Southern Copper (SCCO) Q2 2026 earnings summary

Executive summary

• Net sales reached $4,289 million in Q2 2026, up 41% year-over-year, setting a new record, driven by higher metal prices despite lower copper production volumes.

• Net income for Q2 2026 was $1,670 million, a 72% increase year-over-year, with a net income margin of 39%.

• Adjusted EBITDA for Q2 2026 was $2,956 million, up 60% year-over-year, with a margin of 67%.

• Copper production fell 3.5% year-over-year to 230,662 tonnes, while molybdenum, silver, and zinc output also declined.

• Cash flow from operations in the first half of 2026 was $3,683 million, up 117% year-over-year.

Financial highlights

• Q2 2026 net sales: $4,289 million (+41% YoY); copper sales rose 38% despite a 1.5% volume decline.

• Q2 2026 net income: $1,670 million (+72% YoY); net income margin improved to 39%.

• Adjusted EBITDA: $2,956 million (+60% YoY); margin 67%.

• Operating costs and expenses increased 14% year-over-year, mainly due to higher material, fuel, and labor costs.

• Operating cash cost per pound of copper (net of by-product credits) was $0.05 in Q2 2026, down 93% year-over-year.

Outlook and guidance

• 2026 copper production expected at 917,000 tonnes, slightly above initial plan, with similar levels projected for 2027.

• Tía María project in Peru is 42% complete, with operations expected to begin in H2 2027 and initial production of 120,000 tonnes of copper per year.

• Positive market outlook with a slight global copper deficit anticipated for 2026; inventories cover only 15 days of demand.

• Major projects in Peru and Mexico, including Los Chancas, Michiquillay, and El Pilar, are progressing, with significant capital investments planned.

• Demand growth is driven by decarbonization, AI, EVs, and a resilient US economy.