Freeport-McMoRan Inc. (NYSE:FCX) Q1 2025 Results Conference Call April 24, 2025 10:00 AM ET Company Participants David Joint - Vice President, Investor Relations Richard Adkerson - Chairman Kathleen Quirk - President and Chief Executive Officer Maree Robertson - Executive Vice President and Chief Financial Officer Cory Stevens - Senior Vice President, and President of FM Technical Services Conference Call Participants Carlos De Alba - Morgan Stanley Liam Fitzpatrick - Deutsche Bank Katja Jancic - BMO Capita ...

Freeport-McMoRan (FCX) reported $5.73 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 9.4%. EPS of $0.24 for the same period compares to $0.32 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.31 billion, representing a surprise of +7.92%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.24.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Core Viewpoint - Freeport-McMoRan Inc. (FCX) reported a decline in net income and revenues for the first quarter of 2025, with earnings per share meeting expectations while operational performance showed significant decreases in copper and gold production [1][2]. Financial Performance - Net income attributable to common stock was $352 million, or 24 cents per share, down approximately 25.6% from $473 million, or 32 cents per share, in the same quarter last year [1]. - Revenues decreased roughly 9.4% year over year to $5,728 million, surpassing the Zacks Consensus Estimate of $5,307.6 million [1]. Operational Highlights - Copper production fell around 20% year over year to 868 million pounds, missing the estimate of 872 million pounds [2]. - Consolidated sales of copper declined approximately 21.2% year over year to 872 million pounds, exceeding the estimate of 850 million pounds [2]. - Gold sales dropped around 77.5% year over year to 128,000 ounces, while molybdenum sales remained stable at 20 million pounds [2]. Cost and Pricing - Consolidated average unit net cash costs per pound of copper increased to $2.07 from $1.51 a year ago, beating the estimate of $2.05 [3]. - The average realized price for copper rose approximately 12.7% year over year to $4.44 per pound, surpassing the estimate of $4.40 [3]. - The average realized price per ounce for gold increased around 43.2% year over year to $3,072, exceeding the estimate of $2,700 [3]. Financial Position - Cash and cash equivalents at the end of the quarter were $4,385 million, down around 15.8% year over year [4]. - Total debt was $9,404 million, declining about 0.2% year over year [4]. - Cash flows from operations were approximately $1.1 billion, down 42.1% year over year [4]. Guidance - FCX anticipates total operating cash flow for 2025 to be around $7 billion, including approximately $0.2 billion from working capital and other sources [5]. - Capital spending for 2025 is projected to be around $5 billion, with $2.8 billion allocated to major mining projects and $0.6 billion for new downstream processing facilities [5]. Sales Forecast - FCX expects consolidated sales of approximately 4 billion pounds of copper, 1.6 million ounces of gold, and 88 million pounds of molybdenum for 2025, including specific targets for the second quarter [6]. Stock Performance - Freeport's shares have declined 28.8% over the past year, compared to a 26.9% decline in the industry [7].

