Agnico Eagle Mines (NYSE:AEM) Margin Surge To 37.5% Tests Bearish Cost Narratives

Agnico Eagle Mines (NYSE:AEM) FY 2025 earnings snapshot

Agnico Eagle Mines (NYSE:AEM) closed out FY 2025 with Q4 revenue of US$3.6 billion and basic EPS of US$3.04, while trailing twelve month revenue reached US$11.9 billion and EPS came in at US$8.89, alongside a 135.4% rise in earnings over the last year. Over recent periods, the company has seen revenue move from US$8.3 billion and EPS of US$3.79 on a trailing basis at the end of 2024 to US$11.9 billion and EPS of US$8.89 by Q4 2025, with trailing net profit margin at 37.5% versus 22.9% a year earlier. For investors, that combination of higher earnings and wider margins provides context for assessing how durable these profitability levels might be as growth expectations cool.

See our full analysis for Agnico Eagle Mines.

With the latest figures on the table, the next step is to see how this earnings profile lines up against the prevailing narratives around Agnico Eagle Mines, highlighting where the story is reinforced and where the recent results raise fresh questions.

See what the community is saying about Agnico Eagle Mines

135% earnings growth meets modest 3.9% outlook

• Over the last 12 months, Agnico Eagle generated trailing net income of about US$4.5b on US$11.9b of revenue, with earnings up very strongly at 135.4% year over year and analysts expecting earnings growth of 3.9% per year and revenue growth of 3.3% per year going forward, both below the cited US market averages.
• What bulls highlight is that strong trailing earnings and capacity additions could justify a faster path than the 3.9% forecast, yet the current figures draw a line between past and future:
  • The bullish camp points to expansion projects and technology upgrades as potential drivers of higher production and margin improvement, while the latest trailing net margin of 37.5% sets a high bar for those expectations.
  • At the same time, consensus earnings of US$3.0b today and the forecast path to US$3.4b by 2028 in the balanced narrative are more gradual than the trailing 5 year earnings growth rate of 36.3% per year, which limits how far the bullish narrative is backed by the current growth forecasts.

Bulls argue that recent profit strength and project pipeline could justify a richer story than the 3.9% earnings growth forecast suggests, so it is worth seeing how that optimistic case lines up with the numbers in detail. 🐂 Agnico Eagle Mines Bull Case

Margins at 37.5% challenge bearish cost worries

• On a trailing basis, Agnico Eagle converted US$11.9b of revenue into US$4.5b of net income, giving a 37.5% net profit margin compared with 22.9% a year earlier, even as analysts who take a more cautious stance assume margins slide from 30.6% to 26.6% by 2028.
• Skeptics focus on rising costs and project risks, but the latest figures give some counterpoints as well as support for their view:
  • Bears argue that aging mines in Canada and Finland, along with higher exploration and ESG costs, could compress profitability, which aligns with their margin assumption of 26.6% in 3 years versus the current 37.5% trailing level.
  • On the other hand, record free cash flow and cost discipline in the cautious narrative sit alongside the current high margin, so the present earnings quality does not yet show the margin pressure that the bearish scenario is built around.

Skeptics warn that today’s 37.5% margin leaves plenty of room for disappointment if grades or costs move the wrong way, so their detailed bear case is useful context for stress testing your own expectations. 🐻 Agnico Eagle Mines Bear Case

P/E of 24.3x and price below DCF fair value

• With the share price at US$216.59, the stock trades on a P/E of 24.3x, below the cited US Metals & Mining industry average of 26.4x and peer average of 32.3x, and below a DCF fair value of about US$294.56 per share, which implies the current price is roughly 26.5% under that DCF estimate.
• Consensus narrative views this combination of high profitability and discounted metrics as a mixed signal that investors need to unpack:
  • The consensus view notes that analysts expect revenue to grow by 4.4% per year and earnings to reach about US$3.4b by 2028, which is a steadier path than the very strong 135.4% earnings growth recorded over the past year.
  • That same consensus pairs the moderate growth outlook with a target P/E of 26.1x by 2028, slightly above the current 24.3x, so the current discount to the DCF fair value and to peer P/E multiples sits against forecasts that are more restrained than the recent trailing performance might suggest.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Agnico Eagle Mines on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.

See the numbers a different way? Turn that view into your own narrative in just a few minutes and put your thesis on record. Do it your way

A great starting point for your Agnico Eagle Mines research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Agnico Eagle Mines combines a strong recent earnings jump with more modest forecast earnings growth of 3.9% per year and softer consensus margin expectations.

If that slower growth outlook feels limiting, you can quickly scan our 55 high quality undervalued stocks to hunt for companies where current pricing and fundamentals look more favorable right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com