Fortescue FY26 Underlying NPAT US$3.5b, Dividend A$1.08

Fortescue (ASX:FMG) reported FY26 revenue of US$16,966 million, up nine per cent on FY25, which the company said was driven by a seven per cent increase in the Hematite realised price to US$90.7 per dry metric tonne and a two per cent increase in iron ore sales to 201.4Mt. Iron ore shipments were a record 201.3 million tonnes, one per cent above FY25, and the release notes timing differences may occur between shipments and sales. Underlying EBITDA rose nine per cent to US$8,635 million at an Underlying EBITDA margin of 51 per cent, and Underlying net profit after tax rose three per cent to US$3,458 million, with Underlying earnings per share of US$1.13 (A$1.66). Statutory net profit after tax fell 15 per cent to US$2,860 million, which the company said reflected a US$525 million non-cash impairment charge relating to Iron Bridge and a US$73 million compensation claim expense; the release's earnings reconciliation separately records a pre-tax impairment expense of US$750 million and a legal compensation expense of US$104 million. The Hematite C1 unit cost of US$18.74 per wet metric tonne was four per cent higher than FY25, which Fortescue said achieved guidance at the guidance exchange rate despite elevated energy prices and inflationary pressures. Fortescue reports in United States dollars and declares dividends in Australian dollars.

Net cash flow from operating activities was US$6,836 million, up six per cent, and free cash flow was US$3,204 million, up 25 per cent, after total capital expenditure and investments of US$3.6 billion. The company held cash of US$5,074 million and net debt of US$857 million at 30 June 2026, with gross debt to FY26 EBITDA of 0.7 times and gross gearing of 23 per cent. The Board declared a fully franked final dividend of A$0.46 per share, taking total dividends declared for FY26 to A$1.08 per share and representing a payout of 65 per cent of Underlying net profit after tax; the dividend summary table shows the FY26 total two per cent below the A$1.10 declared in FY25 and the final dividend 23 per cent below the FY25 final of A$0.60. For FY27 Fortescue guided to iron ore shipments of 197 to 207Mt, including 11 to 14Mt for Iron Bridge on a 100 per cent basis, a Hematite C1 unit cost of US$20.50 to US$21.75 per wet metric tonne and metals capital expenditure of US$3.7 to US$4.7 billion, with guidance based on an assumed FY27 average AUD:USD exchange rate of 0.70.