Southern Copper (SCCO) Q2 2026 earnings summary

Executive summary

• Net sales reached $4,289 million in Q2 2026, up 41% year-over-year, setting a new quarterly record, driven by higher metal prices despite lower copper production volumes.

• Net income for Q2 2026 was $1,670 million, a 72% increase year-over-year, with a net income margin of 39%.

• Adjusted EBITDA for Q2 2026 was $2,956 million, up 60% year-over-year, with a margin of 67%.

• Cash flow from operations in the first half of 2026 was $3,683 million, up 117% year-over-year.

• Copper production decreased 3.5% year-over-year to 230,662 tons, while molybdenum, silver, and zinc output also declined.

Financial highlights

• Q2 2026 sales reached $4,289 million, up 41% year-over-year; copper sales rose 38% despite a 1.5% volume decline.

• Operating costs and expenses increased 14% year-over-year, mainly due to higher material, fuel, and labor costs.

• Adjusted EBITDA margin improved to 67% in Q2 2026 (vs. 59% in Q2 2025).

• Net income margin improved to 39% in Q2 2026 (vs. 32% in Q2 2025).

• Capital investments in Q2 2026 were $423 million, up 79% year-over-year.

Outlook and guidance

• 2026 copper production expected at 917,000 tons, slightly above initial plan, with similar levels projected for 2027.

• Tía María project in Peru is 42% complete, with operations expected to begin in 2H27 and initial production of 120,000 tonnes of copper per year.

• El Pilar project in Mexico to begin site preparation in September 2026, with production expected in 2H29.

• Positive market outlook with a slight global copper deficit anticipated for 2026; inventories cover only 15 days of demand.

• Demand growth driven by decarbonization, AI, and EVs; resilient US economy supports outlook.