND OTHER FINANCIAL MEASURES

Management uses the measures below to monitor the financial performance of the Corporation and its operating divisions and believes these measures enable investors and analysts to compare the Corporation’s financial performance with its competitors and/or evaluate the results of its underlying business. These measures are intended to provide additional information, not to replace IFRS Accounting Standards measures, and do not have a standard definition under IFRS Accounting Standards and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies.

The non-GAAP and other financial measures are reconciled in the sections below to the most directly comparable IFRS Accounting Standards in the sections below.

Combined revenue

The Corporation uses combined revenue as a measure to help management assess the Corporation’s financial performance across its core operations. Combined revenue includes the Corporation’s consolidated revenue, less Oil and Gas revenue, and includes the revenue of the Moa JV within the Metals reportable segment on a 50% basis. Revenue of the Moa JV is included in share of earnings/loss of Moa Joint Venture, net of tax, as a result of the equity method of accounting and excluded from the Corporation’s consolidated revenue.

Revenue at Oil and Gas is excluded from Combined revenue as the segment is not currently exploring for or producing oil and gas and its revenue relate to ancillary drilling services, provided to a customer and agencies of the Government of Cuba, which is not reflective of the Corporation’s core operating activities or revenue generation potential.

Management uses this measure to reflect the Corporation’s economic interest in its operations prior to the application of equity accounting to help allocate financial resources and provide investors with information that it believes is useful in understanding the scope of Sherritt’s business, based on its economic interest, irrespective of the accounting treatment.

The table below reconciles combined revenue to revenue per the financial statements:

For the three months ended

  For the six months ended

2026

  2025

  2026

  2025

$ millions

June 30

June 30

Change

June 30

June 30

Change

      Revenue by reportable segment

      Metals(1)

$

117.5

  $

124.7

(6

%)

  $

211.3

  $

238.4

(11

%)

Power

14.5

  10.6

37

%

  27.1

  22.0

23

%

Corporate and Other

0.1

  0.3

(67

%)

  0.3

  0.9

(67

%)

Combined revenue

$

132.1

  $

135.6

(3

%)

  $

238.7

  $

261.3

(9

%)

Adjustment for Moa Joint Venture

(73.0

)

  (93.5

)

  (145.9

)

  (183.1

)

Adjustment for Oil and Gas

0.2

  1.6

(88

%)

  0.5

  3.9

(87

%)

Financial statement revenue

$

59.3

  $

43.7

36

%

  $

93.3

  $

82.1

14

%

Adjusted EBITDA

The Corporation defines Adjusted EBITDA as earnings/loss from operations and joint venture, which excludes net finance expense, income tax expense and loss from discontinued operations, net of tax, as reported in the financial statements for the period, adjusted for: depletion, depreciation and amortization; impairment losses and reversals on non-current non-financial assets and investments; and gains or losses on disposal of property, plant and equipment of the Corporation and the Moa JV. The exclusion of impairment losses and reversals eliminates the non-cash impact of the losses and reversals.

Earnings/loss from operations at Oil and Gas (net of depletion, depreciation and amortization and impairment, if applicable) is deducted from/added back to Adjusted EBITDA as the segment is not currently exploring for or producing oil and gas and its financial results relate to ancillary drilling services, provided to a customer and agencies of the Government of Cuba, and environmental rehabilitation costs for legacy assets, which are not reflective of the Corporation’s core operating activities or cash generation potential.

Management uses Adjusted EBITDA internally to evaluate the cash generation potential of Sherritt’s operating divisions on a combined and segment basis as an indicator of ability to fund working capital needs, meet covenant obligations, service debt and fund capital expenditures, as well as provide a level of comparability to similar entities. Management believes that Adjusted EBITDA provides useful information to investors in evaluating the Corporation’s operating results in the same manner as management and the Board of Directors.

The tables below reconcile loss from operations and joint venture per the financial statements to Adjusted EBITDA:

$ millions, for the three months ended June 30

        2026

Metals(1)

  Power

  Oil and
Gas

  Corporate
and
Other

  Adjustment
for Moa
Joint
Venture

  Total

          (Loss) earnings from operations and joint venture per financial statements

$

(14.9

)

  $

9.8

  $

(38.6

)

  $

(12.8

)

  $

3.8

  $

(52.7

)

Add (deduct):

          Depletion, depreciation and amortization

3.0

  0.6

  0.1

  0.1

  -

  3.8

Oil and Gas earnings from operations, net of depletion, depreciation and amortization

-

  -

  38.5

  -

  -

  38.5

Adjustments for share of loss of Moa Joint Venture:

          Depletion, depreciation and amortization

12.2

  -

  -

  -

  -

  12.2

Net finance income, net of elimination

-

  -

  -

  -

  (0.3

)

  (0.3

)

Income tax recovery

-

  -

  -

  -

  (3.5

)

  (3.5

)

Adjusted EBITDA

$

0.3

  $

10.4

  $

-

  $

(12.7

)

  $

-

  $

(2.0

)

$ millions, for the three months ended June 30

        2025

Metals(1)

  Power

  Oil and
Gas

  Corporate
and
Other

  Adjustment
for Moa
Joint
Venture

  Total

          (Loss) earnings from operations and joint venture per financial statements

$

(7.4

)

  $

4.3

  $

(0.3

)

  $

(10.3

)

  $

(5.7

)

  $

(19.4

)

Add (deduct):

          Depletion, depreciation and amortization

2.7

  0.7

  -

  0.1

  -

  3.5

Oil and Gas earnings from operations, net of depletion, depreciation and amortization

-

  -

  0.3

  -

  -

  0.3

Adjustments for share of loss of Moa Joint Venture:

          Depletion, depreciation and amortization

12.5

  -

  -

  -

  -

  12.5

Net finance expense, net of elimination

-

  -

  -

  -

  4.6

  4.6

Income tax expense

-

  -

  -

  -

  1.1

  1.1

Adjusted EBITDA

$

7.8

  $

5.0

  $

-

  $

(10.2

)

  $

-

  $

2.6

$ millions, for the six months ended June 30

        2026

Metals(2)

  Power

  Oil and
Gas

  Corporate
and
Other

  Adjustment
for Moa
Joint
Venture

  Total

          (Loss) earnings from operations and joint venture per financial statements

$

(24.1

)

  $

17.2

  $

(45.5

)

  $

(19.0

)

  $

6.6

  $

(64.8

)

Add (deduct):

          Depletion, depreciation and amortization

5.3

  1.2

  0.1

  0.2

  -

  6.8

Oil and Gas loss from operations, net of depletion, depreciation and amortization

-

  -

  45.4

  -

  -

  45.4

Adjustments for share of loss of Moa Joint Venture:

          Depletion, depreciation and amortization

24.8

  -

  -

  -

  -

  24.8

Net finance income, net of elimination

-

  -

  -

  -

  (0.7

)

  (0.7

)

Income tax recovery

-

  -

  -

  -

  (5.9

)

  (5.9

)

Adjusted EBITDA

$

6.0

  $

18.4

  $

-

  $

(18.8

)

  $

-

  $

5.6

$ millions, for the six months ended June 30

        2025

Metals(2)

  Power

  Oil and
Gas

  Corporate
and
Other

  Adjustment
for Moa
Joint
Venture

  Total

          (Loss) earnings from operations and joint venture per financial statements

$

(16.0

)

  $

7.0

  $

(19.0

)

  $

(15.1

)

  $

(8.1

)

  $

(51.2

)

Add (deduct):

          Depletion, depreciation and amortization

5.0

  1.4

  -

  0.4

  -

  6.8

Oil and Gas loss from operations, net of depletion, depreciation and amortization

-

  -

  19.0

  -

  -

  19.0

Adjustments for share of loss of Moa Joint Venture:

          Depletion, depreciation and amortization

24.3

  -

  -

  -

  -

  24.3

Net finance expense, net of elimination

-

  -

  -

  -

  6.2

  6.2

Income tax expense

-

  -

  -

  -

  1.9

  1.9

Adjusted EBITDA

$

13.3

  $

8.4

  $

-

  $

(14.7

)

  $

-

  $

7.0

Average-realized price

Average-realized price is generally calculated by dividing revenue by sales volume for the given product in a given segment. The average-realized price for power excludes frequency control, by-product and other revenue, as this revenue is not earned directly for power generation. Refer to the Power Review of operations section for further details on frequency control revenue, which Energas receives in compensation for lost sales of electricity as a result of frequency control.

