Southern Copper Corp (SCCO) Q4 2025 Earnings Call Highlights: Record Sales and Strategic ...
Southern Copper Corp (SCCO) reports significant financial growth in Q4 2025, driven by increased sales and EBITDA, while navigating production setbacks and strategic capital investments.
This article first appeared on GuruFocus. Net Sales: $13.4 billion, a 17% increase from 2024. Adjusted EBITDA: $7.8 billion, a 22% increase from 2024. Net Income: $4.3 billion, a 28% increase from 2024. Fourth Quarter Sales: $3.9 billion, $1.1 billion higher than Q4 2024. Fourth Quarter Adjusted EBITDA: $2.3 billion, a 53% increase from Q4 2024. Fourth Quarter Net Income: $1,038 million, a 65% increase from Q4 2024. Fourth Quarter Adjusted EBITDA Margin: 60%, up from 54% in Q4 2024. Cash Flow from Operating Activities: $4.8 billion, an 8% increase from 2024. Copper Production: 956,270 tons in 2025, a 1.8% decrease from 2024.
Molybdenum Production: 31,200 tons in 2025, a 7% increase from 2024. Silver Production: 24 million ounces in 2025, a 15% increase from 2024. Zinc Production: 165,500 tons in 2025, a 36% increase from 2024. Operating Cash Cost per Pound of Copper: $2.17 in 2025, up from $2.13 in 2024. Net Income Margin: 32% in 2025, up from 30% in 2024. Capital Investments: $1.3 billion in 2025, a 29% increase year-on-year. Dividend: Quarterly cash dividend of $1 per share and a stock dividend of 0.0085 shares per share. Warning! GuruFocus has detected 8 Warning Signs with BOM:526521. Is SCCO fairly valued?
Test your thesis with our free DCF calculator. Release Date: January 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Southern Copper Corp (NYSE:SCCO) achieved record sales of $13.4 billion in 2025, a 17% increase from 2024. The company reported a record high adjusted EBITDA of $7.8 billion, reflecting a 22% increase over 2024. Net income for 2025 reached a record $4.3 billion, 28% higher than the previous year. Mined zinc production increased by 36% year-on-year, driven by additional output from the Buenavista zinc concentrator.
Southern Copper Corp (NYSE:SCCO) has committed to a capital investment program exceeding $20.5 billion, focusing on projects in Peru and Mexico. Negative Points Copper production decreased by 1.8% in 2025, falling short of the company's plan by 1%. For 2026, Southern Copper Corp (NYSE:SCCO) expects a further decrease in copper production by 4.7% due to lower ore grades. Operating costs and expenses increased by $282 million, or 19%, compared to the fourth quarter of 2024. The company faces challenges with illegal miners at the Los Chancas project area, hindering progress. Southern Copper Corp (NYSE:SCCO) anticipates a copper market deficit of about 320,000 tons for 2026, which could impact supply dynamics.
Q & A Highlights Q: Can you provide updated thoughts on cost guidance, particularly given currency inflation and local currencies versus the dollar? A: We have moved past the worst of the inflation post-COVID. Currently, our costs are more affected by currency appreciation for the peso and the Peruvian sol rather than specific inflation from Mexico or Peru. We expect operating costs to remain relatively flat on a per-pound basis, despite producing slightly less than last year. Strong by-product production will help offset costs. Story Continues Q: Is there potential to increase silver production in 2026 given strong prices?
A: We have set a guidance of 24 million ounces for silver production in 2026. While we aim to improve on this, our current focus is on the Buenavista zinc concentrator, which has high ore grades for both zinc and silver. If silver prices remain strong, silver could become our main by-product. Q: Why is molybdenum production expected to decline in 2026? A: We are encountering lower ore grades for both copper and molybdenum in some areas of our operations. While molybdenum production might improve slightly, our current forecast reflects these challenges. Q: Can you provide an update on the Cuajone concentrator expansion?
A: We are still preparing the necessary information for a potential Cuajone expansion, which will be submitted to our Board for a decision. We view the project positively but need to complete our work before proceeding. Q: What is the timeline for the Tia Maria project, and how does the committed CapEx align with this? A: We have committed about $800 million to Tia Maria, with a forecasted cash outflow of $508 million in 2026. Construction should be completed by mid-2027, with production of 30,000 tons expected in the second half of 2027 and full capacity of 120,000 tons per year in 2028. Fo
r the complete transcript of the earnings call, please refer to the full earnings call transcript.