Fortescue (FMG) H2 2026 earnings summary

Executive summary

• Achieved record annual iron ore shipments of 201.3Mt, maintaining industry-leading Hematite C1 unit cost of US$18.74/wmt and robust EBITDA margin of 51%.

• Underlying EBITDA rose 9% year-over-year to US$8.6 billion, with underlying NPAT up 3% to US$3.5 billion; statutory NPAT was US$2.9 billion after non-cash impairment and compensation charges.

• Maintained a strong balance sheet with US$5.1 billion cash, US$5.9 billion gross debt, and net debt of US$0.9 billion at year-end.

• Declared fully franked FY26 dividends of A$1.08 per share (65% payout ratio), with a final dividend of A$0.46 per share.

• Strong focus on operational discipline, asset investment, decarbonization, and Indigenous partnerships, with over AUD 1 billion awarded to Aboriginal businesses.

Financial highlights

• Revenue increased 9% year-over-year to US$17.0 billion, driven by higher realised prices and iron ore sales.

• Underlying EBITDA margin was 51%, with EBITDA per tonne at US$50/dmt.

• Statutory NPAT was US$2.9 billion, impacted by a US$525 million non-cash impairment at Iron Bridge and compensation expenses.

• Operating cash flow reached US$6.8 billion; free cash flow up 25% to US$3.2 billion.

• Total capital expenditure was US$3.6 billion, including US$848 million for decarbonisation.

Outlook and guidance

• FY27 shipment guidance set at 197–207Mt, including 11–14Mt from Iron Bridge; Hematite C1 unit cost guidance at US$20.50–21.75/wmt.

• Metals capital expenditure forecast at US$3.7–4.7 billion; energy capex at US$150 million.

• Sustaining and hub development capital expected to increase, with US$2.3–2.7 billion guidance including gray fleet replacement.

• Incremental investment planned for port maintenance, Blacksmith mine, and decarbonization program.