The Fortescue Ltd (ASX: FMG) share price is in focus after the company delivered record iron ore shipments and posted a nine per cent jump in underlying EBITDA to US$8.6 billion for the year ended 30 June 2026.
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What did Fortescue report?
- Revenue grew 9% to US$17.0 billion.
- Underlying EBITDA rose 9% to US$8.6 billion (margin: 51%).
- Underlying net profit after tax (NPAT) increased 3% to US$3.5 billion.
- Free cash flow up 25% to US$3.2 billion.
- Fully franked dividends for FY26 totalled A$1.08 per share (65% payout ratio).
- Net debt reduced to US$0.9 billion; cash balance at US$5.1 billion.
What else do investors need to know?
Fortescue achieved record iron ore shipments of 201.3 million tonnes, supported by ongoing operating excellence and a focus on safety, with a Total Recordable Injury Frequency Rate of 1.3. The company's Hematite C1 unit cost was US$18.74 per wet metric tonne, within guidance despite higher energy prices.
Fortescue advanced its Green Grid strategy, progressing renewable energy projects and installing over 300,000 solar panels in the Pilbara. The company also completed the acquisition of Alta Copper, expanding its copper portfolio in Peru.
Ongoing investments in technology, including artificial intelligence for operations and energy management, are intended to boost productivity and long-term cost competitiveness.
What did Fortescue management say?
Fortescue Metals and Operations CEO Dino Otranto said:
Our record operating performance this year underpinned a nine per cent increase in Underlying EBITDA and a 25 per cent increase in free cash flow. We invested US$3.6 billion across the business and finished the year with US$5.1 billion in cash and net debt of just US$0.9 billion. That puts us in a strong position to continue investing in growth while delivering returns to shareholders.
What's next for Fortescue?
Guidance for FY27 includes 197–207 million tonnes of iron ore shipments and a Hematite C1 unit cost between US$20.50 and US$21.75 per wet metric tonne. Planned capital expenditure is up to US$4.7 billion for metals, with an additional US$150 million earmarked for energy investments.
Fortescue will continue developing its renewable Green Grid, expanding exploration efforts, and focusing on autonomous and AI-driven efficiency improvements. The company aims to build on its strong financial position to support future growth across metals and energy.
Fortescue share price snapshot
The Fortescue share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 7%.
