Fortescue Ltd (ASX:FMG) shares have swung between gains and losses after the Andrew Forrest-chaired iron ore miner reported underlying profit and dividends below market expectations.
Shares were 0.8% higher at $18.16 at 10.25am AEST, recovering from an early fall that saw the stock trade near $17.68 in the opening minutes.
The volatility followed Fortescue’s FY26 results, with analysts pointing to weaker-than-expected underlying earnings and shareholder returns.
Barrenjoey equity analysts, including Glyn Lawcock, highlighted the company’s underlying earnings and profit miss relative to market forecasts.
The broker also noted Fortescue provided no update on negotiations with China Mineral Resources Group (CMRG), China’s state-owned centralised iron ore purchasing group, after Forrest last month called for the parties to “negotiate fairly”.
Fortescue reported underlying profit of US$3.45 billion, up 3% from FY25 but around 6% below market expectations, with higher exploration and other expenses weighing on the result.
The company’s total FY26 dividend also fell short of analyst forecasts.
UBS analyst Lachlan Shaw described the result as “a touch soft”, pointing to earnings and the company’s 46¢-per-share final dividend coming in below consensus expectations.
“While the dividend disappointed relative to forecasts, Fortescue maintained its 65% payout ratio… and may be a prudent move ahead of material step up in capex FY27,” Shaw said.
The result leaves investors weighing the weaker-than-expected shareholder payout against Fortescue’s decision to preserve capital ahead of a planned increase in expenditure in FY27.