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    Fortescue record iron ore shipments: cost, margin and volume insights for mine planners

    February 24, 2026|

    Reviewed by Joe Ashwell

    Fortescue record iron ore shipments: cost, margin and volume insights for mine planners

    First reported on Australian Mining

    30 Second Briefing

    Record first-half iron ore shipments of 99.1Mt from Fortescue’s Pilbara operations, at a C1 cost of US$17.78/t, lifted underlying EBITDA to US$7.2b and net profit after tax to US$4.2b for the six months to 31 December 2025. Average realised prices rose to US$111/dry tonne (86 per cent of Platts 62% index), with the company maintaining full-year shipment guidance of 192–197Mt. Strong volumes and low unit costs signal continued pressure on higher-cost producers and ongoing demand for rail, port and mine expansion services in the Pilbara.

    Technical Brief

    • For contractors, sustained high throughput indicates steady demand for rail maintenance, port dredging and mine services.

    Our Take

    In our database of 128 iron ore pieces, Fortescue features disproportionately in 2025–26 coverage, signalling that its Pilbara operations are one of the main drivers of Australian iron ore newsflow relative to peers.

    The record iron ore shipments feeding these half-year results coincide with Fortescue’s commissioning of Progress Rail battery-electric locomotives in the Pilbara (12 Feb 2026), suggesting that rail decarbonisation is being rolled out without sacrificing throughput.

    Recent items on XCMG battery-electric loaders and dozers for Fortescue’s iron ore operations (3 Feb 2026) indicate that higher cash generation from record shipments is likely being recycled into large-scale fleet electrification rather than purely into dividends or new mine builds.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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