Executive Summary
Southern Copper Corporation reported a robust QQ3 2025, delivering solid top-line growth, strong margins, and meaningful cash flow generation. Revenue for the quarter reached $3.378 billion, up 15.2% year over year and 10.7% quarter over quarter, supported by favorable copper realizations and a productive mix. Gross profit rose to $2.021 billion, resulting in a gross margin of 59.8%, with EBITDA of $2.023 billion and operating income of $1.769 billion (operating margin ≈ 52.4%). Net income was $1.108 billion, yielding a net margin of about 32.8% and an EPS of $1.35, up 17.4% YoY and 13.5% QoQ.
The company also demonstrated durable balance sheet strength and cash generation. Liquidity metrics remained generous (current ratio 4.52, quick ratio 3.91, cash ratio 2.33), and per-share cash flow metrics were compelling (operating cash flow per share and free cash flow per share at $1.896; cash per share of $5.50). The payout policy remains supportive, with a dividend payout ratio of 58.1% and a dividend yield of approximately 0.64%. Leverage metrics indicate prudent balance sheet management (debt ratio 0.361; debt capitalization 0.413; interest coverage ~19.4x).
Management commentary is not embedded in the provided transcript data; as such, the analysis relies on disclosed financials and quarterly trend signals. Nonetheless, the QQ3 2025 results reinforce Southern Copper’s position as a low-to-mid leverage, high-margin copper producer with strong operating leverage and robust cash generation that supports returns to shareholders while funding ongoing capital needs.
Key Performance Indicators
Key Insights
Revenue: $3,377,300,000; YoY +15.23%; QoQ +10.69%
Gross Profit: $2,020,500,000; YoY +36.38%; QoQ +24.77%; Gross Margin ≈ 59.83%
EBITDA: $2,023,300,000; EBITDA Margin ≈ 59.9%
Operating Income: $1,768,800,000; Operating Margin ≈ 52.37%
Net Income: $1,107,600,000; Net Margin ≈ 32.80%
EPS: $1.35; YoY +17.39%; QoQ +13.45%
Liquidity and leverage:
Current Ratio: 4.52; Quick Ratio: 3.91; Cash Ratio: 2.33
Days Sales Outstanding (DSO): 47.71; Days Inventory Outstanding (DIO): 68.41; Days Payables...
Financial Highlights
Revenue: $3,377,300,000; YoY +15.23%; QoQ +10.69%
Gross Profit: $2,020,500,000; YoY +36.38%; QoQ +24.77%; Gross Margin ≈ 59.83%
EBITDA: $2,023,300,000; EBITDA Margin ≈ 59.9%
Operating Income: $1,768,800,000; Operating Margin ≈ 52.37%
Net Income: $1,107,600,000; Net Margin ≈ 32.80%
EPS: $1.35; YoY +17.39%; QoQ +13.45%
Liquidity and leverage:
Current Ratio: 4.52; Quick Ratio: 3.91; Cash Ratio: 2.33
Days Sales Outstanding (DSO): 47.71; Days Inventory Outstanding (DIO): 68.41; Days Payables Outstanding (DPO): 49.03; Cash Conversion Cycle: 67.09 days
Debt: Debt Ratio 0.361; Debt to Capitalization 0.413; Interest Coverage 19.35x
Cash Flow and returns per share: Operating Cash Flow per Share 1.896; Free Cash Flow per Share 1.896; Cash per Share 5.50
Valuation and yield: P/E ≈ 22.53x; P/B ≈ 9.55x; Dividend Payout Ratio ≈ 58.1%; Dividend Yield ≈ 0.64%
Efficiency and asset turns: Asset Turnover 0.166; Receivables Turnover 1.886; Inventory Turnover 1.316; PAYABLES TURNOVER 1.836
Valuation multipliers imply market confidence in durable margins and cash generation relative to peer groups.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.38B |
15.23% |
10.69% |
| Gross Profit |
2.02B |
36.38% |
24.77% |
| Operating Income |
1.77B |
21.96% |
11.46% |
| Net Income |
1.11B |
23.52% |
13.78% |
| EPS |
1.35 |
17.39% |
13.45% |
Key Financial Ratios
operatingProfitMargin
52.4%
operatingCashFlowPerShare
$1.9
freeCashFlowPerShare
$1.9
dividendPayoutRatio
58.1%
Management Commentary
No earnings call transcript highlights are provided in the dataset. The 'earningsTranscript' array is empty, and there are no direct management quotes to anchor qualitative themes in this report.
Forward Guidance
There is no explicit forward guidance disclosed for QQ3 2025 in the provided data. Outlook assessment relies on the quarter’s performance and industry dynamics. Key factors to watch:
- Copper price and realized copper grades/volumes; continued ability to maintain favorable margins under price volatility.
- Sustained cash generation and capex discipline to fund ongoing mine development, expansions, and potential by-product credits.
- Revenue mix and by-product streams (e.g., zinc, lead, molybdenum) that can augment profitability in a volatile copper environment.
- Regulatory and political risk in Peru and Mexico, environmental liabilities, and FX exposure.
Overall, the trajectory suggests capacity to sustain strong cash flow, preserve balance sheet strength, and support shareholder returns if copper demand remains resilient and unit costs stay contained.