Fortescue (FMG) H1 2025 earnings summary

Executive summary

• Achieved record half-year iron ore shipments of 97.1 million tons, with a 44% reduction in TRIFR to 1.0 and strong operational performance.

• Net profit after tax for H1 FY25 was US$1.6 billion, down 53% year-over-year, with EPS of US$0.51 and revenue of US$7.6 billion, reflecting lower iron ore prices and higher costs.

• Fully franked interim dividend of A$0.50 per share declared, representing a 65% payout of NPAT and returning A$1.5 billion to shareholders.

• Advanced decarbonisation with a US$2.8 billion contract for zero-emissions mining equipment, commissioned a 100 MW solar farm, and released a Climate Transition Plan targeting Real Zero by 2030.

• Acquisition of Red Hawk Mining Limited advanced, with compulsory acquisition process underway and integration planning in progress.

Financial highlights

• Revenue for H1 FY25 was US$7.6 billion, down 20% year-over-year due to a 21% decrease in hematite realized price.

• Underlying EBITDA was US$3.6 billion, 38% lower year-over-year, with a margin of 48%.

• Free cash flow was US$0.7 billion after US$1.8 billion in capital expenditure; net operating cash flow was US$2.4 billion.

• Cash on hand at 31 December was US$3.4 billion; net debt was US$2.0 billion.

• Hematite C1 cost increased 8% to US$19.17/wmt.

Outlook and guidance

• FY25 iron ore shipment guidance remains at 190–200 Mt, including 5–9 Mt from Iron Bridge.

• Hematite C1 cost guidance is US$18.50–19.75/wmt; metals capex US$3.5–3.8 billion, energy capex US$400 million.

• Focus on decarbonisation, operational efficiency, and cost management amid inflationary pressures.

• Timelines for some green energy projects may shift due to global policy and market uncertainty.