How FCX (Freeport-McMoRan) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a leading mining and metals company like FCX makes money is essential for investors and anyone interested in the business of commodities and natural resources. In this post, we break down FCX's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick FCX Overview

FCX operates as a global leader in copper, gold, and molybdenum mining, with major assets in the Americas and Indonesia. Revenue comes primarily from the sale of these metals, extracted and processed at scale from its mining operations. The company’s business segments focus on copper mining, gold byproducts, and related mineral sales, with a diversified portfolio of mines and processing facilities.

Revenue Breakdown

• Total Revenue (Q3 2025): $13.1B (YoY growth: N/A)
  • Other: $13.1B (100% of total; FCX reports all revenue under "Other" for this period)
  • Growth is powered by strong commodity prices and increased production volumes.

Gross Profit and Margins

• Gross Profit: $3.84B (29.2% gross margin)
  • Cost of Revenue: $9.30B (YoY change: +97.1%)
  • FCX maintains robust margins due to its scalable mining operations and efficient extraction technologies.
• Most costs come from mining operations, labor, energy, and equipment maintenance.

Operating Income and Expenses

• Operating Income: $2.18B (YoY growth: +12.7%, 16.6% margin)
• Operating Expenses: $131M (YoY change: -4.4%)
  • R&D: Not separately disclosed for Q3 2025
  • SG&A: $131M (YoY growth: +12.0%, 1.0% of revenue) — covers corporate overhead, sales, and administrative functions
  • FCX continues to control costs and invest in operational efficiency while expanding production capacity.

Net Income

• Pre-Tax Income: $1.92B (YoY change: -2.4%, 14.6% margin)
• Income Tax: Not disclosed for Q3 2025
• Net Income: $6.51B (YoY growth: +1,137.1%, 49.5% net margin)
• FCX converts a significant portion of sales into profit due to high commodity prices and operational leverage.

What Drives FCX's Money Machine?

• Copper Sales: The main revenue driver, accounting for the vast majority of revenue, as copper demand remains strong globally.
• Production Volume: Increased output from flagship mines boosts top-line growth.
• Strategic Investments: FCX invests in mine expansion and technology upgrades to improve efficiency and lower costs.
• Future Growth Areas: Expansion into sustainable mining practices and new resource development, though not yet profitable.

Visualizing FCX'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 mining operations) taking the largest chunk.
• Even after significant costs, 49.5% of revenue drops to the bottom line.

Key Takeaways

• FCX's money comes overwhelmingly from copper and mineral sales
• High gross and net margins illustrate the power of FCX's scalable mining business model
• Heavy investment in production capacity and operational efficiency, balanced by tight control of SG&A costs
• Ongoing growth is driven by commodity price strength and increased output

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FAQ About FCX's Income Statement

1. What is the main source of FCX's revenue in 2025?

FCX generates over 99% of its revenue from copper and mineral sales, reported under "Other" for Q3 2025. Other metals like gold and molybdenum contribute as byproducts.

2. How profitable is FCX in Q3 2025?

FCX reported net income of $6.51B in Q3 2025, with a net margin of approximately 49.5%, reflecting strong profitability driven by high commodity prices and operational efficiency.

3. What are the largest expense categories for FCX?

The biggest expenses on FCX's income statement are cost of mining operations and SG&A costs. SG&A reached $131M in Q3 2025, as FCX prioritizes efficient corporate management and operational support.

4. Why does [segment/division] operate at a loss?

[No segment/division breakdown or loss reported for Q3 2025. If applicable, divisions may operate at a loss due to aggressive investment in mine development and technology upgrades, aiming for long-term growth.]

5. How does FCX's effective tax rate compare to previous years?

FCX's effective tax rate for Q3 2025 is not disclosed. Historically, the rate fluctuates due to international structuring and commodity price impacts.

Note: All financial data is sourced directly from FCX's Q3 2025 income statement. For further details and intrinsic value analysis, visit ValueSense.io.