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Southern Copper reported Q2 FY2026 revenue of $4.3 billion, up from $3.1 billion a year earlier. The company attributed the increase primarily to higher metal prices, despite lower sales volumes for copper, molybdenum, silver and zinc.
Diluted EPS rose to $2.01 from $1.22 a year earlier. Southern Copper said higher sales drove the increase in net income, while operating costs rose at a lower rate. Its operating margin increased to 61.2% from 52.0%, and free cash flow rose to $1.6 billion from $741.1 million.
The company said copper mine production fell in the quarter, principally because of lower output at Toquepala and Cuajone, where ore grades declined. Higher production at several Mexican operations partly offset those declines.
For the subsequent Q3 FY2026, Southern Copper reported revenue and adjusted EPS above consensus: revenue was $4.7 billion versus $4.5 billion, and adjusted EPS was $2.15 versus $2.04.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $4.3 billion | $3.1 billion | 40.6% |
| Diluted EPS | $2.01 | $1.22 | 64.8% |
| Gross margin | 67.6% | 60.3% | 7.3 percentage points |
| Operating margin | 61.2% | 52.0% | 9.2 percentage points |
| Free cash flow | $1.6 billion | $741.1 million | 111.3% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.15 | $2.04 | Beat by 5.39% |
| Revenue | $4.7 billion | $4.5 billion | Beat by 4.50% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Southern Copper estimated a slight copper market deficit for 2026 based on supply and demand. The company said higher silver and molybdenum by-product revenues reduced its operating cash cost per pound of copper after those credits, even as the cost before credits increased.
Southern Copper said its capital investment projects are intended to increase production, decrease costs or address social and environmental commitments. It also said a new power purchase agreement is projected to reduce power costs at its Peruvian operations.
Guidance
Southern Copper expects 2026 copper production of 918,000 tons, above its initial plan. In its Q2 filing, the company also expected zinc production below its initial plan and molybdenum production above it.