Fortescue Ltd · ASX:FMG
Fortescue — FY2025 Earnings Presentation
36 slides from Fortescue's earnings presentation, Aug 26, 2025
Slide 1: Fortescue
© 2024 FORTESCUE FORTESCUE | 1
Slide 2: Forward Looking Statements Disclaimer
Important Notice The purpose of this presentation is to provide general information about Fortescue Ltd and its subsidiaries (“Fortescue”). It is not recommended that any person makes any investment decision in relation to Fortescue based on this presentation. This presentation contains certain stat
Slide 3: Our purpose is to accelerate decarbonisation on a global scale
At Fortescue, our purpose is clear: to accelerate decarbonisation on a global scale, rapidly and profitably. FORTESCUE | 3
Slide 4: FY25 Highlights
FY25 HIGHLIGHTS US$3.4bn 1.3 TRIFR 198.4Mt Commitment to prioritising safety in everything that we do Iron ore shipped Net profit after tax US$17.99/wmt US$1.1bn 65% net debt payout ratio Industry leading hematite Robust balance sheet to C1 cost support growth In line with dividend policy FORTESCUE
Slide 5: Safety
SAFETY 1.3 140.5 0.02 Total Recordable Injury Leading Safety Index (LSI) 1 Critical Incident Frequency Rate (TRIFR) Frequency Rate (CIFR) 1 LSI is a patented, data-driven metric that combines leading and lagging indicators to measure the presence and effectiveness of safety across the organisation.
Slide 6: FY25 Iron Ore Production Highlights
FY25 IRON ORE PRODUCTION HIGHLIGHTS US$17.99/wmt 198.4Mt Total shipments Industry leading Hematite C1 cost US$85/dmt 84% Hematite average revenue Hematite average revenue realisation FORTESCUE | 6
Slide 7: FY25 Financial Highlights
FY25 FINANCIAL HIGHLIGHTS US$15.5bn US$7.9bn US$3.4bn Revenue Underlying EBITDA Net profit after tax 51% US$48/dmt1 US$1.10 Underlying EBITDA margin Underlying EBITDA per tonne Earnings per share (A$1.69) 1Fortescue Metals Underlying EBITDA. FORTESCUE | 7
Slide 8: FY25 Financial Highlights
FY25 FINANCIAL HIGHLIGHTS US$6.5bn US$2.6bn Net operating cash flow Free cash flow US$5.4bn US$4.3bn Gross debt Cash on hand FORTESCUE | 8
Slide 9: Shareholder Returns
SHAREHOLDER RETURNS A$0.60 per share A$1.10 per share A$3.4bn FY25 total dividends Fully franked final dividend 65% payout ratio Value of FY25 dividends FORTESCUE | 9
Slide 10: FY26 Guidance
FY26 GUIDANCE 195 - 205Mt 10 - 12Mt US$400m Iron Bridge concentrate Energy net operating Total iron ore shipments shipments (100% basis) expenditure US$17.50 - US$3.3 - US$300m US$18.50/wmt US$4.0bn C1 cost for Hematite Metals capital expenditure Energy capital expenditure Guidance is based on an as
Slide 11: Pilbara Operations
PILBARA OPERATIONS Solar and wind locations are subject to further studies FORTESCUE | 11 and regulatory approvals.
