Key Takeaways:
BHP Group's underlying attributable profit rose 30 percent to $13 billion in fiscal 2026, as copper overtook iron ore to become the miner's largest earnings driver.
"Copper contributed more than half of our annual EBITDA for the first time," Brandon Craig, chief executive officer at BHP, said.
Underlying EBITDA rose 27 percent to $33 billion with a margin near 60 percent, while return on capital employed reached 26 percent. Copper generated a record $18 billion of EBITDA at a 70 percent margin, with production of about 2 million tonnes for a second straight year, cementing BHP's position as the world's largest copper producer ahead of Freeport-McMoRan and Codelco. Western Australia Iron Ore posted record production and shipments, remaining the world's lowest-cost major producer for a seventh consecutive year.
BHP expects to generate about $50 billion of attributable free cash flow over the next five years at spot prices, after funding growth. More than half of medium-term capital spending of about $11 billion a year will go to copper, with projects including Escondida, Vicuña and Jansen Stage 1 supporting a targeted 50 percent rise in copper output to about 2.5 million tonnes by the mid-2030s.
Copper prices rose 35 percent during the year, while iron ore prices gained 3 percent, according to Chief Financial Officer Vandita Pant. Group unit costs improved more than 6 percent despite currency pressure, inflation and higher diesel prices. Escondida's unit costs fell 10 percent, while Copper South Australia's dropped more than 70 percent to $0.32 per pound, aided by $4.5 billion in by-product contributions. At Olympic Dam, BHP delivered its highest production in 20 years. WAIO's C1 unit costs rose just 1 percent, and the business generated about $10 per tonne more free cash flow than its closest peer, Craig said.
BHP declared a full-year dividend of $8.7 billion, its highest in four years, including a final dividend of $0.99 per share. Net debt fell to $8.7 billion from $12.9 billion a year earlier. The company approved about $500 million in pre-commitment funding for a new concentrator at Escondida, with a final investment decision expected in 2027 or 2028. The Vicuña copper joint venture with Lundin Mining could reach a stage-one investment decision as early as the end of the calendar year, while Jansen Stage 1 remains on track for first production in mid-2027.
BHP shares rose in after-hours trading to $91.30, up 3.32 percent from the regular-session close, leaving the stock near its 52-week high of $93.83. The results came as copper traded above $13,000 per tonne in the second half, with demand from electrification and data centers supporting prices.
This article is for informational purposes only and does not constitute investment advice.
