Iron-ore and green energy company Fortescue has reported a 41% fall in full-year profit as weaker iron-ore prices hit revenue, though record shipments and lower costs helped soften the impact.

Net profit after tax for the year to June 30 was $3.4-billion, down from $5.7-billion a year earlier, the Australian miner said on Tuesday. Revenue slipped 15% to $15.5-billion as the average realised price for hematite ore fell 18% to $84.79/t.

The company declared a fully franked final dividend of A$0.60 a share, bringing total dividends for the 2025 financial year to A$1.10 a share, or 65% of profit. That compared with A$1.97 in the prior year.

CEO of metals and operations Dino Otranto said operational strength underpinned the results. “As the industry’s lowest-cost producer, we have delivered another strong set of results – record shipments, disciplined cost performance, solid earnings and a continued focus on safety. These outcomes are only possible thanks to the support of our customers, suppliers, partners and the entire Fortescue team,” Otranto said.

“In line with our commitment to deliver returns to shareholders, the board has declared a fully franked final dividend of A$0.60 a share, bringing total dividends declared for FY25 to A$1.10 a share, representing a 65% payout of net profit after tax.”

Otranto also highlighted closer ties with China. “The Australian Prime Minister’s recent visit to China, which I was honoured to join, highlighted the value of collaboration between governments and industry. It was a strong signal for strengthening relationships in key markets – something underscored by our recent RMB term loan facility which was made possible through Fortescue’s long-standing partnerships with Chinese institutions.”

Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) dropped 26% to $7.9-billion, with an Ebitda margin of 51%. Free cash flow halved to $2.6-billion after $3.9-billion in capital spending, which included decarbonisation projects and the $254-million acquisition of Red Hawk Mining.

Gus Pichot, Fortescue's CEO of growth and energy, said the company had sharpened its focus on future-facing projects. “While we continue to deliver operational excellence in the Pilbara, we are also looking to what is next to keep adding value for our shareholders. We have spent the past year refining and refocusing our growth strategy to be even more disciplined and commercially focused.

"What we have done to date has set us up for future success. We continue to pursue global opportunities in metals, critical minerals, energy and technology. At the same time, we’re exploring innovative ways to sustain and enhance the longevity of our existing iron-ore assets through decarbonisation, new technologies and green iron.”

He said construction of a green iron pilot plant in the Pilbara was under way and would soon begin production using green hydrogen.

Fortescue guided for 2026 iron-ore shipments of 195-million to 205-million tonnes at C1 costs of $17.50/t to $18.50/t.