Freeport Adjusted Earnings Reach $0.88 a Share, Beating Third-Quarter Estimates
Key Facts
Freeport-McMoRan posted adjusted earnings of $0.88 a share in the third quarter of 2026, topping analysts’ estimate of $0.80, according to results data reported by Investing.com. Revenue was $7.55 billion, above the average forecast of $7.36 billion. Revenue also rose 8% from $6.97 billion in the year-earlier quarter. Financial performance was supported by higher copper and molybdenum prices, according to the report. Copper sales volumes, however, fell from year-earlier levels, while deferred gold sales affected the volumes recorded during the quarter.
Copper sales totaled 749 million pounds, in line with expectations but down from 977 million pounds in the third quarter of 2025. The company attributed the decline mainly to lower operating rates at its Indonesian operations as it ramped up production at the Grasberg Block Cave mine. Freeport had estimated copper sales of about 750 million pounds in an operational update issued on October 2, close to its July estimate. In the same update, it estimated consolidated copper production at about 830 million pounds, in line with expectations. The company said a slight improvement in international operations offset a slight decline in U.S. production.
Gold sales totaled 105,000 ounces, compared with the July estimate of 160,000 ounces. The report attributed the gap mainly to the timing of refined gold sales in Indonesia and to production-in-process inventories at the smelters. Freeport had said in its operational update that about 60,000 ounces of refined gold sales would shift from the third quarter to the fourth quarter. In that update, the company estimated consolidated gold production at about 230,000 ounces, close to its expectations. The gap between production and sales highlights the effect of sales timing on quarterly figures, with some sales moving into the following period.
The average realized copper price was $6.54 a pound, while molybdenum averaged $32.46 a pound during the quarter. The company’s adjusted net income was $1.3 billion, according to the report, which linked its support to higher prices for both metals. The company’s previous update had forecast an average realized copper price above $6.50 a pound. It also said consolidated unit net cash costs could be about 5% higher than the July estimate of $2.00 a pound. The company attributed the expected increase mainly to lower byproduct credits because of deferred gold sales.
Regarding its U.S. operations, Freeport said more frequent localized flooding, power outages and strong winds pushed operating rates below plan in the third quarter. In Indonesia, it said unusually dry conditions were generally favorable for mining but created challenges for milling operations, with limited impact as of the update. At Grasberg, average ore processing was about 140,000 metric tons a day, or about 67% of normal rates before the September 2025 incident. That included about 70,000 metric tons a day from Grasberg Block Cave. Chief Executive Kathleen Quirk said the team "delivered strong financial results in the third quarter and achieved important milestones to support future growth."
PT Freeport Indonesia’s smelter in East Java resumed operations in late August 2026, following a temporary suspension after the Grasberg incident in September 2025. The company said the smelter’s production ramp-up was proceeding as expected. Freeport aims to complete upgrades to the materials handling system at Grasberg Block Cave by early 2027, while preparing to resume production from Production Block 1S by the middle of that year. The company aims for Grasberg to reach about 80% of capacity in mid-2027 and approach full capacity by year-end. It also aims to make an investment decision by the end of 2026 on doubling the capacity of its Bagdad facility in Arizona.
Freeport expects fourth-quarter sales of 875 million pounds of copper and 300,000 ounces of gold, according to results figures reported by Investing.com. For the full year, it expects consolidated sales of about 3.0 billion pounds of copper, 649,000 ounces of gold and 93 million pounds of molybdenum. It also targets operating cash flows of about $8.5 billion for 2026 and unit net cash costs of $1.90 a pound. The cost outlook assumes fourth-quarter prices of $4,000 an ounce for gold and $32.00 a pound for molybdenum. The company’s shares rose 0.6% after the results were announced.