Management uses this measure, and believes investors use this measure, to compare the relationship between the revenue per unit and direct costs on a per unit basis in each reporting period for nickel, cobalt, fertilizer and power and provide comparability with other similar external operations.

Average-realized price for fertilizer is the weighted-average realized price of ammonia and various ammonium sulphate products.

Average-realized price for nickel and cobalt are expressed in Canadian dollars per pound sold, while fertilizer is expressed in Canadian dollars per tonne sold and electricity is expressed in Canadian dollars per megawatt hour sold.

The tables below reconcile revenue per the financial statements to average-realized price:

            $ millions, except average-realized price and sales volume, for the three months ended June 30

        2026

Metals

        Nickel

Cobalt

Fertilizer

Power

Other(1)

Adjustment
for Moa Joint
Venture

Total

            Revenue per financial statements

$

42.8

  $

12.8

  $

36.8

  $

14.5

  $

25.4

  $

(73.0

)

  $

59.3

Adjustments to revenue:

            Frequency control, by-product and other revenue

-

  -

  -

  (3.7

)

      Revenue for purposes of average-realized price calculation

42.8

  12.8

  36.8

  10.8

                  Sales volume for the period

3.8

  0.4

  52.3

  207

      Volume units

Millions of
pounds

Millions of
pounds

Thousands
of tonnes

Gigawatt
hours

      Average-realized price(2)(3)(4)

$

11.27

  $

34.51

  $

701.78

  $

52.58

      $ millions, except average-realized price and sales volume, for the three months ended June 30

        2025

Metals

        Nickel

Cobalt

Fertilizer

Power

Other(1)

Adjustment
for Moa Joint
Venture

Total

            Revenue per financial statements

$

68.6

  $

15.2

  $

30.0

  $

10.6

  $

12.8

  $

(93.5

)

  $

43.7

Adjustments to revenue:

            Frequency control, by-product and other revenue

-

  -

  -

  (1.4

)

      Revenue for purposes of average-realized price calculation

68.6

  15.2

  30.0

  9.2

                  Sales volume for the period

7.2

  0.8

  44.6

  176

      Volume units

Millions of
pounds

Millions of
pounds

Thousands
of tonnes

Gigawatt
hours

      Average-realized price(2)(3)(4)

$

9.57

  $

18.19

  $

674.44

  $

52.56

      $ millions, except average-realized price and sales volume, for the six months ended June 30

        2026

Metals

        Nickel

  Cobalt

  Fertilizer

  Power

  Other(1)

  Adjustment
for Moa Joint
Venture

  Total

            Revenue per financial statements

$

95.6

  $

27.4

  $

50.3

  $

27.1

  $

38.8

  $

(145.9

)

  $

93.3

Adjustments to revenue:

            Frequency control, by-product and other revenue

-

  -

  -

  (5.3

)

      Revenue for purposes of average-realized price calculation

95.6

  27.4

  50.3

  21.8

                  Sales volume for the period

8.7

  0.8

  79.7

  416

      Volume units

Millions of
pounds

Millions of
pounds

Thousands
of tonnes

Gigawatt
hours

      Average-realized price(2)(3)(4)

$

10.93

  $

33.54

  $

630.62

  $

52.35

      $ millions, except average-realized price and sales volume, for the six months ended June 30

        2025

Metals

        Nickel

  Cobalt

  Fertilizer

  Power

  Other(1)

  Adjustment
for Moa Joint
Venture

  Total

            Revenue per financial statements

$

144.3

  $

28.6

  $

45.9

  $

22.0

  $

24.4

  $

(183.1

)

  $

82.1

Adjustments to revenue:

            Frequency control, by-product and other revenue

-

  -

  -

  (3.5

)

      Revenue for purposes of average-realized price calculation

144.3

  28.6

  45.9

  18.5

                  Sales volume for the period

14.8

  2.0

  77.7

  346

      Volume units

Millions of
pounds

  Millions of
pounds

  Thousands
of tonnes

  Gigawatt
hours

      Average-realized price(2)(3)(4)

$

9.78

  $

15.51

  $

591.10

  $

53.53

      Unit operating cost/Net direct cash cost

With the exception of Metals, which uses NDCC, unit operating cost is generally calculated by dividing cost of sales as reported in the financial statements, less depreciation, depletion and amortization in cost of sales, the impact of impairment losses and reversals, gains and losses on disposal of property, plant, and equipment and exploration and evaluation assets and certain other non-production related costs, by the number of units sold.

Metals’ NDCC is calculated by dividing cost of sales, as reported in the financial statements, adjusted for the following: depreciation, depletion, amortization and impairment losses and reversals in cost of sales; cobalt by-product, fertilizer by-product and other revenue; cobalt gain/loss pursuant to the Cobalt Swap; realized gain/loss on natural gas swaps; royalties/territorial contributions; and other costs primarily related to the impact of opening and closing inventory values, by the number of finished nickel pounds sold in the period.

Unit operating costs for nickel and electricity are key measures that management and investors uses to monitor cost performance. NDCC of nickel is a widely-used performance measure for nickel producers which represents the direct cash cost associated with the mining, processing, refining and sale of finished nickel, net of by-product credits. Management uses unit operating cost/NDCC to assess how well the Corporation’s producing mine and power facilities are performing and to assess overall production efficiency and effectiveness internally across periods and compared to its competitors.

Unit operating cost (NDCC) for nickel is expressed in U.S. dollars per pound sold, while unit operating cost for electricity is expressed in Canadian dollars per megawatt hour sold.