Slide 12: Iron Bridge
IRON BRIDGE HIGH GRADE PRODUCT Supports lowering steelmaking emissions DIVERSIFICATION Enhances Fortescue’s product mix 7.1Mt Iron Bridge Concentrate shipped in FY25 FORTESCUE | 12
Slide 13: Diversity, Inclusion and Equity
DIVERSITY, INCLUSION AND EQUITY 40% FEMALE EMPLOYMENT In senior leadership roles 16% FIRST NATIONS Australians across our Pilbara workforce >1,600 First Nations people employed through Fortescue’s Vocational Training Employment Centre since 2006 FORTESCUE | 13
Slide 14: People and Communities
PEOPLE COMMUNITIES A$25.9 BILLION Total global economic contribution A$4.2 BILLION Corporate taxes and State Royalties A$11.0 MILLION Five-year commitment to Pilbara Safe Spaces program >A$6.6 BILLION Contracts awarded to First Nations businesses since 20111 1Through Fortescue’s Billion Opportunitie
Slide 15: Climate and Nature
CLIMATE AND NATURE REAL ZERO TARGET1 No voluntary carbon offsets2 NET ZERO SCOPE 3 BY 2040 Eliminating emissions across the value chain MULTI-LAYERED TRANSITION Profitable decarbonisation, advocacy, green metal 1Aims to eliminate Scope 1 and 2 emissions from our Australian terrestrial iron ore opera
Slide 16: Decarbonisation Progress
DECARBONISATION PROGRESS ELECTRIC MINING FLEET Electric HME1 being deployed at Pilbara operations UNIFIED POWER NETWORK 460 km of high voltage transmission lines constructed to date 190MW SOLAR FARM ~30% constructed 100MW solar farm operational at Iron Bridge 1Heavy Mobile Equipment. FORTESCUE | 16
Slide 17: Driving Innovation
DRIVING INNOVATION INNOVATION Driving productivity through AI and automation TECHNOLOGY Strengthening long-term competitiveness R&D Advancing new green iron technologies FORTESCUE | 17
Slide 18: Fortescue Zero
FORTESCUE ZERO BATTERY INTELLIGENCE Software designed to enhance battery longevity, safety and performance AUTONOMY Autonomous vehicle solutions POWER SYSTEMS Innovative systems designed for heavy industry FORTESCUE | 18
Slide 19: Green Metal
GREEN METAL ENHANCING PILBARA’S FUTURE Ensuring the region remains globally competitive TECHNOLOGY DRIVEN Advancing multiple technology pathways CUSTOMER FOCUS Partnering with steel makers and potential green steel end users FORTESCUE | 19
Slide 20: Green Metal Project
GREEN METAL PROJECT GREEN METAL PROJECT First large-scale green metal project in the Pilbara PIT TO PRODUCT Fortescue ore + renewable energy + green hydrogen PAVING THE WAY For commercial-scale green metal production FORTESCUE | 20 Artist impression of Green Metal Project.
Slide 21: Energy
ENERGY GREEN ENERGY R&D Clear focus on long-term value creation and cost reduction PROJECT PIPELINE Projects to progress when economically viable FORTESCUE CAPITAL Driving investment in the global energy transition FORTESCUE | 21
Slide 22: Belinga Iron Ore Project Gabon
BELINGA IRON ORE PROJECT GABON EXPLORATION Exploration drilling campaign ongoing STUDIES ADVANCING For a potential large scale development HIGH GRADE Among world’s largest undeveloped high grade hematite deposits FORTESCUE | 22
Slide 23: Iron Ore and Critical Minerals
IRON ORE AND CRITICAL MINERALS EXPLORATION PILBARA Mindy South, Wyloo North and White Knight AUSTRALIA NSW, SA and QLD INTERNATIONAL Gabon, Argentina, Kazakhstan, Latin America and Canada FORTESCUE | 23
Slide 24: FY25 Results
Fortescue. FY25 RESULTS’ FORTESCUE | 24
Slide 25: Earnings
EARNINGS Full year earnings profile Revenue (US$m) Underlying EBITDA (US$m) Underlying NPAT (US$m) 22,284 16,375 10,349 18,220 17,390 16,871 15,541 10,561 10,708 9,963 6,197 7,941 5,522 * 5,664 3,366 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 *FY23 Statutory NPAT of U
