Southern Copper posts record Q3 sales, net income on higher metal prices

Southern Copper Corporation (NYSE: SCCO) reported a new quarterly record for net sales and a record high for net income in the third quarter of 2026, driven by higher prices across its metal portfolio. The company, listed on the NYSE and BVL, disclosed these figures in an 8-K filing dated October 20, 2026.

Net sales for the third quarter reached $4,696.6 million, a 39.1% increase over the same period in 2025. The company attributed this growth to an uptick in metal prices for all products and a 0.8% rise in zinc sales volume. These gains were slightly offset by lower sales volumes for copper, molybdenum, and silver. On a year-to-date basis, net sales rose 38.6% compared to 2025, reflecting similar pricing trends and a 2.0% increase in zinc sales volume.

Net income hit a record $1,801.8 million in the third quarter, up 62.7% from $1,107.6 million in the prior year period. The net income margin expanded to 38.4% from 32.8%. For the first nine months of 2026, net income was 66.8% higher than in the same period of 2025, with a margin of 38.1% compared to 31.7%. Adjusted EBITDA also reached a record high of $3,040.2 million in the third quarter, an increase of 53.9% from $1,975.4 million in the previous year's third quarter. The adjusted EBITDA margin stood at 64.7%, up from 58.5%. For the nine-month period, adjusted EBITDA was $8,609.0 million, a 56.2% increase over the prior year.

Cash flow from operating activities in the third quarter was $2,224.3 million, up 42.6% from the prior year period, driven by strong cash generation at operations due to higher sales. For the first nine months of 2026, operating cash flow stood at $5,907.3 million, an 81.3% increase over the $3,257.8 million posted in the same period in 2025.

Copper production decreased by 1.1% quarter-on-quarter to 232,396 tonnes in the third quarter of 2026. Production at Mexican operations rose 2.5%, with increases at IMMSA and Buenavista mines due to higher ore grades partially offset by a decrease at La Caridad. In Peru, production dropped 6.1% due to lower ore grades. Smelters and refineries increased production by 17.8% and 16.1%, respectively. Year-to-date copper production fell 2.9% to 693,602 tonnes, primarily driven by lower output at Peruvian mines.

By-product production showed mixed results in the third quarter. Mined silver production decreased by 1.9%, while mined zinc production fell 7.9% to 41,880 tonnes due to lower ore grades at Buenavista and IMMSA mines. Molybdenum production dropped 2.2%, with declines at La Caridad and Buenavista mines offset by gains at Toquepala and Cuajone mines.

The operating cash cost per pound of copper, net of by-product revenue credits, fell to $0.09 in the third quarter of 2026, a 77.4% decrease from $0.42 in the prior year period, driven by a 30.6% increase in by-product revenue credits from better prices. For the first nine months of 2026, this cost stood at $0.01 per pound, down 98.1% from $0.61 in the same period of 2025.

Capital investment spending was $515.8 million in the third quarter, a 47.7% increase over the prior year period and equivalent to 28.6% of net income for the quarter. For the first nine months of 2026, capital investment totaled $1,380.5 million.

The board approved a quarterly cash dividend of $1.30 per common share and a stock dividend of 0.0106 shares on October 15, with payment scheduled for November 19.

German Larrea, Chairman of the Board, stated that the company is advancing toward its goal of increasing production to 1.6 million tonnes while maintaining disciplined cost management.