Own Fortescue shares? Here's why today is a big day for you!

Here's what is happening on Friday.

| More on:
a man holding a glass of beer raises a finger with his other hand with a look of eager excitement on his face.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Fortescue investors receive a fully franked final dividend of 60 cents per share. 
  • Fortescue's final dividend for FY25 is 32.6% lower than the final payment in FY24.
  • Despite record iron ore shipments, Fortescue reported a 41% profit drop in FY25 due to lower commodity prices, impacting revenue and EBITDA. 

Fortescue Ltd (ASX: FMG) shares are 0.1% higher at $19.16 while the S&P/ASX 200 Index (ASX: XJO) is down 0.2% on Friday.

It's a big day for Fortescue shares investors today — here's why.

Fortescue shares in the green as investors celebrate

Investors in this ASX 200 mining giant are celebrating as their dividends land in their bank accounts on Friday.

Fortescue investors will receive a fully franked final dividend of 60 cents per share today.

Shareholders who elected to participate in the dividend reinvestment plan (DRP) will receive their new Fortescue shares today.

The mining giant has previously announced that the DRP share price this time around will be $18.8233, with no discount.

Fortescue calculated its DRP share price by taking the average of the daily volume weighted average market price of all Fortescue shares traded over five days from 4 September.

Dividend decline for ASX 200 mining share

Fortescue's final dividend for FY25 is 32.6% lower than the final payment in FY24.

The total annual Fortescue dividend was $1.10 per share, representing a 65% payout ratio.

This gives Fortescue shares an annual trailing dividend yield of 5.8%.

What's news with Fortescue?

Fortescue released details of its decarbonisation partnerships this morning.

The company said:

Fortescue is building global alliances – linking the Pilbara's world-leading operational expertise, America's and Australia's research and development strength, the UK's and Europe's innovation and engineering excellence and anchoring it all with scale and cost-efficient manufacturing capability in China and the US.

Fortescue released its 2025 Climate Transition Plan earlier in the week.

The miner said it is working to eliminate the use of fossil fuels in its Australian iron ore operations by 2030.

Fortescue highlighted a number of achievements in FY25 in pursuit of this goal.

These included completing the commissioning of a 100MW solar farm near the Iron Bridge mine as part of a renewable energy network that will eventually power all of Fortescue's mines in the Pilbara region of Western Australia.

The miner also commissioned its first electric drill and expanded its fleet of electric excavators to seven units across the Pilbara.

In terms of what's next, the miner will release its 1Q FY26 production report on 23 October, and host its annual general meeting on 31 October.

Re-cap on Fortescue's FY25 results

Fortescue reported record iron ore shipments but a 41% fall in profit for FY25, largely due to lower commodity prices.

FY25 revenue fell 15% to US$15.5 billion, and cost of sales excluding depreciation and amortisation increased 1% to $6.7 billion.

Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 26% to US$7.9 billion.

The EBITDA margin was 51%, down from 59% in FY24.

Net profit after tax (NPAT) fell 41% to US$3.4 billion.

Fortescue share price snapshot

Fortescue shares have risen 18% over the past six months and fallen 1% over the past 12 months.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

A black cat waiting to pounce on a mouse.
Resources Shares

$2,000 in this ASX share two years ago would be worth $8,078 today

Two years ago, this ASX small-cap stock was worth 25.5 cents. Today, it's trading at $1.03.

Read more »

two people sit side by side on a rollercoaster ride with their hands raised in the air and happy smiles on their faces
Opinions

Up over 200% in 6 months: Are Pilbara Minerals shares still a buy?

How high can the lithium producer’s shares go?

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

Expert lists its top resources shares to target in December

These resources shares could be set to benefit from improving market conditions.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Major ASX 200 mining shares hit 52-week highs

BHP, Fortescue, and Rio Tinto shares set new 52-week highs today.

Read more »

Gold bars on top of gold coins.
Share Market News

Up 76% in less than a year and this ASX mining stock just revealed some "exceptional" gold news

“Outstanding” results.

Read more »

Two workers working with a large copper coil in a factory.
Resources Shares

Top fundie names 2 ASX 200 copper shares to buy today

A leading fund manager tips two ASX cooper shares to buy amid surging copper prices.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

Why are FireFly Metals shares pulling back from near-record levels today?

FireFly Metals shares have come off their record highs after a major capital raise to drive exploration was announced.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Up 109% or more! These 4 ASX mining stocks are booming as the silver price hits all-time high

Riding the wave.

Read more »