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• Adjusted EBITDA: Nearly $10 billion for 2025, similar to 2024 levels.

• Consolidated Unit Net Cash Cost: $1.65 per pound for 2025, within 3% of guidance.

• Copper Sales: Impacted by approximately 10% due to the Grasberg incident.

• Fourth Quarter Operating Income (US Business): 3.5 times the level of the 2024 fourth quarter.

• US Production Increase: Up 5% versus both the year-ago fourth quarter and for the year 2025 versus 2024.

• South America Copper Sales: 1.1 billion pounds for 2025, with similar expectations for 2026.

• South America Unit Net Cash Costs: $2.57 per pound for the fourth quarter.

• 2026 Copper Sales Guidance: Adjusted slightly for timing between 2025 and 2026.

• 2026 Unit Net Cash Costs: Expected to average $1.75 per pound.

• Capital Expenditures for 2025: $3.9 billion, $0.5 billion below plan.

• 2026 and 2027 Capital Expenditures Forecast: Approximately $4.3 billion to $4.5 billion.

• Discretionary Projects Capital Expenditure: $1.4 billion in 2025, expected to be $1.6 billion to $1.7 billion per year in 2026 and 2027.

• Cash Returns to Shareholders: $5.7 billion distributed through dividends and share purchases.

• Warning! GuruFocus has detected 8 Warning Sign with OSBC.

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Release Date: January 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Freeport-McMoRan Inc (NYSE:FCX) reported strong fourth-quarter results, with copper sales and net unit cash costs slightly better than adjusted guidance for 2025.

• The company demonstrated resilience by overcoming challenges, such as the Grasberg incident, and achieved meaningful progress on several initiatives.

• Freeport-McMoRan Inc (NYSE:FCX) is well-positioned for substantial cash flow generation, supporting investments in profitable growth and shareholder returns.

• The company is adopting innovation, automation, and new technologies to enhance reliability, efficiencies, and overall operational performance.

• Freeport-McMoRan Inc (NYSE:FCX) has a robust profile of organic growth options, with major projects in the Americas providing optionality for future growth.

Negative Points

• The Grasberg incident impacted annual copper volumes by approximately 10% compared to the plan for 2025.

• Unit cash costs in South America are expected to remain high, averaging $2.58 per pound in 2026 due to labor and energy costs.

• The company faces challenges in scaling its leach initiative and achieving targeted cost reductions in the US operations.

• Freeport-McMoRan Inc (NYSE:FCX) is dealing with cost inflation and labor challenges, particularly in the US, which could impact project execution.

• The restart of certain production blocks at Grasberg is contingent on successful execution of infrastructure repairs and risk management initiatives.

Q & A Highlights

Q: Does the guidance for the outer years include the leaching reaching around 800 million pounds in 2028? A: Kathleen Quirk, President and CEO, stated that the outlook includes between 250 million and 300 million pounds in 2026, with no further expansion included beyond that. The potential to reach 2 billion pounds in the US includes the Bagdad expansion and leach program, but these are not included in the 2027/2028 guidance.

Q: Why are unit cash costs in South America moving higher, and how should we think about costs there over the next few years? A: Kathleen Quirk explained that the forecasted net cash cost in South America is around $2.58 per pound for 2026, similar to the fourth quarter of 2025. The increase is mainly due to labor and energy costs, as well as a weaker dollar.

Q: How does Freeport plan to reduce US costs to $2.50 per pound by 2027? A: Kathleen Quirk mentioned that the target assumes successful scaling of the leach opportunity and driving efficiencies within the US business. The focus is on adding volumes at a low incremental cost and improving operational efficiencies.

Q: Can you elaborate on the focus on America's copper champion and the impact of copper tariffs? A: Kathleen Quirk highlighted the leach initiatives as a low-cost opportunity to add significant volumes. The focus is on leveraging existing infrastructure and relationships to add production at low incremental costs, independent of potential copper tariffs.

Q: What are the latest updates on the Bagdad 2x project, including timing, CapEx, and factors for approval? A: Kathleen Quirk stated that the team is working on engineering and securing fixed pricing for the project, with a decision expected mid-year. The project requires a $4 average copper price to justify investment, and factors such as workforce setup and operational efficiency are also considered.

Q: Are there any updates or lessons learned from the Grasberg Block Cave (GBC) incident? A: Mark Johnson, COO of Freeport-McMoRan Indonesia, confirmed that the plan from November is on track, with mud removal nearly complete and infrastructure repairs progressing. The start-up of PB 2 and PB 3 is expected in the first half of the second quarter of 2026.

Q: Is there potential to bring forward PB 1S or open other areas if PB 1C cannot restart? A: Kathleen Quirk stated that the focus is on restoring production in 2026, with PB 1S expected to start mid-2027. Mark Johnson added that options like developing PB 1 North or increasing production from Deep MLZ are being considered if PB 1C cannot restart.

Q: What are Freeport's thoughts on recycling opportunities and substitution in light of rising copper prices? A: Kathleen Quirk mentioned the circular project in Spain for processing scrap and noted that while substitution and thrifting occur, copper's superior conductivity remains compelling, especially for data centers and other applications.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.