Freeport-McMoRan FCX · USD

BUSINESS SEGMENT INFORMATIONProduct Revenues. FCX’s revenues attributable to the products it sold for the years ended December 31 follow: 202520242023Copper:Cathode$8,147 $8,317 $6,588 Concentrate6,310 6,734 7,132 Rod and other refined copper products4,419 3,851 3,659 Purchased coppera449 684 452 Gold3,900 4,446 3,472 Molybdenum1,966 1,786 1,991 Silver and other749 646 600 Adjustments to revenues:Royalty expenseb(354)(442)(346)PTFI export dutiesc(337)(457)(307)Treatment chargesd(63)(396)(538)Revenues from contracts with customers25,186 25,169 22,703 Embedded derivativese729 286 152 Total consolidated revenues$25,915 $25,455 $22,855 a.FCX purchases copper cathode primarily for processing by its U.S. Rod & Refining operations.b.Reflects royalties on sales from PTFI and Cerro Verde that will vary with the volume of metal sold and prices. c.Prior to the expiration of its export license on September 16, 2025, PTFI was assessed export duties on copper concentrate sales at a rate of 7.5%. Refer to Note 11 for further discussion. d.Revenues from our copper concentrate sales are recorded net of treatment charges, which will vary with the sales volumes and the price of copper. Lower charges in 2025 primarily reflect lower treatment charge rates as a result of favorable market conditions.e.Refer to Note 12 for discussion of embedded derivatives related to FCX’s provisionally priced concentrate and cathode sales contracts.Geographic Area. Information concerning financial data by geographic area follows: December 31, 20252024Long-lived assets:a Indonesia$24,059 $22,580 U.S.11,388 10,468 Peru6,604 6,452 Chile1,213 1,120 Other671 496 Total$43,935 $41,116 a.Excludes deferred tax assets and intangible assets.Years Ended December 31, 202520242023Revenues:a U.S.$9,034 $7,806 $7,264 Switzerland5,334 4,251 3,971 Japan2,850 5,930 3,431 Indonesia2,180 1,108 767 Singapore1,246 1,116 1,178 United Kingdom1,136 115 171 Spain723 1,052 1,251 China636 743 1,081 Chile471 451 428 Germany332 500 714 France315 306 226 Egypt261 239 229 South Korea193 203 267 India163 273 354 Philippines3 283 396 Other1,038 1,079 1,127 Total$25,915 $25,455 $22,855 a.Revenues are attributed to countries based on the location of the customer.Major Customers and Affiliated Companies. Sales to MMC, PTFI’s joint venture partner in PT Smelting, totaled $1.7 billion in 2025, $4.4 billion in 2024 and $2.0 billion in 2023.

COMMITMENTS AND GUARANTEESLeases. The components of FCX’s leases presented in the consolidated balance sheets as of December 31 follow:20252024Lease right-of-use assets (included in property, plant, equipment and mine development costs, net)$1,205 $853 Short-term leases (included in accounts payable and accrued liabilities)$103 $98 Long-term leases1,010 692 Total leasesa$1,113 $790 a.Includes leases totaling $0.8 billion at December 31, 2025, and $0.6 billion at December 31, 2024, for PTFI’s downstream processing facilities, primarily for shallow draft vessels ($0.3 billion at December 31, 2025, and $0.1 billion at December 31, 2024), an oxygen plant ($0.2 billion at December 31, 2025 and 2024), land ($0.1 billion at December 31, 2025 and 2024), and a wharf ($0.1 billion at December 31, 2025 and 2024).Operating lease costs, primarily included in production and delivery costs in the consolidated statements of income, for the years ended December 31 follow: 202520242023Operating leases$61 $44 $48 Variable and short-term leasesa162 146 126 Total operating lease costs$223 $190 $174 a.Includes $49 million in 2025, $50 million in 2024 and $30 million in 2023 related to a variable lease component of PTFI’s tolling arrangement with PT Smelting. Refer to Note 2 for additional discussion of PTFI’s commercial arrangement with PT Smelting.Total finance lease costs, including both depreciation and interest, were $76 million in 2025, $24 million in 2024 and $6 million in 2023.FCX acquired right-of-use assets through lease arrangements totaling $0.5 billion in 2025 and 2024, and $0.2 billion in 2023. FCX payments included in operating cash flows for its lease liabilities totaled $85 million in 2025 and $61 million in both 2024 and 2023. FCX payments included in financing cash flows for its lease liabilities totaled $37 million in 2025, $41 million in 2024 and $3 million in 2023. At December 31, 2025, the weighted-average discount rate used to determine the lease liabilities was 5.0% (4.9% at December 31, 2024) and the weighted-average remaining lease term was 16.0 years (15.0 years at December 31, 2024).The future minimum payments for leases presented in the consolidated balance sheet at December 31, 2025, follow:2026$151 2027128 2028115 2029171 203075 Thereafter956 Total payments1,596 Less amount representing interest(483)Present value of net minimum lease payments1,113 Less current portion(103)Long-term portion$1,010 Contractual Obligations.

