Is Fortescue (ASX:FMG) Set for Growth? Here’s What Its Annual Report Reveals

Sonal Goyal

20 October 2026 04:52 PM AEDT

Is Fortescue (ASX:FMG) Set for Growth? Here’s What Its Annual Report Reveals

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key highlights

Fortescue reported underlying EBITDA of US$8.6 billion, up 9%, and underlying NPAT of US$3.5 billion, up 3%, for FY26.
Statutory NPAT was US$2.9 billion after a US$525 million Impairment relating to Iron Bridge.
Fully franked FY26 dividends total A$1.08 per share, with a A$0.46 final Dividend and a 65% payout of underlying NPAT.

Fortescue Limited (ASX:FMG) released its FY26 full year results covering the year ended 30 June 2026. The announcement described record iron ore shipments, earnings, cash flow, a non-cash impairment, dividends and progress on its Green Grid and growth projects. Figures are in US dollars unless stated.

About Fortescue

Fortescue is an iron ore producer operating in the Pilbara region of Western Australia, and it also has interests in green energy and copper exploration, including the Iron Bridge magnetite project. It describes a program called the Green Grid to Supply renewable energy to its operations.

Operating and financial results

Iron ore shipments reached a record 201.3 million tonnes, and the Hematite C1 unit cost was US$18.74 per wet metric tonne. Underlying EBITDA was US$8.6 billion, up 9%, with a Margin of 51%. Underlying NPAT was US$3.5 billion, up 3%, and underlying EPS was US$1.13 (A$1.66). Statutory NPAT was US$2.9 billion, after a US$525 million non-cash impairment charge relating to Iron Bridge and a US$73 million compensation claim expense.

Net operating Cash Flow was US$6.8 billion, and free cash flow was US$3.2 billion after Capital Expenditure of US$3.6 billion.

Balance sheet and dividends

Cash was US$5.1 billion and net Debt was US$0.9 billion at 30 June 2026, with gross debt to EBITDA of 0.7 times and gross gearing of 23%. The company completed Liability management and the syndication of a RMB14.2 billion term loan. The fully franked final dividend is A$0.46 per share, bringing FY26 dividends to A$1.08 per share, or A$3.3 billion, a 65% payout of underlying NPAT.

Growth and decarbonisation projects

The Green Grid comprises 2.4 GW of renewable energy, made up of 1.5 GW of solar and 900 MW of wind, firmed by 4 to 5 GWh of batteries. Fortescue implemented a new Hematite life of mine plan including the Blacksmith Project. It completed the Acquisition of Alta Copper, including the Cañariaco Copper Project in Peru, and surpassed 230,000 metres of exploration drilling at the Belinga Iron Ore Project in Gabon.

Risks to consider

Iron ore Earnings depend on prices and demand, particularly from China. Statutory profit was reduced by a US$525 million impairment related to Iron Bridge, showing project risk.

Capital spending of US$3.6 billion on the Green Grid and other projects needs to deliver the planned cost and energy benefits. Exploration in Gabon and Peru is at an early stage, and compensation claims and regulatory matters can affect costs.

Catalysts to watch

Items to watch include Green Grid build-out, the Hematite life of mine plan and the Blacksmith Project, Iron Bridge performance, exploration at Belinga and Cañariaco, and capital expenditure.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.