- Freeport (NYSE:FCX) reported second-quarter 2026 net income of US$984 million (US$0.68 per share) and adjusted net income of US$1.1 billion (US$0.74 per share), supported by strong copper and gold prices
- The company produced 786 million pounds of copper, 192,000 ounces of gold, and 23 million pounds of molybdenum, while maintaining its full-year 2026 sales outlook
- Operating cash flow reached US$2.0 billion in the quarter, and Freeport expects approximately US$8.3 billion in full-year operating cash flow while continuing project investments and share repurchases
- Freeport stock (NYSE:FCX) opened trading at US$62.81
Freeport (NYSE:FCX) reported second-quarter 2026 net income attributable to common stock of US$984 million, or US$0.68 per share, compared with US$772 million, or US$0.54 per share, in the same period a year earlier. The copper producer also posted adjusted net income attributable to common stock of US$1.1 billion, or US$0.74 per share, after excluding after-tax net charges of US$96 million, primarily related to idle facility and restoration costs associated with PT Freeport Indonesia’s (PTFI) September 2025 external mud rush incident.
The stronger year-over-year earnings reflected favourable commodity prices and continued operational performance across the company’s global mining portfolio.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Production and sales
Freeport reported consolidated production of:
- 786 million pounds of copper
- 192,000 ounces of gold
- 23 million pounds of molybdenum during the second quarter.
Consolidated sales for the quarter totalled:
- 710 million pounds of copper
- 123,000 ounces of gold
- 25 million pounds of molybdenum
Management maintained its 2026 sales guidance, projecting approximately:
- 3.1 billion pounds of copper
- 650,000 ounces of gold
- 93 million pounds of molybdenum for the full year.
For the third quarter of 2026, Freeport expects sales of approximately:
- 750 million pounds of copper
- 160,000 ounces of gold
- 22 million pounds of molybdenum
Benefit from higher commodity prices
Average realized prices remained supportive during the quarter, with Freeport receiving:
- US$6.17 per pound of copper
- US$4,520 per ounce of gold
- US$28.75 per pound of molybdenum
The elevated copper and gold prices contributed significantly to earnings and cash flow generation, underscoring the company’s leverage to commodity markets.
Freeport’s average unit net cash costs were US$1.97 per pound of copper during the quarter. The company expects full-year 2026 unit net cash costs to average approximately US$1.90 per pound, indicating continued cost discipline despite ongoing investment activity.
Strong cash generation
Operating cash flow totalled US$2.0 billion during the second quarter, net of US$600 million of working capital and other uses.
Looking ahead, Freeport said that assuming average commodity prices of:
- US$6.00 per pound of copper
- US$4,000 per ounce of gold
- US$30.00 per pound of molybdenum
during the second half of 2026, operating cash flow for the full year is expected to reach approximately US$8.3 billion, net of US$300 million of working capital and other uses.
The forecast highlights the significant cash-generating capacity of the business under current commodity price assumptions.
Capital investment continues
Capital expenditures totalled US$1.1 billion during the quarter, including US$700 million directed toward major mining projects.
For full-year 2026, Freeport expects capital expenditures of approximately US$4.3 billion, including US$3.0 billion allocated to major mining projects. The spending program reflects the company’s ongoing focus on sustaining production levels and advancing long-term growth initiatives.
Increasing ownership in Cerro Verde
During the quarter, Freeport purchased 2.0 million shares of Cerro Verde common stock in the open market for US$107 million. The transaction increased the company’s ownership stake in the Peruvian mining operation from 55.08 per cent to 55.66 per cent.
The acquisition reinforces Freeport’s commitment to one of its key copper-producing assets and modestly increases its exposure to future production and cash flows from Cerro Verde.
Capital returns to shareholders
Freeport also continued share repurchases during the second quarter, buying back 1.7 million shares of its common stock at a total cost of US$110 million. The average repurchase price was US$64.34 per share.
The buyback program reflects management’s ongoing efforts to return capital to shareholders while maintaining financial flexibility.
Balance sheet position
As of June 30, 2026, Freeport reported:
- Consolidated debt of US$9.4 billion
- Cash and cash equivalents of US$4.1 billion
Net debt totalled US$2.1 billion, excluding US$3.2 billion of debt related to PTFI’s downstream processing facilities.
The balance sheet remains supported by strong operating cash flows, although the company continues to manage obligations associated with strategic processing investments in Indonesia.
Outlook
Freeport enters the second half of 2026 with positive momentum, supported by strong copper and gold prices, substantial cash flow generation, and stable production expectations. While costs associated with the PTFI mud rush incident continued to weigh on reported results, the company’s adjusted earnings and cash flow performance demonstrate the resilience of its operations and the benefits of a favorable commodity price environment.
Investors will likely remain focused on copper market conditions, execution of major mining projects, and ongoing progress at PTFI as key drivers of Freeport’s financial performance through the remainder of 2026.
Management commentary
“The Freeport team achieved strong results in the second quarter, supported by solid execution of our operating plans and favourable pricing for our products,” the company’s president and CEO, Kathleen Quirk, explained in a media statement. “We made steady progress with our Grasberg ramp-up and our Americas operations delivered excellent performance, which resulted in year-over-year improvements to bottom-line results, demonstrating the strength of our diversified portfolio. As we look forward, we remain focused on restoring full operations at Grasberg safely and sustainably and continuing to build momentum on initiatives across our global footprint to grow margins, cash flow and earnings.”
The copper top of the stocks
Freeport-McMoRan plays an important role in the development of AI infrastructure because it is one of the world’s largest producers of copper, a critical metal used in data centres, power grids, networking equipment, and advanced semiconductor manufacturing facilities. The rapid expansion of AI applications is driving significant investment in large-scale data centres that require vast amounts of electrical power and copper-intensive infrastructure, including wiring, transformers, cooling systems, and transmission networks. As demand for AI computing capacity grows, so does the need for copper to support the construction and operation of these facilities. With expected 2026 copper sales of approximately 3.1 billion pounds, Freeport is positioned as a key supplier of a foundational raw material needed to build and expand the physical infrastructure that powers artificial intelligence.
Freeport stock (NYSE:FCX) opened trading 0.99 per cent lower at US$62.81 but has climbed more than 20 per cent since the beginning of the year.
Join the discussion: Find out what the Bullboards are saying about Freeport and check out Stockhouse’s stock forums and message boards.