Canada's Hudbay Q2 adjusted EPS misses on shipment delays

Overview

• Canada copper and gold miner's Q2 revenue and adjusted EPS missed analyst expectations

• Lower results due to delayed Peru shipments from temporary port closures impacting sales volumes

• Company reaffirmed 2026 production guidance and improved cash cost outlook

Outlook

• Hudbay reaffirms 2026 copper production guidance of 110,000 to 138,000 tonnes

• Company improves 2026 cash cost guidance to $(0.45) to $(0.25) per lb of copper

• British Columbia cash cost expected to improve in H2 2026, in line with annual guidance

Result Drivers

• PERU SHIPMENT DELAYS - Lower sales volumes in Q2 due to delayed copper concentrate shipments from temporary port closures in Peru

• COST CONTROL AND BY-PRODUCT CREDITS - Strong margins supported by cost control and gold by-product credits offsetting higher input costs

• HIGHER COPPER PRICES - Higher copper prices partially offset impact of lower sales volumes

Company press release: ID:nGNX2jfz4S

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty mining metals peer group is "buy"

• Wall Street's median 12-month price target for Hudbay Minerals Inc is C$42.25, about 37.4% above its July 28 closing price of C$30.76

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 28 - Canada's First Quantum Q2 adjusted EPS misses estimates on higher costs

• July 29 - Rio Tinto posts highest first-half earnings in four years as data centre boom boosts copper

• July 29 - Glencore's copper output up 15%, sees strong $3.3 bln marketing EBIT

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)