Item 1. Financial Statements
Item 1. Financial Statements .
Freeport-McMoRan Inc.
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31,
2026 December 31,
2025
(In Millions)
ASSETS
Current assets:
Cash and cash equivalents $ 3,737 $ 3,824
Restricted cash and cash equivalents 280 230
Trade accounts receivable 681 977
Value added and other tax receivables 666 686
Inventories:
Product 3,042 3,332
Materials and supplies, net 2,865 2,738
Mill and leach stockpiles 1,513 1,423
PT Freeport Indonesia (PTFI) mud rush incident insurance settlement receivable 699 —
Other current assets 609 580
Total current assets 14,092 13,790
Property, plant, equipment and mine development costs, net 41,101 40,736
Long-term mill and leach stockpiles 1,100 1,173
Long-term tax receivables 832 810
Other assets 1,715 1,658
Total assets $ 58,840 $ 58,167
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 4,142 $ 4,565
Accrued income taxes 725 456
Current portion of debt 500 466
Current portion of environmental and asset retirement obligations 323 313
Dividends payable - common stock 217 219
Total current liabilities 5,907 6,019
Long-term debt, less current portion 8,914 8,913
Environmental and asset retirement obligations, less current portion 5,592 5,541
Deferred income taxes 4,641 4,622
Long-term leases, less current portion 987 1,010
Other liabilities 1,288 1,296
Total liabilities 27,329 27,401
Equity:
Stockholders’ equity:
Common stock 163 163
Capital in excess of par value 23,713 23,680
Retained earnings 2,050 1,385
Accumulated other comprehensive loss ( 304 ) ( 305 )
Common stock held in treasury ( 6,117 ) ( 6,024 )
Total stockholders’ equity 19,505 18,899
Noncontrolling interests 12,006 11,867
Total equity 31,511 30,766
Total liabilities and equity $ 58,840 $ 58,167
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
March 31,
2026 2025
(In Millions, Except Per Share Amounts)
Revenues $ 6,234 $ 5,728
Cost of sales:
Production and delivery 4,065 3,756
Depreciation, depletion and amortization 514 466
Total cost of sales 4,579 4,222
Selling, general and administrative expenses 162 154
Exploration and research expenses 38 39
Environmental obligations and shutdown costs
17 10
PTFI mud rush incident insurance settlement ( 699 ) —
Total costs and expenses 4,097 4,425
Operating income 2,137 1,303
Interest expense, net ( 114 ) ( 70 )
Other income, net 11 58
Income before income taxes and equity in affiliated companies’ net earnings 2,034 1,291
Provision for income taxes ( 653 ) ( 500 )
Equity in affiliated companies’ net earnings 6 2
Net income 1,387 793
Net income attributable to noncontrolling interests ( 506 ) ( 441 )
Net income attributable to common stockholders $ 881 $ 352
Net income per share attributable to common stockholders:
Basic
$ 0.61 $ 0.24
Diluted
$ 0.61 $ 0.24
Weighted-average shares of common stock outstanding:
Basic
1,439 1,438
Diluted
1,444 1,444
Dividends declared per share of common stock $ 0.15 $ 0.15
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Three Months Ended
March 31,
2026 2025
(In Millions)
Net income $ 1,387 $ 793
Other comprehensive income, net of taxes:
Defined benefit plans:
Amortization of unrecognized amounts included in net periodic benefit costs 1 1
Other comprehensive income 1 1
Total comprehensive income 1,388 794
Total comprehensive income attributable to noncontrolling interests ( 506 ) ( 441 )
Total comprehensive income attributable to common stockholders $ 882 $ 353
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended
March 31,
2026 2025
(In Millions)
Cash flow from operating activities:
Net income $ 1,387 $ 793
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 514 466
PTFI mud rush incident insurance settlement ( 699 ) —
Net charges for environmental and asset retirement obligations, including accretion 71 49
Payments for environmental and asset retirement obligations ( 38 ) ( 50 )
Stock-based compensation 68 54
Net charges for defined pension and postretirement plans 12 14
Pension plan contributions ( 5 ) ( 3 )
Deferred income taxes 19 26
Charges for PTFI social investment programs 11 15
Payments for PTFI social investment programs ( 12 ) ( 13 )
Other, net 28 4
Changes in working capital and other:
Accounts receivable 325 ( 215 )
Inventories 201 ( 143 )
Other current assets — 24
Accounts payable and accrued liabilities ( 671 ) 2
Accrued income taxes and timing of other tax payments 284 35
Net cash provided by operating activities 1,495 1,058
Cash flow from investing activities:
Capital expenditures:
U.S. copper mines ( 244 ) ( 255 )
South America operations ( 114 ) ( 85 )
Indonesia operations ( 456 ) ( 704 )
