Fortescue Ships Record 201.3Mt in FY26, Flags Impairment

Fortescue (ASX:FMG) reported total iron ore shipments of 52.7 million tonnes (Mt) in Q4 FY26, comprising 50.0Mt of Hematite and 2.7Mt of Iron Bridge Concentrate, contributing to record FY26 shipments of 201.3Mt, one per cent higher than FY25. Iron Bridge Concentrate shipments totalled 9.0Mt for the year, a 27 per cent increase on the prior year. Total ore mined was 246.0Mt in FY26 and 64.9Mt in the quarter. The Hematite C1 unit cost was US$19.37 per wet metric tonne (wmt) in Q4 FY26, six per cent higher than the previous quarter, primarily due to higher diesel prices, and US$18.74/wmt for FY26, achieving guidance at the guidance exchange rate of AUD:USD 0.65. The Hematite realised price was US$88.85 per dry metric tonne (dmt) for the quarter, a realisation of 84 per cent of the average Platts 61% CFR Index, while Iron Bridge Concentrate realised US$118.20/dmt, or 97 per cent of the average Platts 65% CFR Index. Safety measures for the 12 months to 30 June 2026 included a Leading Safety Index of 172, a Critical Incident Frequency Rate of 0.04 and a Total Recordable Injury Frequency Rate of 1.3.

The cash balance was US$5.1 billion at 30 June 2026, compared with US$4.2 billion at 31 March 2026, with gross debt of US$5.8 billion and net debt of US$0.8 billion. Total capital expenditure and investments were US$1.1 billion in the quarter and US$3.6 billion for FY26, at the low end of the guidance range. Following consideration of Iron Bridge's revised ramp up schedule and a range of production scenarios, including nameplate capacity of 22Mtpa, Fortescue expects to recognise a non-cash impairment charge of approximately US$750 million before tax and US$525 million after tax in its FY26 financial results, which will be excluded from Underlying net profit after tax. The company also anticipates a pre-tax expense of US$104 million relating to the Yindjibarndi native title compensation claim, after the Federal Court on 1 July 2026 ordered payment of A$353,909 for economic loss and compound interest and A$150 million for cultural loss, which Fortescue paid in full on 1 July 2026. FY27 guidance is for total shipments of 197-207Mt, including 11-14Mt from Iron Bridge on a 100 per cent basis, a Hematite C1 unit cost of US$20.50-US$21.75/wmt, and Metals capital expenditure of US$3.7-US$4.7 billion. Construction commenced on the 690MW Turner River solar farm, the final solar installation required to deliver Fortescue's Real Zero target.