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Fortescue lifts dividend on record shipments, stronger margins and decarbonisation push

Tipranks - Wed Feb 25, 5:41PM CST

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Fortescue Metals Group Ltd ( (AU:FMG) ) has shared an announcement.

Fortescue reported record first-half iron ore shipments of 100.2 million tonnes for the six months to 31 December 2025, alongside a 10 per cent rise in revenue to US$8.4 billion and a 23 per cent increase in underlying EBITDA to US$4.5 billion, as cost efficiencies pushed its hematite C1 unit cost down to US$18.64 per wet tonne. Net profit after tax climbed to US$1.9 billion, supporting a 24 per cent higher fully franked interim dividend of A$0.62 per share, while strong cash generation, a robust balance sheet and an optimised mine plan are enabling continued investment in large-scale decarbonisation initiatives, project growth in copper and iron ore, and maintenance of unchanged shipment and cost guidance for FY26.

The miner is accelerating the rollout of renewables and electrification across its Pilbara operations, including large solar installations, new battery energy storage systems, and partnerships to deploy electric mining equipment, which management says will structurally lower operating costs and reduce exposure to diesel price volatility. Fortescue is also consolidating its copper position through the planned acquisition of Alta Copper in Latin America and advancing studies for the Belinga Iron Ore Project in Gabon, reinforcing its strategy to build a diversified pipeline of green metals and energy projects while maintaining industry-leading operating costs and shareholder returns.

The most recent analyst rating on (AU:FMG) stock is a Sell with a A$17.20 price target. To see the full list of analyst forecasts on Fortescue Metals Group Ltd stock, see the AU:FMG Stock Forecast page.

More about Fortescue Metals Group Ltd

Fortescue Metals Group is a major Australian iron ore producer operating in the Pilbara region, with an integrated mine, rail and port supply chain. The company focuses on low-cost hematite iron ore exports to global steel markets, while also expanding into green metals, energy and technology to support decarbonisation and critical minerals demand.

Average Trading Volume: 6,668,270

Technical Sentiment Signal: Buy

Current Market Cap: A$62.16B

Find detailed analytics on FMG stock on TipRanks’ Stock Analysis page.

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