3Q26
Filed Oct 21, 2026Record 3Q26 net sales, adjusted EBITDA and net income were driven by higher metal prices, while copper production and sales volumes declined.
Net sales increased 39.1%, operating income increased 59.2%, net income attributable to SCC increased 62.7%, and adjusted EBITDA increased 53.9%. Profitability expanded despite lower copper production and sales volumes, supported by higher metal prices and lower net cash cost after by-product credits.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 net salesGAAP | $4.70B | – | 39.1% |
| 9M26 net salesGAAP | $13.24B | – | 38.6% |
| 3Q26 cost of salesGAAP | $1.60B | – | 17.9% |
| 9M26 cost of salesGAAP | $4.49B | – | 15.4% |
| 3Q26 total operating costs and expensesGAAP | $1.88B | – | 17.0% |
| 9M26 total operating costs and expensesGAAP | $5.32B | – | 14.2% |
| 3Q26 operating incomeGAAP | $2.82B | – | 59.2% |
| 9M26 operating incomeGAAP | $7.92B | – | 61.9% |
| 3Q26 income before income taxGAAP | $2.78B | – | 61.2% |
| 9M26 income before income taxGAAP | $7.82B | – | 64.8% |
| 3Q26 net income attributable to SCCGAAP | $1.80B | – | 62.7% |
| 9M26 net income attributable to SCCGAAP | $5.05B | – | 66.8% |
| 3Q26 net income marginGAAP | 38.4% | – | 5.6pp |
| 9M26 net income marginGAAP | 38.1% | – | 6.4pp |
| 3Q26 net income attributable to SCC common shareholders – basic and dilutedGAAP | $2.15 | – | 62.9% |
| 9M26 net income attributable to SCC common shareholders – basic and dilutedGAAP | $6.08 | – | 66.6% |
| 3Q26 adjusted EBITDAnon-GAAP | $3.04B | – | 53.9% |
| 9M26 adjusted EBITDAnon-GAAP | $8.61B | – | 56.2% |
| 3Q26 adjusted EBITDA marginnon-GAAP | 64.7% | – | 6.2pp |
| 9M26 adjusted EBITDA marginnon-GAAP | 65.0% | – | 7.3pp |
| 3Q26 net cash provided by operating activitiesGAAP | $2.22B | – | 42.6% |
| 9M26 net cash provided by operating activitiesGAAP | $5.91B | – | 81.3% |
| 3Q26 capital investmentsother | $515.8M | – | 47.7% |
| 9M26 capital investmentsother | $1.38B | – | 52.9% |
| 3Q26 operating cash cost per pound of copper, net of by-product revenuesnon-GAAP | $0.09 | – | (77.4%) |
| 9M26 operating cash cost per pound of copper, net of by-product revenuesnon-GAAP | $0.01 | – | (98.1%) |
| 3Q26 operating cash cost before by-product revenuesnon-GAAP | $1.22B | – | – |
| 9M26 operating cash cost before by-product revenuesnon-GAAP | $3.48B | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $4.82B | – | – |
| Short-term investments as of September 30, 2026GAAP | $3.24B | – | – |
| Long-term debt as of September 30, 2026GAAP | $8.00B | – | – |
Capital returns
- Cash dividends paid in 3Q26 were $1.10 per common share, compared with $0.80 in 3Q25.
- Stock dividends paid in 3Q26 were $2.13 per common share, compared with $1.00 in 3Q25.
- On October 15, 2026, the Board authorized a quarterly cash dividend of $1.30 per share of common stock and a stock dividend of 0.0106 shares of common stock per share of common stock, payable on November 19, 2026 to shareholders of record at the close of business on November 3, 2026.
- Dividends paid were $917.9 million in 3Q26 and $2,563.2 million in 9M26.
What drove it
- 3Q26 net sales increased on higher metal prices for all products and a 0.8% increase in zinc sales volume.
- Average 3Q26 prices increased 44.4% for LME copper, 35.5% for molybdenum, 35.9% for zinc, 58.7% for silver and 23.6% for gold versus 3Q25.
- Copper mined production was 232,396 tonnes in 3Q26, down 1.1%, while copper sales were 233,278 tonnes, down 0.4%.
- Copper smelted production increased 17.8% and refined and rod production increased 16.1% in 3Q26.
- Higher by-product revenue credits of 30.6% drove the reduction in operating cash cost per pound of copper net of by-product revenues.
- Operating income increased 59.2%, exceeding the 39.1% increase in net sales as total operating costs and expenses increased 17.0%.
Concerns
- Copper mined production declined 1.1% in 3Q26 and 2.9% in 9M26, principally reflecting lower ore grades at Peruvian mines.
- Molybdenum mined production declined 2.2%, zinc mined production declined 7.9%, and silver mined production declined 1.9% in 3Q26.
- Copper sales declined 0.4%, molybdenum sales declined 0.2%, and silver sales declined 12.2% in 3Q26.
- Capital investments increased 47.7% in 3Q26 and 52.9% in 9M26.
