Southern Copper EPS Rises 21% to $1.35 While Zinc Output Jumps 46%
Shares of Southern Copper have gained 3.7% since its Q3 2025 earnings report, driven by a 21% EPS increase to $1.35 on $3.38 billion in sales and a 52.4% operating margin. Zinc production surged 46% and silver volumes climbed 16.4%, while operating cash flow reached $1.56 billion against $6.75 billion in long-term debt.
1. Earnings Beat and Margin Expansion
Southern Copper reported Q3 2025 EPS of $1.35, a 21% increase year-over-year, and sales of $3.38 billion, beating consensus estimates. Operating profit rose 22% to $1.77 billion, lifting the operating margin to 52.4% and adjusted EBITDA to $1.97 billion, up 17.3%.
2. Production Trends
Copper output declined 6.9% to 234,892 tons on lower grades at Peruvian and Mexican mines, while zinc production surged 46% to 45,482 tons driven by the Buenavista concentrator. Silver volumes increased 16.4% to 6.21 million ounces and molybdenum rose 8.3% to 7,874 tons.
3. Cash Flow and Balance Sheet
Net cash from operations climbed to $1.56 billion from $1.44 billion a year earlier, and cash balances reached $3.95 billion versus $3.26 billion at end-2024. Long-term debt rose to $6.75 billion from $5.76 billion, reflecting ongoing investment in mining infrastructure.
4. 2025 Guidance and Analyst Outlook
The company forecasts 2025 production of 958,800 tons of copper (–2%), 174,700 tons of zinc (+34%), 23 million ounces of silver (+10%) and 30,000 tons of molybdenum (+4%). Recent estimates have climbed 27%, but the stock holds a hold rating with an aggregate VGM Score of D.