Hudbay Minerals (HBM) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $2.2 billion and adjusted EBITDA of $1.1 billion in 2025, marking the third consecutive year of record financial performance.

• Generated $388 million in free cash flow for 2025, with strong operational performance and higher metal prices across all regions.

• Completed a $600 million joint venture with Mitsubishi for Copper World, reducing future equity contributions, enhancing financial flexibility, and increasing project IRR to 90%.

• Delivered on copper and gold production guidance for the 11th and 5th consecutive years, respectively, despite operational challenges.

• Announced first-ever dividend increase, doubling annual payout to C$0.04 per share and reflecting a strengthened balance sheet.

Financial highlights

• 2025 revenue grew 9% year-over-year to $2.2 billion; adjusted EBITDA rose 29% to $1.1 billion.

• Q4 2025 revenue reached $733 million, with adjusted EBITDA of $386 million and net earnings of $128 million ($0.32/share); adjusted EPS was $0.22.

• Free cash flow for 2025 was $388 million, with Q4 free cash flow at $228 million.

• Net debt to EBITDA ratio improved to 0.4x at year-end 2025, with liquidity post-JV exceeding $1.4 billion.

• Full year 2025 net earnings attributable to owners were $568.5 million ($1.44/share), up from $76.7 million in 2024.

Outlook and guidance

• 2026 copper production expected to rise 5% to 124,000 tonnes, with gold production forecast at 244,500 ounces, down 9% due to Pampacancha depletion.

• 2026 consolidated cash cost guidance is $(0.30) to $(0.10) per pound of copper; sustaining cash costs at $1.70–$2.10/lb.

• Capital expenditures in 2026: $435 million sustaining, $140 million growth (excluding Copper World), $135 million for Copper World JV.

• Exploration spending to increase to $60 million, focusing on Snow Lake, New Ingerbelle, and Peru satellite properties.

• Key 2026 objectives include sanctioning Copper World, increasing mill throughput at Constancia and Copper Mountain, and advancing Snow Lake exploration.