Executive Summary
Hudbay Minerals reported a solid QQ1 2025 with revenue of $594.9 million, up 13.3% year over year and 1.7% sequentially. Gross profit of $231.3 million yielded a gross margin of 38.9%, as higher aggregate cost of revenue pressure compressed margins despite robust operating performance. EBITDA stood at $302.4 million, yielding an EBITDA margin of 50.8% and contributing to operating income of $185.7 million (operating margin 31.2%). Net income reached $100.4 million, driving basic EPS of $0.25 (diluted $0.25), up meaningfully from prior-year levels and with notable year-over-year gains in profitability metrics.
From a liquidity and capital allocation perspective, Hudbay maintained a conservative balance sheet with $562.6 million in cash and cash equivalents and net debt of $621.6 million. Total debt stood at $1.184 billion against $2.653 billion of equity, producing a debt-to-capitalization ratio of 0.309 and a debt ratio of 0.215. The company generated $124.8 million in operating cash flow and $93.0 million in capital expenditures, yielding free cash flow of $31.8 million for the quarter. The working-capital posture remains healthy (current ratio 2.32), underscoring financial resilience during ongoing commodity cycles.
Overall, QQ1 2025 demonstrates Hudbay’s ability to convert commodity exposure and operating leverage into tangible earnings and cash flow, while maintaining solid liquidity. The combination of diversified metals (copper, gold, silver, zinc, molybdenum), geographic footprint, and prudent leverage supports an evolving investment thesis, though margin dynamics and sensitivity to commodity prices warrant close monitoring going forward.
Key Performance Indicators
QoQ: -24.57% | YoY:52.17%
QoQ: 374.41% | YoY:349.06%
QoQ: 399.00% | YoY:316.67%
Key Insights
Revenue: $594.9m | YoY: +13.31% | QoQ: +1.71%
Gross Profit: $231.3m | YoY: +52.17% | QoQ: -24.57%
Operating Income: $185.7m | YoY: +84.14% | QoQ: +34.44%
Net Income: $100.4m | YoY: +349.06% | QoQ: +374.41%
EPS (Basic/Diluted): $0.25 | YoY: +316.67% | QoQ: +399.00%
EBITDA: $302.4m | EBITDA Margin: 50.8%
Operating Margin: 31.2%
Income Before Tax: $171.3m | Tax Rate (reported): ~42.1%
Net Margin: 16.9%
Interest Expense: $19.54m
Depreciation & Amortization: $108.5m
Payout Ratio: 2.79%
Cash Flow:...
Financial Highlights
Revenue: $594.9m | YoY: +13.31% | QoQ: +1.71%
Gross Profit: $231.3m | YoY: +52.17% | QoQ: -24.57%
Operating Income: $185.7m | YoY: +84.14% | QoQ: +34.44%
Net Income: $100.4m | YoY: +349.06% | QoQ: +374.41%
EPS (Basic/Diluted): $0.25 | YoY: +316.67% | QoQ: +399.00%
EBITDA: $302.4m | EBITDA Margin: 50.8%
Operating Margin: 31.2%
Income Before Tax: $171.3m | Tax Rate (reported): ~42.1%
Net Margin: 16.9%
Interest Expense: $19.54m
Depreciation & Amortization: $108.5m
Payout Ratio: 2.79%
Cash Flow: Operating Cash Flow $124.8m; Free Cash Flow $31.8m; Capex $93.0m
Liquidity: Cash $562.6m; Current Ratio 2.32; Quick Ratio 1.92; Cash Ratio 1.24
Leverage: Total Debt $1.184b; Net Debt $0.622b; Debt/Equity 0.446; Debt/Capitalization 0.309; Interest Coverage 8.22x
Valuation (selected): Price/Book 1.13x; P/E 7.46x; P/S 5.04x; Dividend Yield 0.093%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
594.90M |
13.31% |
1.71% |
| Gross Profit |
231.30M |
52.17% |
-24.57% |
| Operating Income |
185.70M |
84.14% |
34.44% |
| Net Income |
100.40M |
349.06% |
374.41% |
| EPS |
0.25 |
316.67% |
399.00% |
Key Financial Ratios
operatingProfitMargin
31.2%
operatingCashFlowPerShare
$0.32
freeCashFlowPerShare
$0.08
dividendPayoutRatio
2.79%
Management Commentary
Transcript data not included in the provided dataset. As a result, no management quotes or thematic quotes can be extracted or grouped by strategy, operations, or market conditions. Please supply the earnings call transcript to generate quote-driven highlights and thematic context.
Transcript data not available.
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Transcript data not available.
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Forward Guidance
No explicit forward guidance is provided in the supplied data for Hudbay Minerals’ QQ1 2025 results. In forming a qualitative view, investors should monitor: (1) copper and zinc price trajectories and realized spreads, (2) ore-grade output and production costs across Hudbay’s Manitoban operations and Peruvian assets, (3) sustaining and growth capex plans, particularly any pipeline for expansions or new mine developments, (4) currency exposure (USD vs. CAD/Peruvian sol) given international project footprints, and (5) leverage and liquidity headroom as capital allocation choices (deleveraging vs. dividend policy vs. opportunistic acquisitions) evolve. If commodity prices remain supportive and cost structures stabilize, Hudbay could selectively improve margins and free cash flow generation beyond QQ1 levels. Management commentary (when available) will be critical to calibrate the cadence of any dividend actions or buybacks and to assess any project-level reinvestment plans.