Southern Copper posts record profit on margin surge
Net income margin expanded to 37.1% in the latest quarter, up 6.8 percentage points from a year earlier.
The copper producer Southern Copper (SCCO) reported record first-quarter earnings as higher prices and lower costs lifted margins to their highest level in at least five years. Net income rose 66.7% from a year earlier to $1.58 billion, the company said.
The results marked a sharp acceleration from the 30% year-over-year increase posted in the prior quarter and reflected a 37.1% net-income margin, up 6.8 percentage points from the same period in 2025. Adjusted EBITDA climbed 55.4% to $2.71 billion, while EBITDA margin reached 63.8%, a 7.9-point improvement.
Revenue growth of 36.2% to $4.25 billion outpaced the 4% decline in copper production, which fell to 237,333 tonnes. The drop was driven by a 9.8% contraction at Peruvian mines, partly offset by a 5.5% increase at the La Caridad operation in Mexico. By-product credits continued to bolster results: silver output rose 11.1% and zinc production increased 2%, while molybdenum slipped 2.2%.
Operating cash costs per pound of copper, net of by-product revenue, turned negative at -$0.11, a $0.88 improvement from a year earlier and a $0.63 sequential decline. The company attributed the shift to higher by-product prices and disciplined cost controls, which more than offset lower copper volumes.
Capital expenditures rose 39% from a year earlier to $441.9 million, reflecting ongoing investment in the Tia Maria project in Peru. Progress on the delayed mine reached 32.5% completion in the quarter, up from 24% in the prior period, with 4,207 jobs created, including 815 local hires. Southern Copper also issued $1.25 billion in 30-year unsecured notes in June, earmarking proceeds for Tia Maria and general corporate purposes.
Cash flow from operations nearly doubled to $1.69 billion, driven by higher sales and a $448.8 million reduction in working-capital requirements. The company did not update full-year guidance, but management said it expects copper prices to remain supported by tight supply and rising demand from the energy transition.
Southern Copper named Leonardo Contreras Lerdo de Tejada as its new chief executive in April, succeeding Oscar Gonzalez Rocha, who died earlier in the year.