Freeport-McMoRan (FCX), a global leader in copper, gold, and molybdenum mining, reported its earnings for the second quarter of fiscal 2025 on July 23, 2025. Its results delivered significant beats across key metrics, headlined by revenue of $7.58 billion—outperforming expectations by more than $390 million. Non-GAAP diluted earnings per share landed at $0.54, topping estimates by $0.09, while adjusted net income rose nearly 18 % from a year earlier. Strong sales of copper and gold, higher commodity prices, and a notable drop in per-unit cash costs underpinned the quarter’s robust performance. Overall, it was a period marked by solid execution and tailwinds from commodity markets, particularly in the United States and Indonesia.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (Non-GAAP) | $0.54 | $0.45 | $0.46 | 17.4% |
| Revenue (GAAP) | $7.58 billion | $7.19 billion | $6.62 billion | 14.5% |
| Operating Income | $2.43 billion | $2.05 billion | 18.7% | |
| Operating Cash Flow | $2.20 billion | $1.96 billion | 12.2% | |
| Adjusted Net Income Attributable to Common Stock | $790 million | $667 million | 18.4% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About the Company and Its Focus
Freeport-McMoRan is one of the world’s largest publicly traded producers of copper, with additional substantial operations in gold and molybdenum. Its largest asset is the Grasberg mining district in Indonesia, complemented by significant mines in the Americas such as Morenci, Cerro Verde, and El Abra. The company sells copper concentrates and refined copper used in electrical grids, electric vehicles, and industrial infrastructure worldwide.
Recent company focus has centered on scaling up production through process innovation, pushing efficiency gains, and investing in automation. Major projects include expanding leaching technologies to boost copper recovery and rolling out autonomous trucking at select U.S. mines. With heavy exposure to global copper prices, Freeport-McMoRan’s success relies on managing production costs, achieving consistent operational performance, and responding quickly to evolving market and regulatory conditions, particularly in the U.S. and Indonesia.
Quarterly Highlights: Sales, Pricing, Efficiency, and Key Events
During the quarter, copper and gold sales both came in above internal guidance. Copper sales reached 1.016 billion pounds, up from 931 million pounds in the previous year’s period. This was despite a year-over-year dip in production, which reflected lower ore grades in Indonesia and South America. Gold sales finished at 522,000 ounces, well ahead of guidance and sharply higher than the 361,000-ounce result last year. Molybdenum, a metal used in steelmaking, saw production and sales each rise by about one million pounds.
Pricing played a key role. The average realized copper price climbed to $4.54 per pound, nudged higher by robust U.S. demand and the start of a 50 % copper import tariff effective August 2025. These tariffs sent U.S. copper prices sharply higher, with Freeport-McMoRan realizing an average U.S. price of $4.81 per pound—about 25 % above international benchmarks by period’s end. Gold prices also surged, with the company’s realized price up over 40 % to $3,291 per ounce. Collectively, these trends supported both the top line and profit margins.
Operational efficiency gains were substantial. The company’s unit net cash cost to produce copper dropped to $1.13 per pound, down from $1.73 a year ago and far below its April guidance. Much of this improvement stemmed from process upgrades, including a leaching initiative that added 52 million pounds of copper during the quarter and brought the year’s total to 98 million pounds. U.S. mining operations saw particular benefit from these changes as well as by-product credits from gold and molybdenum. In Indonesia, the start-up of a new smelter in May positioned the company for a full ramp-up by the end of the year, securing essential processing capacity and supporting future export rights.
One-time events during the quarter included the new U.S. copper tariff, which didn’t immediately impact costs but could raise supplier input prices by around 5 % in coming periods if passed through by vendors. The Indonesia smelter start-up represents a major milestone essential for regulatory compliance and resource access beyond 2041. On shareholder returns, the base-plus-variable quarterly dividend remained unchanged at $0.15 per share. The company also repurchased 1.5 million shares, for a year-to-date total of 2.9 million.
Freeport-McMoRan’s Product Lines and Segments Explained
The backbone of Freeport-McMoRan’s business is copper concentrate and refined copper. These products are essential for electrical wiring, motors, and renewable energy systems. The company also mines gold, primarily as a by-product of copper at the Grasberg mine in Indonesia. Molybdenum, a silvery-white element used to harden steel, is produced at dedicated U.S. sites like Climax, as well as extracted as a by-product at some copper operations.
Segment results varied. U.S. mines raised both copper output and pricing, benefiting from strong demand and successful process innovations. South American mines faced modest declines in output, owing to expected lower ore grades, but offset this with stable costs and better price realization. Indonesia’s segment saw a drop in production but a surge in sales volume compared to the prior-year period, largely because of shipment timing and expanded processing. By-product credits in Indonesia pushed net cash costs negative, meaning profits from gold and molybdenum sales more than offset copper production expenses.
On the technology front, the company advanced its “leach everywhere” projects, using aerial techniques and deep solution injection to improve recovery rates from existing stockpiles. These practical tweaks, combined with new drill-driven injection and heat management, moved the needle on output and costs without requiring major technological breakthroughs. In the U.S., deployment of autonomous trucks at the Bagdad mine pressed forward, with expectations for further efficiency and staff cost improvements in coming periods.
Environmental, social, and governance (ESG) projects advanced as well. The company’s Indonesian operations began transitioning power generation from coal to natural gas—a three-year, $1 billion effort expected to bring emissions down sharply. Across its operations, the company remains aligned with external sustainability standards and community development commitments.
Looking Ahead: Guidance and Key Watch Points
Management maintained full-year 2025 volume guidance at 3.95 billion pounds of copper, 1.3 million ounces of gold, and 82 million pounds of molybdenum. The company forecasts consolidated average copper costs at $1.55 per pound for the year. No other material changes to guidance were issued, though the outlook highlighted sensitivity to copper prices, with cash flows potentially moving by $210 million for every $0.10 movement in the copper price for the second half of the year.
The company expects continued benefit from the elevated U.S. copper price premium, at least through the remainder of the year, and sees its Indonesian smelter at full capacity by year-end. Investors and observers should pay close attention to copper and gold grade trends in Indonesia and South America, the pace of cost inflation due to tariffs or other regulatory changes, and milestones on major growth projects. The quarterly dividend was unchanged at $0.15 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
