Fortescue: Record iron ore shipments and strong cash flow in H1 FY26

Fortescue delivered a record first half for iron ore shipments and maintained a strong financial position in its December 2025 update.

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The Fortescue Ltd (ASX: FMG) share price is in focus after the company reported record half-year iron ore shipments, up 3% year-on-year to 100.2 million tonnes, and maintained strong cash generation with a US$4.7 billion balance.

What did Fortescue report?

  • Record H1 FY26 iron ore shipments of 100.2 million tonnes, up 3% from H1 FY25
  • Iron Bridge Concentrate shipments of 4.3Mt in H1 FY26, up 37% year on year
  • Hematite C1 unit cost of US$18.64/wmt in H1 FY26
  • Hematite average revenue of US$93/dmt in Q2 FY26
  • Cash balance of US$4.7 billion and net debt of US$1.0 billion at 31 December 2025
  • Q2 FY26 capital expenditure of US$759 million

What else do investors need to know?

Fortescue has entered a binding agreement to acquire the remaining 64% of Alta Copper, aiming to expand its copper portfolio and critical minerals footprint in Latin America. The company is also advancing studies for its Belinga Iron Ore Project in Gabon, where a Presidential Taskforce was established during the quarter to support development.

Fortescue continued its decarbonisation push, delivering a large-scale battery energy storage system at North Star Junction and progressing the Cloudbreak Solar Farm construction. The company maintains an A rating for its Modern Slavery Statement and has kept FY26 guidance unchanged.

What did Fortescue management say?

Fortescue Metals and Operations Chief Executive Officer, Dino Otranto said:

It was a record first half, with shipments reaching new highs across our operations. This was achieved safely and sets us up well heading into the second half to meet our FY26 shipments and cost guidance.

We also reached an important milestone during the quarter with delivery of our first large-scale battery energy storage system at North Star Junction. With a total capacity of 250MWh, this installation marks the first step in a planned 4-5GWh rollout of energy storage required to support the decarbonisation of our operations over the coming years.

We are fundamentally changing how we power our operations by combining firmed renewable energy, our high-voltage transmission infrastructure and growing electric fleet, led by Fortescue Zero technologies.

What's next for Fortescue?

Looking ahead, Fortescue is focused on meeting its unchanged FY26 shipment guidance of 195–205Mt, with a continued emphasis on cost control and operational safety. The company is stepping up its critical minerals expansion, particularly in copper, through the proposed Alta Copper acquisition.

Fortescue will also keep investing in renewables and electrification projects to advance its decarbonisation strategy. Exploration continues at home and globally to support future growth.

Fortescue share price snapshot

Over the past 12 months, Fortescue shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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