Molybdenum mines ( 29 ) ( 19 )
Other ( 130 ) ( 109 )
Other, net ( 12 ) ( 4 )
Net cash used in investing activities ( 985 ) ( 1,176 )
Cash flow from financing activities:
Proceeds from debt 1,137 1,088
Repayments of debt ( 1,102 ) ( 636 )
Finance lease payments ( 9 ) ( 3 )
Cash dividends and distributions paid:
Common stock ( 218 ) ( 218 )
Noncontrolling interests ( 225 ) —
Treasury stock purchases ( 93 ) ( 55 )
Proceeds from exercised stock options 19 1
Payments for withholding of employee taxes related to stock-based awards ( 43 ) ( 22 )
Net cash (used in) provided by financing activities ( 534 ) 155
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents ( 24 ) 37
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year 4,173 4,911
Cash and cash equivalents and restricted cash and cash equivalents at end of period $ 4,149 $ 4,948
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
THREE MONTHS ENDED MARCH 31
Stockholders’ Equity
Common Stock Retained Earnings Accumu-
lated
Other Compre-
hensive
Loss Common Stock
Held in Treasury Total
Stock-holders’ Equity
Number
of
Shares At Par
Value Capital in
Excess of
Par Value Number
of
Shares At
Cost Non-
controlling
Interests Total
Equity
(In Millions)
Balance at December 31, 2025 1,627 $ 163 $ 23,680 $ 1,385 $ ( 305 ) 191 $ ( 6,024 ) $ 18,899 $ 11,867 $ 30,766
Exercised and issued stock-based awards 3 — 19 — — — — 19 — 19
Stock-based compensation, including the tender of shares — — 15 — — — — 15 ( 9 ) 6
Treasury stock purchases — — — — — 2 ( 93 ) ( 93 ) — ( 93 )
Dividends — — — ( 216 ) — — — ( 216 ) ( 359 ) ( 575 )
Contributions from noncontrolling interests
— — ( 1 ) — — — — ( 1 ) 1 —
Net income attributable to common stockholders — — — 881 — — — 881 — 881
Net income attributable to noncontrolling interests
— — — — — — — — 506 506
Other comprehensive income — — — — 1 — — 1 — 1
Balance at March 31, 2026 1,630 $ 163 $ 23,713 $ 2,050 $ ( 304 ) 193 $ ( 6,117 ) $ 19,505 $ 12,006 $ 31,511
Stockholders’ Equity
Common Stock (Accum-ulated Deficit) Retained Earnings Accumu-
lated
Other Compre-
hensive
Loss Common Stock
Held in Treasury Total
Stock-holders’ Equity
Number
of
Shares At Par
Value Capital in
Excess of
Par Value Number
of
Shares At
Cost Non-
controlling
Interests Total
Equity
(In Millions)
Balance at December 31, 2024 1,624 $ 162 $ 23,797 $ ( 170 ) $ ( 314 ) 187 $ ( 5,894 ) $ 17,581 $ 11,197 $ 28,778
Exercised and issued stock-based awards 2 1 1 — — — — 2 — 2
Stock-based compensation, including the tender of shares — — 45 — — 1 ( 22 ) 23 — 23
Treasury stock purchases — — — — — 1 ( 55 ) ( 55 ) — ( 55 )
Dividends — — ( 216 ) — — — — ( 216 ) ( 112 ) ( 328 )
Net income attributable to common stockholders — — — 352 — — — 352 — 352
Net income attributable to noncontrolling interests
— — — — — — — — 441 441
Other comprehensive income — — — — 1 — — 1 — 1
Balance at March 31, 2025 1,626 $ 163 $ 23,627 $ 182 $ ( 313 ) 189 $ ( 5,971 ) $ 17,688 $ 11,526 $ 29,214
The accompanying notes are an integral part of these consolidated financial statements.
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Freeport-McMoRan Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 1. GENERAL INFORMATION
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States (U.S.). Therefore, this information should be read in conjunction with Freeport-McMoRan Inc.’s (FCX) consolidated financial statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2025 (2025 Form 10-K). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three-month period ended March 31, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. Dollar amounts in tables are stated in millions, except per share amounts.
Subsequent Events. FCX evaluated events after March 31, 2026, and through the date the consolidated financial statements were issued and determined any events and transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these consolidated financial statements.
NOTE 2. EARNINGS PER SHARE
FCX calculates its basic net income per share of common stock under the two-class method and calculates its diluted net income per share of common stock using the more dilutive of the two-class method or the treasury-stock method. Basic net income per share of common stock was computed by dividing net income attributable to common stockholders (after deducting accumulated undistributed dividends and earnings allocated to participating securities) by the weighted-average shares of common stock outstanding during the period. Diluted net income per share of common stock was calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock, unless their effect would be antidilutive.
