Freeport-McMoRan 8-K
PositiveEarningsNew guidanceImpairment / charge
Higher metal prices supported margins as the Grasberg ramp-up and shipment timing reduced copper and gold sales
Filed 2026-10-27 08:08 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 and nine-month 2026 results with a full-year 2026 outlook. Higher realized metal prices supported margins and cash flow, while lower copper and gold sales reflected the Grasberg Block Cave ramp-up and the timing of shipments and refined gold sales. FCX reported steady progress ramping Grasberg and the restart of PTFI’s smelter; it expects Grasberg to reach about 80% of capacity by mid-2027 and approach full capacity by year-end 2027.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $7.55B, +8.2% Y/Y | $20.8B, +2.6% Y/Y |
| Operating income | $2.35B, +19% Y/Y | $6.49B, +14% Y/Y |
| Net income attributable to common stockholders | $1.17B, +74% Y/Y | $3.04B, +69% Y/Y |
| Adjusted net income attributable to common stockholders, non-GAAP | $1.28B, +77% Y/Y | $3.19B, +70% Y/Y |
| Diluted EPS | $0.81, +76% Y/Y | $2.10, +69% Y/Y |
| Adjusted diluted EPS, non-GAAP | $0.88, +76% Y/Y | $2.20, +71% Y/Y |
| Operating cash flow | $1.98B, +17% Y/Y | $5.52B, +12% Y/Y |
| Copper sales | 749M lbs, -23% Y/Y | 2.12B lbs, -26% Y/Y |
| Gold sales | 105k oz, -69% Y/Y | 349k oz, -65% Y/Y |
- Realized prices rose Y/Y: copper was $6.54/lb vs $4.68, gold $4,273/oz vs $3,539 and molybdenum $32.46/lb vs $24.07. Q3 copper production was 832M lbs and gold production 234k oz; lower sales chiefly reflected reduced PTFI operating rates during the Grasberg ramp-up and inventory and shipment timing. Adjusted net income excludes $101M of after-tax charges, primarily for mud-rush-related idle facility and restoration costs.
- Q3 operating cash flow included $0.4B of working capital and other uses. At 9/30/2026, consolidated cash was $4.3B and debt was $9.4B; net debt was $1.8B excluding $3.2B of PTFI downstream-processing debt. FCX returned $955M to shareholders in 9M 2026: $650M in dividends and $305M in repurchases.
- Q3 capital expenditures were $1.16B. Growth plans include a potential Bagdad expansion adding 200M–250M lbs of copper annually, with an investment decision expected in Q4 2026 and estimated incremental capital costs of ≈$4.5B. El Abra’s potential expansion could add over 700M lbs of annual copper production; its preliminary capital estimate is ≈$7.5B, based on 2024 estimates.
Against earlier guidance
| Metric | Period | Earlier guidance | Actual |
|---|---|---|---|
| Copper sales | Q3 2026 | 750M lbs, July 2026 estimate | 749M lbs |
| Gold sales | Q3 2026 | 160k oz, July 2026 estimate | 105k oz |
| Molybdenum sales | Q3 2026 | July 2026 estimate; figure not restated | 22M lbs |
| Unit net cash costs, copper mines, non-GAAP | Q3 2026 | $2.00/lb, July 2026 estimate | $2.07/lb |
Compared with the earlier filings (derived)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Consolidated copper sales | Q3 2026 | ≈750M pounds | 749M lbs | in line |
| Consolidated gold sales | Q3 2026 | ≈100,000 ounces | 105k oz | beat |
| Consolidated average realized copper price | Q3 2026 | >$6.50/lb | $6.54 | in line |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Consolidated sales: copper, gold and molybdenum | FY2026 | ≈3.0B lbs; 649k oz; 93M lbs | — | — |
| Consolidated sales: copper, gold and molybdenum | Q4 2026 | 875M lbs; 300k oz; 22M lbs | — | — |
| Unit net cash costs, copper mines, non-GAAP | FY2026; Q4 2026 | $1.90/lb; $1.68/lb | — | — |
| Site production and delivery costs, copper mines | FY2026; Q4 2026 | $3.29/lb; $3.34/lb | — | — |
| Unit net cash costs, U.S. copper mines, non-GAAP | FY2026 | ≈$3.08/lb | — | — |
| Unit net cash costs, South America, non-GAAP | FY2026 | ≈$2.59/lb | — | — |
| Unit net cash credits, PTFI, non-GAAP | FY2026 | ≈$1.25/lb | — | — |
| Unit net cash costs, molybdenum mines, non-GAAP | FY2026 | ≈$18.66/lb | — | — |
| Operating cash flow | FY2026 | ≈$8.5B, net of $0.6B of working capital and other uses | — | — |
| Capital expenditures | FY2026 | ≈$4.4B, including $3.0B for major mining projects | — | — |
| Consolidated effective tax rate | FY2026 | ≈30% | — | — |
| Copper sales | FY2027; FY2028 | 3.7B lbs; 4.1B lbs | — | — |
| Copper sales target | By 2030 | 4.5B–5B lbs annually | — | — |
| Incremental copper from leach initiatives | 2027; potential by 2030 | 300M lbs; ≈800M lbs annually | — | — |
Q4 cash-flow and cost outlook assumes copper at $6.50/lb, gold at $4,000/oz and molybdenum at $32/lb. FCX’s sales and cost outlook depends on operating performance, Grasberg and smelter ramp-up, weather, shipment timing and other factors.
Investor Takeaways
- Track Grasberg throughput and sales against the ramp-up milestones: PTFI averaged 141k metric tons of ore per day in Q3, 67% of capacity, including 70k from Grasberg Block Cave; reaching about 80% by mid-2027 and near-full capacity by year-end 2027 would support the projected recovery in copper and gold sales.
- Q4 gold sales are projected at 300k oz versus 105k oz in Q3, largely reflecting deferred refined gold sales; delivery of that volume would test the expected catch-up in PTFI sales.
- Watch the Q4 Bagdad expansion investment decision and continued progress on leach initiatives, which target 300M lbs of annual incremental copper by 2027 and potential growth toward 800M lbs by 2030.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-27 14:38:38Z