Executive Summary
Hudbay Minerals delivered a solid Q4 2024 performance with a robust EBITDA margin and meaningful free cash flow generation, signaling healthy underlying operations despite softer year-over-year revenue. Revenue of $584.9 million and gross profit of $306.7 million produced an EBITDA of $255.3 million and an EBITDA margin of 43.6%, underscoring strong cost discipline and scale across Hudbay’s diversified asset base. However, net income was modest at $21.2 million (EPS $0.05) largely due to a high effective tax rate and a non-cash/other income impact in the period, reflected by a -$34.4 million net other income/expense line. Operating cash flow totaled $241.9 million for the quarter, contributing to a free cash flow of $145.0 million and leaving Hudbay with ample liquidity (cash and short-term investments of $581.8 million) and a net debt position of $640.5 million. The balance sheet remains solid with a current ratio near 2.0 and a debt-to-capitalization of ~31.7%. The results represent a QoQ improvement in revenue, operating income, and margins from Q3 2024, while YoY figures show revenue and net income pressure, consistent with commodity mix effects and tax headwinds observed in the period. The company ends the quarter with healthy cash generation and a leverage profile that supports ongoing capex and potential value-enhancing opportunities.
Key Performance Indicators
QoQ: 119.38% | YoY:55.86%
QoQ: -57.47% | YoY:-31.10%
QoQ: -61.46% | YoY:-44.58%
Key Insights
Revenue (Q4 2024): $584.92m, YoY: -3.20%, QoQ: +20.41%. Gross Profit: $306.66m, YoY: +55.86%, QoQ: +119.38%. Operating Income: $138.13m, YoY: +6.33%, QoQ: +30.71%. Net Income: $21.16m, YoY: -31.10%, QoQ: -57.47%. EBITDA: $255.28m, EBITDA Margin: 43.64%. Net Margin: 3.62%. EPS: $0.050 (GAAP), Diluted EPS: $0.054. Operating Cash Flow: $241.86m; Free Cash Flow: $144.96m. Capex (cash): $96.91m. Cash at End of Period: $541.80m; Total Debt: $1.1823b; Net Debt: $640.50m. Current Ratio: 1.95; Quick Rati...
Financial Highlights
Revenue (Q4 2024): $584.92m, YoY: -3.20%, QoQ: +20.41%. Gross Profit: $306.66m, YoY: +55.86%, QoQ: +119.38%. Operating Income: $138.13m, YoY: +6.33%, QoQ: +30.71%. Net Income: $21.16m, YoY: -31.10%, QoQ: -57.47%. EBITDA: $255.28m, EBITDA Margin: 43.64%. Net Margin: 3.62%. EPS: $0.050 (GAAP), Diluted EPS: $0.054. Operating Cash Flow: $241.86m; Free Cash Flow: $144.96m. Capex (cash): $96.91m. Cash at End of Period: $541.80m; Total Debt: $1.1823b; Net Debt: $640.50m. Current Ratio: 1.95; Quick Ratio: 1.58; Cash Ratio: 1.01. TotalAssets: $5.4876b; TotalLiabilities: $2.8402b; Equity: $2.5532b. Debt/Capitalization: 31.7%; Long-Term Debt to Capitalization: 30.2%; Interest Coverage: 4.72x. DSO: 36.41 days; DIO: 63.85 days; CCC: 100.25 days; Cash Conversion Cycle: 78.68 days. P/Book: 1.25; P/Sales: 5.46; P/E: 37.70; Dividend Yield: 0.00038%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
584.92M |
-3.20% |
20.41% |
| Gross Profit |
306.66M |
55.86% |
119.38% |
| Operating Income |
138.13M |
6.33% |
30.71% |
| Net Income |
21.16M |
-31.10% |
-57.47% |
| EPS |
0.05 |
-44.58% |
-61.46% |
Key Financial Ratios
operatingProfitMargin
23.6%
operatingCashFlowPerShare
$0.61
freeCashFlowPerShare
$0.37
dividendPayoutRatio
0.06%
Management Commentary
Note: The earnings transcript data were not provided in the dataset. As a result, key management quotes and thematic highlights from the earnings call could not be extracted. If transcript access is made available, potential themes would typically cover: strategic execution in mine development and operations, cost control and productivity gains, commodity pricing exposure, capital allocation priorities (growth vs. deleveraging), and near-term guidance for production volumes and capex.
Transcript data not available in the provided dataset.
— N/A
Transcript data not available in the provided dataset.
— N/A
Forward Guidance
No formal forward guidance was included in the provided data. Given the quarter’s strong cash flow generation and a moderate leverage profile, Hudbay would typically prioritize sustaining or reducing net debt, funding ongoing capex to maintain or expand copper and polymetallic production, and potential opportunistic returns to shareholders if cash flow allows. Investors should monitor copper and precious metal price trajectories, sustaining capex commitments at key mines, potential development milestones (e.g., Peru and North American projects), currency headwinds (CAD/USD and/peru sol), and tax planning developments that could impact the near-term tax rate.