Freeport-McMoRan's Q3 Earnings Surge on Strong Revenue Growth

TL;DR

**FCX is printing money, buy the dip if you can find one, because copper demand isn't slowing down.**

AI Summary

Freeport-McMoRan Inc. (FCX) reported a strong financial performance for the third quarter and first nine months of 2025. Revenues increased to $6.972 billion for the three months ended September 30, 2025, up from $6.790 billion in the prior year, and reached $20.282 billion for the nine months, compared to $19.735 billion in 2024. Net income attributable to common stockholders saw a significant rise, reaching $674 million ($0.46 per diluted share) for the third quarter of 2025, a substantial increase from $526 million ($0.36 per diluted share) in the same period of 2024. For the nine-month period, net income attributable to common stockholders was $1.798 billion ($1.24 per diluted share), up from $1.615 billion ($1.11 per diluted share) in 2024. Operating income also improved, standing at $1.972 billion for the quarter and $5.707 billion for the nine months. The company's total assets grew to $56.828 billion as of September 30, 2025, from $54.848 billion at December 31, 2024, driven by an increase in property, plant, equipment, and mine development costs, net, to $40.257 billion. Cash and cash equivalents increased to $4.318 billion from $3.923 billion. FCX acquired 2.9 million shares of its common stock for $107 million during the first nine months of 2025, and its Board declared cash dividends totaling $0.15 per share for the quarter.

Why It Matters

FCX's robust financial performance, marked by increased revenue and net income, signals strong demand for copper and other commodities, which is crucial for investors in the mining sector. The company's continued investment in capital projects, particularly the PT Freeport Indonesia smelter, positions it for future growth and could enhance its competitive edge against rivals like Rio Tinto and BHP. For employees, stable financial health often translates to job security and potential for growth. Customers can expect continued supply, while the broader market benefits from a healthy, productive mining industry supporting global infrastructure and technology development.

Risk Assessment

Risk Level: medium — While FCX shows strong financial performance, the company's international operations, particularly the $2.015 billion in international income taxes for the first nine months of 2025, expose it to significant geopolitical and regulatory risks. Additionally, the substantial capital expenditures, including $1.927 billion for Indonesia operations in the first nine months of 2025, indicate ongoing project risks and potential for cost overruns, despite the positive cash flow from operations of $4.917 billion.

Analyst Insight

Investors should consider FCX's strong earnings and strategic investments in copper production as a bullish signal, especially given the global push for electrification. Monitor commodity price trends and the progress of its major capital projects, particularly the PTFI smelter, as these will be key drivers of future performance and potential dividend increases.

Financial Highlights

debt To Equity

0.87

revenue

$20.282B

operating Margin

28.1%

total Assets

$56.828B

total Debt

$9.298B

net Income

$1.798B

eps

$1.24

gross Margin

41.7%

cash Position

$4.318B

revenue Growth

+2.8%

Key Numbers

• $6.972B — Revenues for Q3 2025 (Increased from $6.790 billion in Q3 2024)
• $20.282B — Revenues for nine months ended Sept 30, 2025 (Increased from $19.735 billion in 2024)
• $674M — Net income attributable to common stockholders for Q3 2025 (Increased from $526 million in Q3 2024)
• $1.798B — Net income attributable to common stockholders for nine months ended Sept 30, 2025 (Increased from $1.615 billion in 2024)
• $0.46 — Diluted EPS for Q3 2025 (Increased from $0.36 in Q3 2024)
• $1.24 — Diluted EPS for nine months ended Sept 30, 2025 (Increased from $1.11 in 2024)
• $4.917B — Net cash provided by operating activities for nine months ended Sept 30, 2025 (Decreased from $5.724 billion in 2024)
• $1.927B — Capital expenditures for Indonesia operations for nine months ended Sept 30, 2025 (Significant investment in growth projects)
• $0.15 — Dividends declared per share of common stock for Q3 2025 (Consistent with Q3 2024)
• 2.9M — Shares repurchased in first nine months of 2025 (Cost of $107 million at $36.41 average per share)

Key Players & Entities

• FREEPORT-MCMORAN INC (company) — registrant
• PT Freeport Indonesia (company) — subsidiary with significant capital projects
• Cerro Verde (company) — mining operation
• Bloomberg (company) — publisher
• SEC (regulator) — filing authority
• The New York Stock Exchange (regulator) — exchange where FCX is registered
• H.R.1 (regulator) — new tax law
• Freeport Minerals Corporation (company) — debt issuer
• Atlantic Copper (company) — debt issuer
• PT Smelting (company) — recipient of loans for expansion

