How Investors May Respond To Freeport-McMoRan (FCX) Earnings Beat And Grasberg Recovery Progress

• Freeport-McMoRan Inc. recently reported its fourth-quarter and full-year 2025 results, showing quarterly sales of US£5,633 million and net income of US£406 million, with full-year sales of US£25.92 billion and net income of US£2.20 billion.

• Despite production pressure from the Grasberg mudflow incident, higher copper and gold prices and progress on restoring Indonesian operations supported stronger earnings and reinforced the company's long-term growth projects in the Americas and Asia.

• We'll now look at how Grasberg's recovery progress and better-than-expected earnings shape Freeport-McMoRan's investment narrative for investors.

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To own Freeport-McMoRan, you really need to believe in its copper and gold footprint and the company's ability to manage operational shocks without derailing its longer-term project pipeline.

The latest results help that case: Q4 and full-year 2025 earnings came in ahead of expectations despite the Grasberg mudflow, thanks in part to stronger commodity prices and disciplined cost control. Management reiterated that Grasberg's phased restart is on track, which keeps one of the key near-term catalysts intact, even if production volumes are pressured in the interim. At the same time, the legal overhang from the Grasberg-related class action and a richer valuation multiple relative to peers remain front-of-mind risks.

The recent pullback in the share price after strong numbers underlines how sensitive the stock still is to these concerns.

However, investors should not ignore the legal and operational uncertainties tied to Grasberg. Freeport-McMoRan's shares have been on the rise but are still potentially undervalued by 45%. Find out what it's worth[2].

Eight fair value views from the Simply Wall St Community span roughly US£36 to just above US£109 per share, showing how differently people are thinking about Freeport-McMoRan. Set against that wide range, the latest earnings beat and ongoing Grasberg recovery efforts could influence how you weigh the production and legal risks discussed earlier.

It is worth comparing several of these perspectives before forming your own view on the company's prospects.

Explore 8 other fair value estimates on Freeport-McMoRan[3] - why the stock might be worth 40% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data.

Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FCX[5].

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References

1. ^ 32 best rare earth metal stocks (simplywall.st)
2. ^ Find out what it's worth (simplywall.st)
3. ^ Explore 8 other fair value estimates on Freeport-McMoRan (simplywall.st)
4. ^ Create your own narrative in under 3 minutes (support.simplywall.st)
5. ^ FCX (finance.yahoo.com)
6. ^ Get in touch (feedback.simplywall.st)
7. ^ [email protected] (nz.finance.yahoo.com)