Southern Copper 2025 Q2 Earnings Net Income Rises 2.4% Amid Revenue Dip

Southern Copper (SCCO), ranking 188th by market capitalization, reported its fiscal 2025 Q2 earnings on July 29, 2025. While the company's revenue decreased by 2.2% year-over-year to $3.05 billion, the net income showed a 2.4% increase to $976.70 million. The company maintained stable EPS at $1.22, demonstrating its strong operational resilience despite market challenges. Southern Copper's strategic investments and cost management have contributed to a positive outlook, with management remaining optimistic about future growth despite uncertainties.

Revenue

The total revenue of Southern Copper decreased by 2.2% to $3.05 billion in 2025 Q2, down from $3.12 billion in 2024 Q2.

Earnings/Net Income

Southern Copper maintained stable EPS at $1.22 in 2025 Q2 compared to 2024 Q2. Meanwhile, the company's profitability strengthened with net income of $976.70 million in 2025 Q2, marking 2.4% growth from $953.80 million in 2024 Q2. The EPS stability reflects consistent financial performance.

Price Action

The stock price of Southern Copper has edged down 0.35% during the latest trading day, has edged down 2.51% during the most recent full trading week, and has dropped 7.63% month-to-date.

Post-Earnings Price Action Review

The investment strategy of acquiring Southern Copper shares following revenue increases on financial report release dates and holding for 30 days has yielded strong returns over the past three years. This approach generated an overall return of 173.06%, significantly outperforming the benchmark return of 87.35% by 85.72%. With a compound annual growth rate of 22.39% and a maximum drawdown of 0.00%, the strategy has shown robust performance in both gains and risk management. The consistent returns highlight Southern Copper's ability to leverage financial disclosures for shareholder benefit.

CEO Commentary

Mr. German Larrea, Chairman of the Board, emphasized Southern Copper's positive year-to-date performance, highlighting growth in sales volumes for copper (+0.3%), zinc (+25.3%), silver (+14.0%), and molybdenum (+5.9%). Improved market prices for copper (LME, +3.6%), zinc (+3.3%), and silver (+26.3%) contributed to an 8% increase in net sales. He noted a significant reduction in cash costs from $0.91 to $0.70 per pound (-23.6%), resulting in a 10.0% rise in EBITDA and a 13.8% increase in net income. This reflects the company's strong operational performance amidst current market volatility.

Guidance

The company is closely monitoring U.S. trade policy developments, particularly regarding tariffs, which could impact operations. Although facing market uncertainties, management remains optimistic about continued growth driven by strategic investments and operational efficiencies. The focus will be on maintaining a strong production outlook and managing costs effectively to navigate any potential challenges ahead.

Additional News

Southern Copper has announced significant leadership changes, with Mr. Patricio Ovejas Simon appointed as Executive Vice President, effective July 24, 2025. His extensive experience in finance, operations, and M&A is expected to bolster the company's strategic capabilities. Additionally, the Board of Directors authorized a quarterly cash dividend of $0.80 per common share and a stock dividend of 0.0101 shares per common share, demonstrating commitment to shareholder value. The company continues to advance its capital investment program, exceeding $15 billion over the next decade, with substantial projects in Peru and Mexico aimed at expanding production capacity and solidifying market position.