Fortescue (FMG) H2 2024 earnings summary

Executive summary

• Achieved net profit after tax of US$5.7 billion, with fully franked FY24 total dividends of A$1.97 per share, representing a 70% payout ratio.

• Iron ore shipments reached 191.6Mt, maintaining industry-leading C1 cost of US$18.24/wmt and a record-low TRIFR of 1.3, a 28% improvement year-over-year.

• Underlying EBITDA was US$10.7 billion, up 7% year-over-year, with a 59% EBITDA margin.

• Advanced metals portfolio with first ore from Flying Fish and Hall Hub, ramped up Iron Bridge commissioning, and significant progress in decarbonisation and green energy projects, including new solar farm construction and hydrogen initiatives.

• Strong focus on sustainability, diversity, and decarbonization, with Real Zero target by 2030 and major milestones in hydrogen and battery electric technology.

Financial highlights

• Revenue increased 8% year-over-year to US$18.2 billion, driven by higher average hematite revenue.

• EBITDA rose 7% to US$10.7 billion, with a margin of 59% and EBITDA per tonne at US$65.

• Net profit after tax was US$5.7 billion, the third highest in company history.

• Free cash flow increased 18% year-over-year to US$5.1 billion, the second highest ever.

• Final dividend of A$0.89/share, total FY24 dividend A$1.97/share, payout ratio 70% of NPAT, totaling A$6.1 billion to shareholders.

Outlook and guidance

• FY25 iron ore shipments expected between 190–200Mt, including 5–9Mt from Iron Bridge.

• Hematite C1 cost guidance set at US$18.50–US$19.75/wmt.

• Metals capital expenditure forecasted at US$3.2–US$3.8 billion; Energy net operating expenditure at US$700 million and capex at US$500 million.

• Full production capacity at Iron Bridge targeted for September quarter next year.

• Dividend policy remains at 50%-80% of net profit, with future payouts balanced against CapEx and growth needs.