Reconciliations of net income and weighted-average shares of common stock outstanding for purposes of calculating basic and diluted net income per share follow:
Three Months Ended
March 31,
2026 2025
Net income $ 1,387 $ 793
Net income attributable to noncontrolling interests ( 506 ) ( 441 )
Undistributed dividends and earnings allocated to participating securities ( 7 ) ( 6 )
Net income attributable to common stockholders $ 874 $ 346
Basic weighted-average shares of common stock outstanding
1,439 1,438
Add shares issuable upon exercise or vesting of dilutive stock options and restricted stock units (RSUs) 5 a
6
Diluted weighted-average shares of common stock outstanding
1,444 1,444
Net income per share attributable to common stockholders:
Basic $ 0.61 $ 0.24
Diluted $ 0.61 $ 0.24
a. Excludes approximately 1 million shares of common stock associated with RSUs that were anti-dilutive.
Shares associated with outstanding stock options with exercise prices greater than the average market price of FCX’s common stock during the period are excluded from the computation of diluted net income per share of common stock. There were no such shares excluded in either of the periods shown above.
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NOTE 3. INCOME TAXES
Geographic sources of FCX’s (provision) benefit for income taxes follow:
Three Months Ended
March 31,
2026 2025
U.S. $ ( 5 )
$ 2
Foreign ( 648 ) ( 502 )
Total $ ( 653 ) $ ( 500 )
FCX’s consolidated effective income tax rate is a function of the various rates in the jurisdictions where it operates and was 32 % for first-quarter 2026 and 39 % for first-quarter 2025.
NOTE 4. DEBT AND EQUITY
The components of debt follow:
March 31,
2026 December 31, 2025
PT Freeport Indonesia (PTFI) revolving credit facility $ 250 $ 250
Senior notes and debentures:
Issued by FCX 5,289 5,287
Issued by PTFI 2,987 2,985
Issued by Freeport Minerals Corporation 351 352
Atlantic Copper 515 482
Other 22 23
Total debt 9,414 9,379
Less current portion of debt ( 500 ) ( 466 )
Long-term debt $ 8,914 $ 8,913
Revolving Credit Facilities. FCX and PTFI have a $ 3.0 billion, senior unsecured revolving credit facility that matures in October 2027. Under the terms of the revolving credit facility, FCX may obtain loans and issue letters of credit in an aggregate amount of up to $ 3.0 billion, with a $ 1.5 billion sublimit on the issuance of letters of credit and a $ 500 million limit on PTFI’s borrowing capacity. At March 31, 2026, there were no borrowings and $ 5 million in letters of credit issued under FCX’s revolving credit facility.
At March 31, 2026, PTFI had $ 250 million in borrowings outstanding under its $ 1.75 billion, senior unsecured revolving credit facility that matures in November 2028, and Cerro Verde had no borrowings outstanding under its $ 350 million, senior unsecured revolving credit facility that matures in May 2027.
At March 31, 2026, FCX, PTFI and Cerro Verde were in compliance with each of their respective credit facility’s covenants.
Interest Expense, Net. Consolidated interest costs (before capitalization) totaled $ 174 million in both first-quarter 2026 and 2025. Lower capitalized interest of $ 60 million in first-quarter 2026, compared to $ 104 million in first-quarter 2025, primarily reflects the impact of placing PTFI’s smelter and precious metals refinery (PMR) (collectively, PTFI’s downstream processing facilities) into service in 2025.
Share Repurchase Program and Dividends. During first-quarter 2026, FCX acquired 1.7 million shares of its common stock for a total cost of $ 93 million ($ 54.25 average cost per share). At April 30, 2026, FCX has acquired a total of 53.7 million shares ($ 39.01 average cost per share) and has $ 2.9 billion available under its $5.0 billion share repurchase program.
On March 25, 2026, FCX’s Board of Directors (Board) declared cash dividends totaling $ 0.15 per share on its common stock (including a $ 0.075 per share quarterly base cash dividend and a $ 0.075 per share quarterly variable, performance-based cash dividend), which were paid on May 1, 2026, to common stockholders of record on April 15, 2026.
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The declaration and payment of dividends (base or variable) and timing and amount of any share repurchases are at the discretion of FCX’s Board and management, respectively, and are subject to a number of factors, including not exceeding FCX’s net debt target, capital availability, FCX’s financial results, cash requirements, global economic conditions, changes in laws, contractual restrictions and other factors deemed relevant by FCX’s Board or management, as applicable. FCX’s share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.
NOTE 5. FINANCIAL INSTRUMENTS
FCX does not purchase, hold or sell derivative financial instruments unless there is an existing asset or obligation, or it anticipates a future activity that is likely to occur and will result in exposure to market risks, which FCX intends to offset or mitigate. FCX does not enter into any derivative financial instruments for speculative purposes but has entered into derivative financial instruments in limited instances to achieve specific objectives. These objectives principally relate to managing risks associated with commodity price changes,
exchange rates and interest rates.
