FCX Freeport-McMoRan 10-Q 2026-09-30 section summaries

Freeport-McMoRan (FCX) — Q3 and nine months ended September 30, 2026

Consolidated results

Revenue grew 8.2% in Q3 and 2.6% in 9M, while income before tax rose 19.1% to $2,292 million in Q3 and 11.6% to $6,256 million in 9M. The stronger earnings growth reflected higher operating income, though results also included significant Indonesia incident-related charges and an insurance-settlement gain.

Q3 revenue by product

Revenue from customer contracts was $7,425 million versus $6,819 million; embedded derivatives added $121 million versus $153 million, resulting in total revenue shown above. Lower treatment charges in 9M reflected favorable market rates and the absence of Indonesian concentrate sales after PTFI became a fully integrated refined-copper, gold and silver producer. PTFI export duties ended after its export license expired on September 16, 2025.

Q3 segment performance

Segment revenues include intersegment sales.

The CEO uses segment operating income to assess performance and allocate capital; segment costs and capital expenditures are not fully allocated, so segment results may not reflect standalone economics.

Cash flow and investment

Operating cash flow less capital expenditures was approximately $2,288 million, compared with $1,428 million in 9M 2025. Q3 capital expenditures were $1,159 million versus $1,056 million. Indonesia 9M capital expenditures declined to $1,435 million from $1,927 million.

Balance sheet, debt and shareholder returns

Total equity included $12,632 million of noncontrolling interests; FCX stockholders’ equity was $20,981 million. Debt fair value was $9,036 million at September 30, compared with $9,493 million at year-end. Current debt rose to $1,680 million from $466 million, while long-term debt declined to $7,718 million from $8,913 million. FCX and PTFI put in place a new $3.0 billion five-year revolving facility maturing in May 2031, with no borrowings and $5 million of letters of credit outstanding. PTFI’s $1.75 billion facility was extended to September 2031, with $250 million drawn; Cerro Verde established a $350 million facility maturing May 2031, undrawn. All three entities were in covenant compliance.

Common shares outstanding increased from 1.627 billion at December 31, 2025, to 1.631 billion at September 30, 2026. FCX repurchased 4.9 million shares for $305 million in 9M at an average $62.69 per share; $2.7 billion remained available under its $5.0 billion repurchase program as of October 31. The Q3 dividend was $0.15 per share, split evenly between base and variable dividends.

Indonesia developments and other notable items

The September 2025 Grasberg mud-rush incident continued to affect comparability: 9M 2026 production and delivery costs included $934 million of idle-facility and restoration charges, versus $171 million of idle-facility and direct-recovery charges in 9M 2025; Q3 charges were $244 million versus $171 million. FCX recognized a $699 million insurance-settlement gain in Q1 2026 and collected the proceeds in April.

In February 2026, FCX and PTFI reached an MOU with Indonesia for Grasberg operating rights beyond 2041. FCX would retain its 48.76% PTFI interest through 2041, declining to approximately 37% beginning in 2042, subject to an amended IUPK and definitive agreements; PTFI applied for the extension in June. PTFI paid $220 million in June for disputed 2022 tax assessments, filed objections and recorded a long-term tax receivable. In October it received approximately $740 million of 2023 assessments and plans to object. Indonesia’s export-proceeds rules require deposits in Indonesian banks for 12 months; PTFI elected to remain under its existing framework, including a 50% cap on conversion to rupiah, which FCX does not expect to impair funding needs.

The 9M effective tax rate declined to 29% from 36%, including PTFI smelter-development tax benefits after confirmation of a six-year incentive period for 2025–2030. Net interest expense was $295 million versus $259 million, and stock-based compensation was $131 million versus $98 million.

Freeport-McMoRan (FCX) — Q3 and first nine months of 2026

Consolidated results

Higher realized copper, gold and molybdenum prices lifted earnings despite substantially lower copper and gold sales, particularly from Indonesia. Lower taxes and noncontrolling interests also supported common-stockholder earnings. The 9M results included a $699 million pretax PTFI insurance-settlement gain ($200 million after taxes and noncontrolling interests) related to the September 2025 mud rush; proceeds were collected in April. Q3 / 9M mud-rush-related idle-facility, direct-recovery and restoration charges were $101 million / $146 million, partly offset during 9M by the insurance gain.

Higher realized copper prices contributed $1.395 billion to the year-over-year Q3 revenue change and $3.598 billion to the 9M change, while lower copper sales volumes reduced revenue by $1.061 billion and $3.405 billion, respectively. Lower gold volumes also weighed on revenue. Prior-period provisional copper sales are remeasured until final pricing: favorable adjustments were $52 million in Q3 and $58 million in 9M. At September 30, 239 million pounds of consolidated provisional copper sales (134 million pounds net of noncontrolling interests) were recorded at $6.55/lb; each $0.05/lb change was estimated to affect revenue by about $12 million and common net income by $4 million.

