Southern Copper Corporation
SCCO · NYSE
Next quarter
Reports Oct 27, 2026.
Consensus is $2.00 EPS for Sep 2026 across 2 estimates, ranging $1.84 to $2.16.
SCCO Jun 2026
- 2.03%
- +3.97%
- $1.97
- $2.01
- —
- $4.29B
Reported results
- $4.29B
- 67.60%
- $2.62B
- 61.16%
- $1.67B
- $2.01
Highlights
- Second-quarter net sales were $4,289.0 million, up 40.6% from $3,051.0 million, while net income attributable to SCC rose 71.6% to $1,670.0 million from $973.4 million; earnings per share increased to $2.01 from $1.17.
- Mexican open-pit operations generated $2,505.5 million of external sales and $1,610.7 million of operating income; Peruvian operations produced $1,584.4 million of sales and $935.9 million of operating income.
- The IMMSA unit reported $199.0 million of external sales and $88.0 million of operating income. Consolidated operating income was $2,623.2 million, compared with $1,587.0 million in the year-earlier quarter.
- Second-quarter mined copper production declined 3.5% to 508.5 million pounds, while copper sold fell 1.5% to 486.6 million pounds; management expects 917,000 tonnes of copper production in 2026.
- Capital investment was $422.8 million in the quarter and $864.7 million in the first half, up 56.2% from the first half of 2025. Full-year by-product expectations are 163,900 tonnes of zinc, 27,900 tonnes of molybdenum and 24 million ounces of silver.
Analysis
No consensus figures are on file, so the quarter cannot be assessed against an external estimate. Results were substantially stronger year over year: revenue increased 40.6% to $4,289.0 million and net income attributable to SCC rose 71.6% to $1,670.0 million, versus 38.4% and 69.2% growth, respectively, for the first half. Higher metal prices were the main driver, including copper price increases of 39.8% on LME and 30.5% on COMEX, plus gains of 43.1% for molybdenum, 118.6% for silver and 30.8% for zinc. Costs increased 13.8%, considerably below sales growth. Mexican open-pit operations carried the quarter, with $2,505.5 million of sales and $1,610.7 million of operating income, while Peru contributed $1,584.4 million of sales and $935.9 million of operating income. Production was weaker, particularly at Toquepala and Cuajone, but pricing more than offset lower volumes.
Guidance
Management did not provide revenue, earnings, margin or cash-flow guidance ranges. Its operational outlook calls for 917,000 tonnes of copper production in 2026, 0.6% above the planned target of 911,400 tonnes. Expected zinc production is 163,900 tonnes, 0.9% below the initial plan, while molybdenum production is expected at 27,900 tonnes, 7% above the initial plan; silver production is expected to meet the plan at 24 million ounces. The outlook is subject to metal prices, ore grades, mineral milled, recoveries and broader supply-and-demand conditions. Management estimates a slight copper market deficit for 2026.
What drove it
- Copper pricing — Second-quarter LME copper prices rose 39.8% to $6.04 per pound and COMEX prices increased 30.5% to $6.16.
- Open-pit operations — Mexican open-pit operations generated $2,505.5 million of external sales and $1,610.7 million of operating income.
- By-product pricing — Molybdenum, silver and zinc prices increased 43.1%, 118.6% and 30.8%, respectively, in the second quarter.
- Production trend — Mined copper production fell 3.5% to 508.5 million pounds, mainly because Toquepala declined 14.7% and Cuajone declined 7.8%.
- Capital investment — First-half capital investment reached $864.7 million, representing 26.6% of net income and a 56.2% increase from the same period of 2025.
Watch items
- Mined copper production declined 3.5% in the second quarter and 3.8% in the first half, with lower ore grades and mineral milled weighing on Toquepala and Cuajone.
- Copper sold fell 1.5% in the second quarter to 486.6 million pounds, while molybdenum, silver and zinc sales volumes also declined 13.1%, 8.7% and 8.8%, respectively.
- Zinc production decreased 14.5% in the quarter and 6.9% in the first half, driven largely by weaker output at the Buenavista zinc concentrator.
- The strong earnings outcome depended heavily on metal prices, including a 118.6% increase in silver prices and a 43.1% increase in molybdenum prices, which are outside management's control.
