Key Takeaways:
- EPS of 74 cents beat the 62-cent consensus by 19.4%
- Revenue of $7.03B topped estimates despite an 18% drop in copper output
- Higher realized copper prices of $6.17/lb helped counter lower production volumes
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Freeport-McMoRan beats Q2 estimates as copper prices offset volume declines
Freeport-McMoRan reported second-quarter adjusted earnings of 74 cents a share, beating the 62-cent consensus by 19.4%, as higher realized metal prices offset steep declines in copper and gold production.
Revenue of $7.03 billion surpassed the $6.47 billion consensus estimate, though it fell 7.3% from $7.58 billion a year earlier. Net income rose to $984 million, or 68 cents a share, from $772 million, or 53 cents, in the year-ago period.
"The strong financial results reflect the benefit of higher copper and gold prices, which more than offset lower sales volumes as we continue the ramp-up at Grasberg Block Cave," the company said in its earnings release.
Copper sales dropped 30.1% year over year to 710 million pounds, while gold sales plunged 76.4% to 123,000 ounces, reflecting lower operating rates at PT Freeport Indonesia during the phased ramp-up of the Grasberg Block Cave underground mine following the mud rush incident in September 2025. Molybdenum sales rose 13.6% to 25 million pounds.
The average realized copper price climbed 35.9% to $6.17 a pound, and the average realized gold price rose 37.3% to $4,520 an ounce. Unit net cash costs surged 74.3% to $1.97 a pound, driven by higher energy and consumable costs tied to the Middle East conflict and persistent pressure on volumes.
Cash flow from operations totaled $2 billion in the quarter, down 6.7% from a year earlier. Capital expenditures fell to $1.1 billion from $1.26 billion. The company ended the quarter with $4.1 billion in cash and $9.4 billion in total debt.
For the full year, Freeport maintained its copper sales guidance at 3.1 billion pounds, with gold sales of 650,000 ounces and molybdenum sales of 93 million pounds. Third-quarter copper sales are projected at 750 million pounds, with gold sales of 160,000 ounces.
Shares of Freeport-McMoRan have gained 28% since the start of the year, outperforming the S&P 500's 9.6% advance. The stock carries a Zacks Rank of 3 (Hold), reflecting mixed estimate revision trends ahead of the report.
The earnings beat signals that copper miners can still deliver margin expansion even amid production constraints, as structural demand from electrification, renewable energy and data centers keeps prices elevated. Investors will watch third-quarter results for further progress on the Grasberg ramp-up and updated cost guidance.
This article is for informational purposes only and does not constitute investment advice.