Commodity Contracts. From time to time, FCX has entered into derivative contracts to hedge the market risk associated with fluctuations in the prices of commodities it purchases and sells. Derivative financial instruments used by FCX to manage its risks do not contain credit risk-related contingent provisions.
A discussion of FCX’s derivative contracts and programs follows.
Derivatives Designated as Hedging Instruments - Fair Value Hedges.
Copper Futures and Swap Contracts. Some of FCX’s North America copper rod and cathode customers request a fixed market price instead of the Commodity Exchange Inc. (COMEX) average copper price in the month of shipment. FCX hedges this price exposure in a manner that allows it to receive the COMEX average price in the month of shipment while the customers pay the fixed price they requested. FCX accomplishes this by entering into copper futures or swap contracts. Hedging gains or losses from these copper futures and swap contracts are recorded in revenues. FCX did not have any significant gains or losses resulting from hedge ineffectiveness during first-quarter 2026 and 2025. At March 31, 2026, FCX held copper futures and swap contracts that qualified for hedge accounting for 126 million pounds at an average contract price of $ 5.51 per pound, with maturities through December 2027.
Summary of (Losses) Gains. A summary of realized and unrealized (losses) gains recognized in revenues for derivative financial instruments related to commodity contracts that are designated and qualify as fair value hedge transactions, including on the related hedged item follows:
Three Months Ended
March 31,
2026 2025
Copper futures and swap contracts:
Unrealized (losses) gains:
Derivative financial instruments $ ( 49 ) $ 81
Hedged item – firm sales commitments 49 ( 81 )
Realized gains:
Matured derivative financial instruments 35 20
Derivatives Not Designated as Hedging Instruments.
Embedded Derivatives. Certain FCX sales contracts provide for provisional pricing primarily based on the London Metal Exchange (LME) copper settlement price and the London Bullion Market Association (London) PM gold price at the time of shipment as specified in the contract. FCX receives market prices based on prices in the specified future month, which results in price fluctuations recorded in revenues until the date of settlement.
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FCX records revenues and invoices customers at the time of shipment based on the then-current LME copper settlement price and the London PM gold price as specified in the contracts, which results in an embedded derivative ( i.e. , a pricing mechanism that is finalized after the time of delivery) that is required to be bifurcated from the host contract. The host contract is the sale of the metals contained in the concentrate, cathode or anode slimes at the then-current LME copper settlement or London PM gold prices. FCX applies the normal purchases and normal sales scope exception in accordance with derivatives and hedge accounting guidance to the host contract in its concentrate, cathode and anode slime sales agreements because these contracts do not allow for net settlement and always result in physical delivery. The embedded derivative does not qualify for hedge accounting and is adjusted to fair value through earnings each period, using the period-end LME copper forward price and the adjusted London PM gold price, until the date of final pricing. Similarly, FCX purchases copper under contracts that provide for provisional pricing. Mark-to-market price fluctuations from these embedded derivatives are recorded through the settlement date and are reflected in revenues for sales contracts and in inventory for purchase contracts.
A summary of FCX’s embedded derivatives at March 31, 2026, follows:
Open Positions Average Price
Per Unit Maturities Through
Contract Market
Embedded derivatives in provisional sales contracts:
Copper (millions of pounds) 239 $ 5.60 $ 5.57 August 2026
Gold (thousands of ounces) 2 4,834 4,607 May 2026
Embedded derivatives in provisional purchase contracts:
Copper (millions of pounds) 100 5.63 5.59 August 2026
Copper Forward Contracts. Atlantic Copper enters into copper forward contracts designed to hedge its copper price risk whenever its physical purchases and sales pricing periods do not match. These economic hedge transactions are intended to hedge against changes in copper prices, with the mark-to-market hedging gains or losses recorded in production and delivery costs. At March 31, 2026, Atlantic Copper held net copper forward sales contracts for 93 million pounds at an average contract price of $ 5.69 per pound, with maturities through May 2026.
Summary of (Losses) Gains. A summary of realized and unrealized (losses) gains recognized in operating income for commodity contracts that do not qualify as hedge transactions, including embedded derivatives, follows:
Three Months Ended
March 31,
2026 2025
Embedded derivatives in provisional sales contracts: a
Copper $ ( 21 ) $ 116
Gold and other metals 1 38
Copper forward contracts b
11 ( 38 )
a. Amounts recorded in revenues.
b. Amounts recorded in cost of sales as production and delivery costs.
Credit Risk. FCX is exposed to credit loss when financial institutions with which it has entered into derivative transactions (commodity, foreign exchange and interest rate swaps) are unable to pay. To minimize the risk of such losses, FCX uses counterparties that meet certain credit requirements and periodically reviews the creditworthiness of these counterparties. At March 31, 2026, the maximum amount of credit exposure associated with derivative transactions was $ 81 million.
