Q2 FY2026
Filed Jul 29, 2026Hudbay Delivers Strong Second Quarter 2026 Results and Improves Cash Cost Guidance
Hudbay generated $631.3 million of revenue, $321.2 million of adjusted EBITDA and $101.8 million of free cash flow, maintained negative $80.5 million of net debt, reaffirmed 2026 copper and gold production guidance, and improved consolidated cash cost guidance. Quarterly earnings, adjusted EBITDA, gold production and consolidated cost metrics declined from the first quarter amid lower sales volumes, lower gold by-product credits and operational disruptions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $631.3 million | – | – |
| Cost of salesother | $362.3 million | – | – |
| Earnings before taxother | $240.4 million | – | – |
| Net earningsother | $138.1 million | – | – |
| Net earnings attributable to ownersother | $137.4 million | – | – |
| Basic and diluted attributable earnings per shareother | $0.34 per share | – | – |
| Adjusted net earnings attributable to ownersnon-GAAP | $113.5 million | – | – |
| Adjusted earnings attributable per sharenon-GAAP | $0.28 per share | – | – |
| Adjusted EBITDAnon-GAAP | $321.2 million | – | – |
| Trailing twelve month adjusted EBITDAnon-GAAP | $1,271.6 million | – | – |
| Cash generated from operating activitiesother | $297.0 million | an increase of $85.7 million | – |
| Operating cash flow before change in non-cash working capitalother | $210.1 million | – | – |
| Free cash flownon-GAAP | $101.8 million | – | – |
| Cash sustaining capital expendituresother | $108.3 million | – | – |
| Total sustaining capital costsother | $80.1 million | – | – |
| Property, plant and equipment additionsother | $160.0 million | – | – |
| Total accrued capital additionsother | $209.8 million | – | – |
| Cash and cash equivalentsother | $890.9 million | – | – |
| Total liquidityother | $1,044.6 million | – | – |
| Total long-term debtother | $860.2 million | – | – |
| Net debtnon-GAAP | negative $80.5 million | an $86.1 million improvement | – |
| Net debt to adjusted EBITDAnon-GAAP | negative 0.1x | – | – |
| Working capitalother | $751.8 million | – | – |
| Total assetsother | $8,062.0 million | – | – |
| Equity attributable to owners of the Companyother | $4,797.2 million | – | – |
| Consolidated copper productionother | 28,267 tonnes | – | – |
| Consolidated gold productionother | 51,234 ounces | – | – |
| Consolidated silver productionother | 845,161 ounces | – | – |
| Consolidated zinc productionother | 4,760 tonnes | – | – |
| Consolidated molybdenum productionother | 277 tonnes | – | – |
| Consolidated cash cost per pound of copper produced, net of by-product creditsnon-GAAP | $(0.40) per pound of copper | – | – |
| Consolidated sustaining cash cost per pound of copper produced, net of by-product creditsnon-GAAP | $1.39 per pound of copper | – | – |
| Consolidated all-in sustaining cash cost per pound of copper produced, net of by-product creditsnon-GAAP | $1.80 per pound of copper | – | – |
| Gold revenue as a percentage of total revenueother | 38% | – | – |
| Peru copper productionother | 19,446 tonnes | – | – |
| Peru gold productionother | 5,282 ounces | – | – |
| Peru cash cost, net of by-product creditsnon-GAAP | $1.66 per pound of copper | – | – |
| Manitoba gold productionother | 40,344 ounces | – | – |
| Manitoba gold cash cost, net of by-product creditsnon-GAAP | $776 per ounce of gold | a 90% increase | – |
| British Columbia copper productionother | 6,455 tonnes | – | – |
| British Columbia cash cost, net of by-product creditsnon-GAAP | $3.22 per pound of copper | – | – |
full year 2026 outlook
- NoteConsolidated copper production: 110,000 to 138,000 tonnes of copper.
- NoteConsolidated gold production: 217,000 to 272,000 ounces of gold.
- NoteConsolidated cash cost guidance: $(0.45) to $(0.25) per pound of copper.
- NotePeru cash cost guidance range: $1.70 to $2.10 per pound.
- NoteManitoba cash cost guidance range: $500 to $800 per ounce.
