Fortescue shares break a 4-day losing streak as $150 million legal fight heats up

Fortescue shares are in the green after a rough run.

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Fortescue Ltd (ASX: FMG) shares are finally back in positive territory on Wednesday.

The Fortescue share price is up 0.96% to $16.37 in early afternoon trade after spending the previous four sessions in the red.

That run took the stock from $17.61 on 9 September to $16.22 at yesterday's close, a drop of almost 8% in less than a week.

Fortescue shares are down about 25% since the start of 2026 and are trading near their 52-week low.

And while there is no new ASX announcement today, another long-running issue has moved back into the spotlight.

Let's take a closer look.

Lawyers providing legal advice to clients.

Image source: Getty Images

According to The Australian, Fortescue has lodged an appeal against the Federal Court's landmark native title compensation ruling involving the Yindjibarndi people.

The court ordered the miner to pay $150 million for cultural loss, along with compensation for economic loss and interest, relating to mining activities on Yindjibarndi land.

Fortescue paid the amount in July, but the company has now joined the Western Australian Government in appealing parts of the decision.

A Fortescue spokesperson said the company needed to protect its legal position after other parties took the matter back to court.

The Yindjibarndi have also appealed the award, arguing the compensation should have been higher.

What else are investors watching?

The legal case comes at a time when Fortescue shares have already been struggling.

Its FY26 result was a bit of a mixed bag.

Revenue rose 9% to US$17 billion, while underlying EBITDA climbed 9% to US$8.6 billion.

Iron ore shipments also reached a record 201.3 million tonnes.

Underlying net profit after tax (NPAT) increased 3% to US$3.5 billion, and free cash flow rose 25% to US$3.2 billion.

But the statutory result was weaker, with profit falling 15% to US$2.86 billion.

That included a US$525 million after-tax impairment relating to Iron Bridge and a US$73 million after-tax compensation claim expense.

Shareholders also received a smaller final dividend, which fell 23% to 46 cents per share. That took total FY26 dividends to $1.08 per share.

Where to next?

The court case is worth watching, but I don't think it will be the main thing driving Fortescue shares from here.

Fortescue is still heavily tied to what happens with iron ore, and that means China remains a big part of the backdrop.

If iron ore prices hold up and the Asian superpower avoids another slowdown, sentiment towards Fortescue shares could improve again.

Motley Fool contributor Aaron Teboneras 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.

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