Fortescue Profits Plunge 41 Percent on Weak China Demand, Push for ‘Green Iron’ Continues

Australian mining company Fortescue reported a 41 percent decline in profit to US$3.4 billion in the 2025 financial year amid a major decline in iron ore prices despite an increase in shipments.

The average realised price of hematite fell from US$103 per dry metric tonne (dmt) to US$85 per dmt in 2025.

“Volatility in Chinese iron ore demand and commodity prices could adversely impact our financial results and future cash flows,” Fortescue stated.

“China is the largest global importer of seaborne iron ore, making Fortescue’s business highly dependent on continuing demand from China’s steel industry.”

Fortescue warned a slowdown in China’s economic growth, particularly in steel intensive sectors, could result in lower demand for Fortescue’s iron ore.

“Commodity prices have been volatile and may continue to fluctuate significantly. Fortescue has strong competitors that have significant capacity to respond to competitive pressures and market dynamics,” the company said.

Despite this, Fortescue achieved record iron ore shipments of $198.4 million tonnes (Mt). The cost of hematite C1 also fell to US$17.99 wet metric tonne (wmt).

“It was a strong signal for strengthening relationships in key markets—something underscored by our recent [Chinese Renminbi] term loan facility which was made possible through Fortescue’s long-standing partnerships with Chinese institutions.”

Earlier this month, the company revealed it had secured a 14.2 billion Renminbi (US$2 billion) loan from a range of Chinese, Australian, and other international lenders—the first time an Australian company has secured finance in Chinese currency.

Meanwhile, Otranto said Fortescue had achieved record shipments, solid earnings, and controlled cost performance.

“Green energy and green hydrogen remain key to our future, including our green iron strategy. Construction of our Green Metal Project in the Pilbara is underway and the pilot plant will soon begin producing green iron using green hydrogen,” he said.

Fortescue highlighted multiple decarbonation projects including a 100 Megawatt farm at North Star Junction and the conversion of diesel to electric mining fleet at Pilbara. The company has also constructed more than 640 transmission lines via Pilbara Energy Connect for the renewable energy network.

Meanwhile, Executive Chairman Forrest said Fortescue continued to point the way toward a zero-emissions future.

“And we are supporting global leaders in the shift we so desperately need for the survival of organic life,” he said.

Forrest said the shift to green iron and to green still wasn’t optional, but a necessity, saying the global steel industry was responsible for 9 percent of global carbon dioxide emissions, adding that “this must stop” for the future of the planet.

“I think of our innovations—in green iron, in solar energy, in batteries. They are showing that those who try to undo global progress are simply choosing to lose the global technology race. Choosing to keep burning sticks and logs while the rest of the world moves forward.”

Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 26 percent to US$7.9 billion. The underlying EBITDA margin was 51 percent.

Revenue slid 15 percent to US$15.5 billion in FY25, down from to US$18.2 billion in FY24.

The company’s underlying earnings per share fell 41 percent to US$1.10, down from US$1.85.

Fortescue reported a cash balance of US$4.3 billion and a gross debt of US$5.4 billion, contributing to a net debt is US$1.1 billion at June 30.

Fortescue declared a fully franked final dividend of AU60 cents per share. For the 2025 financial year, Fortescue will deliver total dividends of AU$1.10 per share.

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