Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Freeport-McMoRan Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	4,152)	4,399)	3,751)	4,479)	5,365)
Depreciation, depletion and amortization	2,244)	2,241)	2,068)	2,019)	1,998)
Net charges for environmental and asset retirement obligations, including accretion	291)	622)	295)	369)	540)
Payments for environmental and asset retirement obligations	(244)	(234)	(250)	(274)	(273)
Stock-based compensation	121)	109)	109)	95)	98)
Net charges for defined pension and postretirement plans	62)	35)	62)	45)	4)
Pension plan contributions	(37)	(78)	(75)	(54)	(109)
Net gain on sales of assets	—)	—)	—)	(2)	(80)
Deferred income taxes	247)	(76)	182)	36)	(171)
Charges for PT Freeport Indonesia’s (PTFI) social investment programs	86)	103)	84)	84)	75)
Payments for PTFI social investment programs	(65)	(54)	(44)	(11)	(67)
Impairment of oil and gas properties	64)	69)	67)	—)	—)
Charges for talc-related litigation reserves	4)	—)	65)	—)	—)
Net gain on early extinguishment of debt	—)	—)	(10)	(31)	—)
Changes in deferred profit on PTFI sales to PT Smelting	—)	—)	(112)	(14)	86)
Payments for Cerro Verde royalty dispute	—)	—)	—)	—)	(421)
Other, net	23)	53)	(33)	(1)	(77)
Accounts receivable	(521)	460)	166)	56)	(472)
Inventories	(709)	(638)	(873)	(573)	(618)
Other current assets	(55)	(41)	(29)	(12)	(101)
Accounts payable and accrued liabilities	802)	143)	(161)	(73)	487)
Accrued income taxes and timing of other tax payments	(855)	47)	17)	(999)	1,451)
Changes in working capital and other	(1,338)	(29)	(880)	(1,601)	747)
Adjustments to reconcile net income to net cash provided by operating activities	1,458)	2,761)	1,528)	660)	2,350)
Net cash provided by operating activities	5,610)	7,160)	5,279)	5,139)	7,715)
U.S. copper mines	(1,102)	(1,033)	(761)	(597)	(342)
South America operations	(419)	(375)	(368)	(304)	(162)
Indonesia operations	(2,358)	(2,908)	(3,411)	(2,381)	(1,518)
Molybdenum mines	(108)	(117)	(84)	(33)	(6)
Other	(507)	(375)	(200)	(154)	(87)
Capital expenditures	(4,494)	(4,808)	(4,824)	(3,469)	(2,115)
Acquisition of additional ownership interest in Cerro Verde	—)	(210)	—)	—)	—)
Loans to PT Smelting for expansion	—)	(28)	(129)	(65)	(36)
Acquisition of minority interest in PT Smelting	—)	—)	—)	—)	(33)
Other, net	22)	18)	(3)	94)	220)
Net cash used in investing activities	(4,472)	(5,028)	(4,956)	(3,440)	(1,964)
Proceeds from debt	3,195)	2,251)	1,781)	5,735)	1,201)
Repayments of debt	(2,777)	(2,731)	(2,980)	(4,515)	(1,461)
Finance lease payments	(37)	(41)	(3)	(7)	—)
Cash dividends and distributions paid, common stock	(865)	(865)	(863)	(866)	(331)
Cash dividends and distributions paid, noncontrolling interests	(1,274)	(1,833)	(625)	(840)	(583)
Treasury stock purchases	(107)	(59)	—)	(1,347)	(488)
Proceeds from exercised stock options	12)	29)	47)	125)	210)
Payments for withholding of employee taxes related to stock-based awards	(23)	(35)	(50)	(55)	(29)
Contributions from noncontrolling interests	—)	—)	50)	189)	182)
Debt financing costs	—)	—)	(7)	(42)	(41)
Net cash used in financing activities	(1,876)	(3,284)	(2,650)	(1,623)	(1,340)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	(738)	(1,152)	(2,327)	76)	4,411)
Cash and cash equivalents and restricted cash and cash equivalents at beginning of year	4,911)	6,063)	8,390)	8,314)	3,903)
Cash, cash equivalents and restricted cash and cash equivalents at end of year	4,173)	4,911)	6,063)	8,390)	8,314)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The company demonstrates fluctuating operational cash flow over the analyzed period. While net cash provided by operating activities generally remains positive, it exhibits variability, peaking in 2024 at US$7,160 million before declining to US$5,610 million in 2025. Net income follows a similar pattern, decreasing from US$5,365 million in 2021 to US$4,152 million in 2025, with a temporary increase in 2024. Significant non-cash adjustments to net income, including depreciation, depletion, and amortization, consistently contribute to the overall operating cash flow, averaging around US$2,100 million annually.

Investing activities consistently represent a net cash outflow, increasing in magnitude over the period. Capital expenditures are the primary driver of this outflow, rising from US$2,115 million in 2021 to US$4,494 million in 2025. Investments in Indonesia operations also contribute substantially to the cash outflow, particularly in the earlier years of the period. The acquisition of additional ownership interest in Cerro Verde and loans to PT Smelting further contribute to the negative cash flow from investing activities in 2024.

Financing activities also consistently result in net cash outflows, though these outflows fluctuate considerably. Debt activity, including proceeds and repayments, is a major component. Cash dividends paid to both common stockholders and noncontrolling interests represent a significant and consistent drain on cash. Treasury stock purchases contribute to the outflow in 2021, 2022, and 2025. Overall, net cash used in financing activities decreases from US$1,340 million in 2021 to US$1,876 million in 2025.

Working Capital Trends: Changes in working capital demonstrate significant volatility. A substantial outflow of US$1,601 million is observed in 2022, followed by outflows of US$880 million in 2023 and US$1,338 million in 2025. These fluctuations are driven by changes in accounts receivable, inventories, and accounts payable. Specifically, increases in accounts receivable and inventories often correlate with negative changes in working capital, while increases in accounts payable and accrued liabilities tend to have the opposite effect. Accrued income taxes and timing of other tax payments also show large swings, impacting overall working capital changes.
Environmental and Social Investments: The company consistently incurs charges and makes payments related to environmental and asset retirement obligations, as well as social investment programs, particularly those associated with PT Freeport Indonesia (PTFI). While net charges fluctuate, payments remain relatively stable, averaging around US$250 million annually for environmental obligations and US$70 million for PTFI social programs. These obligations represent a recurring cost of doing business.
Tax Impact: Deferred income taxes exhibit considerable variability, ranging from an outflow of US$171 million in 2021 to an inflow of US$247 million in 2025. This suggests fluctuations in the recognition of tax benefits or liabilities. The significant outflow in accrued income taxes and timing of other tax payments in 2021 (US$1,451 million) is notable, potentially related to a large tax payment or a change in tax regulations.
Cash Position: Despite the fluctuating cash flows, the company maintains a substantial cash balance throughout the period. Cash and cash equivalents decrease from US$8,314 million in 2021 to US$4,173 million in 2025, but remain at a significant level. The net increase or decrease in cash and cash equivalents varies considerably, with a substantial increase in 2021 (US$4,411 million) followed by decreases in subsequent years.

AI Ask an analyst for more

Download chart

Freeport-McMoRan Inc. (NYSE:FCX)

Cash Flow Statement