Other Financial Instruments. Other financial instruments include cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, PTFI mud rush incident insurance settlement receivable, investment securities, legally restricted trust assets, accounts payable and accrued liabilities, accrued income taxes, dividends payable and debt. The carrying value for these financial instruments classified as current assets or liabilities approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 6 for the fair values of investment securities, legally restricted funds and debt).
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Cash and Cash Equivalents and Restricted Cash and Cash Equivalents. The following table provides a reconciliation of total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows:
March 31,
2026 December 31, 2025
Balance sheet components:
Cash and cash equivalents $ 3,737 $ 3,824
Restricted cash and cash equivalents, current a
280 230
Restricted cash and cash equivalents, long-term - included in other assets 132 119
Total cash and cash equivalents and restricted cash and cash equivalents presented in the consolidated statements of cash flows $ 4,149 $ 4,173
a. Reflects cash designated for talc-related litigation in accordance with a legal settlement (refer to Note 10 of FCX’s 2025 Form 10-K for further discussion).
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NOTE 6. FAIR VALUE MEASUREMENT
Fair value accounting guidance includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). FCX does not have any significant Level 3 assets or liabilities.
FCX’s financial instruments are recorded on the consolidated balance sheets at fair value except for debt. A summary of the carrying amount and fair value of FCX’s financial instruments (including those measured at net asset value (NAV) as a practical expedient), other than cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, PTFI mud rush incident insurance settlement receivable, accounts payable and accrued liabilities, accrued income taxes and dividends payable (refer to Note 5), follows:
At March 31, 2026
Carrying Fair Value
Amount Total NAV Level 1 Level 2 Level 3
Assets
Investment securities: a,b
Equity securities $ 37 $ 37 $ — $ 37 $ — $ —
U.S. core fixed income fund 29 29 29 — — —
Total 66 66 29 37 — —
Legally restricted funds: a
U.S. core fixed income fund 71 71 71 — — —
Government mortgage-backed securities 48 48 — — 48 —
Government bonds and notes 40 40 — — 40 —
Corporate bonds 38 38 — — 38 —
Money market funds 24 24 — 24 — —
Asset-backed securities 10 10 — — 10 —
Collateralized mortgage-backed securities 1 1 — — 1 —
Total 232 232 71 24 137 —
Derivatives: c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position 44 44 — — 44 —
Copper futures and swap contracts 25 25 — 16 9 —
Copper forward contracts 12 12 — 4 8 —
Total 81 81 — 20 61 —
Liabilities
Derivatives: c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position 46 46 — — 46 —
Copper futures and swap contracts 2 2 — 1 1 —
Copper forward contracts 2 2 — — 2 —
Total 50 50 — 1 49 —
Debt d
9,414 9,369 — — 9,369 —
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At December 31, 2025
Carrying Fair Value
Amount Total NAV Level 1 Level 2 Level 3
Assets
Investment securities: a,b
Equity securities $ 36 $ 36 $ — $ 36 $ — $ —
U.S. core fixed income fund 29 29 29 — — —
Total 65 65 29 36 — —
Legally restricted funds: a
U.S. core fixed income fund 71 71 71 — — —
Government mortgage-backed securities 56 56 — — 56 —
Government bonds and notes 37 37 — — 37 —
Corporate bonds 34 34 — — 34 —
Money market funds 22 22 — 22 — —
Asset-backed securities 11 11 — — 11 —
Collateralized mortgage-backed securities 1 1 — — 1 —
Total 232 232 71 22 139 —
Derivatives: c
Embedded derivatives in provisional sales/purchase contracts in a gross asset position 217 217 — — 217 —
Copper futures and swap contracts 72 72 — 50 22 —
Total 289 289 — 50 239 —
Liabilities
Derivatives: c
Embedded derivatives in provisional sales/purchase contracts in a gross liability position 84 84 — — 84 —
Copper forward contracts 23 23 — 11 12 —
Total 107 107 — 11 96 —
Debt d
9,379 9,493 — — 9,493 —
a. Current portion included in other current assets and long-term portion included in other assets.
b. Excludes amounts included in restricted cash and cash equivalents that approximate fair value and are associated with talc-related litigation at March 31, 2026, and December 31, 2025. Refer to Note 10 of FCX’s 2025 Form 10-K for further discussion.
c. Refer to Note 5 for further discussion.
d. Recorded at cost except for debt assumed in the 2007 acquisition of Freeport Minerals Corporation, which was recorded at fair value at the acquisition date.
Valuation Techniques. Equity securities are valued at the closing price reported on the active market on which the individual securities are traded and, as such, are classified within Level 1 of the fair value hierarchy.
