An improved skeletal iron catalyst is provided for use in Fischer-Tropsch synthesis reactions for converting CO and H.sub.2 to hydrocarbon products. The skeletal iron catalyst is manufactured using iron and a removable non-ferrous component such as aluminum. The iron and removable non-ferrous component are mixed together to form a precursor catalyst and then a portion of the removable non-ferrous component is removed to leave a skeletal iron catalyst. One or more first promoter metals and optionally one or more second promoter metals are incorporated into the skeletal iron catalyst either by blending the promoter into the precursor catalyst during the formation thereof or by depositing the promoter on the skeletal iron. The first promoter metals comprises a metal selected from the group consisting of titanium, zirconium, vanadium, cobalt, molybdenum, tungsten, and platinum-group metals. The first promoter metal is selected to improve the yield of C.sub.5+ hydrocarbons when the skeletal iron catalyst is used in a Fischer-Tropsch reaction.