Southern Copper (SCCO) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 36.2% year-over-year to $4,251.4 million, driven by higher metal prices and increased sales volumes of silver and zinc, partially offset by lower copper and molybdenum volumes.

• Net income attributable to shareholders increased 66.7% to $1,576.9 million, with EPS up to $1.92 from $1.15 in Q1 2025.

• Adjusted EBITDA rose 55.4% year-over-year to $2,712.8 million, with a margin of 63.8%.

• Operating income grew 61.5% to $2,480.4 million, supported by strong pricing and by-product contributions.

• Leadership transition: Leonardo Contreras appointed CEO following the passing of Oscar Gonzalez Rocha in April 2026.

Financial highlights

• Copper prices (LME) averaged $5.83/lb (+37.5% YoY); silver prices averaged $83.33/oz (+157.9% YoY); molybdenum prices averaged $25.37/lb (+24.2% YoY); zinc prices averaged $1.47/lb (+14.0% YoY).

• Operating costs and expenses increased 11.6% to $1,771.0 million, mainly due to higher costs of metals purchased, labor, and a solidarity contribution in Mexico.

• Operating cash cost per pound of copper before by-product revenues rose 12.3% to $2.31, but net of by-product revenues improved to a credit of ($0.11) per pound, a 114% reduction from 1Q25.

• Cash flow from operations was $1,694.5 million, up 134.9% from Q1 2025.

• Capital investments totaled $441.9 million, up 39% YoY.

Outlook and guidance

• 2026 copper production is expected to reach 915,400 tonnes, exceeding the initial plan.

• By-product production targets for 2026: 166,800 tonnes zinc (+1% vs. plan), 27,400 tonnes molybdenum (+5%), and 24 million ounces silver (+1.3%).

• Management expects copper prices to remain strong due to a projected market deficit and low inventories.

• Focus remains on increasing production to 1.6 million tons and maintaining cost-efficiency discipline.

• Expectation of ore grade recovery in Peruvian operations by end of 2026 and beyond.