ASX 20 stock, Fortescue delivers record shipments
Fortescue’s share price is in decline on Thursday after the release of its December 2025 quarterly update as investors assess what is driving the decline while the outlook remains positive.
Fortescue Limited (ASX: FMG)
released its December 2025 quarterly production update on 22 January 2026 and reported total iron ore shipments of 50.5 million tonnes which was slightly lower than the September quarter.
The modest decline in quarterly shipments was attributed to normal operating variability rather than any operational issues but it still resulted in a share price decline.
Despite this, Fortescue delivered record first half FY26 shipments of 100.2 million tonnes which represented a 3% increase year-on-year.
Management stated that this strong first half performance places the company in a good position to achieve its full year shipment guidance of 195 million tonnes to 205 million tonnes.
Hematite C1 unit costs were competitive at US$18.64 per wet metric tonne for the first half which reinforces Fortescue’s position as a low-cost iron ore producer.
Iron Bridge concentrate shipments continued to build momentum and reached 4.3 million tonnes in the first half as the ramp up phase progressed.
The company also generated strong cash flow during the quarter and ended December with a cash balance of US$4.7 billion while net debt declined to US$1.0 billion.
Capital expenditure for the quarter amounted to US$759 million as Fortescue continued to invest in growth initiatives, decarbonisation programs and energy infrastructure.
A key operational milestone during the quarter was the delivery of Fortescue’s first large scale battery energy storage system in the Pilbara which supports its broader decarbonisation strategy.
Fortescue also progressed its growth pipeline by entering into a binding agreement to acquire the remaining 64% interest in Alta Copper which expands its exposure to critical minerals.
Although the market reaction was negative on the day, Fortescue’s record first half shipments, strong balance sheet and unchanged guidance indicate that the underlying fundamentals remain intact heading into the second half of FY26.
(Source: Company Announcements)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
