Fortescue (FMG) H2 2024 earnings summary

Executive summary

• Achieved net profit after tax of US$5.7 billion, with fully franked FY24 total dividends of A$1.97 per share, representing a 70% payout ratio.

• Iron ore shipments reached 191.6Mt, maintaining industry-leading C1 cost of US$18.24/wmt and record safety with TRIFR of 1.3, a 28% improvement year-over-year.

• Underlying EBITDA was US$10.7 billion, up 7% year-over-year, with a 59% EBITDA margin and EBITDA per tonne at US$65.

• Significant progress in decarbonisation and green energy projects, including new solar farm construction, hydrogen initiatives, and the Green Metal Project.

• Strong focus on sustainability, diversity, and inclusion, with 15% First Nations workforce and 24% female representation.

Financial highlights

• Revenue increased 8% year-over-year to US$18.2 billion, driven by higher average hematite revenue.

• Net cash flow from operating activities was US$7.9 billion, up 7%, and free cash flow was US$5.1 billion, up 18%.

• Total capital expenditure was US$2.9 billion, including US$224 million for decarbonisation and US$317 million for energy projects.

• Dividend payout ratio remained at 70%, with total dividends of A$1.97 per share and AUD 6.1 billion distributed to shareholders.

• Return on equity and return on capital employed were both 27% for FY24.

Outlook and guidance

• FY25 iron ore shipments expected between 190–200Mt, including 5–9Mt from Iron Bridge, with hematite C1 cost guidance set at US$18.50–US$19.75/wmt.

• Metals capital expenditure forecasted at US$3.2–US$3.8 billion; Energy net operating expenditure at US$700 million and capex at US$500 million.

• Full production capacity at Iron Bridge targeted for September quarter next year.

• Ongoing focus on cost discipline, operating excellence, and capital returns to shareholders.

• Continued investment in green metals and energy projects, with a robust exploration pipeline in Australia and globally.