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.