- Long-term debt increased to $7,995.9 million as of September 30, 2026 from $6,750.7 million as of December 31, 2025.
- The Los Chancas project area has been threatened by illegal miners, and the Company stated that regaining control is essential to continue developing the project.
- El Arco project initiation is dependent on Mexican government action to interconnect the Baja California peninsula with the rest of the country.
What to watch
- Tia Maria was 49.6% complete as of September 30, 2026. The Company expects operations to begin in 1H28 and expects 120,000 tonnes of SX-EW copper cathodes per year in the early years.
- El Pilar early site preparation began in September 2026. Construction is expected to commence in the first quarter of 2027 and production is expected to begin in the second half of 2029.
- El Pilar is described as having annual production of 29,000 tons of copper cathode in the project section; the Chairman stated that it is expected to contribute 36,000 tonnes of copper per year during its initial years of operation.
- Los Chancas is expected to produce 130,000 tonnes of copper and 7,500 tonnes of molybdenum annually, with operations expected to begin in 2031.
- Michiquillay is expected to produce 225,000 tons of copper per year, with production start-up expected by 2032.
- The Company is evaluating expansion of Cuajone from 90,000 tonnes per day to 120,000 tonnes per day, with studies also underway for 150,000 tonnes per day.
Balance sheet and cash flow
- Cash and cash equivalents were $4,823.7 million as of September 30, 2026, versus $4,304.6 million as of December 31, 2025 and $3,949.6 million as of September 30, 2025.
- Short-term investments were $3,239.2 million as of September 30, 2026, versus $604.6 million as of December 31, 2025.
- Long-term debt was $7,995.9 million as of September 30, 2026, versus $6,750.7 million as of December 31, 2025.
- Net cash provided by operating activities was $2,224.3 million in 3Q26 and $5,907.3 million in 9M26.
- Net cash used in investing activities was $2,090.1 million in 3Q26 and $4,015.1 million in 9M26.
- Net cash used in financing activities was $920.7 million in 3Q26 and $1,322.4 million in 9M26.
- Cash and cash equivalents decreased $841.3 million in 3Q26 and increased $519.0 million in 9M26.
Analysis
Southern Copper reported a record third quarter, with net sales of $4,696.6 million, up 39.1%, and net income attributable to SCC of $1,801.8 million, up 62.7%. Operating income increased 59.2% to $2,815.1 million, while adjusted EBITDA increased 53.9% to $3,040.2 million. The result reflects higher prices across the Company’s metals portfolio, including 44.4% higher LME copper, 35.5% higher molybdenum, 35.9% higher zinc, 58.7% higher silver and 23.6% higher gold prices versus 3Q25.
Profitability expanded materially. Net income margin rose to 38.4% from 32.8%, and adjusted EBITDA margin increased to 64.7% from 58.5%. Cost of sales rose 17.9% and total operating costs and expenses increased 17.0%, both substantially below net-sales growth. The operating cash cost per pound of copper, net of by-product revenues, fell to $0.09 from $0.42, driven by a 30.6% increase in by-product revenue credits.
Volume trends were weaker than price and cost trends. Mined copper production declined 1.1% to 232,396 tonnes and copper sales declined 0.4% to 233,278 tonnes. Molybdenum, zinc and silver mined output also declined in the quarter. Mexican copper output rose 2.5%, including gains at IMMSA and Buenavista, but this was offset by a 6.1% decline in Peru due to lower ore grades. Smelter and refinery production increased 17.8% and 16.1%, respectively.
Cash generation remained strong, with operating cash flow of $2,224.3 million in 3Q26, up 42.6%. Capital investments were $515.8 million, up 47.7%, and dividends paid were $917.9 million. Cash and cash equivalents were $4,823.7 million and short-term investments were $3,239.2 million at September 30, 2026, while long-term debt was $7,995.9 million. The Board authorized a $1.30 per-share quarterly cash dividend and a 0.0106-share stock dividend per common share.
The release did not provide formal earnings, sales, cost or capital-expenditure guidance. The principal forward milestones are project-specific: Tia Maria was 49.6% complete and is expected to begin operations in 1H28, while El Pilar is expected to begin production in the second half of 2029. Execution against these construction schedules, production recovery at Peruvian operations, ore-grade trends, and the sustainability of metal-price and by-product-credit support are the principal items to monitor.
Management, verbatim
We are very pleased with our strong third-quarter performance, which delivered a record for net sales, adjusted EBITDA and net income.
German Larrea, Chairman of the Board
We are advancing toward our goal of increasing production to 1.6 million tonnes, while maintaining the disciplined cost management and operational efficiency that have long defined our business.
German Larrea, Chairman of the Board
Not in the filing
stated, not guessed- Formal financial guidance for revenue, gross margin, operating expenses, tax rate, capital expenditures, production or cash flow was not provided.
- Prior-quarter figures for reported financial metrics were not provided.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Segment revenue was not reported.
- GAAP gross margin was not reported.
- A named CFO commentary section was not provided.
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.