Slide 26: Earnings Reconciliation
FY24 NPAT 5,664 Iron ore shipping and other revenue (2,669) Cost of sales (50) Admin and research (36) Metals EBITDA (2,761) Other income and (6) expenses Revenue, cost of sales, other income (45) and expenses Admin and (37) research Energy EBITDA (82) GROUP UNDERLYING EBITDA (2,767) Admin, FX and F
Slide 27: Price Realisations
PRICE REALISATIONS FY25 hematite average revenue of US$85/dmt Hematite average price realisation of the Platts 62% CFR Index Platts 62% CFR Index (US$/dmt) 160 91% 87% 140 85% 85% 84% 84% 82% 83% 120 100 80 60 40 20 - Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Jun-23 Sep-23 Dec-23 Mar-2
Slide 28: Prices and Margins
PRICES AND MARGINS Strong margins through the cycle 160 Prices and Metals Underlying EBITDA margin (US$/dmt) 140 120 100 99 80 60 65 63 60 40 48 20 - FY21 FY22 FY23 FY24 FY25 Underlying EBITDA per dmt Platts 62% CFR Index Realised price 5-year Average Underlying EBITDA 5-year Average Realised Price
Slide 29: Cash Generation
CASH GENERATION Generating strong operating and free cash flow Net cash flow from operations (US$m) Capital expenditure (US$m)1 Free cash flow (US$m)2 12,594 8,961 3,930 3,633 3,074 3,170 2,895 7,919 7,432 5,108 6,646 6,474 4,251 3,572 2,555 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FY21 FY2
Slide 30: Capital Expenditure
CAPITAL EXPENDITURE Disciplined capital investments FY25 capital expenditure and investments (US$m) FY26 capital expenditure and investments guidance (US$m) 170 100 300 312 70 405 US$3.6 - US$3.9bn 900 - 1,200 US$4.3bn 2,000 - 1 324 2,649 2,300 Fleet deposits2 300 - 400 FY25: Iron Ore and Iron Proje
Slide 31: Strong Balance Sheet
STRONG BALANCE SHEET With a balanced debt maturity profile Gross debt (US$m) Debt maturity profile excluding leases – principal (US$m) 6,103 5,321 5,400 5,439 4,252 1,025 ~2,000 1,500 959 800 700 600 261 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 Senior Unsecured
Slide 32: Robust Credit Metrics
ROBUST CREDIT METRICS Gross debt to EBITDA to not exceed 2x and gross gearing to not exceed 40 per cent, through the cycle Gross debt to EBITDA (x) Gross gearing (%) 26% 23% 22% 21% 0.7 19% 0.6 0.5 0.5 0.3 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FORTESCUE | 32
Slide 33: Return on Capital
RETURN ON CAPITAL Profitable and capital efficient Return on equity (%) Return on capital employed 1 (%) 66% 66% 35% 36% 30% 31% 27% 27% 19% 17% FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 1ROCE is calculated as earnings before interest and tax divided by average capital (total assets minus cu
Slide 34: Delivering Returns to Our Shareholders
DELIVERING RETURNS TO OUR SHAREHOLDERS Policy to pay out 50-80% of Underlying NPAT Dividends (A$/share) and payout ratio (%) 5.00 90% 80% 4.50 78% 77% 75% 80% 70% 4.00 65% 65% 70% 3.58 62% 3.50 60% 52% 3.00 50% 2.50 36% 2.07 40% 1.97 2.00 1.76 1.75 30% 1.50 1.14 1.10 20% 1.00 0.60 0.45 10% 0.50 0.23
Slide 35: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Delivering Maintaining Investing in returns to balance sheet growth and shareholders strength development 50-80% payout BB+/Ba1 Value creation of Underlying NPAT, Committed to targeting Across Energy dividend policy strong credit ratings and Metals FORTESCUE | 35
Slide 36: We Are Fortescue
WE ARE Family FORTESCUE Empowerment Frugality Stretch Targets Integrity Enthusiasm Safety Courage and Determination Generating Ideas Humility FORTESCUE | 36