Freeport-McMoRan Inc. FCX reported adjusted earnings of 88 cents per share for the third quarter of 2026, up 76% from 50 cents a year earlier. The figure topped the Zacks Consensus Estimate of 80 cents by 10%.
Revenues rose 8.2% year over year to $7.55 billion, beating the Zacks Consensus Estimate of $7.09 billion by 6.5%. Higher realized copper and molybdenum prices supported results despite lower copper and gold sales volumes.
Freeport-McMoRan Inc. Price, Consensus and EPS Surprise
Freeport-McMoRan Inc. price-consensus-eps-surprise-chart | Freeport-McMoRan Inc. Quote
FCX's Metal Sales Reflect Grasberg Ramp-Up
Consolidated copper production declined 8.8% year over year to 832 million pounds.
Copper sales dropped 23.3% to 749 million pounds, largely reflecting lower operating rates at PT Freeport Indonesia (PTFI) during the ramp-up of the Grasberg Block Cave underground mine and shipment timing.
Gold sales plunged 68.8% to 105,000 ounces from 336,000 ounces a year ago. Around 60,000 ounces of refined gold sales in Indonesia shifted from the third to the fourth quarter. Molybdenum sales increased 15.8% to 22 million pounds.
Consolidated unit net cash costs increased 47.9% to $2.07 per pound of copper from $1.40 in the year-ago quarter. The increase reflected lower copper and gold volumes in Indonesia and higher production costs, including energy and other consumables. The figure was above our estimate of $2.01 per pound.
The average realized copper price climbed 39.7% year over year to $6.54 per pound from $4.68. The figure was above our estimate of $6.12 per pound. The average realized gold price increased 20.7% to $4,273 per ounce. The figure fell behind our estimate of $4,508. The molybdenum price rose 34.9% to $32.46 per pound. It exceeded our estimate of $26.52.
FCX's Cash Flow and Balance Sheet
Operating cash flow totaled $1.98 billion, up 17.3% year over year from $1.69 billion. Capital expenditures increased to $1.16 billion from $1.06 billion, including expenditures on major mining projects.
Cash and cash equivalents stood at $4.34 billion at September-end, compared with $4.32 billion a year earlier. Total debt was $9.4 billion versus $9.3 billion. Excluding debt related to PTFI's downstream facilities, net debt was $1.83 billion. Freeport repurchased $102 million of common shares during the quarter.
Freeport’s Outlook
For 2026, consolidated sales are projected at roughly 3 billion pounds of copper, 649,000 ounces of gold and 93 million pounds of molybdenum. Fourth-quarter sales are expected to reach 875 million pounds of copper, 300,000 ounces of gold and 22 million pounds of molybdenum.
Full-year unit net cash costs are forecast at $1.9 per pound of copper. Based on specified fourth-quarter metal price assumptions, operating cash flow is expected to total $8.5 billion, while capital expenditures are projected at $4.4 billion. PTFI expects to reach 80% of milling capacity by mid-2027 and approach full capacity by year-end 2027.
FCX’s Price Performance
Shares of FCX have gained 58.3% over the past year compared with the 25.9% rise in its industry.
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FCX’s Zacks Rank & Other Key Picks
FCXcurrently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Reliance, Inc. RS, Avino Silver & Gold Mines Ltd. ASM and Avient Corporation AVNT.
RS currently sports a Zacks Rank #1 (Strong Buy), while ASM and AVNT carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RS shares have gained 50.6% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.
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Freeport-McMoRan Inc. (FCX): Free Stock Analysis Report
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Avino Silver (ASM): Free Stock Analysis Report
Avient Corporation (AVNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).