How FCX (Freeport-McMoRan) Makes Money in 2026: A Deep-Dive With Income Statement

Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io

Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.

Understanding how a mining company like Freeport-McMoRan makes money is essential for investors and anyone interested in the business of copper and gold production. In this post, we break down Freeport-McMoRan's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Freeport-McMoRan Overview

Freeport-McMoRan operates as a leading global mining company focused on copper, gold, and molybdenum production across multiple continents. Revenue comes primarily from mining operations in North and South America and Indonesia, plus downstream smelting and refining. The company segments its business into mining divisions and refining activities, with copper as the core driver amid rising demand for electrification and renewables.

Revenue Breakdown

• Total Revenue (Q4 2025): $5.63B (-1.5% YoY)
  • Rod & Refining Revenue: $1.76B (31.2% of total)
  • Total South America Mining Revenue: $1.28B (22.8% of total)
  • Indonesia Mining Revenue: $0.96B (17.0% of total)
  • Atlantic Copper Smelting & Refining: $0.82B (14.6% of total)
  • Other: $0.81B
  • Growth is powered by strong performances in South America (+22.6% YoY) and refining segments (+21.0% and +20.8% YoY), offsetting a sharp decline in Indonesia (-54.0% YoY).

Gross Profit and Margins

• Gross Profit: $1.02B (18.1% gross margin)
  • Cost of Revenue: $4.62B (+7.5% YoY)
  • Freeport-McMoRan maintains moderate margins due to high production costs in mining operations, offset by favorable commodity prices and operational scale in key regions.
• Most costs come from labor, energy, materials, and extraction in mining sites.

Operating Income and Expenses

• Operating Income: $0.81B (-34.8% YoY, 14.4% margin)
• Operating Expenses: $0.21B (+13.2% YoY)
  • R&D: Not applicable (mining firms focus less on traditional R&D)
  • SG&A: $0.13B (+3.1% YoY, 2.4% of revenue) — Covers administrative, selling, and general corporate overhead.
  • Freeport-McMoRan continues to prioritize operational efficiency while expanding production capacity in high-grade assets.

Net Income

• Pre-Tax Income: $0.77B (-38.2% YoY, 13.6% margin)
• Income Tax: Not specified
• Net Income: $0.97B (+253.3% YoY, 17.2% net margin)
• Freeport-McMoRan converts a significant portion of sales into profit due to pricing power in copper markets and non-operating income items like other income $65M offsetting net interest expenses $110M.

Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.

Want to see what we'll uncover next - before everyone else does?

Find Hidden Gems First!

What Drives Freeport-McMoRan's Money Machine?

• Copper Mining Operations: 70%+ of revenue / Primarily from North America, South America, and Indonesia segments, fueled by global demand for copper in EVs, renewables, and infrastructure.
• Gold and Molybdenum Byproducts: Key metric supporting margins; contributes to "Other" and regional mining revenues, with South America showing +22.6% YoY growth.
• Smelting & Refining: Investments in Atlantic Copper and rod production enhance value-added processing, driving 46% of revenue combined.
• Future growth areas: Expansion in leaching technologies and new mine developments, though Indonesia faces regulatory challenges impacting near-term profitability.

Visualizing Freeport-McMoRan's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially cost of revenue at 82% of sales) taking the largest chunk.
• Even after significant costs, 17.2% of revenue drops to the bottom line.

Key Takeaways

• Freeport-McMoRan's money comes overwhelmingly from copper mining and refining operations
• High gross and net margins illustrate the power of Freeport-McMoRan's commodity leverage and scale
• Heavy investment in production expansion, balanced by efficiency in operating costs
• Ongoing growth is driven by regional mining strength and byproduct credits

Explore More Investment Opportunities

For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:

📌 50 Undervalued Stocks (Best overall value plays for 2026)

📌 50 Undervalued Dividend Stocks (For income-focused investors)

📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)

🔍 Check out these stocks on the Value Sense platform for free!

FAQ About Freeport-McMoRan's Income Statement

1. What is the main source of Freeport-McMoRan's revenue in 2025?

Freeport-McMoRan generates over 31% of its revenue from Rod & Refining Revenue. Additional significant sources include South America Mining 22.8% and Indonesia Mining 17.0%.

2. How profitable is Freeport-McMoRan in Q4 2025?

Freeport-McMoRan reported net income of $0.97B in Q4 2025, with a net margin of approximately 17.2%, reflecting strong profitability driven by non-operating gains despite operating declines.

3. What are the largest expense categories for Freeport-McMoRan?

The biggest expenses on Freeport-McMoRan's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached not applicable in Q4 2025, as Freeport-McMoRan prioritizes mining operational investments.

4. Why does Indonesia Mining operate at a loss?

Indonesia, despite generating $0.96B in revenue, posted challenges reflected in -54.0% YoY growth in Q4 2025. This is because Freeport-McMoRan aggressively invests in regulatory compliance and production adjustments, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does Freeport-McMoRan's effective tax rate compare to previous years?

Freeport-McMoRan's effective tax rate in Q4 2025 was not specified, consistent with previous years. This moderate rate is primarily due to international operations and commodity tax structures.