The U.S. core fixed income fund is valued at NAV. The fund strategy seeks total return consisting of income and capital appreciation primarily by investing in a broad range of investment-grade debt securities, including U.S. government obligations, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments. There are no restrictions on redemptions (which are usually within one business day of notice).
Fixed income securities (government securities, corporate bonds, asset-backed securities and collateralized mortgage-backed securities) are valued using a bid-evaluation price or a mid-evaluation price. These evaluations are based on quoted prices, if available, or models that use observable inputs and, as such, are classified within Level 2 of the fair value hierarchy.
Money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.
FCX’s embedded derivatives on provisional copper concentrate, copper cathode and gold purchases and sales are valued using quoted monthly LME copper forward prices and the adjusted London PM gold prices at each reporting
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date based on the month of maturity (refer to Note 5); however, FCX’s contracts themselves are not traded on an exchange. As a result, these derivatives are classified within Level 2 of the fair value hierarchy.
FCX’s derivative financial instruments for copper futures and swap contracts and copper forward contracts that are traded on the respective exchanges are classified within Level 1 of the fair value hierarchy because they are valued using quoted monthly COMEX or LME prices at each reporting date based on the month of maturity (refer to Note 5). Certain of these contracts are traded on the over-the-counter market and are classified within Level 2 of the fair value hierarchy based on COMEX and LME forward prices.
Debt is primarily valued using available market quotes and, as such, is classified within Level 2 of the fair value hierarchy.
The techniques described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while FCX believes its valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the techniques used at March 31, 2026, as compared with those techniques used at December 31, 2025.
NOTE 7. CONTINGENCIES AND COMMITMENTS
Indonesia Matters
Refer to Note 10 of FCX’s 2025 Form 10-K for further discussion of Indonesia matters.
Long-Term Mining Rights. In February 2026, FCX and PTFI entered into a Memorandum of Understanding (MOU) with the Indonesia government for a life of resource extension of operating rights in the Grasberg minerals district beyond the current expiration date in 2041.
Under the terms of the MOU, FCX would maintain its current ownership interest in PTFI of 48.76 % through 2041 and hold approximately 37 % beginning in 2042. The existing governance and operating structure, and terms of the existing shareholder agreement, special mining business license (IUPK) and other agreements in effect will continue over the life of the resource. PTFI and FCX are working with the Indonesia government to complete the license renewal process. The extension of operating rights and other agreed terms are subject to, among other things, the Indonesia government’s issuance of an amended IUPK and entry into definitive agreements.
Grasberg Block Cave Ramp-Up. Following the September 8, 2025, external mud rush incident (Mud Rush Incident), PTFI has progressed a series of activities to address the incident and advance preparation for a safe and sustainable restoration of operations.
During first-quarter 2026, PTFI completed remediation and restoration activities required for the restart of Production Blocks 2 and 3 and commenced initial ramp-up activities at the end of March 2026. PTFI also continued to advance activities for a planned future start-up of Production Block 1S and advance risk mitigation strategies associated with drainage and cave management technologies.
During initial ramp-up activities in Production Blocks 2 and 3, PTFI encountered changes in operating conditions at the Grasberg Block Cave underground mine following the period of inactivity between September 2025 and April 2026, and modifications to the chute system used to load ore into the automated trains will be required to operate at full capacity. As a result, near-term production from Production Blocks 2 and 3 is expected to be limited to approximately 60 % of capacity until required modifications to ore loading systems are made. Installation of specialized equipment has commenced and PTFI expects the current bottlenecks can be substantially addressed by mid-2027.
Following the Mud Rush Incident and until PTFI’s operations return to normal capacity, a portion of PTFI’s cost of sales are being recognized as idle facility costs, which are non-inventoriable. In first-quarter 2026, PTFI recorded charges for idle facility and restoration costs associated with the Mud Rush Incident totaling $ 499 million (consisting of $ 406 million in production and delivery costs and $ 93 million in depreciation, depletion and amortization (DD&A) expense).
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In first-quarter 2026, PTFI recognized a gain of $ 0.7 billion for an insurance settlement associated with the Mud Rush Incident under its property and business interruption policies. PTFI collected this settlement in April 2026.
Indonesia Tax Matters
On April 10, 2026, PTFI received assessments from the Indonesia tax authorities related to various 2022 audit exceptions for income and other taxes. PTFI believes it has properly determined and paid its taxes and intends to pursue discussions with the Indonesia tax authorities through the objection process.
Litigation
There were no significant updates to previously reported legal proceedings included in Note 10 of FCX’s 2025 Form 10-K.
