Fortescue (FMG) H2 2025 earnings summary

Executive summary

• Achieved record annual iron ore shipments of 198.4 million tonnes, maintaining industry-leading C1 cost of $17.99/wmt and strong safety performance with a TRIFR of 1.3.

• Net profit after tax reached $3.4 billion, with underlying EBITDA of $7.9 billion and a 51% margin.

• Advanced decarbonisation initiatives, including commissioning a 100 MW solar farm, deploying electric mining equipment, and targeting real zero emissions by 2030 for Scope 1 and 2.

• Strengthened relationships in China, highlighted by a landmark RMB 14.2 billion term loan at 3.8% and ongoing green iron collaboration.

• Acquisition of Red Hawk/Redhawk Mining and integration of Blacksmith Iron Ore Project to enhance long-term production flexibility.

Financial highlights

• Revenue was $15.5 billion, down 15% year-over-year due to lower iron ore prices despite higher shipments.

• Underlying EBITDA reached $7.9 billion with a 51% margin; metals segment EBITDA margin was 56%.

• Net profit after tax (NPAT) was $3.4 billion; earnings per share were $1.10.

• Free cash flow totaled $2.6 billion; net operating cash flow was $6.5 billion; cash on hand at year-end was $4.3 billion.

• Capital expenditure was $3.9 billion, including $405 million for decarbonisation and $2.6 billion for sustaining and hub development.

Outlook and guidance

• FY26 shipment guidance set at 195–205 million tonnes, including 10–12 million tonnes from Iron Bridge; C1 cost guidance at $17.50–$18.50/wmt.

• Metals capital expenditure expected at $3.3–4.0 billion; decarbonisation capital guidance for FY26 is $900 million–1.2 billion.

• Energy capital expenditure of $300 million and net operating expenditure of $400 million.

• Peak emissions anticipated in 2027–2028, with material decreases as solar and battery projects ramp up.