Freeport-McMoRan Q3 Net Income Rises to $1.2 Billion From $674 Million

Freeport-McMoRan (FCX ) reported third-quarter and nine-month 2026 results on October 27, 2026, posting net income attributable to common stock of $1.2 billion, or $0.81 per share, compared with $674 million, or $0.46 per share, in the third quarter of 2025. Revenue totaled $7,546 million, up from $6,972 million a year earlier, while the company’s average realized copper price increased to $6.54 per pound from $4.68.

Adjusted net income attributable to common stock, a non-GAAP measure, totaled $1.3 billion, or $0.88 per share, after excluding after-tax net charges of $101 million, or $0.07 per share, primarily for idle facility and restoration costs associated with PT Freeport Indonesia’s September 2025 external mud rush incident. Operating income was $2,353 million versus $1,972 million in the prior-year quarter, and operating cash flow totaled $1,981 million, net of $0.4 billion of working capital and other uses, versus $1,689 million. Capital expenditures were $1,159 million, including $0.7 billion for major mining projects, versus $1,056 million.

For the first nine months of 2026, revenue totaled $20,809 million versus $20,282 million in the same period of 2025. Net income attributable to common stock was $3,039 million, or $2.10 per share, versus $1,798 million, or $1.24 per share, with the 2026 period including a $699 million gain on the PTFI mud rush incident insurance settlement. Operating cash flow was $5,524 million, net of $0.8 billion of working capital and other uses, and capital expenditures totaled $3,236 million.

President and Chief Executive Officer Kathleen Quirk said in the earnings release, “The Freeport team delivered strong financial results in the third quarter and achieved several important milestones to drive value and support future growth.” Quirk said the company made steady progress with the Grasberg ramp-up and advanced leach and technology initiatives in its Americas business, adding that “favorable pricing for our products, particularly for copper and molybdenum, drove strong margins with substantial conversion to bottom-line results.”

Production, Prices and Unit Costs

Consolidated production totaled 832 million pounds of copper, 234 thousand ounces of gold and 22 million pounds of molybdenum, compared with 912 million pounds, 287 thousand ounces and 22 million pounds in the third quarter of 2025. Consolidated sales totaled 749 million pounds of copper, 105 thousand ounces of gold and 22 million pounds of molybdenum, versus 977 million pounds, 336 thousand ounces and 19 million pounds a year earlier.

FCX said copper production was in line with expectations, with slightly better results from Indonesia and South America offsetting lower production in the United States, and that sales were in line with its July 2026 estimate of 750 million pounds. Production exceeded sales by approximately 11%, primarily reflecting in-process inventories at smelting operations in Indonesia. Gold sales were lower than the July 2026 estimate of 160 thousand ounces, primarily reflecting the timing of refined gold sales in Indonesia, with approximately 60 thousand ounces deferred from the third quarter to the fourth quarter of 2026.

Average realized prices were $6.54 per pound for copper, $4,273 per ounce for gold and $32.46 per pound for molybdenum, compared with $4.68, $3,539 and $24.07, respectively, in the third quarter of 2025.

Average unit net cash costs were $2.07 per pound of copper, 4% above the July 2026 estimate of $2.00 per pound, which FCX attributed primarily to lower by-product credits resulting from the deferral of gold sales. The figure compared with $1.40 per pound in the third quarter of 2025, primarily reflecting lower copper and gold volumes at PTFI and higher production costs, including for energy and other consumables. Idle facility, direct recovery and restoration costs tied to the mud rush incident totaled $244 million in the quarter and $934 million in the first nine months of 2026 and were excluded from unit net cash costs.

By division, U.S. copper mines sold 333 million pounds of copper at average unit net cash costs of $3.16 per pound, versus 339 million pounds at $3.11 a year earlier. FCX said an increased frequency of extreme weather conditions adversely affected operating rates and productivity at its U.S. mines, leaving rates approximately 3% to 5% below expectations even though they ran 10% higher than in the third quarter of 2025. South America operations sold 263 million pounds at unit net cash costs of $2.39 per pound, versus 278 million pounds at $2.30, with FCX citing higher costs for employee profit sharing at Cerro Verde, energy and other inputs, and maintenance and contractor costs at El Abra. FCX increased its ownership interest in Cerro Verde from 55.08% to 55.66% in May 2026. The company’s Climax and Henderson molybdenum mines in Colorado produced 8 million pounds in both third quarters, at unit net cash costs of $20.04 per pound versus $19.41.

Grasberg Ramp-Up and Growth Projects

In Indonesia, PTFI sold 153 million pounds of copper and 98 thousand ounces of gold in the quarter, versus 360 million pounds and 332 thousand ounces in the third quarter of 2025, and recorded unit net cash credits of $0.84 per pound of copper versus $0.92, a decline FCX attributed primarily to lower copper and gold volumes. Third-quarter mill throughput averaged 141 thousand metric tons of ore per day, 67% of capacity, including 70 thousand metric tons per day from the Grasberg Block Cave underground mine. PTFI continues to expect to reach 80% of capacity in mid-2027 and approach full capacity by year-end 2027.