NOTE 8. BUSINESS SEGMENT INFORMATION
Product Revenues. FCX’s revenues attributable to the products it sold for the first quarters of 2026 and 2025 follow:
Three Months Ended
March 31,
2026 2025
Copper:
Cathode $ 2,050 $ 2,025
Rod and other refined copper products 1,504 960
Concentrate 1,083 1,386
Purchased copper a
89 298
Gold 692 475
Molybdenum 613 442
Silver and other 278 139
Adjustments to revenues:
Royalty expense b
( 53 ) ( 68 )
Treatment charges c
( 2 ) ( 28 )
PTFI export duties d
— ( 55 )
Revenues from contracts with customers 6,254 5,574
Embedded derivatives e
( 20 ) 154
Total consolidated revenues $ 6,234 $ 5,728
a. FCX purchases copper cathode primarily for processing by its U.S. Rod & Refining operations.
b. Reflects royalties on sales from PTFI and Cerro Verde that will vary with the volume of metal sold and prices.
c. Revenues from our copper concentrate sales are recorded net of treatment charges, which will vary with the sales volumes and the price of copper. Lower charges in first-quarter 2026 primarily reflect lower treatment charge rates as a result of favorable market conditions and the lack of copper concentrate sales volumes in Indonesia now that PTFI is a fully integrated producer of refined copper and gold.
d. Prior to the expiration of its export license on September 16, 2025, PTFI was assessed export duties on copper concentrate sales at a rate of 7.5 %. Refer to Note 11 of FCX’s 2025 Form 10-K for further discussion.
e. Refer to Note 5 for discussion of embedded derivatives related to FCX’s provisionally priced copper concentrate and cathode sales contracts.
Reportable Segments . FCX has organized its mining operations into four primary divisions – U.S. copper mines, South America operations, Indonesia operations and Molybdenum mines.
In the U.S., FCX operates seven copper operations – Morenci ( 72 %-owned), Bagdad, Safford (including Lone Star), Sierrita and Miami in Arizona, and Chino and Tyrone in New Mexico, and two molybdenum mines – Henderson and Climax in Colorado. A majority of the copper produced at the U.S. copper mines is cast into copper rod by the U.S. Rod & Refining operations.
In South America, FCX operates two copper operations – Cerro Verde in Peru and El Abra in Chile.
In Indonesia, PTFI operates in the Grasberg minerals district. With the completion of its downstream processing facilities during 2025, PTFI is a fully integrated producer of refined copper and gold.
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Operating segments that meet certain thresholds are reportable segments, including the Cerro Verde copper mine, Indonesia operations and U.S. Rod & Refining operations. Though not quantitatively material, FCX has also voluntarily disclosed the Morenci copper mine and Atlantic Copper as reportable segments in the following tables.
• Morenci. The Morenci open-pit copper mine, located in southeastern Arizona, produces copper cathode and copper concentrate. In addition to copper, the Morenci mine also produces molybdenum concentrate.
• Cerro Verde. The Cerro Verde open-pit copper mine, located near Arequipa, Peru, produces copper cathode and copper concentrate. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver.
• Indonesia Operations. Indonesia operations include PTFI’s Grasberg minerals district that produces copper concentrate that contains significant quantities of gold and silver, and PTFI’s downstream processing facilities. PTFI’s smelter will exclusively receive concentrate from the Grasberg minerals district and the PMR will receive anode slimes from the smelter and from PT Smelting.
• U.S. Rod & Refining . The U.S. Rod & Refining segment consists of copper conversion facilities located in the U.S., and includes a refinery and two rod mills. These operations process copper primarily produced at FCX’s U.S. copper mines and purchased copper into copper cathode and rod. At times, these operations refine copper and produce copper rod for customers on a toll basis. Toll arrangements require the tolling customer to deliver appropriate copper-bearing material to FCX’s facilities for processing into a product that is returned to the customer, who pays FCX for processing its material into the specified products.
• Atlantic Copper . Atlantic Copper smelts and refines copper concentrate and markets refined copper and precious metals in slimes.
Intersegment sales between FCX’s operating segments are based on terms similar to arm’s-length transactions with third parties at the time of the sale. Intersegment sales may not be reflective of the actual prices ultimately realized because of a variety of factors, including additional processing, the timing of sales to unaffiliated customers and transportation premiums.
FCX allocates certain operating costs, expenses and capital expenditures to its operating segments. However, not all costs and expenses applicable to an operation are allocated. Accordingly, the following segment information reflects management determinations that may not be indicative of what the actual financial performance of each reportable segment would be if it was an independent entity.
FCX's Chief Executive Officer is identified as its chief operating decision maker (CODM) under segment reporting guidance. Operating income (loss) is the financial measure of profit or loss used by the CODM to review segment results, and the significant segment expenses reviewed by the CODM are consistent with the operating expense line items presented in FCX’s consolidated statements of income. The CODM uses operating income (loss) to assess segment performance against forecasted results and to allocate resources, including capital investment in mining operations and potential expansions.