Segment results

Operating performance

*Excludes mud-rush-related costs. Lower copper and gold sales mainly reflect PTFI’s reduced operating rates during the Grasberg Block Cave ramp-up and shipment/inventory timing. PTFI deferred about 60,000 ounces of refined gold from Q3 into Q4. Its Q3 mill throughput averaged 141,300 metric tons of ore per day, about 67% of capacity; management targets 80% by mid-2027 and near-full capacity by year-end 2027. Recovery rates improved, although ore grades declined.

For 9M, copper production/sales were 2.280 billion / 2.116 billion pounds versus 2.743 billion / 2.865 billion; gold production/sales were 523,000 / 349,000 ounces versus 891,000 / 986,000. PTFI’s 9M copper sales fell to 388 million pounds from 1.093 billion and gold sales to 332,000 ounces from 975,000. The prolonged mud-rush recovery and lower operating rates remain central constraints; smelter operations are still normalizing after the 2024 fire and concentrate shortfall.

Cash flow, spending and financial position

Nine-month operating cash flow included the PTFI insurance proceeds and was net of $0.8 billion of working-capital and other uses, versus $0.5 billion of such uses in 2025. FCX forecast FY2026 operating cash flow of about $8.5 billion and capital expenditures of $4.4 billion, including $3.0 billion for major projects. Its forecast assumed Q4 prices of $6.50/lb copper, $4,000/oz gold and $32/lb molybdenum.

At September 30, consolidated cash was $4.335 billion and debt was $9.398 billion, with a 5.2% weighted-average interest rate and approximately eight-year average remaining maturity. Net debt under FCX’s stated measure was $5.063 billion; excluding $3.237 billion of PTFI downstream-processing debt, it was $1.826 billion, below the company’s $3.0–$4.0 billion target range. Cash available to the parent, net of noncontrolling interests and withholding taxes, was $3.3 billion. Revolver availability was $3.0 billion for FCX, $1.5 billion for PTFI and $350 million for Cerro Verde. FCX returned $955 million to shareholders in 9M ($650 million dividends and $305 million repurchases); repurchases covered 4.9 million shares at an average $62.69 per share.

Outlook, investment and risks

FCX expected FY2026 sales of 3.0 billion pounds of copper, 93,000 ounces of gold and 93 million pounds of molybdenum. It forecast copper-mine unit net cash costs of $1.90/lb for the year, including $1.68/lb in Q4, and PTFI idle-facility and restoration costs of $1.2 billion for the year. Commodity prices, operating rates, shipment timing, energy and input costs, taxes and working capital remain important uncertainties.

Leaching initiatives and analytics are intended to raise annual copper output from a current run rate of about 220 million pounds to 300 million in 2027. The Board approved a roughly $4.5 billion Bagdad expansion in November 2026, expected to more than double mining and milling rates and add about 225 million pounds of annual copper at full rates, with initial production targeted for mid-2030. FCX is also advancing permitting for a potential El Abra expansion that could add more than 700 million pounds of annual copper; preliminary capital estimates are about $7.5 billion and remain under review.

PTFI’s operating-rights extension beyond 2041 remains subject to Indonesian approvals and definitive agreements. Other significant exposures include underground-mining and ramp-up execution, water availability, commodity volatility and tariff/export-policy changes. FCX noted that potential U.S. refined-copper tariffs could begin in 2027; it does not expect domestic-sale requirements to adversely affect it, citing its integrated U.S. operations.

No material changes occurred in Freeport-McMoRan’s market risks during the nine months ended September 30, 2026. For further discussion, the filing refers readers to the company’s 2025 Form 10-K and to the 10-Q’s Outlook and Consolidated Results—Revenues sections, which discuss projected operating-cash-flow and provisionally priced copper-sales sensitivities to commodity-price changes.

Disclosure controls and procedures were evaluated and deemed effective as of September 30, 2026. During the quarter, no changes to internal control over financial reporting materially affected, or were reasonably likely to materially affect, the company’s internal control over financial reporting.

Risk Factors

FCX reported no material changes to its previously disclosed risk factors, other than an update concerning evolving geopolitical, economic, regulatory and social risks. FCX is investigating whether activities at PT Smelting, an Indonesian joint venture between PTFI and Mitsubishi Materials Corporation (MMC), may have violated the U.S. Foreign Corrupt Practices Act or other laws. An MMC affiliate operates PT Smelting.

FCX voluntarily notified the SEC and U.S. Department of Justice and retained outside counsel to investigate. On March 17, 2026, the SEC informed FCX that it does not intend to pursue an enforcement action. FCX’s investigation remains ongoing, and its outcome is uncertain; findings of noncompliance could result in fines, penalties or equitable remedies.

During Q3 2026, no FCX director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. This section reports no financial results or other material business developments.