Hudbay Delivers Record Fourth Quarter and Full Year 2025 Results; Achieves 2025 Consolidated Copper and Gold Production and Cost Guidance
Executive Summary
- Hudbay reported record 2025 full‑year revenue of $2.2 bn and adjusted EBITDA of $1.06 bn, delivering over $380 m free cash flow.
- Fourth‑quarter results showed record quarterly revenue ($732.9 m) and adjusted EBITDA ($385.9 m), with consolidated copper production of 33,069 t and gold production of 84,298 oz.
- The company announced 2026 guidance: consolidated copper production 124,000 t (≈5% increase) and gold production 244,500 oz, together with a new quarterly dividend of C$0.01 per share (100% increase).
Key Details
- Financial Performance 2025
- Revenue: $2.211 bn (up from $2.021 bn in 2024)
- Adjusted EBITDA: $1,060.9 m (record)
- Net earnings attributable to owners: $568.5 m ($1.44 per share)
- Free cash flow: $387.9 m (record)
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Net debt reduced to $439.7 m; net‑debt/EBITDA ratio 0.4×
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Quarterly Highlights Q4 2025
- Revenue: $732.9 m (record)
- Adjusted EBITDA: $385.9 m (record)
- Consolidated copper production: 33,069 t; gold production: 84,298 oz
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Cash cost (net of by‑product credits): $(0.63)/lb copper; sustaining cash cost $0.94/lb
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Operational Results
- Peru: 85,155 t Cu, 74,480 oz Au (gold exceeded guidance); cash cost $1.08/lb Cu.
- Manitoba: 9,249 t Cu, 173,453 oz Au; cash cost $549/oz Au (outperformed guidance).
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British Columbia: 23,784 t Cu, 20,001 oz Au; cash cost $3.06/lb Cu (within guidance).
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Deleveraging
- Repurchased $39.3 m senior unsecured notes in Q4 2025, reducing total debt by $185.1 m YoY.
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Post‑closing of Copper World JV (Jan 2026) cash & equivalents ≈ $992 m; undrawn credit facility $424.8 m → total liquidity > $1.4 bn.
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Copper World Joint Venture
- Closed $600 m JV with Mitsubishi (Jan 2026); Mitsubishi contributed $420 m upfront, with an additional $180 m to be funded within 18 months.
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Proceeds fund feasibility study and pre‑sanctioning costs; project IRR to Hudbay ≈ 90%.
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Capital Allocation & Growth
- Total sustaining capital 2026 guidance: $435 m (Peru $140 m, Manitoba $105 m, BC $60 m).
- Growth capital (excluding Copper World) 2026: $140 m (Peru $40 m, Manitoba $15 m, BC $85 m).
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Copper World growth capital 2026: $135 m (feasibility & de‑risking).
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Exploration Updates
- Talbot (Snow Lake) drill program returned four economic intercepts; six rigs deployed for 2026.
- 1901 deposit development progressing toward production in late 2027.
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New Ingerbelle permitting referred to statutory decision makers (Jan 2026); expected permit receipt Q1 2026.
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Dividend
- Board approved quarterly dividend of C$0.01 per share (record date Feb 19, payable Mar 27).
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Annualized dividend now C$0.04 per share, a 100% increase – first dividend hike in company history.
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Guidance 2026
- Consolidated copper: 124,000 t (mid‑point) (+5% YoY)
- Consolidated gold: 244,500 oz (–9% YoY)
- Consolidated cash cost (net of by‑product credits): $(0.30) to $(0.10)/lb Cu
- Sustaining cash cost (net of by‑product credits): $1.70 to $2.10/lb Cu
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Total sustaining capital: $435 m; growth capital (ex‑Copper World): $140 m
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Outlook & Forward‑Looking Statements
- Anticipated ramp‑up of BC mill throughput to 50,000 t/d in H2 2026.
- Completion of Copper World DFS by mid‑2026; sanction decision expected later in 2026.
- Continued focus on cost control, balance‑sheet strength, and high‑return brownfield investments.