01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Southern Copper Corporation (SCCO) reported strong financial performance for the year ended December 31, 2025, driven by record net sales and net income.
This growth was primarily fueled by higher metal prices for copper, silver, and molybdenum, coupled with increased sales volumes for by-products like zinc and silver. The company's robust operational execution, including effective cost management, contributed significantly to its profitability. SCCO continues to focus on its organic growth plan to increase copper production and has approved a substantial capital investment program for 2026, signaling confidence in future production and market demand.
The company also highlighted its commitment to ESG practices, noting improvements in sustainability ratings and a continued focus on occupational health and safety, which resulted in a reduction in lost-time injuries. The robust cash flow generation supports ongoing capital investments and shareholder returns.
02—Key points
Key Highlights
- Record net sales of $13,420.0 million in 2025, a 17.4% increase from 2024, driven by higher metal prices and sales volumes.
- Net income attributable to SCC reached a record $4,334.9 million in 2025, a 28.4% increase from 2024, attributed to strong operational performance and favorable market conditions.
- Copper production for 2025 totaled 2,108.2 million pounds, with by-product production showing significant increases in molybdenum (+7.4%), zinc (+36.1%), and silver (+15.3%).
- Operating cash cost per pound of copper net of by-product revenues decreased significantly to $0.58 in 2025 from $0.89 in 2024, primarily due to increased by-product revenues.
- Approved capital investment program of $1,925.5 million for 2026 to support organic growth and production expansion.
- Strong commitment to ESG practices, with a 14% reduction in employee lost-time injuries in 2025 and continued focus on environmental sustainability, including renewable energy adoption.
- Robust liquidity with $4,304.6 million in cash and cash equivalents and $4,909.3 million in short-term investments as of December 31, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Southern Copper Corp kept $0.32.
- Revenue$13.42B100.0%
- Cost of revenue−$5.36B39.9%
- Gross profit$8.06B60.1%
- Operating costs−$1.06B7.9%
- Operating income$7.00B52.2%
- Interest, other & tax−$2.67B19.9%
- Net income$4.33B32.3%
Where FY2025 revenue went
$13.42B- Cost of revenue: $5.36B, 40% of revenue
- Net income: $4.33B, 32% of revenue
- Interest, other & tax: $2.67B, 20% of revenue
- SG&A: $137.8M, 1.0% of revenue
- Other operating costs: $921.3M, 6.9% of revenue
Kept 32% as net incomeSG&A $137.8M · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $13.42B$11.43B | +17.4% |
| Cost of Revenue | $5.36B$4.84B | +10.7% |
| Gross Profit | $8.06B$6.59B | +22.3% |
| SG&A Expenses | $137.80M$130.50M | +5.6% |
| Operating Expenses | $6.42B$5.88B | +9.2% |
| Operating Income | $7.00B$5.55B | +26.1% |
| Net Income | $4.33B$3.38B | +28.4% |
| EPS (Basic) | $5.24$4.21 | +24.5% |
| EPS (Diluted) | $5.24$4.21 | +24.5% |
| Shares Outstanding (Basic) | 826.60M802.90M | +3.0% |
| Shares Outstanding (Diluted) | 826.60M802.90M | +3.0% |
05—Questions
Frequently Asked Questions
What were the key drivers of Southern Copper's financial performance in 2025?
Southern Copper's strong financial performance in 2025 was primarily driven by record net sales and net income, which were fueled by higher average metal prices for copper, silver, and molybdenum, as well as increased sales volumes for by-products like zinc and silver. The company's effective cost management strategies also played a significant role in boosting profitability.
How does Southern Copper manage its operational costs, particularly for copper production?
Southern Copper focuses on managing its operating cash costs by controlling production expenses and leveraging by-product revenues. The company reported a significant decrease in its operating cash cost per pound of copper net of by-product revenues to $0.58 in 2025, largely due to higher sales volumes and prices of its by-products, which help offset copper production costs.
What are Southern Copper's future growth and investment plans?
Southern Copper has approved a capital investment program of $1,925.5 million for 2026. This investment is geared towards supporting its organic growth plan to increase copper production and developing key projects like the Tia Maria project in Peru and El Pilar project in Mexico. The company is committed to expanding its production capacity and enhancing its operational efficiency.
How is Southern Copper addressing Environmental, Social, and Governance (ESG) factors?
Southern Copper demonstrates a strong commitment to ESG principles. In 2025, the company achieved a 14% reduction in employee lost-time injuries, highlighting its focus on occupational health and safety. It also made progress in environmental sustainability by increasing its use of renewable energy and adhering to international standards for tailings management. The company actively engages with local communities through social development programs and works to minimize its environmental footprint.
06—Continue