DEBT FCX’s debt is net of reductions of $49 million at December 31, 2025, and $58 million at December 31, 2024, for unamortized net discounts and unamortized debt issuance costs. The components of debt follow: December 31, 20252024Revolving credit facilities:PTFI$250 $250 FCX— — Cerro Verde— — Senior notes and debentures: Issued by FCX:5.00% Senior Notes due 2027450 449 4.125% Senior Notes due 2028484 484 4.375% Senior Notes due 2028431 431 5.25% Senior Notes due 2029471 469 4.25% Senior Notes due 2030447 447 4.625% Senior Notes due 2030590 589 5.40% Senior Notes due 2034724 724 5.450% Senior Notes due 20431,690 1,688 Issued by PTFI:4.763% Senior Notes due 2027748 747 5.315% Senior Notes due 20321,492 1,491 6.200% Senior Notes due 2052745 745 Issued by FMC:7 1/8% Debentures due 2027115 115 9 1/2% Senior Notes due 2031118 119 6 1/8% Senior Notes due 2034119 119 Atlantic Coppera482 57 Other 23 24 Total debt9,379 8,948 Less current portion of debtb(466)(41)Long-term debt$8,913 $8,907 a.Includes short-term lines of credit used for working capital requirements, primarily based on the Secured Overnight Financing Rate (SOFR) plus a spread.b.At December 31, 2025, the weighted average interest rate of FCX’s current portion of debt was 3.9%.Revolving Credit Facilities.FCX. FCX and PTFI have a $3.0 billion, unsecured revolving credit facility that matures in October 2027. Under the terms of the revolving credit facility, FCX may obtain loans and issue letters of credit in an aggregate amount of up to $3.0 billion, with a $1.5 billion sublimit on the issuance of letters of credit and a $500 million limit on PTFI’s borrowing capacity. At December 31, 2025, there were no borrowings and $5 million in letters of credit issued under FCX’s revolving credit facility. Interest on loans made under the revolving credit facility may, at the option of FCX or PTFI, be determined based on SOFR plus a spread to be determined by reference to a grid based on FCX’s credit rating.

INCOME TAXES Geographic sources of income (loss) before income taxes and equity in affiliated companies’ net earnings for the years ended December 31 follow: 202520242023U.S.$405 $(547)$68 Foreign5,967 7,454 5,938 Total$6,372 $6,907 $6,006 Income taxes are provided on the earnings of FCX’s material foreign subsidiaries under the assumption that these earnings will be distributed. FCX has not provided deferred income taxes for other differences between the book and tax carrying amounts of its investments in material foreign subsidiaries as FCX considers its ownership positions to be permanent in duration, and quantification of the related deferred tax liability is not practicable. FCX’s provision for income taxes for the years ended December 31 follows: 202520242023Current income taxes: U.S. federal$— $36 $5 U.S. state(6)(1)(6)Foreign(1,967)(2,635)(2,087)Total current(1,973)(2,600)(2,088)Deferred income taxes: U.S. federal— 1 (50)U.S. state(3)(1)(3)Foreign(250)74 (320)Total deferred(253)74 (373)Adjustments1 — 6 Operating loss carryforwards4 3 185 Provision for income taxes$(2,221)$(2,523)$(2,270)A reconciliation of the U.S. federal statutory tax rate to FCX’s effective income tax rate for the years ended December 31 follows: 202520242023 Amount%Amount%Amount%U.S. federal statutory tax rate$(1,338)(21)%$(1,450)(21)%$(1,261)(21)%U.S. state and local income taxes, net of federal income tax effecta9 — — — (3)— Foreign tax effects:IndonesiabStatutory tax rate difference between Indonesia and U.S.(154)(2)(228)(3)(192)(3)Mining taxes(290)(5)(453)(7)(357)(6)Withholding taxes(128)(2)(208)(3)(162)(3)Other(27)— (20)— (28)— PerucStatutory tax rate difference between Peru and U.S.(205)(3)(144)(2)(130)(2)Mining taxes(110)(2)(81)(1)(76)(2)Withholding taxes(33)— (21)— (16)— Other31 — (12)— (41)(1)Other foreign jurisdictions(50)(1)(47)(1)2 — Effect of changes in tax laws or rates enacted in the current period— — — — — — Effect of cross-border tax laws(2)— (10)— (2)— Tax credits:Foreign tax credit expiration/limitation(32)(1)(1,043)(15)(287)(5)Other(25)— (14)— — — Changes in valuation allowance(50)(1)861 12 128 2 Nontaxable or nondeductible items:Depletion210 3 88 1 204 3 Other(13)— (9)— (2)— Changes in unrecognized tax benefits(6)— 228 b3 (28)— Other adjustments(8)— 40 — (19)— Provision for income taxes$(2,221)(35)%$(2,523)(37)%$(2,270)(38)%a.New York state taxes in 2025 and Texas state taxes in 2023 contributed to the majority of the tax effect in this category.b.

