The Fortescue Ltd (ASX: FMG) share price is in focus after the ASX mining share announced its FY26 result.
Fortescue is one of the largest iron ore miners on the ASX and one of the biggest in the world.
FY26 result
Here are some of the main highlights from the 12 months to 30 June 2026:
- Revenue grew 9% to US$17 billion
- Underlying EBITDA (EBITDA explained) increased 9% to US$8.6 billion
- Underlying net profit after tax (NPAT) rose 3% to US$3.47 billion
- Statutory net profit declined 15% to $2.9 billion
- Operating cashflow grew 6% to US$6.8 billion
- Free cashflow increased 25% to US$3.2 billion
- Underlying EPS in AUD declined 2% to A$1.68
- Final dividend per share down 23% to A$0.46
- Total dividend per share down 2% to A$1.08
What happened in this result?
The 2026 financial year was an uncertain one for Fortescue, with diesel costs and other impacts being more volatile than normal.
Over the year, the company processed 201.3mt of iron ore (slightly up), shipped 201.3mt of iron ore (up 1%) and sold 201.4mt of ore (up 2%).
The ASX mining share saw a 7% rise in the sold price for hematite (its iron ore) to US$90.7 per tonne. The hematite C1 unit cost (production costs) per tonne increased by 4% to US$18.74 per tonne.
That increase in the iron ore price and volume of ore sold led to the jump in revenue and underlying EBITDA.
The statutory net profit declined by 15% because of a US$525 million accounting impairment charge relating to Iron Bridge and a US$73 million compensation claim expense.
Free cashflow saw a sizeable increase partly because its investing during the period reduced by 7% to US$3.6 billion. The company noted its net debt improved to US$857 million at June 2026, an improvement from US$1.1 billion at June 2025.
Project progress
The company noted that it has made continued progress on its green grid, strengthening long-term cost competitiveness in the Pilbara and creating future opportunities to supply renewable energy to other industries.
This green grid includes 2.4GW of renewable energy, including 1.5GW of solar and 900MW of wind generation, with between 4GW to 5GW of batteries.
Fortescue also said it has implemented a new hematite life of mine plan, incorporating the Blacksmith project, which is expected to deliver significant value through an improved C1 unit cost profile and greater capital efficiency.
The ASX mining share also said that it completed the acquisition of Alta Copper, securing ownership of its portfolio of exploration assets, including the Canariaco copper project in northern Peru.
Finally, the company noted it surpassed 230,000m of exploration drilling at the Belinga iron ore project in Gabon, Africa.
Final thoughts on the Fortescue share price
Fortescue is doing what it can to deliver good earnings today while investing for the future, including its green initiatives.
I’d be happy if I were a shareholder, as it invests for the future and looks to be as effective as it can be today.
I’m cautious on how its ongoing negotiations with China Mineral Resources Group (CMRG) will turn out, but I’m hopeful of a good result for Fortescue.
Its investments in electrical systems could unlock significant cost savings once they are fully operational.
But, I think there could be a better time to invest in the future, when there is more uncertainty about the iron ore price. Therefore, growth in copper could be a good move.
For now, there are other ASX dividend shares I’d rather buy.
