10-QPeriod: Q1 FY2026

SOUTHERN COPPER CORP/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 30, 2026For Securities:SCCO

Summary

Southern Copper Corporation (SCCO) reported a strong first quarter for 2026, with net income attributable to SCC soaring by 66.7% year-over-year to $1,576.9 million, translating to earnings per share of $1.92. This significant growth was primarily driven by robust increases in net sales, up 36.2% to $4,251.4 million, fueled by higher metal prices across the board, including copper, silver, molybdenum, and zinc. The company demonstrated effective cost management, with operating income increasing by a substantial 61.5%. Despite a slight decrease in copper sales volume, the overall positive performance was bolstered by strong by-product contributions, particularly from silver, which saw a remarkable price increase of over 157%. SCCO also continued its commitment to strategic capital investments, spending $441.9 million in the quarter to support future growth and operational enhancements, including significant progress on key projects like Tia Maria in Peru.

Financial Highlights

48 data points
Beta

Revenue

$4.25B

64.7% Gross Margin

Net Income

$1.58B

37.1% Net Margin

EPS (Diluted)

$1.92

Total Assets

$21.93B

Cash & Equivalents

$4.92B

Free Cash Flow

$1.25B

Financial Statements
Beta
Revenue$4.25B
Cost of Revenue$1.50B
Gross Profit$2.75B
SG&A Expenses$35.80M
Operating Expenses$1.77B
Operating Income$2.48B
Net Income$1.58B
EPS (Basic)$1.92
EPS (Diluted)$1.92
Shares Outstanding (Basic)821.70M
Shares Outstanding (Diluted)821.70M

Key Highlights

  • 1Net income attributable to SCC surged by 66.7% to $1,576.9 million, leading to earnings per share of $1.92.
  • 2Net sales increased by 36.2% to $4,251.4 million, driven by higher prices for copper, silver, molybdenum, and zinc.
  • 3Operating income saw a significant increase of 61.5% to $2,480.4 million, indicating strong operational performance.
  • 4The company's silver sales experienced a notable price increase of 157.9%, making it the most significant by-product during the quarter.
  • 5Capital expenditures increased by 39.0% to $441.9 million, reflecting continued investment in strategic growth projects.
  • 6Copper mine production decreased by 4.0% to 508.3 million pounds, primarily due to lower ore grades at several key mines, though this was partially offset by gains at others.
  • 7The company maintained a strong liquidity position, with cash and cash equivalents increasing to $4,915.4 million.

Frequently Asked Questions

The substantial increase in net income was primarily driven by higher net sales, which grew by 36.2% due to strong performances in metal prices, particularly for copper, silver, molybdenum, and zinc. This revenue growth, combined with effective cost management that boosted operating income, contributed significantly to the improved net income.

By-product sales played a crucial role in SCCO's strong performance. Silver, in particular, saw a remarkable price increase of 157.9%, making it the most significant by-product and contributing substantially to overall revenue and profitability. Zinc and molybdenum also experienced price increases, further supporting the company's financial results.

Southern Copper anticipates a copper market deficit of 315,000 tonnes for 2026, with global inventories covering approximately 16 days of demand as of April 2026. For the full year 2026, the company expects copper production to reach 915,400 tonnes, slightly above its initial target. Copper prices in the first quarter of 2026 showed strong performance, with LME prices increasing by 37.5% and COMEX prices by 26.9%.

The company invested $441.9 million in capital expenditures during the first quarter of 2026, a 39.0% increase year-over-year. Key investments are directed towards strategic projects aimed at increasing production and improving efficiency. Significant progress is being made on the Tia Maria project in Peru, utilizing SX-EW technology, and plans are in motion for projects in Mexico, including El Pilar, as well as potential future projects like Los Chancas and Michiquillay in Peru.