The tables below reconcile cost of sales per the financial statements to unit operating cost/NDCC:

        $ millions, except unit cost and sales volume, for the three months ended June 30

        2026

Metals

Power

Other(1)

Adjustment
for Moa
Joint Venture

Total

        Cost of sales per financial statements

$

130.8

  $

3.2

  $

39.1

  $

(93.5

)

  $

79.6

Less:

        Depletion, depreciation and amortization in cost of sales

(15.2

)

  (0.6

)

      115.6

  2.6

      Adjustments to cost of sales:

        Cobalt by-product revenue - Moa JV and Cobalt Swap

(12.8

)

  -

      Fertilizer by-product revenue

(36.8

)

  -

      Other revenue

(25.1

)

  -

      Royalties/territorial contributions and other non-cash costs(2)

(3.3

)

  -

      Changes in inventories and other adjustments(3)

0.9

  -

      Cost of sales for purposes of unit cost calculation

38.5

  2.6

              Sales volume for the period

3.8

  207

      Volume units

Millions of
pounds

Gigawatt
hours

      Unit operating cost(4)(5)

$

10.15

  $

13.36

      Unit operating cost (US$ per pound) (NDCC)(6)

$

7.31

        $ millions, except unit cost and sales volume, for the three months ended June 30

        2025

Metals

  Power

  Other(1)

  Adjustment
for Moa
Joint Venture

  Total

        Cost of sales per financial statements

$

130.1

  $

5.0

  $

2.4

  $

(105.1

)

  $

32.4

Less:

        Depletion, depreciation and amortization in cost of sales

(15.2

)

  (0.6

)

      114.9

  4.4

      Adjustments to cost of sales:

        Cobalt by-product revenue - Moa JV and Cobalt Swap

(15.2

)

  -

      Fertilizer by-product revenue

(30.0

)

  -

      Other revenue

(10.9

)

  -

      Realized gain on natural gas swaps

(0.3

)

  -

      Royalties/territorial contributions and other non-cash costs(2)

(5.1

)

  -

      Changes in inventories and other adjustments(3)

(0.7

)

  -

      Cost of sales for purposes of unit cost calculation

52.7

  4.4

              Sales volume for the period

7.2

  176

      Volume units

Millions of
pounds

  Gigawatt
hours

      Unit operating cost(4)(5)

$

7.34

  $

24.80

      Unit operating cost (US$ per pound) (NDCC)(6)

$

5.27

        $ millions, except unit cost and sales volume, for the six months ended June 30

        2026

Metals

  Power

  Other(1)

  Adjustment
for Moa
Joint Venture

  Total

        Cost of sales per financial statements

$

232.5

  $

7.2

  $

46.0

  $

(174.1

)

  $

111.6

Less:

        Depletion, depreciation and amortization in cost of sales

(30.1

)

  (1.0

)

      202.4

  6.2

      Adjustments to cost of sales:

        Cobalt by-product revenue - Moa JV and Cobalt Swap

(27.4

)

  -

      Fertilizer by-product revenue

(50.3

)

  -

      Other revenue

(38.0

)

  -

      Realized loss on natural gas swaps

0.6

  -

      Royalties/territorial contributions and other non-cash costs(2)

(7.3

)

  -

      Changes in inventories and other adjustments(3)

5.5

  -

      Cost of sales for purposes of unit cost calculation

85.5

  6.2

              Sales volume for the period

8.7

  416

      Volume units

Millions of
pounds

  Gigawatt
hours

      Unit operating cost(4)(5)

$

9.78

  $

15.09

      Unit operating cost (US$ per pound) (NDCC)(6)

$

7.13

        $ millions, except unit cost and sales volume, for the six months ended June 30

        2025

Metals

  Power

  Other(1)

  Adjustment
for Moa
Joint Venture

  Total

        Cost of sales per financial statements

$

249.2

  $

11.9

  $

23.9

  $

(201.9

)

  $

83.1

Less:

        Depletion, depreciation and amortization in cost of sales

(29.3

)

  (1.2

)

      219.9

  10.7

      Adjustments to cost of sales:

        Cobalt by-product revenue - Moa JV and Cobalt Swap

(28.6

)

  -

      Fertilizer by-product revenue

(45.9

)

  -

      Other revenue

(19.6

)

  -

      Cobalt loss

0.3

  -

      Realized gain on natural gas swaps

(0.4

)

  -

      Royalties/territorial contributions and other non-cash costs(2)

(9.2

)

  -

      Changes in inventories and other adjustments(3)

1.2

  -

      Cost of sales for purposes of unit cost calculation

117.7

  10.7

              Sales volume for the period

14.8

  346

      Volume units

Millions of
pounds

  Gigawatt
hours

      Unit operating cost(4)(5)

$

7.97

  $

31.03

      Unit operating cost (US$ per pound) (NDCC)(6)

$

5.64

        (1)

Other cost of sales is composed of the cost of sales of Oil and Gas, a non-core reportable segment, and cost of sales of the Corporate and Other reportable segment. (2)

Royalties and territorial contributions are included in cost of sales but are excluded from NDCC as these costs are not direct mine cash costs. Other non-cash costs consist of inventory write-downs and other costs that are included in cost of sales but are excluded from NDCC as the costs are non-cash. (3)

Changes in inventories and other adjustments is primarily composed of changes in inventories, the effect of average exchange rate changes and other items. These amounts are excluded from cost of sales but included in NDCC. (4)

Unit operating cost/NDCC may not calculate exactly based on amounts presented due to foreign exchange and rounding. (5)

Power, unit operating cost price per MWh. (6)

Unit operating costs in US$ are converted at the average exchange rate for the period. Adjusted net earnings/loss from continuing operations and adjusted net earnings/loss from continuing operations per share

The Corporation defines adjusted net earnings/loss from continuing operations as net earnings/loss from continuing operations adjusted for items not reflective of the Corporation’s current or future operational performance and after the impact of income taxes. These adjusting items include, but are not limited to, inventory write-downs/obsolescence, impairment of assets, gains and losses on the acquisition or disposal of assets, unrealized foreign exchange gains and losses, gains and losses on financial assets and liabilities and other one-time adjustments that have not occurred in the past two years and are not expected to recur in the next two years. While some adjustments are recurring (such as unrealized foreign exchange (gain) loss), management believes that they do not reflect the Corporation’s current or future operational performance.

Net earnings/loss from continuing operations at Oil and Gas is deducted from/added back to adjusted earnings/loss from continuing operations as the segment is not currently exploring for or producing oil and gas and its financial results relate to ancillary drilling services, provided to a customer and agencies of the Government of Cuba, and environmental rehabilitation costs for legacy assets, which are not reflective of the Corporation’s core operating activities or future operational performance.

Adjusted net earnings/loss from continuing operations per share is defined consistent with the definition above and divided by the Corporation’s weighted-average number of common shares outstanding.

Management uses these measures internally and believes that they provide investors with performance measures with which to assess the Corporation’s current or future operational performance by adjusting for items or transactions that are not reflective of its current or future operational performance.

The tables below reconcile net earnings/loss from continuing operations and net earnings/loss from continuing operations per share, both per the financial statements, to adjusted net loss from continuing operations and adjusted net loss from continuing operations per share, respectively:

  2026

    2025

For the three months ended June 30

$ millions

  $/share

  $ millions

  $/share

      Net (loss) earnings from continuing operations

$

(71.1

)

  $

(0.10

)

  $

10.4

  $

0.02

      Adjusting items:

      Sherritt - Unrealized foreign exchange loss (gain) - continuing operations

0.5

  -

  (1.0

)

  -

Corporate and Other - Gain on Debt and Equity transactions, net of transaction costs

-

  -

  (32.4

)

  (0.07

)

Reclassification of transaction costs on Debt and Equity Transactions to

      Gain on Debt and Equity Transactions, net of transaction costs

    (4.9

)

  (0.01

)

Corporate and Other - Realized loss on nickel put options

1.2

  -

  -

  -

Corporate and Other - Unrealized gain on nickel put options

(0.1

)

  -

  -

  -

Metals - Moa JV - Inventory write-down/obsolescence

0.3

  -

  0.3

  -

Metals - Fort Site - Unrealized loss on natural gas swaps

-

  -

  5.3

  0.01

Metals - Fort Site - Realized gain on natural gas swaps

-

  -

  (0.3

)

  -

Power - Loss (gain) on revaluation of GNC receivable

9.6

  0.01

  (5.6

)

  (0.01

)

Power - (Gain) loss on revaluation of Energas payable

(3.1

)

