Australian mining company Fortescue has reported net profit after tax (NPAT) of $3.4bn for the fiscal year ending June 2025 (FY25), a 41% decline compared to FY24.
Revenue for the period was $15.5bn, down 15% from FY24, primarily due to an 18% decrease in Hematite average revenue to $85 per dry metric tonne (dmt).
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Hematite C1 costs were reported at $17.99 per wet metric tonne (wmt), 1% lower than FY24, reflecting the company’s operational efficiency.
Total iron ore shipments reached 198.4 million tonnes (mt) in FY25, a 4% increase compared to the prior year.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at $7.9bn, a 26% decrease from FY24’s $10.7bn, resulting in an underlying EBITDA margin of 51%, down from 59%.
Fortescue Metals and Operations CEO Dino Otranto said: “As the industry’s lowest-cost producer, we have delivered another strong set of results – record shipments, disciplined cost performance, solid earnings and a continued focus on safety.
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By GlobalData“In line with our commitment to deliver returns to shareholders, the Board has declared a fully franked final dividend of A$0.60 per share, bringing total dividends declared for FY25 to A$1.10 per share, representing a 65% payout of net profit after tax.”
The company reported net cash flow from operating activities of $6.5bn and free cash flow of $2.6bn after investing $3.9bn in capital expenditure (capex).
Total capex and investments for FY25 amounted to $3.9bn, which included $2.6bn for sustaining and hub development, $324m for exploration and studies, and $405m for decarbonisation efforts.
The Board has declared a fully franked final dividend of A$0.60 per share, with the ex-dividend date set for 1 September 2025. Shareholders will receive the dividend on 26 September 2025.
Including the interim dividend of A$0.50 per share, the total dividends declared for FY25 amount to A$1.10 per share, representing a payout ratio of 65% of FY25 NPAT. This aligns with Fortescue’s dividend policy to distribute 50–80% of full-year underlying NPAT.
Looking ahead, Fortescue has provided FY26 guidance, projecting iron ore shipments of 195–205mt. The C1 cost for Hematite is expected to be $17.5-$18.5/wmt.
Metals capex is forecasted at $3.3bn–$4bn, which includes $2bn-$2.3bn for sustaining and hub development, $900m–1.2bn for decarbonisation, and $300m–$400m for exploration and studies.
Additionally, energy capex is anticipated to be around $300m, with net operating expenditure of approximately $400m.
Fortescue Growth and Energy CEO Gus Pichot said: “While we continue to deliver operational excellence in the Pilbara, we are also looking to what is next to keep adding value for our shareholders. We have spent the past year refining and refocusing our growth strategy to be even more disciplined and commercially focused.
“As we move into FY26, we will continue to build on these strong foundations – researching and developing new green technologies to accelerate decarbonisation, both for Fortescue and for others.”
Earlier this month, Fortescue secured a syndicated term loan facility in renminbi amounting to 14.2bn yuan ($2bn).
The syndicated loan, featuring contributions from leading lenders in China, Australia and other countries, will enhance Fortescue’s overall corporate operations.