We maintain a cyber risk management program designed to assess, identify, manage, mitigate and respond to cybersecurity threats and incidents. We seek to address material risks from cybersecurity threats through a cross-functional approach, and we utilize various processes to inform our identification, assessment and management of material risks from cybersecurity threats. Our cyber risk management program is integrated into our overall enterprise risk management (ERM) program. Cybersecurity risks are identified and assessed through our ERM program, which is designed to provide cross-functional executive insight across the business to identify and monitor risks, opportunities and emerging trends that can impact our strategic business objectives. The underlying controls of our cyber risk management program are based on recognized best practices and industry standards for cybersecurity and information technology, including the National Institute of Standards and Technology Cybersecurity Framework.We utilize dedicated internal and external cybersecurity personnel to focus on assessing, detecting, identifying, managing, preventing and responding to cybersecurity threats and incidents. Our approach to cybersecurity incorporates a layered portfolio of technology controls, including strategic partnerships for our cybersecurity platforms, documented policies and procedures, periodic end user training, including annual cybersecurity awareness training for employees and certain contractors, periodic training for specialized roles, quarterly phishing tests and dedicated resources to manage and monitor the evolving threat landscape, including through the gathering of actionable threat intelligence. We maintain and periodically evaluate and, as needed, update our information security policy and an incident response plan, which describes the processes we use to prepare for, detect, respond to and recover from a cybersecurity incident, including processes to assess severity, escalate, contain, investigate and remediate an incident, as well as to comply with potentially applicable legal and disclosure obligations.We regularly evaluate and assess the threat landscape and our security controls, including through audits and assessments, regular network and endpoint monitoring, vulnerability testing, penetration testing and tabletop exercises that include senior management.

OTHER ASSETSThe components of other assets follow: December 31, 20252024Intangible assetsa$432 $428 Legally restricted trust assetsb232 217 Investments: PT Smeltingc352 354 Fixed income, equity securities and other125 102 Restricted time depositsd119 100 Cloud computing arrangements226 163 Royalty overpayments39 22 Long-term employee receivables24 24 Other109 97 Total other assets$1,658 $1,507 a.Indefinite-lived intangible assets totaled $214 million at both December 31, 2025 and 2024. Definite-lived intangible assets totaled $219 million at December 31, 2025, and $214 million at December 31, 2024, which were net of accumulated amortization totaling $50 million and $46 million, respectively.b.Reflects amounts held in trusts for AROs related to properties in New Mexico (refer to Note 10).c.Refer to Note 2.d.Relates to PTFI’s regulatory commitments (refer to Notes 10 and 12).

CONTINGENCIESEnvironmental. FCX’s operations are subject to various environmental laws and regulations that govern the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; wastewater discharges; remediation, restoration and reclamation of environmental contamination, including mine closures and reclamation; protection of endangered and threatened species and designation of critical habitats; and other related matters. FCX subsidiaries that operate in the U.S. also are subject to potential liabilities arising under CERCLA and similar state laws that impose responsibility on current and previous owners and operators of a facility for the remediation of hazardous substances released from the facility into the environment, including damages to natural resources, in some cases irrespective of when the damage to the environment occurred or who caused it. Remediation liability also extends to persons who arranged for the disposal of hazardous substances or transported the hazardous substances to a disposal site selected by the transporter. These liabilities are often shared on a joint and several basis, meaning that each responsible party is fully responsible for the remediation if some or all of the other historical owners or operators no longer exist, do not have the financial ability to respond or cannot be found. As a result, because of FCX’s acquisition of FMC, many of the subsidiary companies FCX now owns are responsible for a wide variety of environmental remediation projects throughout the U.S., and FCX expects to spend substantial sums annually for many years to address those remediation issues. Certain FCX subsidiaries have been advised by the U.S. Environmental Protection Agency (EPA), the Department of the Interior, the Department of Agriculture and various state agencies that, under CERCLA or similar state laws and regulations, they may be liable for costs of responding to environmental conditions at a number of sites that have been or are being investigated to determine whether releases of hazardous substances have occurred and, if so, to develop and implement remedial actions to address environmental concerns. FCX is also subject to claims where the release of hazardous substances is alleged to have caused natural resource damages (NRD) and to litigation by individuals allegedly exposed to hazardous substances.

ACCOUNTS PAYABLE AND ACCRUED LIABILITIESThe components of accounts payable and accrued liabilities follow: December 31, 20252024Accounts payable$2,948 $2,789 Salaries, wages and other compensation382 361 Litigation accrualsa343 34 Pension, postretirement, postemployment and other employee benefitsb148 128 Accrued interestc145 135 Deferred revenue106 91 Leasesd103 98 Accrued taxes, other than income taxes79 81 Community development programs62 75 PTFI contingenciese49 49 MIND ID indemnificationd49 49 PTFI administrative finea— 59 Other151 108 Total accounts payable and accrued liabilities$4,565 $4,057 a.Refer to Note 10.b.Refer to Note 7 for the long-term portion.c.Third-party interest paid, net of capitalized interest, was $256 million in 2025, $206 million in 2024 and $419 million in 2023.d.Refer to Note 11.e.Primarily reflects Indonesia tax matters. Refer to Note 10.