  -

  2.1

  -

Oil and Gas - Net loss from continuing operations, net of unrealized foreign exchange gain/loss

38.7

  0.05

  0.7

  -

Total adjustments, before tax

$

47.1

  $

0.06

  $

(35.8

)

  $

(0.08

)

Tax adjustments

(0.8

)

  -

  (0.2

)

  -

Adjusted net loss from continuing operations

$

(24.8

)

  $

(0.04

)

  $

(25.6

)

  $

(0.06

)

  2026

    2025

For the six months ended June 30

$ millions

  $/share

  $ millions

  $/share

      Net loss from continuing operations

$

(80.3

)

  $

(0.14

)

  $

(30.2

)

  $

(0.07

)

      Adjusting items:

      Sherritt - Unrealized foreign exchange loss (gain) - continuing operations

1.1

  -

  (0.9

)

  -

Corporate and Other - Gain on Debt and Equity Transactions, net of transaction costs

-

  -

  (32.4

)

  (0.07

)

Corporate and Other - Realized loss on nickel put options

1.4

  -

  -

  -

Corporate and Other - Unrealized loss on nickel put options

0.5

  -

  -

  -

Metals - Moa JV - Inventory write-down/obsolescence

0.4

  -

  0.5

  -

Metals - Moa JV - Cobalt loss

-

  -

  0.3

  -

Metals - Fort Site - Unrealized loss on natural gas swaps

0.6

  -

  1.8

  -

Metals - Fort Site - Realized gain on natural gas swaps

(0.6

)

  -

  (0.4

)

  -

Power - Gain on revaluation of GNC receivable

(9.9

)

  (0.01

)

  (8.2

)

  (0.02

)

Power - Loss on revaluation of Energas payable

4.1

  0.01

  2.8

  0.01

Oil and Gas - Net loss from continuing operations, net of unrealized foreign exchange gain/loss

45.8

  0.08

  19.4

  0.04

Total adjustments, before tax

$

43.4

  $

0.08

  $

(17.1

)

  $

(0.04

)

Tax adjustments

0.2

  -

  (0.5

)

  -

Adjusted net loss from continuing operations

$

(36.7

)

  $

(0.06

)

  $

(47.8

)

  $

(0.11

)

Spending on capital

The Corporation defines spending on capital for each segment as property, plant and equipment and intangible asset expenditures on a cash basis adjusted to the accrual basis in order to account for assets that are available for use by the Corporation and the Moa Joint Venture prior to payment and includes adjustments to accruals. The Metals segment’s spending on capital includes the Fort Site’s expenditures, plus the Corporation’s 50% share of the Moa Joint Venture’s expenditures, which is accounted for using the equity method for accounting purposes.

Combined spending on capital is the aggregate of each segment’s spending on capital or the Corporation’s consolidated property, plant and equipment and intangible asset expenditures and the property, plant and equipment and intangible asset expenditures of the Moa Joint Venture on a 50% basis, all adjusted to the accrual basis.

Combined spending on capital is used by management, and management believes this information is used by investors, to analyze the Corporation and the Moa Joint Venture’s investments in non-current assets that are held for use in the production of nickel, cobalt, fertilizers, oil and gas and power generation.

The tables below reconcile property, plant and equipment and intangible asset expenditures per the financial statements to combined spending on capital, expressed in Canadian dollars:

          $ millions, for the three months ended June 30

          2026

Metals

  Power

  Other(1)

  Combined
total

  Adjustment
for Moa
Joint Venture

  Total
derived from
financial
statements

          Property, plant and equipment expenditures(2)

$

1.8

  $

0.1

  $

-

  $

1.9

  $

(1.8

)

  $

0.1

1.8

  0.1

  -

  1.9

  $

(1.8

)

  $

0.1

          Adjustments:

          Accrual adjustment

-

  -

  -

  -

    Spending on capital

$

1.8

  $

0.1

  $

-

  $

1.9

    $ millions, for the three months ended June 30

          2025

Metals

  Power

  Other(1)

  Combined
total

  Adjustment
for Moa
Joint Venture

  Total
derived from
financial
statements

          Property, plant and equipment expenditures(2)

$

13.6

  $

0.8

  $

-

  $

14.4

  $

(10.0

)

  $

4.4

13.6

  0.8

  -

  14.4

  $

(10.0

)

  $

4.4

          Adjustments:

          Accrual adjustment

1.3

  -

  -

  1.3

    Spending on capital

$

14.9

  $

0.8

  $

-

  $

15.7

    $ millions, for the six months ended June 30

          2026

Metals

Power

Other(1)

Combined
total

Adjustment
for Moa
Joint Venture

Total
derived from
financial
statements

          Property, plant and equipment expenditures(2)

$

7.2

  $

0.3

  $

-

  $

7.5

  $

(7.2

)

  $

0.3

7.2

  0.3

  -

  7.5

  $

(7.2

)

  $

0.3

          Adjustments:

          Accrual adjustment

-

  -

  -

  -

    Spending on capital

$

7.2

  $

0.3

  $

-

  $

7.5

    $ millions, for the six months ended June 30

          2025

Metals

  Power

  Other(1)

  Combined
total

  Adjustment
for Moa
Joint Venture

  Total
derived from
financial
statements

          Property, plant and equipment expenditures(2)

$

24.1

  $

0.9

  $

0.1

  $

25.1

  $

(17.6

)

  $

7.5

24.1

  0.9

  0.1

  25.1

  $

(17.6

)

  $

7.5

          Adjustments:

          Accrual adjustment

6.1

  -

  -

  6.1

    Spending on capital

$

30.2

  $

0.9

  $

0.1

  $

31.2

    Combined cash provided (used) by continuing operations for operating activities and combined free cash flow

The Corporation defines cash provided/used by continuing operations for operating activities by segment as cash provided/used by continuing operations for operating activities for each segment calculated in accordance with IFRS Accounting Standards and adjusted to remove the impact of cash provided/used by wholly-owned subsidiaries. Combined cash provided/used by continuing operations for operating activities is the aggregate of each segment’s cash provided/used by continuing operations for operating activities including the Corporation’s 50% share of the Moa JV’s cash provided/used by continuing operations for operating activities, which is accounted for using the equity method of accounting and excluded from consolidated cash provided/used by continuing operations for operating activities.

The Corporation defines free cash flow for each segment as cash provided/used by continuing operations for operating activities by segment, less cash expenditures on property, plant and equipment and intangible assets, including exploration and evaluation assets. Combined free cash flow is the aggregate of each segment’s free cash flow or the Corporation’s consolidated cash provided/used by continuing operations for operating activities, less consolidated cash expenditures on property, plant and equipment and intangible assets, including exploration and evaluation assets, less distributions received from Moa JV, plus cash provided/used by continuing operations for operating activities for the Corporation’s 50% share of the Moa JV, less cash expenditures on property, plant and equipment and intangible assets for the Corporation’s 50% share of the Moa JV.

The Corporate and Other segment’s cash used by continuing operations for operating activities is adjusted to exclude distributions received from Moa JV. Distributions from the Moa JV excluded from Corporate and Other are included in the Adjustment for Moa Joint Venture to arrive at total cash provided/used by continuing operations for operating activities per the financial statements.

The Metals segment’s free cash flow includes the Fort Site and Metals Marketing’s free cash flow, plus the Corporation’s 50% share of the Moa JV’s free cash flow, which is accounted for using the equity method for accounting purposes.