- NoteBritish Columbia cash cost guidance range: $1.50 to $2.50 per pound.
- NoteGrowth capital expenditures in British Columbia in 2026 are expected to increase by approximately $30 million to $115 million.
- NoteHudbay expects to spend approximately $30 million at Cactus in the second half of 2026.
- NoteHudbay expects to spend approximately $20 million in evaluation expenses at Mason for the remainder of 2026.
- NoteHudbay expects similar levels of growth capital investments in British Columbia in 2027.
- NoteCopper World project sanctioning decision continues to be on track for late 2026.
- NoteThe updated Cactus PFS is expected to be completed in the second half of 2027.
- NoteThe Mason PFS is expected to be completed in the second half of 2027.
- NoteNew Ingerbelle is expected to achieve first production in late 2028.
- NoteTotal mill throughput is expected to ramp up to 50,000 tonnes per day in the second half of 2026.
Capital returns
- A quarterly dividend of C$0.01 per share was declared on July 28, 2026.
- The dividend will be paid out on September 8, 2026 to shareholders of record as of close of business on September 25, 2026.
- Hudbay repaid $472.5 million of its outstanding 2026 senior unsecured notes on maturity on April 1, 2026.
- Hudbay issued 46,794,082 Hudbay common shares under the ASCU Transaction to former Arizona Sonoran shareholders.
What drove it
- Revenue and earnings were affected by lower sales volumes of all metals. Temporary port closures caused by ocean swells in Peru delayed scheduled shipments of approximately 10,000 dry metric tonnes of copper concentrate, which were delivered in the first half of July 2026.
- Higher copper prices partially offset lower sales volumes in adjusted EBITDA.
- Gold accounted for 38% of total revenue and gold by-product credits remained a material component of consolidated costs.
- Consolidated copper production increased from the first quarter as higher mill throughput in British Columbia more than offset lower planned mill throughput in Peru.
- Consolidated gold production declined from the first quarter primarily because of lower milled gold grades.
- Peru's planned semi-annual plant maintenance shutdown and the completion of mining of the high gold content Pampacancha stockpile reduced production and gold by-product credits.
- British Columbia benefited from higher ore mined, improved grades and higher throughput, with the second SAG mill reaching commercial production in May.
- Manitoba output was affected by reduced workforce availability and an unplanned Lalor hoist gearbox failure in June. The hoist is repaired and fully operational.
Concerns
- Adjusted EBITDA declined to $321.2 million from $421.9 million in the first quarter, primarily due to lower sales volumes.
- Consolidated cash cost increased to $(0.40) per pound of copper from $(1.80) per pound as lower gold volumes reduced by-product credits.
- British Columbia cash cost of $3.22 per pound was above the annual guidance range of $1.50 to $2.50 per pound, due to elevated fuel prices and timing of equipment maintenance.
- The primary SAG mill was shut down on June 26, 2026 and is expected to remain offline until the end of July for feed end head maintenance.
- British Columbia copper and gold recoveries declined to 77% and 63%, respectively, because the mill throughput ramp-up revealed a grinding constraint in the ball mills.
- The DFS for Copper World is expected to reflect higher capital expenditures than the 2023 pre-feasibility study.
- The Lower Similkameen Indian Band submitted an application for judicial review of the regulatory decision to grant the New Ingerbelle permit amendment.
What to watch
- Copper World DFS completion and the sanctioning decision targeted for later in 2026.
- The primary SAG mill repair completion and the expected ramp of total mill throughput to 50,000 tonnes per day in the second half of 2026.
- British Columbia cash cost improvement during the second half of 2026 toward the annual guidance range.
- Manitoba's planned higher second-half production volumes and grades, supported by grade sequencing and higher ore output from Lalor.
- Constancia pebble crusher installation, which is intended to increase mill throughput rates starting in the third quarter of 2026.
- Cactus spending of approximately $30 million in the second half of 2026 and completion of the updated PFS in the second half of 2027.
- Mason evaluation spending of approximately $20 million for the remainder of 2026 and the PFS expected in the second half of 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $890.9 million at June 30, 2026, including $334.5 million in cash held by Copper World LLC that is contractually restricted solely for the advancement of the Copper World project.
