• Fortescue achieved record half-year iron ore shipments of 97.1 million tonnes, a 3% increase compared to H1 FY24.
• The company's net profit after tax (NPAT) reached US$1.6 billion, with earnings per share (EPS) at US$0.51.
• Underlying EBITDA stood at US$3.6 billion with a margin of 48%.
• A fully franked interim dividend of A$0.50 per share was declared, representing 65% of H1 FY25 NPAT.
• Net debt was US$2.0 billion as of December 31, 2024, including a cash balance of US$3.4 billion.
• The company has made progress in decarbonizing its mining fleet, including a US$2.8 billion partnership with Liebherr.
• Fortescue has awarded A$6.5 billion in contracts to First Nations businesses since 2011.
• FY25 shipment and C1 cost guidance remains unchanged, while Metals capital expenditure guidance is narrowed to US$3.5 US$3.8 billion, and Energy capital expenditure guidance is reduced to US$400 million.
• The schedule for Iron Bridge operating at nameplate capacity of 22Mt per annum is under review, with an assessment anticipated to be completed in Q4 FY25.

Score: 6

Explanation: While the company achieved record shipments and declared a dividend, the significant decrease in revenue, profit, and cash flow compared to the previous year tempers the positive aspects. The delays in green energy projects and Iron Bridge also contribute to a mixed sentiment.

• Record half-year iron ore shipments of 97.1 million tonnes were achieved, a 3% increase compared to H1 FY24.
• Net profit after tax (NPAT) reached US$1.6 billion, with earnings per share (EPS) at US$0.51.
• Underlying EBITDA was US$3.6 billion with a margin of 48%.
• A fully franked interim dividend of A$0.50 per share was declared, representing a 65% payout of H1 FY25 NPAT.
• Net debt stood at US$2.0 billion as of December 31, 2024, inclusive of a cash balance of US$3.4 billion.
• Fortescue has awarded A$6.5 billion in contracts to First Nations businesses since 2011.
• The Total Recordable Injury Frequency Rate (TRIFR) improved to 1.0 for the 12 months to 31 December 2024.
• A US$2.8 billion partnership was signed with Liebherr for decarbonization efforts.

• Record half-year iron ore shipments indicate strong operational performance.
• The declaration of a fully franked interim dividend of A$0.50 per share provides returns to shareholders.
• The company maintains a strong balance sheet with low-cost, investment-grade terms.
• Progress in decarbonizing the mining fleet demonstrates a commitment to sustainability.
• The company has awarded A$6.5 billion in contracts to First Nations businesses since 2011.
• Improvement in safety indicators, including a reduction in the Total Recordable Injury Frequency Rate (TRIFR).

• Revenue decreased by 20% compared to H1 FY24 due to a decrease in the Hematite average revenue to US$85/dry metric tonne (dmt).
• Hematite C1 cost increased by 8% compared to H1 FY24 due to inflationary pressures and mine plan led cost escalation.
• Underlying EBITDA decreased by 38% compared to H1 FY24.
• Attributable NPAT decreased by 53% compared to H1 FY24.
• Free cash flow decreased by 75% compared to H1 FY24.

• Global market conditions and uncertain policy settings may impact the progress of green energy projects.
• The schedule for Iron Bridge operating at nameplate capacity is under review, potentially delaying full production.
• External factors such as Renewable Energy Directive III (RED III) in Europe and pending global elections could affect project development timeframes.
• Inflationary pressures and mine plan led cost escalation are increasing Hematite C1 costs.

Fortescue maintains its FY25 guidance for iron ore shipments and C1 cost, narrows its Metals capital expenditure guidance to US$3.5 US$3.8 billion, and reduces its Energy capital expenditure guidance to US$400 million. The company anticipates having greater clarity on the impact of external factors on green energy projects by the end of the financial year.

• Fortescue Metals Chief Executive Officer, Dino Otranto, stated that it has been an outstanding operational performance for the first half of FY25 with the team achieving their highest ever half year shipments while keeping costs low.
• Fortescue Metals Chief Executive Officer, Dino Otranto, stated that the company continues to record measurable improvements across key safety indicators, including a 44 per cent improvement in TRIFR over the 12-month period.
• The Board has declared a fully franked interim dividend of A$0.50 per share, representing a 65 per cent payout of first half net profit after tax.
• Fortescue Energy Chief Executive Officer, Mark Hutchinson, stated that the company has continued to advance and commercialise its portfolio of green technologies to assist Fortescues own decarbonisation goals and help other companies in their transition to Real Zero.
• Fortescue Energy Chief Executive Officer, Mark Hutchinson, stated that the company is adjusting its timelines to ensure any project they work on brings value to their shareholders.

Fortescue's focus on decarbonization aligns with the broader industry trend towards sustainable mining practices. The company's green energy initiatives position it to capitalize on the growing demand for green electrons and green molecules. The adjustment of project timelines reflects the challenges and uncertainties in the global green energy market.

• Fortescue's C1 cost of US$19.17/wmt is comparable to other major iron ore producers such as Rio Tinto and BHP, but the 8% increase indicates potential cost pressures.
• The EBITDA margin of 48% is strong but lower than the 62% achieved in H1 FY24, suggesting a decline in profitability.
• The dividend payout ratio of 65% is within the company's policy range of 50-80%, demonstrating a commitment to shareholder returns.
• The company's investment in green energy projects is in line with the industry's push towards decarbonization, with companies like BHP and Vale also investing in renewable energy and green hydrogen.

• Shareholders will receive a fully franked interim dividend of A$0.50 per share.
• Employees are contributing to record shipments and improved safety performance.
• Customers will benefit from continued iron ore supply.
• Suppliers and First Nations businesses are receiving significant contracts.
• Creditors are supported by the company's strong balance sheet.

• Complete the assessment to optimise the performance of the air classification circuit and downstream aerobelt conveyor at Iron Bridge in Q4 FY25.
• Gain greater clarity on the impact of external factors on green energy projects by the end of the financial year.
• Continue to progress and refine green energy projects in a disciplined manner.

• 2011: Inception of contracts and subcontracts to First Nations businesses.
• 31 December 2023: End of the half year results period.
• 31 December 2024: Date of cash balance, gross debt, and net debt reporting.
• January 2025: Fortescue subsidiary made offers for Red Hawk Mining Limited.
• February 2025: Announcement of Noel Quinn's appointment to the Fortescue Board.
• 26 February 2025: Ex-dividend date for the interim dividend.
• 27 March 2025: Payment date for the interim dividend.
• Q4 FY25: Anticipated completion of the assessment to optimise the performance of the air classification circuit and downstream aerobelt conveyor at Iron Bridge.
• September 2025: Previous target for Iron Bridge to operate at nameplate capacity of 22Mt per annum (under review).