Southern Copper (SCCO) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $13.4 billion in 2025, up 17.4% year-over-year, with net income reaching $4.33 billion (+28.4%) and Adjusted EBITDA at $7.82 billion (+22.1%), driven by higher production volumes, improved metal prices, and by-product output.

• 4Q25 net sales rose 39% year-over-year to $3.87 billion, with net income up 65% to $1.31 billion and EBITDA up 53%, reflecting strong operational performance and margin expansion.

• Operating cash cost per pound of copper, net of by-product credits, dropped to $0.58 for 2025, a 33.7% reduction from 2024, supporting margin expansion.

Financial highlights

• 2025 net sales were $13.4 billion (+17% YoY), Adjusted EBITDA $7.8 billion (+22%), and net income $4.3 billion (+28%).

• 4Q25 net sales: $3.87 billion (+39% YoY), EBITDA: $2.31 billion (+53% YoY), net income: $1.31 billion (+65% YoY).

• Cash flow from operations in 2025 was $4.75 billion, up 7.5% year-over-year.

• Capital investments in 2025 totaled $1.33 billion, a 29% increase from 2024.

• Dividends paid in 2025 were $3.50 per share, up 66.7% year-over-year, with annual dividend yield rising to 6.5%.

Outlook and guidance

• 2026 copper production expected at 911,400 tons, a 4.7% decrease from 2025 due to lower ore grades; silver and molybdenum production also forecasted to decline.

• Long-term copper production expected to recover post-2027 with Tía María ramp-up, targeting 1.6 million tons by 2033.

• Copper market expected to face a deficit in 2026, with inventories covering only 14 days of consumption; demand driven by decarbonization, AI, and electric vehicles, but Chinese real estate remains weak.