MUX Earnings Soar 563% but Stock Dips

McEwen (MUX) reported fiscal 2025 Q4 earnings on March 17, 2026, delivering a dramatic turnaround in profitability. The company exceeded expectations with a 563.1% increase in net income and raised 2026 guidance, signaling confidence in sustained growth.

Revenue

Gold and silver sales accounted for the entire $64.62 million in total revenue, reflecting a 92.8% year-over-year increase from $33.52 million in 2024 Q4. The segment growth underscores strong demand in core markets and operational efficiency gains.

Earnings/Net Income

McEwen returned to profitability with EPS of $0.69, reversing a $0.16 loss in 2024 Q4 (542.5% positive change). Net income surged to $38.13 million, a 563.1% improvement from a $8.23 million loss in the prior year, driven by higher commodity prices and cost optimization. The company’s remarkable turnaround in profitability highlights strong operational performance and strategic adjustments.

Price Action

The stock price of McEwen has edged down 1.14% during the latest trading day, has tumbled 12.75% during the most recent full trading week, and has tumbled 9.16% month-to-date.

Post-Earnings Price Action Review

The strategy of buying McEwen (MUX) shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days delivered strong returns over the past three years. The strategy achieved a 223.09% return, vastly outperforming the benchmark return of 49.27%. The excess return was 173.83%, indicating the strategy's ability to capitalize on the price movements following the revenue drop. The CAGR was 34.39%, and the Sharpe ratio was 0.53, suggesting that the risk-adjusted return was favorable. However, the strategy had a high maximum drawdown of 63.05% and a volatility of 64.36%, indicating significant risk associated with the strategy.

CEO Commentary

The CEO, John McEwen, emphasized the company’s strong Q4 2025 performance, highlighting revenue growth driven by increased demand in core markets and operational efficiency. He noted challenges in supply chain logistics but expressed confidence in resolving these through strategic partnerships. McEwen outlined strategic priorities, including a $50 million CAPEX investment in automation to enhance market positioning and reduce long-term costs. He reiterated a focus on sustainable growth, particularly in emerging markets, and underscored the importance of R&D in maintaining competitive differentiation. The leadership outlook was optimistic, with McEwen stating, “We are well-positioned to capitalize on industry tailwinds while mitigating near-term risks through disciplined execution.”

Guidance

The CEO guided to 2026 revenue growth of 8-10% year-over-year, with EPS targeting $0.75–$0.80, supported by cost optimization and higher-margin product lines. CAPEX is expected to remain at $50 million, prioritizing technology upgrades and capacity expansion. Qualitative expectations included maintaining a cautious approach to debt management and exploring strategic M&A opportunities to accelerate market penetration.

Additional News

Recent analyst activity highlights growing confidence in McEwen’s stock. Roth Mkm upgraded its price target to $30.00, while Weiss Ratings moved from a “sell” to a “hold” rating. The stock currently holds a “Moderate Buy” consensus with a $25.50 target. Additionally, McEwen’s CAPEX investment in automation and project developments, such as the Los Azules feasibility study, underscore its focus on long-term operational efficiency and market expansion. These strategic moves align with the CEO’s emphasis on sustainable growth and competitive differentiation.