Grupo México (GMEXICOB) Q1 2025 earnings summary

Executive summary

• 1Q25 revenue reached $4.20B, up 10.4% year-over-year, driven by higher copper, molybdenum, zinc, and silver prices and strong Mining Division performance.

• EBITDA rose 12.7% year-over-year to $2.22B, with a margin of 52.8%.

• Net income increased 16.7% year-over-year to $1.01B.

• Net cash cost per pound of copper decreased 19.1% year-over-year to $1.04, maintaining industry-leading cost efficiency.

• Dividend per share increased to MXN 1.20, with a 4.8% yield.

Financial highlights

• Operating income grew 18.9% year-over-year to $1,836M.

• Cash position reached $8.99B, supporting a comfortable debt maturity profile.

• Net Debt/EBITDA ratio at 0.09x, reflecting low leverage.

• Capex increased 63.9% year-over-year to $536M.

• 93% of debt is at fixed rates, with 82% denominated in USD.

Outlook and guidance

• Copper market expected to face a deficit in 2025, with low inventories and strong demand from decarbonization and AI technologies.

• Ongoing $15B capital investment program for the decade, with major projects in Mexico and Peru targeting long-term growth.

• Growth pipeline includes major projects in Mexico and Peru, with significant copper production increases planned through 2032.

• Tia Maria and Los Chancas projects in Peru progressing, with Tia Maria expected to start operations in 2027 and Los Chancas in 2031.