Fortescue (FMG) H1 2026 earnings summary

Executive summary

• Achieved record first half iron ore shipments of 100.2Mt, supported by strong demand, higher realised prices, and operational excellence.

• Net profit after tax attributable to equity holders rose 23% year-over-year to US$1,914 million, with earnings per share of 62 US cents.

• Interim fully franked dividend of 62 Australian cents per share declared, representing a 65% payout ratio and returning AUD 1.9 billion to shareholders.

• Significant progress in decarbonization, including construction of the Nullagine Wind Project, large-scale solar and battery installations, and electrification of mining operations.

• Strategic acquisition of Alta Copper Corp. to support long-term copper growth and portfolio diversification.

Financial highlights

• Operating sales revenue increased to US$8.439 billion, up 10% year-over-year, driven by higher iron ore prices and volumes.

• Underlying EBITDA rose 23% to US$4.5 billion, with a margin of 53%.

• Net operating cash flow was US$3.2 billion and free cash flow exceeded US$1.5 billion after US$1.7 billion in CapEx.

• Hematite realised price increased 7% to US$91/dmt; C1 unit costs decreased 3% to US$18.64/wmt.

• Gross debt to EBITDA at 0.7x and gearing at 22%, with US$4.7 billion cash on hand.

Outlook and guidance

• FY26 iron ore shipment guidance is 195–205Mt, with Hematite C1 cost guidance of US$17.50–18.50/wmt at AUD 0.65 exchange rate.

• Decarbonization CapEx expected to remain elevated, with a run rate of about US$1 billion per year to the end of the decade.

• Forward-looking CapEx projected at US$4–4.5 billion annually, including replacement mines and new projects.

• Iron Bridge Concentrate shipments expected at 10–12Mt (100% basis).

• Ongoing disciplined capital allocation and project development aligned with market demand and policy frameworks.