 has reported its lowest profit since FY19 in the company’s FY25 results.){kind=link}
FMG reports 41% profit drop
The company’s FY25 net profit after tax (NPAT) came in at $5.24b [US$3.4b], a significant drop from the $8.78b [US$5.7b] reported in FY24.
Revenue for FY25 was $24b [US$15.5b], a 15% drop on FY24 underpinned by an 18% decrease in hematite average revenue of $131/dmt [US$85/dmt].
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $12.2b [US$7.9b] was 26% lower than FY24 — $16.4b [US$10.7b] — the underlying EBITDA margin was 51%.
Despite this, Fortescue maintained strong operational performance resulting in record volumes across its supply chain, including iron ore shipments totalling 198.4mt in FY25, 4% higher than FY24.
Fortescue metals and operations chief executive Dino Otranto comments on the results.
“As the industry’s lowest-cost producer, we’ve delivered another strong set of results — record shipments, disciplined cost performance, solid earnings and a continued focus on safety,” he said.
“We also made strong progress in decarbonisation, including the continued build-out of our unified, highly efficient power network in the Pilbara, with a 100MW solar farm now operational and a further 190MW under construction.”
In FY25, Fortescue continued to refine its green energy project pipeline to reflect global market conditions.
Following the cancellation of plans to progress its Arizona hydrogen project in the US and PEM50 project in Gladstone, Queensland, the company shifted focus to its green metal project in the Pilbara, WA.
Construction of the project is underway with a pilot plant set to begin producing green iron using green hydrogen.
Iron’s green future
This week, the World Economic Forum (WEF) concluded a two-day workshop in Adelaide focusing on bridging supply and demand, fostering models for regional cooperation and set a roadmap positioning Australia and the Asia-Pacific as a global leader in decarbonised industry and green iron.
With iron and steel production responsible for up to 9% of global emissions, according to the WEF, scaling green iron is critical to achieving net zero while unlocking billions in new clean industry investment and growth.
Greenhouse chief partnership officer Harry Guinness says Australia has the potential to create a $400b green iron export industry over the coming decades.
“Without comprehensive action, we risk losing this opportunity to global competitors, just as revenue from coal and gas faces terminal decline,” he said.
Looking forward, Fortescue continues to explore innovative ways to sustain and enhance the longevity of its existing iron ore assets through decarbonisation, new technologies and green iron.
Fortescue growth and energy chief executive Gus Pichot says green energy and green hydrogen remain key to the company’s future, including its green iron strategy.
“We continue to pursue global opportunities in metals, critical minerals, energy and technology,” he said.
“As we move into FY26, we will continue to build on these strong foundations — researching and developing new green technologies to accelerate decarbonisation, both for Fortescue and for others.”