PTFI completed the remediation and restoration required for the restart of Production Blocks 2 and 3 and commenced initial ramp-up activities at the end of March 2026. Upgrades to the Grasberg Block Cave haulage-level material handling system are expected to be complete by early 2027, and the restart of production from Production Block 1S is targeted by mid-2027. PTFI’s smelter re-commenced operations in late August 2026, and PT Smelting resumed operations in late 2025; combined smelting capacity is up to approximately 800,000 metric tons of cathode annually.

PTFI is seeking clarity from the Indonesia government on administrative procedures for its refined gold exports, because current regulations specifying a 10% export duty conflict with the terms of its special mining business license (IUPK), which does not require payment of duties on refined gold exports. In February 2026, FCX and PTFI entered into a memorandum of understanding with the Indonesia government for a life-of-resource extension of operating rights in the Grasberg minerals district beyond the current expiration in 2041, under which FCX would maintain its 48.76% ownership interest in PTFI through 2041 and hold approximately 37% beginning in 2042. PTFI submitted its IUPK extension application in June 2026.

Among organic growth projects, FCX expects to reach an investment decision in the fourth quarter of 2026 on more than doubling concentrator capacity at its Bagdad operation in northwest Arizona. The company’s technical and economic studies indicate the expansion could increase copper production by 200 to 250 million pounds per year and molybdenum production by 10 to 12 million pounds per year, with incremental capital costs estimated at approximately $4.5 billion, project economics supported at an incentive copper price of approximately $4.00 per pound and a construction period of three to four years. Bagdad’s reserve life currently exceeds 80 years. At El Abra in Chile, FCX is advancing permitting for an expansion that could add over 700 million pounds of copper production per year; an environmental impact study was submitted to Chile regulatory authorities in March 2026, and preliminary estimates indicate capital costs of approximately $7.5 billion, based on estimates prepared in 2024, with economics supported at an incentive copper price of less than $4.00 per pound. FCX is also advancing pre-feasibility studies in the Safford/Lone Star district and expects to complete initial studies in 2027.

Incremental copper production from leaching and technology innovation initiatives totaled 55 million pounds in the third quarter and 156 million pounds in the first nine months of 2026. FCX is targeting an increase from these initiatives from the current run rate of approximately 220 million pounds per annum to 300 million pounds in 2027, and two customized additives it developed are expected to be deployed at multiple stockpiles in the first half of 2027. In the Grasberg minerals district, PTFI’s long-term plans include a ramp-up of the Kucing Liar deposit commencing in the 2030 timeframe to a design capacity of approximately 130,000 metric tons of ore per day, with average annual production at full operating rates of approximately 750 million pounds of copper and 735 thousand ounces of gold. Approximately $1.6 billion had been incurred for Kucing Liar development as of September 30, 2026, with capital investments estimated at approximately an additional $4 billion through 2033.

At September 30, 2026, consolidated cash and cash equivalents totaled $4.3 billion and consolidated debt totaled $9.4 billion, with net debt of $1.8 billion excluding $3.2 billion of debt for PTFI’s downstream processing facilities; FCX’s net debt target is $3.0 billion to $4.0 billion excluding that project debt. Availability under revolving credit facilities stood at $3.0 billion at FCX, $1.5 billion at PTFI and $350 million at Cerro Verde, and in September 2026 PTFI amended and restated its $1.75 billion senior unsecured revolving credit facility to extend the maturity date from November 2028 to September 2031.

On September 23, 2026, FCX’s Board declared cash dividends totaling $0.15 per share of common stock, comprising a $0.075 quarterly base dividend and a $0.075 quarterly variable, performance-based dividend, payable November 2, 2026, to stockholders of record as of October 15, 2026. During the third quarter, FCX purchased 1.4 million shares of its common stock for $102 million at an average cost of $70.75 per share, bringing purchases for the first nine months of 2026 to 4.9 million shares for $305 million. Cumulative purchases under the company’s $5.0 billion share repurchase program total 56.8 million shares for $2.3 billion, and shareholder returns for the first nine months of 2026 totaled $955 million, including $650 million in common stock dividends.

For the full year 2026, FCX expects consolidated sales to approximate 3.0 billion pounds of copper, 649 thousand ounces of gold and 93 million pounds of molybdenum, including fourth-quarter sales of 875 million pounds of copper, 300 thousand ounces of gold and 22 million pounds of molybdenum. Operating cash flows are expected to approximate $8.5 billion for the year, net of $0.6 billion of working capital and other uses, assuming fourth-quarter prices of $6.50 per pound for copper, $4,000 per ounce for gold and $32.00 per pound for molybdenum. Capital expenditures are expected to approximate $4.4 billion, including $3.0 billion for major mining projects, and consolidated unit net cash costs are expected to average $1.90 per pound of copper for the year, including $1.68 per pound in the fourth quarter.

The earnings release follows Freeport’s third-quarter 2026 operational update, published October 2, 2026, which reported preliminary consolidated copper production of approximately 830 million pounds and stated that full third-quarter results would be released before the market open on October 27, 2026. Final consolidated copper production totaled 832 million pounds.

A conference call with securities analysts to discuss the results is scheduled for October 27, 2026, at 10:00 a.m. Eastern Time, with a replay of the webcast available through November 27, 2026.