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: FCX's financial performance is highly sensitive to fluctuations in the prices of copper, gold, and molybdenum. For instance, a significant drop in copper prices could materially impact revenues and profitability, as copper is a primary revenue driver. The company's ability to manage its costs and production levels in response to price swings is crucial.
• Operational Disruptions and Production Risks [high — operational]: Mining operations are inherently subject to risks such as equipment failures, labor disputes, natural disasters, and geological challenges. For example, disruptions at major mines like Grasberg could lead to significant production shortfalls and increased costs, directly affecting the company's output and financial results.
• Environmental and Permitting Regulations [medium — regulatory]: FCX operates under stringent environmental regulations globally, requiring substantial compliance efforts and capital expenditures. Changes in environmental laws or difficulties in obtaining or maintaining permits for mining operations, particularly in jurisdictions like Indonesia, can lead to delays, increased costs, or operational limitations.
• Debt Management and Financial Covenants [medium — financial]: While FCX has managed its debt effectively, maintaining a strong balance sheet is critical. The company has $8.915 billion in long-term debt as of September 30, 2025. Adherence to financial covenants associated with its debt obligations is essential to avoid potential defaults or restrictive actions.
• Geopolitical and Country-Specific Risks [medium — legal]: A significant portion of FCX's operations are concentrated in specific countries, such as Indonesia and South America. Political instability, changes in government policies, tax regimes, or social unrest in these regions can adversely affect operations, asset values, and the repatriation of profits.

Industry Context

Freeport-McMoRan operates in the global mining industry, primarily focused on copper and gold. The industry is characterized by high capital intensity, cyclical commodity prices, and significant geopolitical and environmental considerations. Major competitors include companies like BHP, Rio Tinto, and Glencore. Demand for copper is driven by global economic growth, particularly in sectors like construction, automotive, and renewable energy infrastructure.

Regulatory Implications

FCX faces significant regulatory scrutiny related to environmental protection, mine safety, and resource extraction permits in its operating jurisdictions. Compliance with evolving environmental standards and obtaining necessary permits are critical for continued operations and expansion, with potential for delays or increased costs if regulations are not met.

What Investors Should Do

1. Monitor copper and gold price trends closely.
2. Analyze capital expenditure plans, especially for growth projects.
3. Assess the impact of noncontrolling interests on net income.
4. Evaluate the company's debt levels and interest coverage.

Key Dates

• 2025-09-30: End of Third Quarter and Nine Months — Reporting period for the 10-Q filing, showing increased revenues and net income compared to the prior year.
• 2025-12-31: Prior Year End — Baseline for comparison of asset growth, with total assets increasing from $54.848 billion to $56.828 billion.

Glossary

Depreciation, depletion and amortization

The systematic allocation of the cost of tangible assets (depreciation), natural resources (depletion), and intangible assets (amortization) over their useful lives. (This is a significant non-cash expense for FCX, impacting its cost of sales and operating income. It was $1.759 billion for the nine months ended September 30, 2025.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership stake of outside shareholders in consolidated subsidiaries. (FCX has substantial noncontrolling interests ($11.712 billion as of Sept 30, 2025), which significantly impacts net income attributable to common stockholders.)

Mill and leach stockpiles

Materials accumulated at a mine site that are ready for processing (mill) or are being treated to extract valuable minerals (leach). (These are significant inventory assets for FCX, with mill and leach stockpiles totaling $1.501 billion as of September 30, 2025.)

Equity in affiliated companies' net (losses) earnings

Represents FCX's share of the profits or losses of companies in which it has significant influence but not control, typically accounted for using the equity method. (This line item was minimal ($0 for the nine months ended Sept 30, 2025), indicating limited significant investments accounted for under this method.)

Year-Over-Year Comparison

Compared to the prior year, FCX has demonstrated revenue growth, with revenues increasing by 2.8% to $20.282 billion for the nine months ended September 30, 2025. Net income attributable to common stockholders also saw a substantial increase, rising to $1.798 billion from $1.615 billion in the same period last year, with diluted EPS improving to $1.24 from $1.11. Total assets have grown to $56.828 billion, driven by investments in property, plant, and equipment. However, net cash provided by operating activities decreased to $4.917 billion from $5.724 billion, indicating a shift in cash generation dynamics despite top-line and bottom-line improvements.

