0001062993-26-001648
SEC filingHudbay generated record annual revenue of $2,211 million and record adjusted EBITDA of $1,061 million in 2025, driven by strong copper and gold prices and cost performance, despite temporary operational interruptions.
Hudbay’s fiscal 2025 results reflect a record-setting year, with revenue increasing 9.4% to $2,211.0 million from $2,021.2 million in 2024. The revenue growth was driven primarily by higher realized prices for copper (up to $4.64/lb from $4.18/lb), gold (up to $3,297/oz from $2,241/oz), and silver, along with lower treatment and refining charges ($28.4 million vs. $97.3 million). Gross profit surged 34.2% to $743.2 million, resulting in a gross margin of 33.6% (versus 27.4% in 2024). Operating income more than doubled to $916.5 million, though this included a $322.3 million pre-tax impairment reversal related to the Copper World project. Excluding that reversal, operating income would have been $594.2 million, up from $400.3 million in 2024. Net income attributable to owners reached $568.5 million ($1.44 per share), compared to $76.7 million ($0.20 per share) in 2024. The significant improvement was supported by higher margins, the impairment reversal, and lower net finance expenses (net finance income of $19.4 million vs. expense of $148.7 million in 2024, benefiting from investment gains and foreign exchange gains).
As of December 31, 2025, Hudbay held cash and cash equivalents of $568.9 million (up from $541.8 million at end of 2024). Total long-term debt decreased to $1,008.6 million from $1,107.5 million, following repurchases of $102.5 million of the 2026 Notes during the year. Consequently, net debt fell to $439.7 million from $525.7 million at year-end 2024. The net debt to adjusted EBITDA ratio improved to 0.4x from 0.6x. Working capital was negative $65.6 million due to reclassification of the 2026 Notes as current liabilities (maturity in April 2026), but post-quarter the Copper World joint venture closed, providing $420 million of cash at the project level and further strengthening liquidity. Total liquidity stood at $993.7 million including undrawn credit facilities.
Operating cash flow before changes in working capital was a record $764.3 million (up from $691.1 million in 2024), reflecting strong operational cash generation. Cash generated from operations was $707.3 million. Capital expenditures (cash) increased to $466.7 million from $347.1 million, primarily due to higher growth spending at Copper Mountain and Copper World. Free cash flow was $387.9 million, slightly higher than $357.1 million in 2024. The company applied free cash flow to debt reduction, investing activities and dividends. Interest paid on long-term debt declined to $58.4 million from $67.9 million, reflecting lower debt levels.
Management highlighted that 2025 was the 11th consecutive year of achieving consolidated copper production guidance and the 5th consecutive year for gold production. The company outlined its 2026 key objectives: demonstrate operational excellence, advance organic growth opportunities, and implement a holistic Capital Allocation Framework. In February 2026, Hudbay announced a dividend increase to C$0.01 per share quarterly (100% annual increase). Production guidance for 2026 includes consolidated copper of 110,000–138,000 tonnes and gold of 217,000–272,000 ounces, with cash cost expected per pound of copper of ($0.30) to ($0.10). Sustaining capital expenditures are guided at $435 million, and growth capital (excluding Copper World JV) at $140 million. Copper World JV capital is $135 million, fully funded by Mitsubishi’s proceeds. Exploration spending is expected to increase to $60 million. Management also discussed progress on mill throughput enhancements, the New Ingerbelle expansion permits (received February 2026), and advancement of the Copper World definitive feasibility study toward a mid-2026 completion.
Segments: Peru remained the largest revenue contributor at $1,161.2 million, with operating income of $322.9 million (margin 27.8%). Manitoba posted $748.7 million revenue and operating income of $367.3 million (margin 49.0%), benefiting from strong gold prices. British Columbia revenue was $301.1 million but recorded a small operating loss of $4.8 million due to ramp-up costs and lower mill throughput. Arizona contributed a $321.4 million operating income from the impairment reversal, while Corporate recorded a $90.3 million loss.
Non-cash items: Share-based compensation expense rose to $61.3 million from $19.3 million in 2024, primarily due to a higher share price. Depreciation and amortization was $439.7 million, up from $426.6 million. The company recognized a $25.0 million insurance recovery for Manitoba wildfire losses.
Capital allocation: Hudbay repurchased $102.5 million of its 2026 Notes at a discount. Dividends paid were $5.6 million. The company also completed a private placement of flow-through shares for C$32.6 million to fund exploration.
Risks: The MD&A identifies key risks including political/social unrest in Peru, metal price volatility, project execution at Copper World, community relations, and potential tariffs. The company’s sensitivity analysis indicates that a 10% change in copper prices impacts operating cash flow by approximately $98 million.
Post-period event: On January 9, 2026, Hudbay closed the Copper World joint venture with Mitsubishi, receiving $420 million in cash with a further $180 million due within 18 months, and securing a 30% minority partner.