Southern Copper Reports Strong Q2 Growth Despite Production Decline
Southern Copper Corporation (SCCO) closed at USD 205.29 on October 5, 2026, down slightly by 0.12% from the previous day. Despite this minor dip, the company's Q2 2026 earnings revealed significant growth. Revenue surged 40.6% year-over-year to USD 4.29 billion, although it fell short of the USD 4.37 billion estimate. Earnings per share (EPS) beat expectations by USD 0.06, coming in at USD 1.99 against the consensus of USD 1.93.
The company's adjusted EBITDA rose 60% to USD 2,956 million, up from USD 1,791 million in Q2 2025, with the adjusted EBITDA margin expanding to 67% from 59%. However, copper production declined 3.5% year-over-year to 230,662 tons, with a notable 12% drop in Peru, though Mexican output increased 3.2%. Management forecasted a full-year production target of 917,000 tons.
Analysts remain cautious, with a 15-analyst consensus on September 15, 2026, carrying a 'Reduce' rating and an average 12-month price target of USD 146.84, significantly below the current stock price. The breakdown included seven 'Sell' ratings, five 'Holds,' and three 'Buys.' Southern Copper's market capitalization stood at USD 171.3 billion, with its 52-week range between USD 115.74 and USD 221.24, placing the latest price USD 15.95 below the high.