10-QPeriod: Q1 FY2026

FREEPORT-MCMORAN INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:FCX

Summary

Freeport-McMoRan Inc. (FCX) reported a significant increase in net income attributable to common stockholders for the first quarter of 2026, rising to $881 million ($0.61 per diluted share) from $352 million ($0.24 per diluted share) in the prior year's quarter. This improvement was driven by higher average realized prices for copper and gold, and the recognition of a substantial $700 million insurance settlement related to the September 2025 mud rush incident at the Grasberg minerals district in Indonesia. Revenues also saw a notable increase to $6.23 billion from $5.73 billion year-over-year. Despite the positive earnings impact from higher commodity prices and insurance proceeds, the company faced operational challenges, particularly the ongoing ramp-up at the Grasberg Block Cave underground mine following the mud rush incident. This incident has led to adjusted production forecasts, with near-term output limited due to necessary modifications to ore loading systems. However, the company ended the quarter with a solid balance sheet, including $3.7 billion in cash and cash equivalents and a manageable net debt position of $2.4 billion (excluding PTFI's downstream processing facilities debt).

Financial Highlights

50 data points
Beta

Revenue

$6.23B

26.5% Gross Margin

Net Income

$881.00M

14.1% Net Margin

EPS (Diluted)

$0.61

Total Assets

$58.84B

Cash & Equivalents

$3.74B

Free Cash Flow

$1.50B

Financial Statements
Beta
Revenue$6.23B
Cost of Revenue$4.58B
Gross Profit$1.66B
SG&A Expenses$162.00M
Operating Expenses$4.10B
Operating Income$2.14B
Net Income$881.00M
EPS (Basic)$0.61
EPS (Diluted)$0.61
Shares Outstanding (Basic)1.44B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Net income attributable to common stockholders increased to $881 million ($0.61/share) from $352 million ($0.24/share) year-over-year.
  • 2Revenues grew to $6.23 billion from $5.73 billion, driven by higher average realized prices for copper and gold.
  • 3The company recognized a $700 million insurance settlement gain related to the September 2025 mud rush incident at Grasberg, Indonesia.
  • 4Grasberg Block Cave underground mine ramp-up continues, but near-term production is limited to approximately 60% of capacity due to ore loading system modifications, with full capacity expected by late 2027.
  • 5Consolidated debt stood at $9.4 billion, with cash and cash equivalents at $3.7 billion, resulting in a net debt of $2.4 billion (excluding PTFI's downstream debt).
  • 6The company repurchased 1.7 million shares for $93 million in the quarter, with $2.9 billion remaining under its share repurchase program.
  • 7FCX and the Indonesian government entered into a Memorandum of Understanding for a life-of-resource extension of operating rights in the Grasberg minerals district beyond 2041.

Frequently Asked Questions

The significant increase in net income was primarily driven by higher average realized prices for copper and gold, coupled with a substantial $700 million insurance settlement received for the mud rush incident at the Grasberg mine in Indonesia. These factors more than offset the impact of lower sales volumes from the Grasberg operations.

Following the September 2025 mud rush incident, Freeport-McMoRan is undertaking a phased restart of the Grasberg Block Cave mine. While remediation and restoration for certain production blocks are complete, near-term production is limited to approximately 60% of capacity due to the need for modifications to ore loading systems. These modifications are expected to be substantially addressed by mid-2027, with full capacity anticipated by the end of 2027. The company expects overall production rates to be around 65% of capacity in the second half of 2026, increasing to 80% by mid-2027.

Freeport-McMoRan maintained a solid financial position, ending the quarter with $3.7 billion in cash and cash equivalents. Consolidated debt was $9.4 billion, resulting in a net debt of $2.4 billion (excluding debt related to PTFI's downstream processing facilities). The company also has significant availability under its revolving credit facilities. Its financial policy targets maintaining net debt between $3 billion and $4 billion (excluding PTFI's downstream debt), with a framework for shareholder returns, debt reduction, and investments.

The MOU, signed in February 2026, outlines an agreement for a life-of-resource extension of operating rights in the Grasberg minerals district beyond the current expiration in 2041. Under the terms, FCX would maintain its 48.76% ownership in PTFI until 2041 and hold approximately 37% thereafter. This extension is crucial for the long-term operational continuity and development of the Grasberg operations.