Southern Copper Q2 Profit Hits Record US$1.67 Billion
Southern Copper (SCCO) reported Q2 2026 record net sales of US$4,289.0 million (+40.6% YoY) and record net income of US$1,670.0 million (+71.6%), with EPS of US$2.01. Adjusted EBITDA rose to US$2,856.0 million (+59.5%). The company attributed gains mainly to higher copper and by-product prices, despite lower copper volumes and Peru output. It also declared a US$1.10 cash dividend and a stock dividend.
How this was made
The 30-second read
Why it matters
The key trading takeaway is the divergence between price-driven profitability and volume-driven operational softness, plus a capital allocation signal via a large notes issuance and a dividend plus stock dividend.
Market read
Traders can update expectations for SCCO’s margin sensitivity to copper and by-product prices, while monitoring Peru ore-grade and by-product volume trends.
What to watch
By-product tonnage fell across silver, zinc, and molybdenum, which could reduce the sustainability of margin expansion even if copper prices stay elevated.
Background
Southern Copper’s Q2 performance is presented as record sales and profits despite lower mined copper and by-product volumes, with management emphasizing metal prices as the driver.
Ticker impact
Southern Copper reported record Q2 net income of $1.67B and record adjusted EBITDA, attributing growth mainly to higher copper and by-product prices.
Bias modestly positive for the stock on earnings quality and margin expansion, but expect volatility tied to copper and silver price moves versus volume declines.
The article provides hard Q2 financial results, a sharp drop in net cash cost driven by by-product credits, and a clear production softness in Peru that could pressure future output despite raised full-year mined-copper guidance.
Market effects
Reinforces that copper miners’ earnings can swing sharply with LME/COMEX price moves and by-product credit accounting, not just throughput.
Highlights Peru operational risk via lower ore grades and production declines, while Mexico output partially offsets.
Supports the broader copper complex sentiment that price strength can dominate near-term fundamentals for integrated producers.
Counterpoint
The headline cash-cost collapse is largely an accounting artifact from higher by-product credits, so underlying cost pressure may be masked if silver and other by-product prices mean-revert.
Key entities
- companySouthern Copper
Reported record Q2 net income and adjusted EBITDA, with profitability largely driven by higher copper and by-product prices, while production fell, especially in Peru.
- executiveLeonardo Contreras Lerdo de Tejada
Interim CEO confirmed as CEO on 23 April 2026, delivering this quarter’s results after Oscar Gonzalez Rocha’s death.
- executiveGerman Larrea
Chairman and controller of Grupo Mexico, quoted on Peru’s political change and project pipeline.
