We study the fixed-magnetization ferromagnetic Ising model on random $d$-regular graphs for $d\ge 3$ and inverse temperature below the tree reconstruction threshold. Our main result is that for each magnetization $η$, the free energy density of the fixed-magnetization Ising model converges to the annealed free energy density, itself the Bethe free energy of an Ising measure on the infinite $d$-regular tree. Moreover, the fixed-magnetization Ising model exhibits local weak convergence to this tree measure. A key challenge to proving these results is that for magnetizations between the model's spinodal points, the limiting tree measure corresponds to an unstable fixed point of the belief propagation equations. As an application, we prove that the positive-temperature Zdeborová--Boettcher conjecture on max-cut and min-bisection holds up to the reconstruction threshold: on the random $d$-regular graph, the expected fraction of bichromatic edges in the anti-ferromagnetic Ising model plus the expected fraction of bichromatic edges in the zero-magnetization ferromagnetic Ising model equals $1+o(1)$. A second application is completely determining the large deviation rate function for the magnetization in the Ising model on the random regular graph up to reconstruction. Finally, we use the precise understanding of this rate function to show that the Glauber dynamics for the full Ising model on the random graph mixes in sub-exponential time from uniformly random initialization, well into the non-uniqueness regime where the worst-case initialization mixing time is exponentially slow.