Combined cash provided/used by continuing operations for operating activities and combined free cash flow are used by management, and management believes this information is used by investors, to analyze cash flows generated from operations and assess its operations’ ability to provide cash or its use of cash, and in the case of combined free cash flow, after funding cash capital requirements, to service current and future working capital needs and service debt.

The tables below reconcile combined cash provided by continuing operations for operating activities to cash used by continuing operations per the financial statements to combined free cash flow:

$ millions, for the three months ended June 30

            2026

  Metals(1)(2)

  Power

  Oil and
Gas

  Corporate
and
Other

  Combined
total

  Adjustment
for Moa
Joint
Venture

  Total
derived
from
financial
statements

            Cash provided (used) by continuing operations for operating activities

$

(26.2

)

  $

22.8

  $

(1.9

)

  $

42.2

  $

36.9

  $

2.0

  $

38.9

Less:

            Property, plant and equipment expenditures

(1.8

)

  (0.1

)

  -

  -

  (1.9

)

  1.8

  (0.1

)

Free cash flow

$

(28.0

)

  $

22.7

  $

(1.9

)

  $

42.2

  $

35.0

  $

3.8

  $

38.8

$ millions, for the three months ended June 30

            2025

              Metals(1)(2)

  Power

  Oil and
Gas

  Corporate
and
Other

  Combined
total

  Adjustment
for Moa
Joint
Venture

  Total
derived
from
financial
statements

            Cash provided (used) by continuing operations for operating activities

$

20.0

  $

16.0

  $

(1.1

)

  $

(17.7

)

  $

17.2

  $

(11.6

)

  $

5.6

Less:

            Property, plant and equipment expenditures

(13.6

)

  (0.8

)

  -

  -

  (14.4

)

  10.0

  (4.4

)

Free cash flow

$

6.4

  $

15.2

  $

(1.1

)

  $

(17.7

)

  $

2.8

  $

(1.6

)

  $

1.2

$ millions, for the six months ended June 30

          2026

              Metals(3)(4)

  Power

  Oil and
Gas

  Corporate
and
Other

  Combined
total

  Adjustment
for Moa
Joint
Venture

  Total
derived
from
financial
statements

            Cash (used) provided by continuing operations for operating activities

$

(27.9

)

  $

35.7

  $

(3.1

)

  $

33.1

  $

37.8

  $

(12.0

)

  $

25.8

Less:

            Property, plant and equipment expenditures

(7.2

)

  (0.3

)

  -

  -

  (7.5

)

  7.2

  (0.3

)

Free cash flow

$

(35.1

)

  $

35.4

  $

(3.1

)

  $

33.1

  $

30.3

  $

(4.8

)

  $

25.5

$ millions, for the six months ended June 30

          2025

              Metals(3)(4)

  Power

  Oil and
Gas

  Corporate
and
Other

  Combined
total

  Adjustment
for Moa
Joint
Venture

  Total
derived
from
financial
statements

            Cash provided (used) by continuing operations for operating activities

$

41.9

  $

16.9

  $

(11.4

)

  $

(26.1

)

  $

21.3

  $

(14.7

)

  $

6.6

Less:

            Property, plant and equipment expenditures

(24.1

)

  (0.9

)

  (0.1

)

  -

  (25.1

)

  17.6

  (7.5

)

Free cash flow

$

17.8

  $

16.0

  $

(11.5

)

  $

(26.1

)

  $

(3.8

)

  $

2.9

  $

(0.9

)

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leader in diagnostic information services, today announced that its Board of Directors declared a quarterly cash dividend of $0.86 per share, payable on October 21, 2026 to shareholders of record of Quest Diagnostics common stock on October 6, 2026.

About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, we help reveal new avenues to identify and treat disease, empower healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three American adults each year, and our nearly 60,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com

SOURCE Quest Diagnostics

Also from this source

Brazil-based digital banking platform Nu Holdings (NU -0.66%) reports its second-quarter earnings tomorrow after the market closes. While investors will closely watch for revenue and earnings beats, a few catalysts could truly send the stock soaring.

Serving Latin America, across Brazil, Mexico, and Colombia, the company has over 135 million customers with no signs of a slowdown in growth. Nu added 17 million customers in 2025 and has continued in a similar vein this year, gaining another four million customers in the first quarter.

Yet these numbers don’t necessarily impress markets. It’s the catalysts behind these growth numbers that hold the clue to how the stock will respond. 

Here are three major catalysts that could send the stock soaring on Friday and beyond.

Image source: The Motley Fool.

1. Mexico en route to becoming the next BrazilOf the 135 million customers, more than 115 million are from Brazil. Mexico operations, on the other hand, are growing. Crossing 15 million customers in the first quarter, Nu became Mexico’s third-largest financial institution and is also the country’s fastest-growing credit card issuer. Importantly, Nu’s Mexican customer base has grown nearly seven times over the past four years.

If management gives any indication that Mexico is scaling faster than Brazil, the market will discount this into Nu Holding’s valuation. However, investors should closely monitor increases in deposits and loan disbursements. 

At the end of the day, a bank’s business is essentially a spread business. It takes in low-cost deposits and lends them out to high-quality, credit-worthy borrowers at higher interest rates.

Additionally, Colombia, with five million customers, is also scaling up. While growth here may not necessarily move the overall needle much, investors may eventually see this market’s long-term value.

Yet, growth for growth’s sake won’t impress the stock market. As a large-scale lender, Nu’s credit expansion must be accompanied by profit growth. And that leads us to our next catalyst.

Today's Change

(

-0.66

%) $

-0.09

Current Price

$

13.56

2. Better than expected credit qualityThe market’s greatest worry has been that Nu Holding’s rapid lending growth could result in higher losses. It isn’t surprising that the stock is down 20% this year. In the first quarter, the credit loss allowance rose 33% from the fourth quarter of 2025 to $1.79 billion, partly driven by portfolio growth.

The company’s primary credit quality indicator, its 15- to 90-day loan portfolio’s non-performing loan (NPL) ratio, was up 89 basis points (bps) from the previous quarter. Management attributed the worsening performance to seasonality, but the market seems wary. The good news is the 90+ NPL ratio declined 10 bps, to 6.5%.

While Q1 net profit grew 56% year-over-year, it came in slightly below the previous quarter’s bottom line. Assuming management’s “seasonality” argument is correct, if the second-quarter 15-90 NPL ratio falls more than expected while 90+ NPL remains stable, expect a solid boost in the stock price.

Simultaneously, investors will be watching for improvements in Nu’s net interest margin (NIM), which, on a risk-adjusted basis, should exceed the 9.5% it reported in Q1. In layman’s terms, net interest margin indicates the difference between a lender’s interest income and interest expense as a ratio of its average earning assets for the quarter. The higher the margin, the more profitable the lender. 

The stock market will essentially read the two signals as those of a lending business that can grow without being burned by credit losses.

3. Growing average revenue per customerThis is probably not a highly appreciated metric. But investors evaluating Nu Holdings’ long-term prospects will want to assess the digital bank’s trajectory by its monthly average revenue per active customer (ARPAC).

A growing ARPAC is insurance against slowing or even decreasing volume growth. Nu Holding doesn’t necessarily have to acquire large volumes of customers. Instead, it’s increasingly focused on increasing average revenue per customer.

For example, around 62% of Brazil’s adults already use its services, meaning that future volume-driven growth will inevitably slow in Nu’s primary market.

The company has meaningfully increased its ARPAC from $11.6 per customer in Q1 2025 to $15.9 per customer in Q1 2026, a 37% year-on-year increase. As a result, it successfully reduced its efficiency ratio from 21.4% to 17.6% over the same period.

