Freeport-McMoRan Inc.

Freeport said second-quarter copper sales and unit cash costs were better than forecast, but it did not give specific second-quarter revenue or EPS in the call remarks. Management highlighted a 65% increase in consolidated net income for the first half of 2026 versus the first half of last year, and said U.S. mining operations contributed 2.4x more operating income in the first half of 2026 versus the prior-year period. LME copper averaged $5.93 per pound year to date through June and closed at $6.30 per pound, about 12% higher than the start of the year. For 2026, average unit net cash cost is now expected to be about $1.90 per pound, down from the April estimate of $1.95 per pound. Second-half 2026 copper sales are expected to be over 20% higher than first-half sales, gold sales more than 65% higher, and 2027 copper sales are expected to rise more than 20% versus 2026 with gold up more than 50%. 2027 capital expenditures are estimated at $4.8 billion, about $300 million above April, and discretionary projects are expected to be about $1.6 billion in 2026 and $1.9 billion in 2027. Management also modeled annual EBITDA of about $13 billion at $5 copper and $20 billion at $7 copper, with operating cash flow of about $9.5 billion to $15.5 billion. Since adopting its financial policy in 2021, Freeport said it has distributed $6.3 billion to shareholders.

Richard Adkerson struck a very upbeat tone, calling the quarter “Progress” and emphasizing Freeport’s leadership in copper and long-lived assets. He stressed the company’s role in electrification, highlighted successful execution at Grasberg and in the Americas, and said the “best lies ahead” for both Freeport and Indonesia. His comments on Indonesia were notably positive, saying recent meetings with government leaders were constructive and that all signals on the license extension were good, even if the process still takes time.

Maree E. Robertson focused on volumes, costs, capital spending, and balance sheet strength. She said 2026 average unit net cash cost is now expected to be about $1.90 per pound, slightly better than the April estimate of $1.95, and that 2027 capex is now estimated at $4.8 billion, up about $300 million due to equipment and revised cost estimates. She also reiterated a solid balance sheet with investment-grade ratings, no significant debt maturities in 2026, and flexibility to handle 2027 maturities, while noting the company has returned $6.3 billion to shareholders since 2021.

Analysts focused heavily on Baghdad capex, Grasberg timing, Cerro Verde purchases, the U.S. leach ramp, and the proposed U.S. copper tariff/45X policy. Management said Baghdad is still targeting a board review and possible final approval in the second half of this year, and that higher capex is being partly offset by a better operating model, more automation, and efficiency gains. On Grasberg, management said the June extension application followed the February MOU terms, and they are pushing to complete the license process this year; on the U.S. leach business, they said the target is to reach a 300 million-pound run rate by year-end, with the next phase driven by additives and heat projects. Management also said the U.S. business could benefit from tariffs or 45X-related incentives, and disclosed about just under $6 billion of U.S. NOLs.