BHP Half-Year Profit Surges as Copper Becomes Main Earnings Engine

BHP Group Ltd ( (AU:BHP) ) has shared an announcement.

BHP reported strong financial and operating results for the half year to 31 December 2025, driven by record copper and Western Australia iron ore performance and higher commodity prices. Copper has become the company’s largest earnings contributor for the first time, accounting for 51% of underlying EBITDA as group copper production and margins rose sharply.

Revenue rose 11% to US$27.9 billion, underlying EBITDA increased 25% to US$15.5 billion with a 58% margin, and attributable profit climbed 28% to US$5.6 billion, underpinning an interim dividend of US$0.73 per share at a 60% payout ratio. Strong cash generation, with US$9.4 billion in operating cash flow and net debt of US$14.7 billion within its target range, supports continued investment in a large growth pipeline and ongoing shareholder returns.

BHP lifted FY26 group copper production guidance to 1.9–2.0 Mt on the back of record performance at Escondida and other copper assets, reinforcing its strategic bet on higher long-term copper prices. The company is also progressing the Jansen Stage 1 potash project, now budgeted at US$8.4 billion with first production expected in mid-2027, and investing to lift sustainable iron ore volumes above 305 Mt from its low-cost WAIO operations.

Management highlighted safety improvements, including a 20% reduction in High Potential Injury Frequency versus the prior half and a 67% decline since HY20, supported by automation and engineering controls. BHP’s disciplined cost control reduced unit costs at key copper assets and maintained sector-leading margins, while its diversified, low-cost portfolio is expected to benefit from a supportive macro backdrop and steady global growth.

The group also announced what it describes as the most valuable silver streaming agreement tied to its share of Antamina’s future silver output, alongside a previously signed power-related agreement in Western Australia. Together these transactions are set to unlock over US$6 billion in cash, with potential to reach up to US$10 billion, enhancing financial flexibility and supporting its capital allocation priorities.

More about BHP Group Ltd

BHP Group Ltd is a global diversified mining and resources company with major operations in copper, iron ore, potash and other commodities. The group is now the world’s largest copper producer, with key assets in Chile, South Australia and Western Australia, and is positioning its portfolio toward copper and potash to capitalize on expected long-term demand.

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