Executive Summary
Southern Copper Corporation delivered a solid QQ2 2025 performance characterized by durable profitability and strong cash generation despite a backdrop of copper price volatility. Revenue for the quarter was USD 3.051 billion, down 2.16% year-over-year and 2.27% quarter-over-quarter, reflecting softer copper prices and a modest production/mix impact. The company posted a robust gross margin of 53.08% and an operating margin of 52.01%, supported by favorable cost discipline and a high-value mining, smelting, and refining footprint. Net income of USD 973.5 million produced earnings per share of USD 1.19, with a net margin of 31.9%. EBITDA stood at USD 1.8439 billion, underscoring the operating leverage of Southern Copper’s asset base.
Cash flow remained a key strength: operating cash flow of USD 976.8 million, annualized free cash flow of USD 741.1 million, and free cash flow per share of USD 0.917 illustrate the company’s ability to convert earnings into cash, fund sustaining capital expenditure (USD 235.7 million) and divestitures, and still support a meaningful dividend cadence. The liquidity position remains ample with USD 3.3349 billion in cash and equivalents at quarter-end, while total debt stood at USD 7.4489 billion and net debt at USD 4.114 billion, yielding a debt-to-capitalization ratio of 0.427 and an interest coverage of 16.9x. Management commentary, although not provided in the supplied transcript, typically emphasizes cash-flow sufficiency, capex discipline, and asset-level optimization in a copper market that remains cyclical and supply-sensitive.
Relative to industry benchmarks, Southern Copper exhibits attractive margins and a high-quality asset base with multijurisdiction exposure (Peru, Mexico, Argentina, Chile, Ecuador). The quarterly results reinforce the company’s capacity to generate substantial free cash flow even as copper prices fluctuate, which should underpin continued deleveraging and capital allocation to shareholders and growth initiatives when opportunities arise.
Key Performance Indicators
Key Insights
Revenue: USD 3,051.0 million. YoY: -2.16%. QoQ: -2.27%. Gross Profit: USD 1,619.4 million. Gross Margin: 53.08%. YoY Gross Profit: -1.33%. QoQ Gross Profit: +3.33%. Operating Income: USD 1,586.9 million. Operating Margin: 52.01%. YoY Operating Income: -1.27%. QoQ Operating Income: +3.35%. Net Income: USD 973.5 million. Net Margin: 31.90%. YoY Net Income: +2.45%. QoQ Net Income: +2.92%. EBITDA: USD 1,843.9 million. EBITDA Margin (EBITDARatio): 60.44%. EPS: USD 1.19. EPS YoY: -1.65%. EPS QoQ: 0.00...
Financial Highlights
Revenue: USD 3,051.0 million. YoY: -2.16%. QoQ: -2.27%. Gross Profit: USD 1,619.4 million. Gross Margin: 53.08%. YoY Gross Profit: -1.33%. QoQ Gross Profit: +3.33%. Operating Income: USD 1,586.9 million. Operating Margin: 52.01%. YoY Operating Income: -1.27%. QoQ Operating Income: +3.35%. Net Income: USD 973.5 million. Net Margin: 31.90%. YoY Net Income: +2.45%. QoQ Net Income: +2.92%. EBITDA: USD 1,843.9 million. EBITDA Margin (EBITDARatio): 60.44%. EPS: USD 1.19. EPS YoY: -1.65%. EPS QoQ: 0.00%.
Cash Flow and Capital Allocation: Operating Cash Flow (CFO) USD 976.8 million. Free Cash Flow (FCF): USD 741.1 million. Capital Expenditures (Capex): USD 235.7 million. Dividends Paid: USD 557.4 million. Net Change in Cash: -USD 781.4 million for the period; Cash at End of Period: USD 3,334.9 million. Balance sheet health: Total Assets USD 19,554.7 million; Total Liabilities USD 9,501.3 million; Total Stockholders’ Equity USD 9,984.8 million. Cash and short-term investments USD 4,010.3 million; Net Debt USD 4,114.0 million; Debt USD 7,448.9 million; Debt to Capitalization 0.427; Interest Coverage 16.88x. Working capital efficiency: Days Sales Outstanding (DSO) 48.02; Days Inventory Outstanding (DIO) 63.19; Cash Conversion Cycle 70.52 days. Profitability ratios reflect a high-margin profile: Gross Margin 0.531, Operating Margin 0.520, Pretax Margin 0.509, Net Margin 0.319. Return metrics: ROA 4.98%, ROE 9.75%, ROCE 8.71%.
Market and valuation context: Price-to-earnings around 20.8x and price-to-book around 8.1x indicate a quality-copper exposure premium, aligned with Southern Copper’s cash-flow strength and asset quality. Dividend yield is modest at ~0.69%. In the peer context, certain listed peers show a wide dispersion of valuation multiples, reflecting various leverage levels, growth profiles, and mix of assets. Source data reflects a resilient core business and discipline in capital allocation.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.05B |
-2.16% |
-2.27% |
| Gross Profit |
1.62B |
-1.33% |
3.33% |
| Operating Income |
1.59B |
-1.27% |
3.35% |
| Net Income |
973.50M |
2.45% |
2.92% |
| EPS |
1.19 |
-1.65% |
0.00% |
Key Financial Ratios
operatingProfitMargin
52%
operatingCashFlowPerShare
$1.21
freeCashFlowPerShare
$0.92
dividendPayoutRatio
57.3%
Management Commentary
transcriptHighlights: No earnings call transcript was provided in the dataset. As a result, there are no management quotes or thematic takeaways to summarize from the QQ2 2025 call in this report. If the transcript becomes available, this section should capture management commentary on strategy execution, operations, market conditions, and near-term outlook.
Forward Guidance
There is no explicit forward guidance in the provided data for QQ2 2025. In the context of industry trends and commodity cycles, investors should monitor: (1) copper price trajectories, given the large beta of Southern Copper’s earnings to copper; (2) production mix and grade trends, which influence unit costs and volumes; (3) capex execution and project milestones in Peru and Mexico that could unlock higher volumes or efficiency gains; (4) debt trajectory and deleveraging pace, particularly given a net debt position of USD 4.114 billion and a debt-to-capitalization ratio of 0.427; (5) geopolitical/regulatory developments in Peru, Mexico, and Chile that could impact operations or costs. Given the current cash flow strength and ample liquidity, the company is well-positioned to sustain dividends and pursue opportunistic deleveraging should copper pricing support cash generation.