Grupo México (GMEXICOB) Q2 2026 earnings summary

Executive summary

• Revenues for 1H26 reached $11.28 billion, up 34% year-over-year, with EBITDA of $6.85 billion, a 49.6% increase, driven by higher metal prices and strong division results.

• Mining division sales rose 39.5% to $9.3 billion, transportation sales increased 14.9% to $1.87 billion, while infrastructure sales fell 18.7% to $278 million.

• Board approved a combined cash and stock dividend totaling $1.84 per share, yielding 3.7%.

• Solid balance sheet with $13.3 billion in cash and a successful $1.25 billion bond issuance.

• Infrastructure division posted a one-time gain from the sale of an 81.1% highway stake, boosting net income and financial flexibility.

Financial highlights

• Mining division EBITDA reached $5.92 billion (63.3% margin), transportation EBITDA was $783 million (41.8% margin), and infrastructure EBITDA was $278 million.

• Net income for 1H26 was $2.27 billion, up 15.2% year-over-year.

• Net cash cost for copper improved 68% to $0.31 per pound.

• Cash generation in 1H26 totaled $3.1 billion.

• 1H26 EBITDA margin was 60.7%, up from 54.3% in 1H25.

Outlook and guidance

• Mining expects a slight copper market deficit in 2026, supported by strong demand from decarbonization and technology sectors.

• Transportation division projects 6%-8% volume growth and 9%-11% revenue growth for 2026.

• Major capital investment program could exceed $27 billion this decade, with significant projects in Peru, US, Spain, and Mexico.

• Tía María project in Peru is 42% complete, with operations expected to begin in 2H27.

• ASARCO copper production for 2027 expected at 120,000 metric tons with cash costs below $3 per pound.