Southern Copper (SCCO) Q3 2025 earnings summary

Executive summary

• Achieved record net sales of $3,377.3M in Q3 2025, up 15.2% year-over-year, driven by higher by-product production and improved metal prices, despite a 3.6% drop in copper sales volume.

• Net income reached a record $1,108M in Q3 2025, up 23.5% year-over-year, with a net income margin of 32.8%.

• Adjusted EBITDA for Q3 2025 was $1,975M, up 17% year-over-year, with a margin of 58.5%.

• Strong performance attributed to disciplined strategy, cost efficiency, and sustainable growth focus.

• Year-to-date net sales rose 10.4%, net income increased 17.2%, and adjusted EBITDA grew 12.5% compared to 9M24.

Financial highlights

• Q3 2025 net sales: $3,377.3M (+15.2% YoY); net income: $1,108M (+23.5% YoY); EPS: $1.35 (+19.9% YoY).

• Operating income for Q3 2025 was $1,768.8M, up 22% year-over-year.

• Operating costs and expenses increased 9% year-over-year, mainly due to higher input and labor costs.

• Operating cash cost per pound of copper before by-product credits: $2.23; after credits: $0.42, down 44.7% year-over-year.

• Cash flow from operating activities in Q3 2025 was $1,559.6M, up 8.4% year-over-year; nine months: $3,257.8M (+6.4% YoY).

Outlook and guidance

• Copper market expected to remain in deficit, with global inventories covering only eight days of demand and new demand from decarbonization and AI technologies.

• 2025 copper production forecast: 958,800–960,000 tonnes, about 2% lower than 2024; zinc, molybdenum, and silver output expected to rise.

• CapEx for 2026 projected at around $2 billion, with Tía María requiring $866 million.

• Cash cost per pound of copper expected to decrease in Q4 2025 to $2.15–$2.20 before by-product credits.

• Management remains confident in long-term copper and metal price fundamentals, with limited impact from recent US tariff policy changes.