Fortescue has delivered a strong result for the 2025-26 financial year (FY26) thanks to record iron ore shipments, higher earnings and stronger free cash flow and continued investment across its Pilbara operations.
The company recorded record iron ore shipments of 201.3 million tonnes (Mt) during the year, while revenue increased nine per cent to $US17 billion ($24.3 billion).
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) rose nine per cent to $US8.6 billion ($12.3 billion), with an underlying EBITDA margin of 51 per cent.
Underlying net profit after tax increased three per cent to $US3.5 billion ($5.0 billion).
In a recently released financial report, Fortescue generated $US6.8 billion ($9.7 billion) in operating cash flow and $US3.2 billion ($4.6 billion) in free cash flow, up 25 per cent on FY25, after investing $US3.6 billion ($5.1 billion) across the business.
The stronger cash generation helped maintain a robust balance sheet, with $US5.1 billion ($7.3 billion) in cash and $US5.9 billion ($8.4 billion) in gross debt, leaving net debt at $US900 million ($1.3 billion) as of the end of June.
Fortescue Metals and Operations chief executive officer Dino Otranto said the result reflected strong operational performance and disciplined investment.
“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,” Otranto said.
The company is also progressing its Green Grid, which comprises 2.4-gigawatt of renewable energy capacity, including 1.5-gigawatt of solar and 900-megawatt of wind generation, supported by 4–5-gigawatt hours of battery storage.
Fortescue said its new Hematite life-of-mine plan, incorporating the Blacksmith project, is expected to improve costs and capital efficiency.
Beyond iron ore, Fortescue completed the acquisition of Alta copper and its Cañariaco copper project in Peru, while exploration at the Belinga Iron Ore Project in Gabon has surpassed 230,000 metres of drilling.
Looking to next year, Fortescue is targeting iron ore shipments of 197–207 million tonnes (Mt), including 11–14Mt from Iron Bridge.
The company expects to invest $US3.7–$US4.7 billion ($5.3–$6.7 billion) in metals capital expenditure during FY27, including $US0.9–$US1.3 billion ($1.3–$1.9 billion) for decarbonisation and $US300–$US500 million ($429–$714 million) for exploration and studies.