Lists net income of $881 million for the first quarter
Staff Reports
PHOENIX — Freeport-McMoRan Inc. (NYSE: FCX) on Thursday posted robust first-quarter results, driven by elevated realized prices for copper and gold. Strong performance from its North American operations, particularly improvements at the Morenci mine and contributions from the Safford mine, including the Lone Star expansion, helped offset lower sales volumes impacted by ongoing operational constraints at its Grasberg mine in Indonesia.
The Phoenix-based mining giant reported net income attributable to common stock of $881 million, or 61 cents per diluted share, for the quarter ended March 31, 2026. Adjusted earnings, excluding non-recurring items, came in at 57 cents per share. That comfortably beat Wall Street expectations, with analysts polled by Zacks Investment Research forecasting 47 cents per share.
Revenue rose to $6.23 billion, up about 8.8% from $5.73 billion in the year-ago period. The figure also exceeded consensus estimates.
Consolidated sales volumes totaled 657 million pounds of copper, 121,000 ounces of gold, and 24 million pounds of molybdenum. Average realized prices were strong: approximately $5.78 per pound for copper (up significantly from the prior-year period) and notably higher for gold. Molybdenum realized around $25 per pound.
Unit net cash costs for copper averaged $1.91 per pound, favorable to prior guidance and aided by strong by-product credits.
Operating income more than doubled year-over-year, reflecting the favorable metal price environment and solid performance from U.S. operations, which generated significantly higher contributions.
In North America, production exceeded the year-ago quarter despite some sequential softness. Operating teams focused on discipline, reduced unplanned downtime, and maximized output from existing assets. Mining rates improved notably at Morenci, with a 19% increase compared to the first quarter of 2025. The company also highlighted progress on initiatives such as a pilot test at Morenci to enhance leaching through heated solutions applied to stockpiles.
The Safford mine (including Lone Star) continued to contribute meaningfully, with the Lone Star expansion area supporting ongoing production growth in the district. Freeport-McMoRan is advancing pre-feasibility studies in the broader Safford/Lone Star district to evaluate options for a potential significant expansion, capitalizing on a large undeveloped resource in an established U.S. mining district. Studies are expected to conclude in 2026.
“Copper prices have averaged over $5.80 per pound year to date and reached an all-time high exceeding $6 per pound in the first quarter,” executives noted. Demand signals remain positive, particularly from AI data centers, energy infrastructure, and power grid investments.
Despite the earnings beat, shares of Freeport-McMoRan fell sharply in trading on Thursday. Analysts attributed the reaction partly to updated full-year guidance reflecting reduced expectations at Grasberg due to operational challenges, as well as the stock’s recent run-up.
The company adjusted its 2026 consolidated sales guidance to reflect lower contributions from Grasberg, though it continues to emphasize long-term organic growth opportunities. North American assets, anchored by Morenci—one of the world’s largest copper mines in which FCX holds a 72% interest—and the Safford/Lone Star operations, provide a stable and expanding base of U.S.-based production.
Freeport-McMoRan highlighted technology and operational excellence initiatives across its North American portfolio while preparing for longer-term growth, including potential expansions in the Safford/Lone Star district. The company also declared its regular quarterly cash dividend of 7.5 cents per share.
Analysts largely maintained positive outlooks, citing the long-term copper supply-demand fundamentals and the company’s strategic position in North America alongside its global assets.
Freeport-McMoRan is one of the world’s largest publicly traded copper producers, with major operations in the Americas—including seven copper mines in the U.S., such as Morenci, Bagdad, Safford/Lone Star, Sierrita, Miami, Chino, and Tyrone—and Indonesia. The company benefits from rising global demand for copper tied to electrification, renewable energy, and data centers.
Full details of the results, including segment performance for North America, and the earnings presentation are available on the company’s investor relations website. A replay of the conference call will be accessible through late May.
