Freeport-McMoRan reported stronger-than-expected results for the third quarter of 2026, with adjusted earnings of $0.88 per share on revenue of $7.55 billion. Both figures exceeded Wall Street estimates of $0.80 per share and $7.36 billion in revenue, respectively. The company's consolidated net income surged more than 80% year over year, driven by higher copper prices and improved operational performance. Shares rose 1.73% in premarket trading to $66.29, reflecting investor optimism despite rising costs and increased spending plans.
The company highlighted a supportive metal-price environment, with LME copper prices averaging $6.09 a pound through September and reaching about $6.58 a pound at the time of the earnings call. Copper sales have increased for three consecutive quarters, and management expects the fourth quarter to be the strongest of the year. Freeport's diversified asset base, including strong performance at Cerro Verde in Peru and progress at Grasberg in Indonesia, contributed to the positive results.
Financial highlights included a 10.0% earnings surprise and a 2.58% revenue surprise. The company's year-to-date shareholder returns totaled nearly $1 billion, including $300 million in share purchases. However, cost inflation, particularly for diesel and energy, remains a significant challenge. Freeport maintained its 2026 net unit cash cost guidance at $1.90 per pound and projected capital spending of $4.4 billion for 2026 and $5.2 billion for 2027.
Looking ahead, Freeport expects copper sales to total about 3 billion pounds in 2026, rising to 3.7 billion pounds in 2027 and exceeding 4 billion pounds in 2028. Chairman Richard Adkerson emphasized that the company's growth plans align with rising copper demand driven by electrification. Chief Executive Kathleen Quirk noted the company's progress in 2026 positions it for significant growth in volumes, margins, and cash flows in the coming years.