Can Nu Holding continue this trend? That remains to be seen, but there are solid indications that management is putting serious work into reducing its operating leverage.

A multi-expansion storyNu Holdings is a multi-expansion story that has the ability to pull multiple levers for growth. However, these catalysts should work in tandem, given the macroeconomic uncertainty.

In addition, a surprise announcement about definite development in its U.S. expansion plans could drive the stock higher. Earlier this year, Nu Holdings received conditional approval from U.S. regulators for a national bank charter.

While beating the consensus EPS estimate of $0.19 will be important tomorrow, look for unexpected gains in these catalysts to drive the stock higher.

WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite (NYSE:GVA) announced today that it has been awarded an approximately $31 million Early Works Grading Package by Hydrostor for its Willow Rock Energy Storage Center (WRESC) Project, located north of Rosamond in Kern County, California. The award will be included in Granite’s third quarter 2026 CAP.

This award aligns with Granite’s strategic focus on growing specialized private-sector work with clients that value construction expertise, collaboration, and problem-solving

Share The Willow Rock Energy Storage Center is a planned 500 MW Advanced Compressed Air Energy Storage (A-CAES) facility in the Mojave Desert, capable of powering more than 400,000 homes for eight hours.

Granite’s scope includes construction of early site infrastructure on the 89-acre project site, including a nine-acre pad to support the subsurface contractor’s work to drill and excavate a 1.3-million-cubic-yard cavern approximately 2,000 feet below the surface. Additional work includes offsite road improvements, onsite stormwater basins, and laydown areas for subsurface mining materials and topside EPCM contractors staging materials for construction of the four-turbine energy storage facility.

“This award aligns with Granite’s strategic focus on growing specialized private-sector work with clients that value construction expertise, collaboration, and problem-solving,” said Darryl Ebel, Granite Area Manager. “We are proud to bring our Bakersfield team’s site development experience to a project designed to support California’s long-term energy storage needs.”

“Hydrostor is thrilled to start pre-construction work on-site in Kern County for our flagship U.S. energy storage facility, which will support thousands of jobs locally and help to ensure a reliable California grid for decades to come. Partnering with an organization like Granite will help us set the stage for successful project delivery, as they bring their industry leading expertise to the site,” said Josh Rowan, Senior Vice President of Project Execution at Hydrostor.

Granite’s early works grading phase of the project began in July 2026 and is planned to conclude in March 2027.

For more information about the project, visit Hydrostor’s Willow Rock Energy Storage Center project page.

About Granite

Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, X, Facebook, and Instagram.

EUR/USD price action turned volatile on Wednesday as the pair struggled to hold early gains following the latest US Consumer Price Index (CPI) report, a key driver for Federal Reserve interest rate expectations and US dollar direction. The euro briefly surged on signs of cooling US inflation but quickly lost momentum as traders reassessed the broader policy outlook.

The currency pair initially climbed as high as $1.1563 immediately after the inflation release before reversing lower, highlighting the market’s indecision. At the time of writing, EUR/USD is trading around $1.1525, with the closely watched $1.1500 psychological level once again coming into focus as a key short-term support zone.

While US inflation data showed further moderation, typically a bearish signal for the US dollar, the reaction was muted. The CPI figures largely met expectations rather than delivering a significant downside surprise, limiting the scope for a sustained dollar selloff and keeping EUR/USD trapped within a tight intraday range.

US CPI Falls to 3.4% as Fed Rate Hike Expectations Ease US consumer prices increased 0.1% month-on-month in July, following a 0.4% decline in June. On an annual basis, headline inflation eased to 3.4% from 3.5%. Core CPI, which excludes volatile food and energy prices, increased 0.2% during the month and slowed to 2.5% year-on-year.

Both readings were broadly consistent with market expectations. Nevertheless, the continued moderation in inflation strengthened the argument for the Federal Reserve to leave interest rates unchanged at its September meeting.

Interest-rate markets subsequently reduced the probability of a September rate increase to around 40%, compared with significantly higher expectations earlier this month. The combination of softer inflation and July’s weak employment report has made the case for an immediate rate increase considerably harder to justify. That should theoretically be negative for the US dollar and supportive of EUR/USD. Wednesday’s price action, however, shows that traders are not ready to abandon the greenback.

US Dollar Recovers as Oil and Middle East Risks Complicate Fed Outlook The US Dollar Index initially dropped to approximately 99.61 following the CPI release but subsequently recovered toward the psychologically important 100.00 level. One reason is that the inflation outlook remains vulnerable to developments in energy markets.

Oil prices have remained volatile amid continuing tensions in the Middle East and uncertainty surrounding shipping through the Strait of Hormuz. A sustained increase in crude prices could feed back into US inflation, complicating the Federal Reserve’s path even as underlying price pressures moderate. The geopolitical backdrop has also maintained some safe-haven demand for the dollar.

As a result, traders appear reluctant to price out additional Fed tightening entirely. While a September move now looks less likely, markets still see the possibility of another increase later in the year if inflation proves persistent. For EUR/USD, this has created a tug-of-war between improving rate differentials for the euro and lingering demand for the US dollar.

EUR/USD Price Forecast: $1.1500 Becomes Critical Support The one-hour EUR/USD chart shows a clear deterioration in short-term momentum following the rejection from the $1.1560 area. EUR/USD is currently trading around $1.1525, below the Bollinger Band 20-period moving average near $1.1536. The pair has also moved toward the lower Bollinger Band, currently around $1.1517, highlighting the increase in short-term selling pressure.

The MACD provides another warning for euro bulls. The MACD line has moved below its signal line and the histogram has turned increasingly negative, suggesting bearish momentum is building following Wednesday’s failed breakout.

The first level to watch is therefore $1.1500. This psychological level has repeatedly attracted buyers and remains important to the broader recovery structure. A decisive break below $1.1500 could strengthen the bearish correction and expose the $1.1465-$1.1470 area.

On the upside, EUR/USD first needs to reclaim $1.1535-$1.1540 to ease immediate selling pressure. Above there, the $1.1555-$1.1565 zone represents the more significant resistance area. A sustained break above $1.1565 would put $1.1600 back into focus.

EUR/USD Outlook: Can the Euro Hold Above $1.15? The near-term EUR/USD outlook remains finely balanced following the US CPI report. Cooling inflation and weaker US employment data have reduced the probability of a September Fed rate hike, removing an important source of support for the dollar. However, Wednesday’s reversal shows that softer CPI alone may not be sufficient to push EUR/USD decisively higher.

Attention now turns to upcoming US economic releases, including producer prices and retail sales. Stronger data, particularly another sign of persistent inflation, could revive Fed tightening expectations and put $1.1500 under renewed pressure.

Conversely, further evidence that inflation and economic activity are cooling could push Treasury yields and the dollar lower, giving EUR/USD another opportunity to challenge $1.1565 and potentially $1.1600. For now, $1.1500 is the key dividing line. Holding above it keeps the euro’s broader recovery intact, while a convincing breakdown would shift the short-term EUR/USD price forecast increasingly in favour of sellers.

Why is EUR/USD falling after the US CPI report?

EUR/USD initially rose after US inflation eased but reversed as the dollar recovered. The CPI figures were broadly in line with expectations, while elevated energy prices and geopolitical uncertainty continue to create upside inflation risks.

Will the Federal Reserve raise interest rates in September?