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Financial Information by Reportable Segment as of and for the three months ended March 31, 2026
Reportable Segments
U.S. Total
Cerro Indonesia Rod & Atlantic Reportable
Morenci Verde Operations Refining Copper Segments
Segment revenues:
Unaffiliated customers $ 12 $ 1,218 $ 1,072 $ 2,052 $ 966 $ 5,320
Intersegment 764 163 — 10 3 940
776 1,381 1,072 2,062 969 6,260
Reconciliation of revenues
Other segments’ revenue - unaffiliated customers a
914
Other segments’ revenue - intersegment a
1,672
Elimination of intersegment revenue ( 2,612 )
Total consolidated revenues, net $ 6,234
Segment measure of profit:
Production and delivery 437 651 710 b
2,046 929
DD&A 69 86 194 c
1 7
Selling, general and administrative expenses — 2 25 — 11
Exploration and research expenses 8 4 — — —
PTFI mud rush incident insurance settlement — — ( 699 ) — —
Segment operating income $ 262 $ 638 $ 842 $ 15 $ 22
$ 1,779
Reconciliation of operating income
Other segments’ operating income a
477 d
Corporate expenses and elimination of intersegment operating income ( 119 ) e
Consolidated interest expense, net ( 114 )
Consolidated other income, net 11
Total consolidated income before income taxes and equity in affiliated companies’ net earnings $ 2,034
Segment assets $ 3,434 $ 8,772 $ 27,959 $ 374 $ 1,904 $ 42,443
Reconciliation of segment assets
Total assets for other segments a
36,517
Corporate assets and elimination of investments in consolidated subsidiaries ( 20,120 )
Total consolidated assets $ 58,840
Segment capital expenditures $ 44 $ 74 $ 456 $ 14 $ 56 $ 644
Reconciliation of capital expenditures
Total capital expenditures for other segments a
324
Corporate capital expenditures 5
Total consolidated capital expenditures $ 973
a. Includes amounts attributable to FCX’s other operating segments that do not meet the quantitative thresholds for determining reportable segments under U.S. GAAP, including other U.S. copper mines, the El Abra mine in Chile, the molybdenum mines, certain downstream processing facilities and exploration. Also includes legacy oil and gas properties.
b. Includes charges totaling $ 406 million for idle facility and restoration costs associated with the Mud Rush Incident.
c. Includes charges totaling $ 93 million for idle facility costs associated with the Mud Rush Incident.
d. Includes DD&A of $ 157 million related to other operating segments.
e. Corporate expenses include amounts not allocated to individual operating segments.
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Financial Information by Reportable Segment as of and for the three months ended March 31, 2025
Reportable Segments
U.S. Total
Cerro Indonesia Rod & Atlantic Reportable
Morenci Verde Operations Refining Copper Segments
Segment revenues:
Unaffiliated customers $ 83 $ 917 $ 1,564 $ 1,624 $ 752 $ 4,940
Intersegment 494 174 6 8 3 685
577 1,091 1,570 1,632 755 5,625
Reconciliation of revenues
Other segments’ revenue - unaffiliated customers a
788
Other segments’ revenue - intersegment a
1,229
Elimination of intersegment revenue ( 1,914 )
Total consolidated revenues, net $ 5,728
Segment measure of profit:
Production and delivery 419 587 578 1,622 734
DD&A 50 91 186 1 7
Selling, general and administrative expenses — 2 27 — 9
Exploration and research expenses 6 2 2 — —
Environmental obligations and shutdown costs ( 7 ) — — — —
Segment operating income $ 109 $ 409 $ 777 $ 9 $ 5
$ 1,309
Reconciliation of operating income
Other segments’ operating income a
77 b
Corporate expenses and elimination of intersegment operating income ( 83 ) c
Consolidated interest expense, net ( 70 )
Consolidated other income, net 58
Total consolidated income before income taxes and equity in affiliated companies’ net earnings $ 1,291
Segment assets $ 3,239 $ 8,166 $ 28,006 $ 364 $ 1,448 $ 41,223
Reconciliation of segment assets
Total assets for other segments a
35,467
Corporate assets and elimination of investments in consolidated subsidiaries ( 20,668 )
Total consolidated assets $ 56,022
Segment capital expenditures $ 59 $ 74 $ 704 $ 17 $ 43 $ 897
Reconciliation of capital expenditures
Total capital expenditures for other segments a
274
Corporate capital expenditures 1
Total consolidated capital expenditures $ 1,172
a. Includes amounts attributable to FCX’s other operating segments that do not meet the quantitative thresholds for determining reportable segments under U.S. GAAP, including other U.S. copper mines, the El Abra mine in Chile, the molybdenum mines, certain downstream processing facilities and exploration. Also includes legacy oil and gas properties.
b. Includes DD&A of $ 131 million related to other operating segments.
c. Corporate expenses include amounts not allocated to individual operating segments.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.