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share FCX The New York Stock Exchan

Filing Documents

• fcx-20250930.htm (10-Q) — 3636KB
• a3q2025exhibit151.htm (EX-15.1) — 6KB
• a3q2025exhibit311.htm (EX-31.1) — 10KB
• a3q2025exhibit312.htm (EX-31.2) — 10KB
• a3q2025exhibit321.htm (EX-32.1) — 6KB
• a3q2025exhibit322.htm (EX-32.2) — 6KB
• a3q2025exhibit951.htm (EX-95.1) — 173KB
• fcx-20250930_g1.jpg (GRAPHIC) — 3KB
• fcx-20250930_g2.jpg (GRAPHIC) — 298KB
• fcx-20250930_g3.jpg (GRAPHIC) — 226KB
• fcx-20250930_g4.jpg (GRAPHIC) — 190KB
• 0000831259-25-000050.txt ( ) — 12073KB
• fcx-20250930.xsd (EX-101.SCH) — 34KB
• fcx-20250930_cal.xml (EX-101.CAL) — 61KB
• fcx-20250930_def.xml (EX-101.DEF) — 212KB
• fcx-20250930_lab.xml (EX-101.LAB) — 545KB
• fcx-20250930_pre.xml (EX-101.PRE) — 362KB
• fcx-20250930_htm.xml (XML) — 1761KB

Financial Information

Part I. Financial Information 3

Financial Statements

Item 1. Financial Statements: 3 Consolidated Balance Sheets (Unaudited) 3 Consolidated Statements of Income (Unaudited) 4 Consolidated Statements of Comprehensive Income (Unaudited) 5 Consolidated Statements of Cash Flows (Unaudited) 6 Consolidated Statements of Equity (Unaudited) 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9 Report of Independent Registered Public Accounting Firm 23

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 67

Controls and Procedures

Item 4. Controls and Procedures 67

Other Information

Part II. Other Information 67

Legal Proceedings

Item 1. Legal Proceedings 67

Risk Factors

Item 1A. Risk Factors 68

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 68

Other Information

Item 5. Other Information 68

Exhibits

Item 6. Exhibits 69 Signature S- 1 2 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . Freeport-McMoRan Inc. CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, 2025 December 31, 2024 (In Millions) ASSETS Current assets: Cash and cash equivalents $ 4,318 $ 3,923 Restricted cash and cash equivalents 230 888 Trade accounts receivable 916 578 Value added and other tax receivables 548 564 Inventories: Product 2,864 3,038 Materials and supplies, net 2,633 2,382 Mill and leach stockpiles 1,501 1,388 Other current assets 554 535 Total current assets 13,564 13,296 Property, plant, equipment and mine development costs, net 40,257 38,514 Long-term mill and leach stockpiles 1,091 1,225 Other assets 1,916 1,813 Total assets $ 56,828 $ 54,848 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $ 4,098 $ 4,057 Accrued income taxes 528 859 Current portion of debt 383 41 Current portion of environmental and asset retirement obligations 299 320 Dividends payable 218 219 Total current liabilities 5,526 5,496 Long-term debt, less current portion 8,915 8,907 Environmental and asset retirement obligations, less current portion 5,457 5,404 Deferred income taxes 4,359 4,376 Other liabilities 2,174 1,887 Total liabilities 26,431 26,070 Equity: Stockholders' equity: Common stock 163 162 Capital in excess of par value 23,660 23,797 Retained earnings (accumulated deficit) 1,196 ( 170 ) Accumulated other comprehensive loss ( 310 ) ( 314 ) Common stock held in treasury ( 6,024 ) ( 5,894 ) Total stockholders' equity 18,685 17,581 Noncontrolling interests 11,712 11,197 Total equity 30,397 28,778 Total liabilities and equity $ 56,828 $ 54,848 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents Freeport-McMoRan Inc. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (In Millions, Except Per Share Amounts) Revenues $

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1. GENERAL INFORMATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.'s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2024 (2024 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the nine-month period ended September 30, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. Dollar amounts in tables are stated in millions, except per share amounts. Subsequent Events. FCX evaluated events after September 30, 2025, and through the date the consolidated financial statements were issued and determined any events and transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements. NOTE 2. EARNINGS PER SHARE FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders (after deducting accumulated undistributed dividends and earnings allocated to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net

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