Fortescue Ltd (ASX: FMG) Lifts FY26 Profit and Pays A$1.08 Dividend

Fortescue’s iron ore engine delivered a modest earnings recovery in FY26, as firmer pricing more than offset higher costs and spending.

Underlying net profit after tax rose to US$3.46 billion from US$3.37 billion in FY25. Statutory net profit was US$2.9 billion.

Revenue increased 9% to US$17.0 billion. Underlying EBITDA also climbed 9%, reaching US$8.64 billion with a 51% margin.

The numbers show the continuing weight of iron ore within Fortescue’s business. Pilbara operations fund dividends, development projects and the company’s decarbonisation program. Meanwhile, Energy remains focused on research, technology and projects that clear economic thresholds.

Higher Prices Do the Heavy Lifting

Fortescue shipped 201.3 million tonnes during FY26. Hematite fetched US$91 per dry metric tonne, with average revenue realisation of 88%.

Hematite C1 costs came in at US$18.74 per wet metric tonne. Fortescue described that as an industry-leading result.

Price added US$1.14 billion to the year-on-year earnings movement. However, a US$488 million cost impact absorbed part of that gain.

Metals underlying EBITDA increased by US$443 million from FY25. At group level, underlying EBITDA rose by US$694 million.

Underlying earnings per share reached US$1.13, equivalent to A$1.66. Net operating cash flow was US$6.84 billion, while free cash flow totalled US$3.20 billion.

Dividend Edges Lower

Fortescue declared a fully franked final dividend of A$0.46 per share. That took the full-year distribution to A$1.08, down from A$1.10 in FY25.

Total FY26 dividends were valued at A$3.3 billion. The 65% payout ratio sat within Fortescue’s policy range of 50% to 80% of underlying profit.

The miner ended June with US$5.1 billion of cash and US$5.9 billion of gross debt. Gross debt was 0.7 times EBITDA, while gross gearing was 23%. Those figures remained below Fortescue’s through-cycle limits of two times and 40%, respectively.

Costs Set to Rise in FY27

Fortescue expects FY27 iron ore shipments of 197 million to 207 million tonnes. The range brackets the FY26 result.

Iron Bridge concentrate shipments are forecast at 11 million to 14 million tonnes on a 100% basis.

Hematite C1 costs are expected between US$20.50 and US$21.75 per wet metric tonne. Both ends of that range exceed the FY26 outcome.

Metals capital expenditure is forecast at US$3.7 billion to US$4.7 billion. Energy capital expenditure is set at US$150 million, alongside US$300 million of net operating expenditure.

The guidance assumes an Australian-to-US dollar exchange rate of 0.70.

Spending Beyond Iron Ore

Fortescue said more than 1.3 gigawatts of Pilbara solar and wind capacity was operating or under construction. More than one gigawatt-hour of battery storage had reached the same stage.

The Green Metal Project produced its first hot metal on August 16, 2026. Fortescue is also advancing copper exposure, global exploration and studies at Gabon’s Belinga iron ore project.