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 set a new record at $1,975M in Q3 2025, up 17% year-over-year, with a margin of 58.5%.

• Strong performance attributed to increased zinc, silver, and molybdenum output, and cost efficiency initiatives.

• Maintains focus on disciplined growth, productivity, and cost competitiveness, targeting 1.6 million tons of copper long-term.

Financial highlights

• Q3 2025 net sales: $3,377.3M (+15.2% YoY); nine months: $9,550.2M (+10.4% YoY).

• Q3 2025 net income: $1,108M (+23.5% YoY); nine months: $3,027M (+17.2% YoY).

• Adjusted EBITDA was $1,975M in Q3 2025 (+17% YoY); margin rose to 58.5%.

• Q3 2025 EPS: $1.35 (+19.9% YoY); 9M25 EPS: $3.71 (+14.0% YoY).

• Operating cash flow for Q3 2025 was $1,560M, up 8.4% year-over-year.

Outlook and guidance

• 2025 copper production expected at 958,800 tons, slightly below plan and 2% lower than 2024.

• 2026 copper production forecast under review, currently at 911,000 tons.

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

• Cash cost per pound of copper expected to decrease to $2.15–$2.20 in Q4 2025; Q3 2025 net of by-product credits: $0.42, down 44.7% year-over-year.

• Copper market expected to remain in deficit, with inventories covering only eight days of demand.