Expectations for a September Fed rate hike fell after July CPI showed headline inflation easing to 3.4% and core inflation declining to 2.5%. Markets currently favour the Fed keeping rates unchanged, although another increase later in 2026 remains possible if inflation pressures intensify.

What are the main EUR/USD resistance levels?

Immediate resistance sits around $1.1535-$1.1540, followed by the stronger $1.1555-$1.1565 area. A breakout could open the door toward $1.1600.

Brinker International, Inc. (EAT) Q4 2026 Earnings Call August 12, 2026 10:00 AM EDT

Company Participants

Kim Sanders - Vice President of Investor & Government Relations
Kevin Hochman - President, CEO & Director
Mika Ware - Executive VP & CFO

Conference Call Participants

Dennis Geiger - UBS Investment Bank, Research Division
David Palmer - Evercore ISI Institutional Equities, Research Division
Jeffrey Farmer - Gordon Haskett Research Advisors
Andrew Strelzik - BMO Capital Markets Equity Research
John Ivankoe - JPMorgan Chase & Co, Research Division
Brian Harbour - Morgan Stanley, Research Division
Brian Vaccaro - CGS International
Andrew Charles - TD Cowen, Research Division
Sara Senatore - BofA Securities, Research Division
Christopher Carril - KeyBanc Capital Markets Inc., Research Division
Jon Tower - Citigroup Inc. Exchange Research
Margaret-May Binshtok - Wolfe Research, LLC

Presentation

Operator

Good day, and welcome to the Brinker Q4 F '26 Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours.

Kim Sanders
Vice President of Investor & Government Relations

Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, Chief Executive Officer and President of Brinker International and President of Chili's; and Mika Ware, Chief Financial Officer.

Results for our fourth quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.

Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items, which are not based entirely on historical facts. Any such items should be considered forward-looking statements within the meaning of the Private Securities

Cerebras Systems Inc. (NASDAQ:CBRS) shares are soaring Wednesday as investors position ahead of the AI chipmaker’s second-quarter results, due after the market closes today.

Cerebras Systems stock is charging ahead with explosive momentum. What’s fueling CBRS momentum? Cerebras Heads Into Q2 Earnings After Landmark OpenAI and AWS DealsWall Street is projecting a second-quarter loss of 17 cents per share on revenue of $194.20 million. That figure lines up closely with Cerebras’ own guidance of approximately $194 million in core revenue, issued alongside first-quarter results, suggesting the Street expects the company to land in line with its own forecast.

If Cerebras meets that mark, the results would build on a first quarter in which core revenue reached $191.3 million, up 12% sequentially and 92% year-over-year.

The first quarter’s biggest headline may have been Cerebras’ new agreement with OpenAI, a multi-year deal valued at more than $20 billion under which OpenAI will deploy 750 megawatts of Cerebras’ inference computing capacity. The two companies also co-launched Codex-Spark, a coding model built for near-instant responses. Cerebras separately began a multi-year partnership with Amazon Web Services to scale fast inference computing, under which AWS’s Trainium 3 chips will handle prefill processing while Cerebras’ CS-3 systems run decoding.

CEO Andrew Feldman said the company’s wafer-scale chip technology delivers the fastest AI processing available, arguing that speed advantage is fueling growing demand from customers such as OpenAI and AWS.

Cerebras Systems Technical Levels to WatchCBRS is trading well above its short-term trend markers, sitting about 27% over the 20-day SMA at $207.43 and about 26% over the 50-day SMA at $208.82. That positioning shows strong upside extension compared with the recent consolidation zone. Even so, the 20-day SMA is still below the 50-day SMA, which keeps the longer-term trend repair process unfinished even as price moves higher.

MACD is offering the clearest read on momentum. It is above its signal line and the histogram is positive, which points to improving momentum compared with the previous downswing. In simple terms, MACD above the signal line suggests sellers are losing influence and buyers are gaining control even if the broader trend has not fully shifted.

From a levels standpoint, the stock is sitting near the midpoint of its 52-week range, which spans from $160.81 to $386.34. After a swing low in June and a swing high in May, the current move looks like a continuation attempt off that June base. Trend-focused traders will be watching to see if price can stay above the short-term averages long enough to eventually flip the 20-day and 50-day relationship back to bullish.

Key Resistance: $386.34 Key Support: $208.82 CBRS Shares Are FlyingCBRS Price Action: Cerebras shares were up 11.58% at $261.95 at the time of publication on Wednesday, according to Benzinga Pro.

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Cerebras Systems raised its full-year guidance in the second earnings report following the chipmaker's IPO in May. But the stock tumbled about 14% in extended trading.

Here's how it did in the second quarter. Results aren't comparable to analyst estimates.

Revenue: $210 million Loss per share: $2.89 Cerebras said in a statement on Wednesday that it expects core revenue of between $214 and $216 million in revenue this quarter. Analysts expected $212.6 million in revenue, without specifying if that refers to core revenue, according to LSEG.

The $210 million sales figure for the second quarter represents core revenue. Cerebras also reported a GAAP revenue figure of $180.1 million, which excludes "pass-through revenue."

The company recorded a net loss of $450.5 million, after finishing with a profit of $309.5 million, or $1.91 per share, a year earlier. Most of the loss is tied to stock-compensation costs of $386.6 million.

The company raised its full-year outlook, and now expects core revenue of between $880 and $890 million, up from a prior range of $855 million to $865 million.

Cerebras CEO Andrew Feldman said in an interview that AI demand is "through the roof," and that companies are paying up for its specialty inference chips.

Cerebras is challenging AI chip leader Nvidia for some AI tasks, especially those that need "low latency," or quick responses for interactivity. The company calls it "fast inference." The company said its core gross margin will expand to between 38% and 40% in the current quarter, addressing a concern for investors.

"Gross margins are are in a good spot, and growing, because fast inference is priced at a premium," Feldman said in an interview, adding that Cerebras was able to increase the AI output of its systems.

Cerebras went public on the Nasdaq in May, capitalizing on investor interest in semiconductors that can run AI models. It priced its offering at $185 and raised $6.4 billion in the offering. The stock peaked in May and has fallen since, but closed on Wednesday at $262.06, up 42% from its IPO.

The chipmaker has $25.4 billion in remaining performance obligations, which it said was a sign of "extraordinary future demand." Feldman said that as Cerebras grows, it will benefit from larger scale. The company also said it expects revenue to triple in the next fiscal year.

"We will manufacture more efficiently. We'll get better pricing on componentry. We'll amortize our manufacturing organization over more units," Feldman said. "All of those point up and to the right."

In recent weeks, Cerebras a partnership with Nvidia rival Advanced Micro Devices with products going into production later this year, and said that OpenAI can use its chips to serve its latest model, GPT 5.6- Sol. Cerebras also offers access to its chips through its cloud, which reported $126 million in revenue during the June quarter.

watch now

Microsoft Corp. shares MSFT fell 2% in Wednesday morning trading as investors weighed fresh speculation about the company's in-house Maia AI chips against its rapidly rising infrastructure spending.

While the software giant has not confirmed reports that another Maia processor could launch as early as September, analysts increasingly view Microsoft's custom silicon strategy as a key component of its long-term artificial intelligence ambitions.

The pullback comes despite continued optimism around Microsoft's AI business following its strong fiscal fourth-quarter results, with investors focusing on whether massive capital investments can translate into sustained earnings growth and stronger Azure economics.

According to a Barron's report, Microsoft may unveil another Maia AI processor as early as September, although the company has not confirmed that timeline.

Microsoft already offers the Maia 200, a three-nanometer AI inference chip featuring more than 140 billion transistors and 216GB of high-bandwidth memory.

