Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 4 of last 6 quarters
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Hudbay's copper growth pipeline, including Copper World, Cactus, and Mason, positions it to supply copper critical for electrification and data-center infrastructure. The company's expansion to 500,000 tonnes of copper by the mid-2030s could support the AI infrastructure buildout's demand for copper-intensive power and cooling systems. However, the company does not explicitly tie its growth to AI demand, and copper remains a fungible commodity.
Hudbay delivered steady operating performance in Q2 2026, with consolidated copper production of 28,000 tonnes and gold production of 51,000 ounces. The company generated $321 million in adjusted EBITDA and $210 million in operating cash flow, with free cash flow before growth investments exceeding $100 million. Peru operations were in line with expectations despite a planned maintenance shutdown, while Manitoba faced labor availability constraints and a hoist gearbox failure, both of which were addressed. British Columbia achieved record mining rates and mill throughput, though recoveries were impacted by a grinding constraint. The company also completed the acquisition of Arizona Sonoran, adding the Cactus project, and received $52 million in municipal bonds for Copper World.
Management reaffirmed full-year 2026 production guidance for all metals and improved consolidated cash cost guidance, citing strong by-product credits and operational efficiencies. They expect higher production in the second half of 2026 across Manitoba and British Columbia, with Copper Mountain achieving 50,000 tonnes per day permitted capacity. Copper World remains on track for a sanctioning decision later this year, with the DFS expected to reflect higher capex. The company also expects consolidated copper production to increase 24% to approximately 150,000 tonnes next year, with a line of sight to 500,000 tonnes by the middle of the next decade. Management emphasized a disciplined capital allocation framework and continued M&A appetite for accretive opportunities in North America.
“We achieved record trailing 12-month adjusted EBITDA of $1.3 billion, driven by our unique copper and gold diversification and focus on cost control across the business.”
on Record EBITDA
“The appointment of Eugene Lei as President is a significant milestone for Hudbay and recognizes his passion and strategic vision for the long-term success of the company.”
on Leadership changes
“We are on track to achieve our full year production guidance for all metals.”
on Production guidance
Has the labor availability issue at Lalor been fully cleared, and have mining rates returned to normal levels?
Management confirmed the issue is resolved, citing hiring of ~100 employees, use of contractors for 1901, and redeployment of skilled workers. They noted a 10% improvement in efficiencies over the last month.
How should we think about the magnitude of Copper World CapEx increase and the potential for future mill expansion optionality?
Management indicated CapEx will be higher due to inflation and scope changes for mill expansion optionality, but the exact figure is pending contractor data. They expect robust economics given higher copper prices and noted synergies with Cactus.
Is it reasonable to expect the release of the Copper World DFS before the end of Q3?
Management said it is more likely to be early Q4, as they need to complete internal reviews and Mitsubishi's processes. They reaffirmed FID later this year and first production in H2 2029.