Fortescue 1st Half Net Profit, Dividend Rise on Higher Shipments, Prices — Update

By Rhiannon Hoyle

Fortescue, the world's fourth-largest iron ore producer, reported a 23% increase in first-half net profit, underpinned by record shipments and higher prices for the steelmaking commodity.

Australia-based Fortescue said it made a net profit of US$1.91 billion for six months through December, up from US$1.55 billion in the year-earlier period.

The company said its underlying earnings before interest, taxes, depreciation and amortization, totaled US$4.49 billion, also 23% higher year over year.

Directors declared an interim dividend of 62 Australian cents (US$0.44) a share. That compares to 50 Australian cents a share a year ago and represents a payout of 65% of profits, Fortescue said. The company has a policy of spending between 50% and 80% of annual underlying profit on dividends.

Analysts expected a profit of roughly US$1.98 billion and underlying Ebitda around US$4.27 billion, according to estimates compiled by Visible Alpha. An interim dividend of 59.8 Australian cents was forecast.

Fortescue, which makes its money running iron-ore pits in remote northwest Australia, increased its shipments by 3% year over year. In its main hematite operations, the price it received for its ore increased by 7%, while unit costs to produce the commodity fell by 3%.

Iron-ore prices were robust in the second half of last year, even as a property crisis in China dragged on and stockpiles of the commodity a major Chinese ports rose. China is the largest global importer of iron ore, making Fortescue highly dependent on continuing demand from the Chinese steel industry.

Fortescue said there had been a "supportive export environment for China that sustained pig iron production rates." Demand for low-grade ore was firm as Chinese mills grappled with "moderate" profitability, it said.

At its own operations, the drop in unit costs reflects a continued focus on performance and productivity, Fortescue said.

"Cost management will continue to be a focus, however inflationary pressures remain a risk," it said.

In recent years, Fortescue sought to build a clean-energy business focused on green hydrogen, but faced challenges in working out how to produce green hydrogen cheaply enough. In July, it canceled green hydrogen projects in the U.S. and Australia, citing a shift in U.S. policy priorities away from green energy.

Fortescue said it will maintain its pipeline of clean-energy projects for when customer demand increases. Spending on its energy unit accounted for US$76 million of total first-half capital expenditure of US$1.7 billion.

Fortescue's head of energy and growth Gus Pichot said the miner expects to soon finalize its acquisition of Peru-focused explorer Alta Copper.

"Subject to completion, our immediate focus will be on technical reviews, community engagement and advancing the studies required to inform future development decisions," he said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

February 24, 2026 18:01 ET (23:01 GMT)