The processor is designed to handle AI workloads across Azure AI services and Microsoft 365 Copilot.

Rather than replacing chips supplied by Nvidia and AMD, Microsoft's custom silicon strategy is aimed at improving the economics of its AI infrastructure.

By shifting more AI inference workloads onto internally designed processors, the company could lower operating costs, optimize data center performance, and gain greater control over its AI technology stack.

Microsoft is investing tens of billions of dollars in AI infrastructure as the company looks to be independent of outside chipmakers.

Capital spending remains in focus despite strong AI demandMicrosoft has forecast Azure revenue growth of roughly 45% while quarterly capital expenditure is running at approximately $50 billion, underscoring the scale of its AI investment.

Microsoft's balance sheet remains healthy despite elevated investment levels.

Debt accounts for 7.5% of total assets compared with a historical average of 19%, indicating the company is financing its expansion from a position of financial strength rather than excessive leverage.

Management has also indicated that capital expenditures will continue increasing during fiscal 2027, reflecting its commitment to expanding AI infrastructure.

Microsoft shares have climbed 26% since the company reported fiscal fourth-quarter earnings on July 29, prompting some investors to question whether much of the optimism is already reflected in the stock price.

However, analysts argue that Microsoft's spending is directly tied to strong demand.

Azure demand exceeded available capacity during fiscal Q4 2026, while management expects Azure revenue growth of approximately 45% in constant currency during the first quarter of fiscal 2027.

Analysts said that investors should relook at Microsoft's investment case, instead of viewing higher spending as a wanring sign, view it as company preapring aggresively to support increasing AI demand.

Although Microsoft has underperformed the broader market over the past 12 months and remains about 6.5% below its 52-week high, analysts continue to view the company's AI investments and custom chip strategy as central to its long-term growth outlook.

Target Corporation (NYSE:TGT) is showing encouraging signs that its turnaround is gaining traction, but Bank of America remains cautious heading into the retailer’s fiscal second-quarter earnings report next week.

Bank of America Securities analyst Christopher Nardone reiterated an Underperform rating on Target while raising the price forecast to $124 from $110. The new forecast remains about 19% below the stock’s $152.29 price as of Aug. 12.

The analyst also raised earnings estimates after stronger consumer trends and improving sales under Target’s new leadership. However, Nardone remains wary about the pace of earnings revisions and whether recent comparable-sales momentum can last.

Stronger Sales Lift Target EstimatesBank of America increased its fiscal 2027 earnings estimate to $8.46 per share from $8.20. It raised its fiscal 2028 estimate to $8.84 from $8.53 and its fiscal 2029 estimate to $9.36 from $9.05. The firm also lifted its revenue forecasts for each of those years.

For the second quarter, Bank of America expects adjusted earnings of $2.34 per share, compared with the Visible Alpha consensus of $2.30. It forecasts net sales of $26.10 billion, roughly in line with consensus, and comparable sales growth of 2.5%, slightly above the 2.3% consensus estimate.

The analyst expects comparable sales to grow about 2% in the second half, roughly in line with Target’s guidance. Resilient consumer spending helped drive the firm’s improved outlook.

Margins Could Be A Bright SpotSecond-quarter margins could provide another positive catalyst. Bank of America forecasts gross margin expanding 90 basis points year over year to 29.9%, about 20 basis points better than consensus. Easier merchandise-margin comparisons and lower tariff pressure should help.

However, selling, general and administrative expenses remain a wild card. Target’s guidance includes about $1 billion of incremental SG&A spending and another $1 billion of incremental capital expenditures.

Nardone said those investments make sense for the long term. Still, they could limit upside if comparable-sales growth slows during the second half, particularly after Target’s earnings multiple expanded sharply following its first-quarter report.

Turnaround Faces A Tougher TestTarget has stepped up partnerships and product launches to generate customer interest. Recent initiatives include collaborations with Pokémon, LoveShackFancy and Hollister, while Target Beauty Studio is set to roll out to more than 600 stores in August.

Still, Bank of America sees risks to the recovery. A slower turnaround in apparel and home could expose Target to heavier competition and promotional pressure. Competitive food and beverage pricing could also limit market-share gains.

The valuation adds another hurdle. Bank of America’s base case points to only about 4% earnings growth in fiscal 2028 as Target cycles strong first-half sales trends and loses favorable margin comparisons. The firm’s $124 price forecast is based on 14 times estimated fiscal 2027 earnings.

Bank of America said an upside scenario could involve a roughly 16-times earnings multiple and about $10 in fiscal 2028 earnings per share. Even so, the analyst believes the current risk-reward remains challenging after Target’s strong recent run.

TGT Price Action: Target shares were up 0.90% at $153.65 at the time of publication on Wednesday. The stock is trading near its 52-week high of $154.88, according to Benzinga Pro data.

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Key Takeaways PayPal's Venmo TPV rose 14% in Q2, marking a seventh straight quarter of double-digit growth.Venmo Debit Card MAA grew over 50%, while Pay with Venmo MAA increased about 30% year over year.PYPL says Venmo monetization helped drive transaction-margin growth as it expands beyond branded checkout. PayPal Holdings, Inc.’s (PYPL - Free Report) Venmo is becoming a bigger part of the company’s growth story as it pushes beyond peer-to-peer payments. In the second quarter of 2026, Venmo's total payment volume (TPV) rose 14% year over year, marking a seventh straight quarter of double-digit growth. Management said Venmo and Braintree were growing TPV in the mid-teens, as PayPal seeks to diversify growth beyond branded checkout.

Venmo Debit Card monthly active accounts (MAA) grew more than 50% year over year, while Pay with Venmo MAA rose about 30%. Pay with Venmo grew 44%, well above PayPal’s 2% currency-neutral growth in online branded checkout, showing stronger use of the app beyond money transfers.

Monetization improves when customers adopt more Venmo products. Customers using both Venmo Debit and Pay with Venmo generated more than nine times the average revenue per account of peer-to-peer-only users. This customer group has roughly doubled in size over the past year, giving management a path to lift revenues without depending on account growth.

PayPal is rebuilding the Venmo app to improve product discovery and engagement. Venmo feature development accelerated fourfold in the first half of 2026. Management plans to bring more PayPal financial-services capabilities into Venmo, using shared technology, identity and risk systems.

Venmo’s progress matters because PayPal is looking for faster growth outside branded checkout. In the second quarter of 2026, the company reported TPV of $486.4 billion, up 10%, while transaction margin dollars excluding interest on customer balances grew 3%. Management said Venmo monetization was one of the drivers of transaction-margin growth.

How Are Block & Apple Doing in the Payments Space?Block, Inc.’s (XYZ - Free Report) Cash App supports peer-to-peer transfers, spending and merchant payments. In June 2026, Block introduced Cash App Tags, NFC-enabled accessories linked to Cash App Card, expanding contactless payments beyond phones and cards. Cash App serves roughly 59 million monthly transacting active users. In second-quarter 2026, Cash App gross profit grew 31% year over year to $1.97 billion.

Apple (AAPL - Free Report) continues to broaden the utility of its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay, making the iPhone an increasingly important platform for both consumers and merchants. In June 2026, Apple announced Visual Intelligence for splitting bills with Apple Cash and a redesigned Apple Pay checkout.

PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have gained 29.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 10.47X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.66X.

Image Source: Zacks Investment Research

PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.37 over the past week. The consensus estimate for the metric indicates a year-over-year increase.

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PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.