- Total liquidity was $1,044.6 million, including $890.9 million in cash and cash equivalents, $49.8 million in U.S. municipal bond proceeds classified as restricted cash, and $153.7 million of undrawn availability under revolving credit facilities.
- Total long-term debt was $860.2 million at June 30, 2026.
- Copper World LLC received $52.0 million aggregate principal amount of solid waste disposal revenue bonds due July 2, 2036. The bonds carry a fixed interest rate of 4.5% per annum.
- The $420 million of initial proceeds received from Mitsubishi at closing will be used to directly fund remaining DFS costs, pre-sanctioning costs and initial project development costs for Copper World.
- Mitsubishi will contribute an additional $180 million within 18 months of closing to complete its 30% minority investment.
- Free cash flow was $101.8 million in the second quarter and more than $200 million through the first half of 2026.
Analysis
Hudbay reported $631.3 million of revenue, $138.1 million of net earnings and $321.2 million of adjusted EBITDA in the second quarter of 2026. Revenue, net earnings and adjusted EBITDA were lower than the first quarter figures of $757.3 million, $191.5 million and $421.9 million, respectively. The company attributed the adjusted EBITDA decline primarily to lower sales volumes, partly offset by higher copper prices. Ocean swells caused temporary port closures in Peru and deferred shipments of approximately 10,000 dry metric tonnes of copper concentrate into the first half of July.
Production performance was mixed across the portfolio. Consolidated copper production rose to 28,267 tonnes from 27,929 tonnes in the first quarter as higher British Columbia mill throughput more than offset lower planned Peru throughput. Consolidated gold production fell to 51,234 ounces from 61,700 ounces, primarily due to lower milled gold grades. British Columbia copper production increased to 6,455 tonnes from 4,821 tonnes, while Manitoba gold production declined to 40,344 ounces from 47,743 ounces amid workforce availability constraints and an unplanned Lalor hoist gearbox failure.
Cost performance remained supported by by-product credits but weakened sequentially. Consolidated cash cost was $(0.40) per pound of copper, compared with $(1.80) per pound in the first quarter, because lower gold volumes reduced by-product credits. Gold represented 38% of second-quarter revenue. Peru cash cost was $1.66 per pound and remained below the low end of its $1.70 to $2.10 per pound annual guidance range. Manitoba cash cost of $776 per ounce was within its $500 to $800 per ounce annual range. British Columbia cash cost of $3.22 per pound was above its $1.50 to $2.50 annual range, reflecting elevated fuel prices and maintenance timing.
Cash generation and the balance sheet remained a key strength. Cash generated from operating activities was $297.0 million and free cash flow was $101.8 million. The company ended the quarter with $890.9 million of cash and cash equivalents, $1,044.6 million of total liquidity and negative $80.5 million of net debt. Hudbay repaid $472.5 million of 2026 senior unsecured notes on April 1, 2026, while drawing $272 million on revolving credit facilities. The balance sheet also reflects the initial $420 million Mitsubishi contribution for Copper World and $52.0 million of municipal bond proceeds classified as restricted cash.
Hudbay reaffirmed full-year copper production guidance of 110,000 to 138,000 tonnes and gold production guidance of 217,000 to 272,000 ounces. It improved consolidated cash cost guidance to $(0.45) to $(0.25) per pound from $(0.30) to $(0.10) per pound. Execution priorities are the primary SAG mill repair and second-half throughput ramp in British Columbia, higher expected Manitoba production in the second half, Constancia throughput enhancements, and a Copper World sanctioning decision targeted for late 2026. Growth spending is also expanding, including approximately $30 million at Cactus in the second half of 2026 and British Columbia growth capital expenditures expected to increase by approximately $30 million to $115 million in 2026.
Management, verbatim
Hudbay delivered another quarter of steady operating performance and industry-leading margins, with record trailing twelve month adjusted EBITDA of $1.3 billion, driven by our unique copper and gold diversification and focus on cost control.
Peter Kukielski, Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue was not reported for Peru, Manitoba, or British Columbia.
- Gross profit and gross margin were not reported.
- Operating income and operating margin were not reported.
- Operating expenses were not reported as a consolidated line item.
- Revenue guidance was not reported.
- Gross margin guidance was not reported.
- Operating expense guidance was not reported.
- Tax rate guidance was not reported.
- A previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.