Executive Summary
Southern Copper Corporation delivered a solid QQ1 2025, with revenue of $3.1219 billion, up 20.1% year over year and 12.1% quarter over quarter. Gross profit reached $1.5672 billion, yielding a gross margin of 50.2%, while operating income of $1.5355 billion produced an operating margin of 49.2%. Net income was $945.9 million, and diluted EPS was $1.19, up 28.5% and 25.3% respectively vs the prior year. EBITDA stood at $1.7943 billion, supporting a cash-generative profile evidenced by cash flow from operations of $721.4 million and free cash flow of $403.6 million. The balance sheet remains robust, with cash and equivalents of $4.1163 billion and total liquidity ample to cover near-term obligations, while total debt stands at $7.9677 billion and net debt at $3.8514 billion. Leverage metrics remain within a conservative range (debt-to-capitalization 45.4%, debt-to-equity 0.83) and interest coverage is strong at 16.7x. The company continued to return capital to shareholders, with a payout ratio of 58.5% and a quarterly dividend, while continuing to invest in capex of $317.8 million for the period. Looking ahead, the main drivers and risks include copper price volatility, project execution efficiency, and the ability to translate strong cash generation into deleveraging and value creation. Investors should monitor copper pricing trends, the pace of capex, and the company’s capital allocation framework to assess sustained earnings power.
Key Performance Indicators
Key Insights
Revenue: $3.1219B; YoY +20.08%; QoQ +12.13%. Gross Profit: $1.5672B; Gross Margin 50.20%; YoY +28.41%; QoQ +16.80%. Operating Income: $1.5355B; Operating Margin 49.18%; YoY +29.07%; QoQ +17.46%. Net Income: $945.9M; Net Margin 30.30%; YoY +28.52%; QoQ +19.15%. EPS: $1.19; YoY +25.26%; QoQ +17.82%. EBITDA: $1.7943B; EBITDA Margin ~57.48% (EBITDA/Revenue). CFO: $721.4M; Capex: $-317.8M; Free Cash Flow: $403.6M. Balance Sheet: Total Assets $19.791B; Cash & Equivalents $4.116B; Total Debt $7.977...
Financial Highlights
Revenue: $3.1219B; YoY +20.08%; QoQ +12.13%. Gross Profit: $1.5672B; Gross Margin 50.20%; YoY +28.41%; QoQ +16.80%. Operating Income: $1.5355B; Operating Margin 49.18%; YoY +29.07%; QoQ +17.46%. Net Income: $945.9M; Net Margin 30.30%; YoY +28.52%; QoQ +19.15%. EPS: $1.19; YoY +25.26%; QoQ +17.82%. EBITDA: $1.7943B; EBITDA Margin ~57.48% (EBITDA/Revenue). CFO: $721.4M; Capex: $-317.8M; Free Cash Flow: $403.6M. Balance Sheet: Total Assets $19.791B; Cash & Equivalents $4.116B; Total Debt $7.977B; Net Debt $3.851B; Equity $9.569B. Current Ratio 3.71; Quick Ratio 3.22; Cash Ratio 2.12. Leverage: Debt/Equity 0.83; Debt/Capitalization 0.454; Interest Coverage 16.71x. Return Metrics: ROA 4.78%; ROE 9.89%; ROCE 8.60%. Valuation and Efficiency: P/E 19.19x; P/B 7.59x; P/S 23.26x; P/CF 100.65x; Dividend Payout 58.5%; CCC ~62.6 days. Note: All figures in USD.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.12B |
20.08% |
12.13% |
| Gross Profit |
1.57B |
28.41% |
16.80% |
| Operating Income |
1.54B |
29.07% |
17.46% |
| Net Income |
945.90M |
28.52% |
19.15% |
| EPS |
1.19 |
25.26% |
17.82% |
Key Financial Ratios
operatingProfitMargin
49.2%
operatingCashFlowPerShare
$0.91
freeCashFlowPerShare
$0.51
dividendPayoutRatio
58.5%
Management Commentary
No QQ1 2025 earnings call transcript data was provided in the input. Consequently, management quotes or call-specific takeaways cannot be cited. Once transcript data is available, themes to analyze should include: strategy execution (capital allocation and growth capex), operations and production efficiency, unit costs, price exposure to copper, and market conditions. In the absence of quotes, investors should rely on the published 10-Q/earnings release for management commentary on risks and forward-looking statements.
Forward Guidance
There is no explicit forward guidance in the supplied QQ1 2025 materials. Given the macro backdrop for copper—volatility in price, ongoing demand from infrastructure and EVs, and potential supply constraints—the prudent view is that Southern Copper will prioritize sustainable free cash flow generation, deleveraging toward a more balanced capital structure, and disciplined capex. Key factors to monitor include copper price trajectory, mine production ramp or constraints, cost inflation, progress on major projects (e.g., Buenavista and other Mexican operations), and any changes in regulatory/policy risks in its operating regions. If copper prices remain robust and capex is efficiently deployed, we would expect continued enhancement of cash flow and leverage metrics, supporting a stable or growing dividend payout framework.