Freeport-McMoRan Inc. (NYSE:FCX)

Analysis of the annual financial data reveals several notable trends and patterns across key financial metrics.

Revenues

There is a clear upward trend in revenues from 2020 through 2024, with amounts increasing from 14,198 million USD in 2020 to 25,455 million USD in 2024. Growth was particularly strong between 2020 and 2021 and resumes growth from 2023 to 2024 after a slight plateau.

Cost of Sales

The total cost of sales consistently increased every year, rising from 11,655 million USD in 2020 to 17,795 million USD in 2024. This includes steadily increasing production and delivery costs as well as depreciation, depletion, and amortization expenses, demonstrating rising operational costs alongside revenue growth.

Gross Profit

Gross profit peaked in 2021 at 8,815 million USD, followed by a decline in 2022 and 2023, down to 7,160 million USD, before a partial recovery to 7,660 million USD in 2024. Despite revenue increases, margin pressure is visible, likely due to proportionally faster growth in cost of sales.

Operating Expenses and Income

Selling, general and administrative expenses and mining exploration and research expenses both showed steady increases, reflecting higher ongoing operational investments. Environmental obligations fluctuated, with a notable spike in 2023. Operating income mirrored gross profit trends, peaking in 2021, then declining until recovering somewhat by 2024.

Non-Operating Items

Interest expense declined gradually, indicating improved financing costs or debt reductions. Other income (expense), net became increasingly positive in recent years, contributing to overall income before taxes. Net gains or losses on early extinguishment of debt varied but had limited impact.

Income Taxes and Net Income

Provision for income taxes rose consistently in nominal terms, indicating increased taxable income. Net income showed a strong rise from 2020 to 2021, followed by a downward trend through 2023 and partial recovery in 2024. However, net income attributable to common stockholders decreased more sharply, particularly from 2021 onwards, suggesting increased deductions attributable to noncontrolling interests.

Noncontrolling Interests

Net income attributable to noncontrolling interests increased substantially in magnitude over the period, exerting downward pressure on net income available to common stockholders. This points to changing ownership structures or profit-sharing arrangements affecting shareholder returns.

Overall, the data depicts a company experiencing significant revenue growth accompanied by rising costs that compress gross and operating margins. While operational efficiency challenges appear, improving financing expenses and positive other income help support profitability. The impact of noncontrolling interests notably reduces net income to common shareholders despite overall net income growth trends. These dynamics suggest the importance of managing cost inflation and ownership impacts to enhance shareholder value.