Freeport-McMoRan 8-K
PositiveEarningsNew guidanceImpairment / charge
Grasberg’s phased ramp-up cut copper and gold sales; higher metal prices and strong U.S. operations supported earnings.
Filed 2026-07-23 08:06 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q2 and first-half 2026 results with full-year and Q3 operating and financial outlook. FCX’s net income attributable to common stock rose Y/Y in both periods, while copper and gold sales fell as PT Freeport Indonesia (PTFI) continued the phased Grasberg Block Cave ramp-up. Higher realized metal prices and strong U.S. operations supported results; the ramp-up is progressing on schedule.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $7.03B | $7.58B | -7.3% |
| Operating income | $2.00B | $2.43B | -17.6% |
| Net income attributable to common stock | $984M | $772M | +27.5% |
| Adjusted net income attributable to common stock, non-GAAP | $1.08B | $790M | +36.7% |
| Diluted EPS | $0.68 | $0.53 | +28.3% |
| Adjusted diluted EPS, non-GAAP | $0.74 | $0.54 | +37.0% |
| Operating cash flow | $2.05B | $2.20B | -6.7% |
| Copper sales | 710M lb | 1.02B lb | -30.1% |
| Gold sales | 123k oz | 522k oz | -76.4% |
| Molybdenum sales | 25M lb | 22M lb | +13.6% |
| Metric | 1H 2026 | 1H 2025 | Y/Y |
|---|---|---|---|
| Revenue | $13.3B | $13.3B | -0.4% |
| Operating income | $4.14B | $3.74B | +10.8% |
| Net income attributable to common stock | $1.87B | $1.12B | +65.9% |
| Adjusted net income attributable to common stock, non-GAAP | $1.91B | $1.15B | +66.6% |
| Diluted EPS | $1.29 | $0.77 | +67.5% |
| Adjusted diluted EPS, non-GAAP | $1.32 | $0.79 | +67.1% |
| Operating cash flow | $3.54B | $3.25B | +8.9% |
| Copper sales | 1.37B lb | 1.89B lb | -27.6% |
| Gold sales | 244k oz | 650k oz | -62.5% |
| Molybdenum sales | 49M lb | 42M lb | +16.7% |
- Lower copper and gold sales mainly reflected Grasberg’s phased ramp-up; Q2 copper sales exceeded FCX’s April estimate on shipment timing and improved operating performance, while gold sales were below estimate due to shipment timing. Molybdenum sales increased with lower inventory.
- Q2 copper unit net cash costs, excluding Grasberg idle-facility and restoration costs, were $1.97/lb vs $1.13/lb Y/Y and better than the April estimate of $2.24/lb, primarily on higher molybdenum by-product credits and copper volumes. Grasberg idle-facility and restoration costs were $284M in Q2 and $690M in 1H; the presentation estimates $1.2B for FY2026, including $300M in Q3.
- Q2 operating cash flow included $700M of PTFI insurance proceeds and was net of $596M of working capital and other uses. At 6/30/2026, consolidated cash was $4.1B, total debt $9.4B, and net debt excluding $3.2B of PTFI downstream-facility debt was $2.1B. Q2 share repurchases were 1.7M shares for $110M; diluted weighted-average shares were 1.443B, flat Y/Y.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Consolidated copper sales | FY2026 | ≈3.1B lb | — | — |
| Consolidated gold sales | FY2026 | ≈650k oz | — | — |
| Consolidated molybdenum sales | FY2026 | ≈93M lb | — | — |
| Consolidated copper, gold and molybdenum sales | Q3 2026 | 750M lb; 160k oz; 22M lb | — | — |
| Consolidated unit net cash costs, non-GAAP | FY2026 | ≈$1.90/lb Cu | — | — |
| Consolidated unit net cash costs, non-GAAP | Q3 2026 | $2.00/lb Cu | — | — |
| Operating cash flow | FY2026 | ≈$8.3B, net of ≈$0.3B working capital and other uses; assumes 2H prices of $6.00/lb Cu, $4,000/oz gold and $30.00/lb molybdenum | — | — |
| Capital expenditures | FY2026 | ≈$4.3B, including $3.0B for major projects | — | — |
| U.S. copper mine sales | FY2026 | ≈1.4B lb | — | — |
| U.S. copper mine unit net cash costs, non-GAAP | FY2026 | ≈$2.96/lb Cu | — | — |
| South America copper sales | FY2026 | ≈1.0B lb | — | — |
| South America unit net cash costs, non-GAAP | FY2026 | ≈$2.56/lb Cu | — | — |
| PTFI copper and gold sales | FY2026 | ≈0.7B lb Cu; 650k oz gold | — | — |
| PTFI unit net cash credits, non-GAAP | FY2026 | ≈$1.22/lb Cu | — | — |
| Molybdenum mine unit net cash costs, non-GAAP | FY2026 | ≈$17.91/lb molybdenum | — | — |
| Grasberg production capacity | 2H 2026; mid-2027; YE2027 | ≈65%; ≈80%; near full capacity | — | — |
| Leach initiative annual run rate | YE2026 | Targeting 300M lb Cu | — | — |
Investor Takeaways
- Track Grasberg’s ramp-up against FCX’s capacity milestones and its FY2026 copper and gold sales outlook; timing and shipment deferrals remain key to reported sales.
- FCX expects a potential Bagdad expansion investment decision in 2H2026; the project’s updated capital estimate is ≈30% above the 2023 estimate of $3.5B.
- Watch progress toward the 300M-lb annual leach run-rate target by YE2026 and the pending Indonesian license-extension process for Grasberg operations beyond 2041.
The summary is written by an AI model reading the filing.
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