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.

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

• Met or exceeded annual consolidated 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 holistic capital allocation framework.

Financial highlights

• 2025 revenue grew 9% year-over-year to $2,211 million; adjusted EBITDA rose 29% to $1,061 million.

• 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.

• Consolidated cash cost per pound of copper was $(0.22) in 2025, a significant improvement from $0.46 in 2024; sustaining cash cost was $1.30.

• Operating cash flow before working capital was $337 million in Q4; free cash flow for the year totaled $388 million.

• Liquidity post-Copper World JV closing exceeded $1.4 billion, with $992 million in cash and $425 million undrawn credit; net debt/EBITDA improved to 0.0x.

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 cost at $1.70–$2.10/lb.

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

• 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.