The Fortescue Ltd (ASX: FMG) share price is in focus after the company posted record H1 iron ore shipments alongside a 23% lift in underlying EBITDA.
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What did Fortescue report?
- First half FY26 iron ore shipments: 100.2 million tonnes, up 3% year-on-year
- Revenue: US$8.4 billion, up 10%
- Underlying EBITDA: US$4.5 billion, up 23% (margin 53%)
- Net profit after tax: US$1.9 billion, up 23%
- Fully franked interim dividend: A$0.62 per share, 24% higher than prior interim
- Net cash flow from operations: US$3.2 billion; free cash flow: US$1.5 billion
What else do investors need to know?
Fortescue's strong balance sheet saw it finish the period with US$4.7 billion in cash and net debt of just US$1.0 billion. The company successfully syndicated a low-cost Renminbi term loan and undertook proactive debt management through repayments and buybacks.
Operational efficiency continues to be a priority, with the company achieving an industry-low Hematite C1 unit cost of US$18.64 per wet metric tonne—a 3% reduction. Decarbonisation efforts ramped up, including major solar, wind, and electric mining equipment projects, with more than 3,600 solar panels being installed daily at the Cloudbreak mine.
Strategically, Fortescue advanced plans to acquire the remaining 64% stake in Alta Copper, expanding its footprint in Latin America. Exploration also progressed on critical minerals across locations in Australia and overseas.
What did Fortescue management say?
Fortescue Metals and Operations CEO Dino Otranto said:
It's been a standout first half of the financial year. We delivered record shipments of 100.2 million tonnes while keeping our people safe and costs low.
We have the lowest operating cost in the industry, and decarbonisation is pushing that even lower. By removing diesel across our operations, we're structurally improving our cost position. The more diesel we eliminate, the less exposure we have to price volatility, and the stronger and more predictable our margins become.
What's next for Fortescue?
Looking ahead, Fortescue has provided FY26 guidance for iron ore shipments of 195–205 million tonnes and expects the Hematite C1 unit cost to range between US$17.50 and US$18.50 per wet metric tonne. Capital expenditure guidance remains unchanged, including ongoing investments in metals, decarbonisation, and green energy.
Management plans to complete the Alta Copper acquisition shortly and will focus on technical reviews and project studies afterwards. Further progress is expected at the Belinga Iron Ore Project, with continued work on integrated infrastructure solutions. Decarbonisation programs are set to remain a major focus area.
Fortescue share price snapshot
Over the past 12 months, Fortescue shares have risen 12%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
