Southern Copper Corporation
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.30%.
Did SCCO Beat Earnings? Q4 2025 Results
Southern Copper Corporation capped 2025 with a notably strong fourth quarter, posting earnings per share of $1.56 against a consensus estimate of $1.53, a beat of 2.25%, while revenue of $3.87 billion topped expectations by 3.07% and surged 39.0% year-over-year. The primary engine behind those results was a powerful combination of higher sales volumes across all major products, including copper up 2.8%, zinc up 20.7%, and silver up 11.3%, alongside broadly improved commodity pricing, with silver particularly notable at a 41.6% gain on the year. Cost discipline amplified the impact, as the company's operating cash cost per pound of copper fell 45.8% in Q4 to just $0.52, driven by elevated by-product revenue credits. Net income attributable to Southern Copper climbed 64.7% in the quarter to $1.31 billion, with adjusted EBITDA margins reaching 59.7%. While some analysts view the stock as trading at a premium to fair value, the company's long-term growth thesis remains anchored by a capital investment pipeline exceeding $20.50 billion this decade, targeting copper production of 1.6 million tons by 2033.
- Higher copper prices (+20.9% QoQ vs 4Q24) and improved pricing across all major metals
- Increased sales volumes for copper (+2.8%), molybdenum (+9.6%), zinc (+20.7%), and silver (+11.3%) in Q4
- Operating cash cost per pound of copper declined 45.8% to $0.52 in Q4 driven by higher by-product credits
- Strict cost control measures across operations
- Full-year copper price on LME increased 8.7% and silver prices surged 41.6%
- Strong by-product contribution from molybdenum, zinc, and silver
“The Company had an outstanding year, achieving new record results for sales, adjusted EBITDA and net income, as well as registering significantly lower cash costs. These results reflect strong momentum for copper and other minerals that we mine and attest to the effectiveness of our strategic direction. This historic performance is underpinned by our unwavering commitment to enhancing productivity and cost efficiency across operations.”
Southern Copper CEO, on the earnings call
Forward Guidance & Outlook
The company plans to advance a disciplined investment strategy focused on growth in 2026, strengthening its project pipeline to achieve a long-term objective of producing 1.6 million tons of copper by 2033. The capital investment program for this decade exceeds $20.5 billion, including projects in Peru (Tía María targeting 2027 operations start, Los Chancas targeting 2031, Michiquillay targeting 2032) and Mexico (El Arco and others totaling $10.2 billion). The Tía María project was 24% complete at year-end 2025 with $790 million committed against a $1.8 billion budget.
SCCO YoY Financials
Figures from SEC filings and company reports. Not investment advice.