It has been about a month since the last earnings report for Southern Copper (SCCO). Shares have added about 3.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Southern Copper due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Southern Copper Corporation before we dive into how investors and analysts have reacted as of late.
Southern Copper Q3 Earnings Beat Estimates, Sales Up Y/Y
Southern Copper reported third-quarter 2025 earnings of $1.35 per share, which beat the Zacks Consensus Estimate of $1.25. The bottom line marked a 21% increase year over year.
Southern Copper’s Sales & Margins Rise
The company’s sales increased 15% year over year to $3.38 billion, beating the Zacks Consensus Estimate of $3.16 billion.
Higher sales volumes for silver, zinc and molybdenum, and elevated metal prices were offset by lower sales volumes of copper.
The cost of sales was up 11% year over year to $1.36 billion. Operating profit in the third quarter was $1.77 billion, up 22% year over year. The operating margin in the reported quarter was 52.4% compared with 49.5% in the year-ago quarter.
Adjusted EBITDA rose 17.3% year over year to $1.97 billion in third-quarter 2025. The adjusted EBITDA margin was 58.5% compared with the year-ago quarter’s 57.5%.
SCCO’s Production Details
Copper: Southern Copper mined 234,892 tons of copper in the reported quarter, down 6.9% year over year. This was due to a 7.3% decline in output in Peru operation, namely at Toquepala and Cuajone mines. Production at Mexican operations fell 6.5%, attributed to lower output at the Buenavista mine due to lower ore grades. Also, the new Buenavista concentrator has been utilized to maximize zinc and silver production to leverage the favorable ore grades identified in an important segment of the mine.
Copper sales were down 3.6% year over year to 234,300 tons.
Molybdenum: The company mined 7,874 tons of molybdenum in the reported quarter, reflecting year-over-year growth of 8.3%, attributed to higher production at La Caridad and Toquepala, which was partially offset by lower production at Buenavista and Cuajone mines.
Sales were 7,908 tons in the quarter under review, up 7.9% from the third quarter of 2024.
Zinc: The company’s zinc production surged 46% year over year to 45,482 tons in the quarter mainly due to increased production at the Buenavista zinc concentrator. Zinc sales increased 7% year over year to 40,081 tons in the third quarter of 2025.
Silver: Southern Copper’s silver production improved 16.4% year over year to 6.21 million attributed to higher output at Mexican operations, partially offset by lower production from the Peruvian mines. Sales rose 21.9% year over year to 6.32 million ounces.
Southern Copper’s Cash Flow & Balance Sheet
SCCO generated net cash from operating activities of $1.56 billion in the third quarter of 2025, up from $1.44 billion in the third quarter of 2024. Cash and cash equivalents were $3.95 billion at the end of the third quarter of 2025 compared with $3.26 billion as of the end of 2024. Long-term debt was $6.75 billion as of Sep. 30, 2025, higher than the debt balance of $5.76 billion as of Dec. 31, 2024.
Southern Copper’s Guidance for 2025
Southern Copper targets copper production around 958,800 tons for 2025, a 2% dip from last year. The company’s zinc production is projected at 174,700 tons for 2025, which indicates a 34% growth year over year. The increase will be driven by the Buenavista zinc concentrator. Silver production is likely to be around 23 million ounces, 10% higher than in 2024. The company expects to produce 30,000 tons of molybdenum in 2025, which represents a 4% increase from the 2024 output.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 27.03% due to these changes.
VGM Scores
Currently, Southern Copper has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Southern Copper has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Southern Copper belongs to the Zacks Mining - Non Ferrous industry. Another stock from the same industry, Freeport-McMoRan (FCX), has gained 5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Freeport-McMoRan reported revenues of $5.63 billion in the last reported quarter, representing a year-over-year change of -1.5%. EPS of $0.47 for the same period compares with $0.31 a year ago.
For the current quarter, Freeport-McMoRan is expected to post earnings of $0.52 per share, indicating a change of +116.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +11.6% over the last 30 days.
Freeport-McMoRan has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Southern Copper Corporation (SCCO): Free Stock Analysis Report Freeport-McMoRan Inc. (FCX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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