Fortescue shares retreat as FY25 profit misses estimates
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More news: Fortescue shares dropped in morning trade after reporting a 41% decline in full-year profit.
Shares were down 2.4% to $19.53 at midday AEST. The stock is up 6.7% over the last 12 months.
Jarden analysts Ben Lyons and Adam Bennett said it was a "solid result and robust dividend" from Fortescue, with FY26 guidance demonstrating the miner's industry-leading cost position amid sector-wide inflationary headwinds.
They noted that Fortescue is entering FY26 in a strong financial position, with its current syndicated loan facility representing the company's lowest ever cost of debt.
Fortescue reports 41% drop in full-year profit as iron ore prices slide
The news: Mining giant Fortescue has reported a USD3.37 billion ($5.2 billion) net profit for the year, down 41% on the prior year as iron ore prices slumped during the 12-month period.
The numbers: Analysts had expected a full-year profit of $3.495 billion, according to Visible Alpha data.
The miner reported a 15% drop in full-year revenue to USD15.5 billion, down from USD18.22 billion last year. This was driven by an 18% decline in hematite average revenue to USD85 per dry metric tonne.
The group saw record iron ore shipments of 198.4 million tonnes, up 4% year on year.
Fortescue will pay total dividends of $1.10 per share, down from $1.29 last year, but beating market expectations of 71 cents per share.
The context: Fortescue chief executive Dino Otranto said the result was supported by record shipments and disciplined cost performance.
He noted the company has made "strong progress" in its decarbonisation efforts, including the build-out of its unified power network in the Pilbara, with a 100 megawatt solar farm now operational and a further 190 megawatts under construction.
The sources: ASX, Jarden research
