Southern Copper Corporation 8-K
PositiveEarnings
Higher metal prices drove record earnings despite lower copper sales volumes and weaker production at Peruvian mines.
Filed 2026-07-21 20:51 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results and quarterly dividend. Southern Copper reported record quarterly sales, net income attributable to SCC and adjusted EBITDA, driven mainly by higher metal prices; copper sales volumes and several by-product production measures declined. The board authorized a cash and stock dividend totaling an estimated $3.23 per share.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net sales | $4.29B | $3.05B | 40.6% |
| Operating income | $2.62B | $1.59B | 65.3% |
| Net income attributable to SCC | $1.67B | $973M | 71.6% |
| Adjusted EBITDA, non-GAAP | $2.86B | $1.79B | 59.5% |
| Diluted EPS attributable to SCC common shareholders | $2.01 | $1.17 | 71.8% |
| Operating cash flow | $1.99B | $977M | 104% |
- Six-month net sales were $8.54B (+38.4% Y/Y), net income attributable to SCC was $3.25B (+69.2%), adjusted EBITDA was $5.57B (+57.5%), and operating cash flow was $3.68B (+116.9%). Higher metal prices drove sales growth; the company also cited strong operating cash generation and a $718.5M decrease in operating assets and liabilities requirements. Q2 net income margin rose 700 bp Y/Y to 38.9%; adjusted EBITDA margin rose 790 bp to 66.6%.
- Mined copper production fell 3.5% Q/Q to 230,662 tonnes, with Peruvian mines down 12.0% Q/Q; six-month mined copper production declined 3.8% Y/Y, mainly due to lower ore grades in Peru. Q2 mined zinc and molybdenum production fell 14.5% and 11.0% Y/Y, respectively.
- Capital investments were $422.8M in Q2 (+79.4% Y/Y) and $864.7M for the first six months (+56.2%). At 6/30/2026, cash was $5.67B and long-term debt was $7.99B, vs $4.30B and $6.75B at 12/31/2025. The company issued $1.25B principal amount of 10-year fixed-rate senior unsecured notes, bearing 5.350% and due 2036; proceeds are for SPCC’s Tía María development, capital expenditures and general corporate purposes. The authorized dividend is $1.10 cash plus 0.0120 shares per share, estimated at $3.23 per share in total, payable 8/27/2026 to holders of record 8/11/2026.
Guidance
No guidance in this filing.
Investor Takeaways
- Tía María was 42% complete at 6/30/2026; watch for equipment assembly in 2027 and the planned start of production in 2H27. The project is designed to produce 120,000 tonnes of refined copper annually.
- Los Chancas progress remains hindered by illegal miners, with operations planned for 2031. Michiquillay is expected to begin production in 2032, with planned annual copper output of approximately 225,000 tonnes.
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