Core Viewpoint - Freeport-McMoRan reported quarterly earnings of $0.24 per share, matching the Zacks Consensus Estimate, but down from $0.32 per share a year ago [1] - The company generated revenues of $5.73 billion for the quarter, exceeding the Zacks Consensus Estimate by 7.92%, but lower than the $6.32 billion reported a year ago [2] Financial Performance - Earnings per share (EPS) for the latest quarter were $0.24, consistent with expectations, while the previous quarter's actual EPS was $0.31, resulting in a surprise of 29.17% [1] - Over the last four quarters, Freeport-McMoRan has surpassed consensus EPS estimates two times [1] - The company has topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - Freeport-McMoRan shares have declined approximately 7.6% year-to-date, compared to a decline of 8.6% for the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $6.82 billion, and for the current fiscal year, it is $1.61 on revenues of $26.33 billion [7] - The estimate revisions trend for Freeport-McMoRan is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Mining - Non Ferrous industry is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - First-quarter 2025 net income attributable to common stock totaled $352 million, or $0.24 per share, with adjusted net income at $358 million, also $0.24 per share [3]. - Revenues for Q1 2025 were $5,728 million, a decrease of 9.4% compared to $6,321 million in Q1 2024 [95]. - Operating income decreased to $1,303 million in Q1 2025 from $1,634 million in Q1 2024, reflecting a decline of 20.2% [95]. - Net income attributable to common stockholders was $352 million, down 25.6% from $473 million in the same period last year [95]. - Diluted net income per share attributable to common stock was $0.24, compared to $0.32 in Q1 2024, representing a decrease of 25% [95]. - Total current assets increased to $13,802 million as of March 31, 2025, up from $13,296 million at the end of 2024 [97]. - Cash and cash equivalents rose to $4,385 million from $3,923 million, indicating a growth of 11.8% [97]. - Net cash provided by operating activities was $1,058 million, a decrease of 44.1% compared to $1,896 million in Q1 2024 [99]. - Total assets increased to $56,022 million as of March 31, 2025, compared to $54,848 million at the end of 2024 [97]. - Total liabilities rose to $26,808 million from $26,070 million, reflecting an increase of 2.8% [97]. Production and Sales - Consolidated production in Q1 2025 included 868 million pounds of copper, 287 thousand ounces of gold, and 23 million pounds of molybdenum [2]. - In Q1 2025, FCX's U.S. copper production was 301 million pounds, a decrease from 314 million pounds in Q1 2024, with sales of 307 million pounds compared to 331 million pounds in the prior year [31][32]. - In South America, FCX's copper production was 271 million pounds in Q1 2025, down from 280 million pounds in Q1 2024, with sales of 275 million pounds compared to 284 million pounds [39][41]. - FCX's copper production for Q1 2025 was 592 million recoverable pounds, a decrease of 15.7% compared to 702 million pounds in Q1 2024 [89]. - The company reported a copper recovery rate of 84.1% in U.S. mill operations for Q1 2025, an improvement from 81.0% in Q1 2024 [92]. - Copper sales from South America operations were 284 million recoverable pounds, while Indonesia operations sold 290 million recoverable pounds [149][152]. Costs and Expenditures - Operating cash flows for Q1 2025 totaled $1.1 billion, with expectations of approximately $7.0 billion for the full year [2]. - Capital expenditures in Q1 2025 were $1.2 billion, with an expected total of $5.0 billion for the year, including $2.8 billion for major mining projects [2]. - Consolidated average unit net cash costs for copper in Q1 2025 were $2.07 per pound, higher than the previous year's $1.51 per pound, but expected to decline to $1.50 per pound for the year [11][13]. - FCX's average unit net cash costs for U.S. copper mines increased to $3.11 per pound in Q1 2025 from $2.98 per pound in Q1 2024, reflecting higher labor costs and lower production volumes [33]. - The average realized price per pound of copper for U.S. operations in Q1 2025 was $4.60, which is approximately 16% higher than the $3.96 in Q1 2024 [31]. - Unit net cash costs for copper were $0.64 per pound in Q1 2025, compared to net cash credits of $0.12 per pound in Q1 2024, reflecting lower sales volumes [58]. Market and Pricing - Average realized prices in Q1 2025 were $4.44 per pound for copper, $3,072 per ounce for gold, and $21.67 per pound for molybdenum [2]. - The average realized price per pound of copper increased to $4.44 in Q1 2025 from $3.94 in Q1 2024, reflecting a 12.7% increase [89]. - FCX's average realized price per ounce of gold rose to $3,072 in Q1 2025 from $2,145 in Q1 2024, marking an increase of 43.3% [89]. - FCX estimates that each $0.05 change in the price realized from the quarter-end provisional price would have an approximate $18 million effect on 2025 revenues [116]. Strategic Initiatives - The new smelter in Indonesia is on track for start-up by mid-2025, contributing to organic growth opportunities [2]. - FCX is monitoring potential U.S. tariffs that could increase costs by approximately 5%, while also evaluating alternative sourcing options [16]. - FCX is targeting an annual run rate of 300 million pounds of copper by the end of 2025 from operational enhancements and innovative technology applications [24]. - FCX plans to submit an environmental impact statement for the El Abra project by year-end 2025, which could support an additional 750 million pounds of copper production per year [37][38]. - PTFI, a subsidiary of FCX, is expected to produce approximately 1.7 billion pounds of copper and 1.4 million ounces of gold annually from its underground operations in Indonesia [50]. Shareholder Returns - FCX has repurchased 51 million shares for a total cost of $2.0 billion under its $5.0 billion share repurchase program [2]. - The Board declared cash dividends of $0.15 per share on March 26, 2025, to be paid on May 1, 2025 [77]. - FCX repurchased 2.3 million shares for $80 million in Q1 2025, bringing total repurchases under its $5.0 billion program to 51 million shares for $2.0 billion [78][79].

Freeport-McMoRan Inc. (FCX) and Southern Copper Corporation (SCCO) are two heavyweights in the copper mining industry. Both operate on a global scale, extracting and processing copper and other metals. Also, both are navigating challenges such as fluctuating copper prices and global economic uncertainties. Given the current uncertainties surrounding the U.S.-China trade tensions and their potential impact on copper prices, analyzing these companies' fundamentals is timely and pertinent.Copper prices surged ...

Freeport-McMoRan Inc. (FCX) is slated to report first-quarter 2025 results before the opening bell on April 24.  While higher unit costs are likely to have impacted FCX’s performance, it is expected to have benefited from higher realized copper prices.The Zacks Consensus Estimate for first-quarter earnings has been revised downward in the past 60 days. The consensus estimate for earnings is pegged at 24 cents per share, suggesting a 25% year-over-year decline. The Zacks Consensus Estimate for revenues curre ...

Freeport-McMoRan TodayFCXFreeport-McMoRan$32.90 -0.42 (-1.25%) 52-Week Range$27.66▼$55.24Dividend Yield0.91%P/E Ratio25.51Price Target$48.39Add to WatchlistWhen it comes to connecting the market’s behavior across different assets, little gets it done, like inflation rates or expectations moving forward. Today, as President Trump's rollout of trade tariffs has caused a major expectation for higher inflation, capital has started to rotate according to these expectations, and it clearly shows in the price act ...

In its upcoming report, Freeport-McMoRan (FCX) is predicted by Wall Street analysts to post quarterly earnings of $0.24 per share, reflecting a decline of 25% compared to the same period last year. Revenues are forecasted to be $5.31 billion, representing a year-over-year decrease of 16%.The current level reflects an upward revision of 9.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pr ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Freeport-McMoRan (FCX) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 24, 2025, might help the stock move higher if these key numbers are better than exp ...