MELBOURNE: BHP Group on Tuesday reported a 27% surge in underlying earnings to $32.9 billion for the fiscal year ended June 30, 2026, as copper contributed more than half of the mining giant’s earnings for the first time.
The company’s underlying attributable profit jumped 30% to $13.2 billion, while attributable profit rose 9% to $9.8 billion, driven by record iron ore production, strong copper output and higher commodity prices.
“This reliability, together with strong prices, drove a big lift in earnings,” CEO Brandon Craig said in a statement. “Copper is the engine that is driving BHP’s growth.”
The company declared a fully franked final dividend of 99 U.S. cents per share, totaling $5 billion and bringing full-year cash returns to shareholders to $8.7 billion — the highest in four years.
Copper Takes Center Stage
Copper generated record underlying EBITDA of more than $18 billion, representing 54% of group earnings and marking the first time the metal surpassed iron ore as BHP’s primary profit driver. The copper division achieved a 70% underlying EBITDA margin, an 11-percentage-point increase from fiscal 2025.
BHP produced approximately 2 million metric tons of copper for the second consecutive year, cementing its position as the world’s largest copper producer.
The company outlined plans to potentially lift copper production by about 40% by fiscal 2035 through project pipelines across Chile, Australia and Argentina. At Escondida in Chile, BHP approved $500 million in pre-commitment funding for a new concentrator ahead of a final investment decision expected in calendar 2027-28.
Record Iron Ore Production
Western Australia Iron Ore achieved record production and shipments, maintaining its position as the lowest-cost major iron ore producer globally for the seventh consecutive year. The iron ore business generated more than $14 billion in underlying EBITDA with a 61% margin.
BHP announced plans for Ministers North, a new mine in the Pilbara region, to sustain WAIO production above 305 million metric tons per annum.
Strong Cash Flow and Balance Sheet
Net operating cash flow increased 17% to $21.8 billion, while free cash flow rose 83% to $9.8 billion. Net debt fell to $8.7 billion from $12.9 billion a year earlier, below the company’s target range of $10 billion to $20 billion.
The company invested $10.3 billion in capital and exploration, a 5% increase from fiscal 2025, primarily across copper projects in Chile and Australia and the Jansen potash project in Canada.
Jansen Stage 1 is 84% complete and on track for first production in mid-calendar 2027. The project is expected to operate for more than 60 years, establishing BHP in a new commodity essential to food security.
Safety Incident and Social Value
The results were overshadowed by the July 2026 fatality of a contractor at BMA’s Peak Downs mine in Australia.
“A contracting colleague was fatally injured at BMA last month. It was a tragic event, and while investigations continue, his loss sharpens our focus on safety above all,” Craig said.
BHP reported its operational greenhouse gas emissions are down 33% from fiscal 2020 levels, though this represents a slight increase from the 34% reduction reported last year. The company remains on track for its fiscal 2030 target of at least 30% reduction.
The company achieved gender balance across its global workforce with 41.5% female representation and reached a record $1 billion in Indigenous procurement spending, an 18% increase year-over-year.
Economic Outlook
BHP expects global economic growth to moderate to about 3% in calendar 2026 from 3.5% in 2025 before improving in 2027.
Copper demand is projected to grow from about 34 million metric tons annually to more than 50 million metric tons by 2050, the company said.
Capital and exploration expenditure guidance for fiscal 2027 remains at approximately $11 billion, with similar spending expected in fiscal 2028 and average annual spending between fiscal 2029 and 2031, reflecting the completion of Jansen Stage 2.
The dividend will be paid Sept. 23 to shareholders of record Sept. 4.
