Freeport-McMoRan Q2 Earnings Beat Amid Softer Copper Outlook

Freeport‑McMoRan Inc. reported second-quarter results on July 23, 2026, with earnings surpassing consensus as higher realized copper prices and improved unit cash costs offset weaker volumes. Management lowered near-term copper-sales expectations amid ongoing operational challenges.

Earnings Beat Fueled by Copper Prices and Cost Improvements

Freeport‑McMoRan said in its Form 8-K that for the quarter ended June 30, 2026, net income attributable to common stock was $984 million, with GAAP diluted earnings per share of $0.68. Adjusted net income reached $1.1 billion, or $0.74 per share, excluding specified items including costs related to the Grasberg mine. Revenue totaled $7.03 billion, operating income was $2.0 billion, and operating cash flow was $2.05 billion.

The company sold 710 million pounds of copper, 123,000 ounces of gold, and 25 million pounds of molybdenum in the quarter. Average realized prices were $6.17 per pound for copper, $4,520 per ounce for gold, and $28.75 per pound for molybdenum. Year over year, copper production declined about 18.4% to 786 million pounds, copper sales fell roughly 30.1%, and gold sales dropped 76.4%, while molybdenum output and sales rose, supported by higher prices and inventory drawdowns.

Management said the results “reflected strong execution across [Freeport’s] global copper portfolio.” The company reaffirmed its broader 2026 outlook but lowered consolidated unit net cash cost guidance to about $1.90 per pound from $1.95 in April, citing higher by-product credits and operational improvements. It expects full-year consolidated copper sales near 4.3 billion pounds, gold sales around 2.0 million ounces, and molybdenum sales close to 90 million pounds. Management noted copper sales in upcoming quarters would be lower than previously guided due to more conservative ramp assumptions at PT Freeport Indonesia (PTFI). Grasberg Block Cave production ramped to about 69,000 tons per day in June, but the operation remains under repair following a 2025 accident, with related costs excluded from adjusted results.

Rising Capital Spending and Trimmed Near-Term Sales Outlook

For the first half of 2026, Freeport’s consolidated net income rose about 65% compared with the same period in 2025. Adjusted EBITDA was roughly $5.4 billion, operating cash flow about $3.5 billion, and capital expenditures totaled $2.1 billion. U.S. copper mining operations contributed significantly, generating operating income approximately 2.4 times higher than in the first half of 2025.

Shareholder returns in the first half totaled about $600 million, including $200 million in share repurchases. The company bought back 3.4 million shares at an average price of $59.30 per share.

The quarter also highlighted rising capital spending estimates and an increased preliminary cost forecast for the Bagdad expansion project in Arizona. These factors, combined with the trimmed near-term copper sales outlook, drew investor attention. After the release, focus shifted to the softer sales outlook, higher capital expenditures, and the timing of Grasberg’s ramp-up rather than the headline earnings beat.