Southern Copper Corporation
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.45%.
Did SCCO Beat Earnings? Q2 2026 Results
Southern Copper Corporation delivered a blowout second quarter for fiscal 2026, posting earnings of $2.01 per share on revenue of $4.29 billion, up 40.6% year-over-year, marking the company's fourth consecutive quarter beating consensus EPS estimates. The headline driver was a powerful surge in metal prices, with copper climbing nearly 40% on the LME while silver rocketed 118.6% higher, collectively collapsing the operating cash cost per pound of copper to just $0.05 from $0.63 a year earlier. That pricing tailwind more than offset a 3.5% sequential dip in copper production, as lower ore grades at Peruvian operations weighed on volumes. Adjusted EBITDA expanded to $2.86 billion with a 66.6% margin, while net income attributable to shareholders rose 71.6% to $1.67 billion. Looking ahead, investors tracking the <a href="https://247wallst.com/investing/2026/07/08/this-20-billion-sector-is-flashing-signals-of-a-breakout/">broader copper sector's momentum</a> will note that Southern Copper's $20.5 billion growth pipeline, anchored by the Tía María project at 42% completion and a 2027 production target, positions the company to expand output meaningfully as new capacity comes online.
- Copper price increases: LME +39.8%, COMEX +30.5% year-over-year in Q2
- Silver price increase of 118.6% year-over-year in Q2
- Molybdenum price increase of 43.1% year-over-year in Q2
- Zinc price increase of 30.8% year-over-year in Q2
- Operating cash cost per pound of copper collapsed 93% to $0.05 driven by 51.4% increase in by-product revenue credits
- Net income margin expansion to 38.9% from 31.9%
- Adjusted EBITDA margin expansion to 66.6% from 58.7%
“As Peru is approaching another executive power transition, we are encouraged by the initial statements made by President-elect Ms. Keiko Fujimori. Accordingly, SCC reiterates its commitment to work with the incoming administration to promote economic growth and social development in Peru through the advancement of our Peruvian projects Tía María, Los Chancas, and Michiquillay, which represent a combined investment of approximately $10.3 billion.”
Southern Copper CEO, on the earnings call
Forward Guidance & Outlook
SCC's capital investment program for this decade exceeds $20.5 billion, including projects in Peru and Mexico. The Tía María project (42% complete) is expected to begin production in the second half of 2027, producing 120,000 tonnes of copper cathodes per year at an estimated cash cost of $1.16 per pound. The Michiquillay project targets 225,000 tonnes of copper per year with a $2.5 billion investment and a 2032 production start. Los Chancas envisions 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually with a $2.6 billion investment and 2031 production start. El Pilar in Mexico will begin site preparation in September 2026, with construction starting Q1 2027 and production expected in the second half of 2029. The company is engaged in talks with the Mexican administration regarding $10.2 billion in investments.
SCCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.