Southern Copper (SCCO) Q3 2026 Earnings Call: Record Profit and Project Updates
Source Tradingkey
Key Takeaways
- Southern Copper Corporation (NYSE: SCCO) reported record Q3 2026 net sales of $4.7 billion, adjusted EBITDA of $3.0 billion and net income of $1.8 billion. The respective year-over-year increases were 39%, 54% and 63%.
- The adjusted EBITDA margin expanded to 65% from 59%, while the net income margin rose to 38% from 33%. Higher copper and by-product prices outweighed lower copper sales volume and increased operating expenses.
- Copper production declined 1% year over year to 232,396 tons as lower grades and recoveries reduced output in Peru. Management expects 2026 copper production of 918,000 tons, 0.7% above the initial plan.
- Net cash cost fell 77% to $0.09 per pound of copper, supported by $1.2 billion of by-product credits. Cash cost before credits increased 10% to $2.46 per pound.
- Tia Maria was 50% complete at September 30, with operations scheduled to begin in the first half of 2028. Together, Tia Maria and El Pilar are expected to add 156,000 tons of annual refined copper production.
- Management is reviewing project budgets for inflation and will provide updated capital expenditure and 2027 production guidance with its full-year 2026 results.
Core Financial Data
| Metric | Q3 2026 | Change / Comparison | Key Driver |
|---|---|---|---|
| Net sales | $4.7 billion | +39% YoY | Higher copper and by-product prices |
| Adjusted EBITDA | $3.0 billion | +54% YoY | Higher sales and stronger pricing |
| Adjusted EBITDA margin | 65% | 59% in Q3 2025 | Improved revenue mix and by-product credits |
| Net income | $1.8 billion | +63% YoY | Higher net sales |
| Net income margin | 38% | 33% in Q3 2025 | Earnings growth outpaced sales growth |
| Operating cash flow | $2.2 billion | +43% YoY | Stronger operating cash generation |
| Operating costs and expenses | — | +$223 million, or 17% YoY | Fuel, labor, power, depreciation and inventory consumption |
| Net cash cost per pound of copper | $0.09 | Down 77% from $0.42 | Higher by-product credits |
| Cash cost before by-product credits | $2.46 per pound | +$0.23, or 10% YoY | Higher production and administrative costs |
| By-product credits | $1.2 billion / $2.36 per pound | +31% YoY | Molybdenum, zinc, silver and sulfuric acid |
| Nine-month adjusted EBITDA | $8.6 billion | +56% YoY | Higher sales and commodity prices |
| Nine-month operating cash flow | $5.9 billion | +81% YoY | Strong operating cash generation |
| Nine-month net cash cost | $0.01 per pound | Down 98% from $0.61 | By-product credits increased 54% |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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