First majastic silver profitable

1. Clear signs of a profit turnaround — what the numbers show

Recent reporting documents a concrete swing to profit: First Majestic reported net income of $26.98 million in Q3 2025, a material change from the prior‑year loss, and the company produced record quarterly output that helped push year‑to‑date revenue toward a billion dollars ^{[1] [2]}. Profitability metrics in other coverage point to healthy operational margins — an EBITDA margin of roughly 33.4% and gross margin near 27.1% were reported for recent quarters, while an EBIT margin figure of about 16.4% has also been cited after restructuring ^{[3] [6]}. Those are not isolated accounting footnotes: several outlets attribute tripled free cash flow and stronger working capital to the same underlying performance ^{[1] [5]}.

2. Why profits materialized — production, prices and portfolio moves

The company’s profit swing tracked a mix of sharply higher silver prices in 2025 — silver futures rose more than 130% that year — and materially higher production after integrating new assets and optimizing operations, which translated to record revenues without a proportionate rise in cash costs per silver equivalent ounce ^{[5] [4]}. Strategic portfolio moves, including the integration of Los Gatos and a planned divestiture of Del Toro for up to $60 million, also recalibrated capital deployment and supported liquidity and margin improvement ^{[1] [6]}.

3. Cash, liquidity and dividends — balance sheet indications

First Majestic’s liquidity position was repeatedly emphasized in reporting: cash and restricted cash reached multiyear highs (reports put cash balances north of half a billion dollars), free cash flow improved significantly, and the company has signaled shareholder returns including a dividend policy increase tied to quarterly revenue beginning 2026, indicating management’s confidence in the cash generation profile ^{[5] [1] [7]}. Those balance‑sheet improvements reduce short‑term insolvency risk and give the company optionality for expansion, debt reduction or buybacks ^[1].

4. Market response and valuation caveats

Investors rewarded the turnaround with an almost fourfold share‑price surge over the prior year as markets priced in sustained higher metal prices and continued production growth, but analysts warn valuations may be stretched: premium multiples and high price‑to‑sales ratios presume continuation of 2025 dynamics and leave the stock vulnerable if metal prices cool or production per‑share growth slows ^{[4] [8]}. Additionally, other data points show earlier periods of losses and variability in quarterly results, underscoring that the mining business is cyclical and exposed to equipment downtime, cost pressures and regulatory risks in Mexico ^{[9] [4]}.

5. The sustainability question — conditional profitability

Profits today are real but conditional: they rely heavily on elevated silver prices and continued operational efficiency; if silver prices retreat or unit costs rise, margins could compress quickly because mining revenues are highly price‑sensitive, a fact multiple analysts highlighted while explaining the 2025 rally ^{[5] [4]}. While recent divestitures and strong cash provide a buffer, the company’s long‑term profitability will hinge on replacing mined ounces, managing costs across Mexican operations, and avoiding project delays — areas where available reporting documents progress but do not eliminate execution risk ^{[6] [1]}.

6. Bottom line

First Majestic Silver became profitable in 2025 as higher output, elevated silver prices and tighter cost control produced positive net income, robust margins and a strong cash position, validating a turnaround thesis in the near term ^{[1] [3] [5]}. That profitability is evidence‑based but not bulletproof: valuations are rich, and the company’s future earnings remain exposed to commodity cycles, operational risks and the success of recent portfolio adjustments ^{[4] [6]}.