Image source: © 2025 Krish Capital Pty. Ltd. 

Highlights

  • Record iron ore shipments of 198.4 million tonnes with Hematite C1 cost reduced to USD 17.99/wmt.

  • Net profit after tax of USD 3.4 billion and fully franked FY25 dividends of AUD 1.10 per share.

  • Decarbonisation milestones achieved, including commissioning of renewable projects and deployment of battery-electric equipment.

Fortescue Metals Group Ltd (ASX:FMG) has released its financial results for the year ended 30 June 2025, reporting a net profit after tax of USD 3.4 billion, underpinned by record iron ore shipments and strong operational performance. The company declared fully franked dividends of AUD 1.10 per share for FY25, equating to a 65 per cent payout ratio.

FY25 Performance

Fortescue achieved a Total Recordable Injury Frequency Rate (TRIFR) of 1.3 for FY25, consistent with the prior year. The company delivered record iron ore shipments of 198.4 million tonnes, supported by supply chain efficiencies. Hematite C1 costs decreased to USD 17.99 per wet metric tonne, maintaining the company’s cost competitiveness.

Underlying EBITDA stood at USD 7.9 billion, representing an EBITDA margin of 51 per cent. Net profit after tax reached USD 3.4 billion, equivalent to earnings per share of USD 1.10 (AUD 1.69). Net cash flow from operating activities was USD 6.5 billion, while free cash flow amounted to USD 2.6 billion after investing USD 3.9 billion in capital expenditure.

At 30 June 2025, Fortescue reported a cash balance of USD 4.3 billion and net debt of USD 1.1 billion. Gross debt to EBITDA was 0.7 times, with gross gearing of 21 per cent, reflecting a disciplined capital structure.

The Board declared a fully franked final dividend of AUD 0.60 per share, bringing total dividends for FY25 to AUD 1.10 per share or AUD 3.4 billion. This equates to a 65 per cent payout of net profit, consistent with Fortescue’s dividend policy to distribute 50–80 per cent of underlying NPAT.

Strategic Developments

In FY25, Fortescue advanced its decarbonisation agenda with key milestones, including the operation of the solar farm at North Star Junction, construction of transmission lines, and deployment of electric excavators and drilling equipment. The company also successfully shipped the first battery electric truck power system from Fortescue Zero.

Fortescue continued to progress its Green Energy pipeline in alignment with global market and policy conditions, while maintaining capital discipline. During the year, the company acquired Red Hawk Mining Limited for A$254 million, integrating the Blacksmith Iron Ore Project into its long-term mine plan.

Fortescue contributed AUD 25.9 billion to the global economy in FY25, including AUD 4.2 billion in corporate taxes and state royalties.

FY26 Guidance

For FY26, Fortescue has guided iron ore shipments of 195–205 million tonnes, including 10–12 million tonnes from Iron Bridge on a 100 per cent basis. Hematite C1 costs are expected to range between USD 17.50 and USD 18.50 per wet metric tonne. Metals capital expenditure is forecast between USD 3.3 billion and USD 4.0 billion, with additional energy expenditure of about USD 300 million.

The ex-dividend date for the declared final dividend of AUD 0.60 per share is 1 September 2025, with payment scheduled for 26 September 2025.