BHP Group Limited (NYSE:BHP) exceeded expectations, delivering strong full-year earnings and the biggest annual dividend in four years. Record copper prices boosted the world’s largest miner’s portfolio, pushing the orange metal ahead of iron ore as the main profit driver.
Underlying attributable profit rose 30% to $13.20 billion for the year ended June 30, beating the $12.66 billion Visible Alpha consensus. Underlying EBITDA climbed 27% to $32.9 billion, while revenue increased 15% to $58.8 billion.
The company declared a final dividend of 99 cents a share, taking the full-year payout to $1.72 a share, fully franked, and total shareholder cash returns announced for the year to $8.7 billion.
Copper Takes the Lead
Copper delivered record underlying EBITDA of $18.19 billion, representing 54% of group EBITDA and marking the first year the commodity generated the majority of BHP’s earnings. EBITDA margin reached 70%, helped by higher realized prices and strong by-product contributions from gold, silver and uranium.
“Copper is the engine that is driving BHP’s growth,” Chief Executive Officer Brandon Craig said in the results statement.
“For the first time, Copper contributed more than half our Underlying EBITDA and generated significant free cash flow, which means our copper growth is self-funding,” he added.
BHP produced about 2 million tons of copper for a second consecutive year and said its pipeline across Chile, Australia and Argentina could lift attributable copper production by about 40% to roughly 2 million tons a year by fiscal 2035.
Key projects include a new concentrator at Escondida, expansions in Copper South Australia and the Vicuña joint venture on the Argentina-Chile border.
The results are unsurprising since the copper market faces an acute squeeze. According to Bloomberg, LME spot copper traded as much as $545 a ton above three-month futures, with prices above $14,000 a ton.
Tight exchange inventories, shipments diverted to the U.S. amid tariff speculation, Chinese smelter feedstock constraints, and rising demand from AI data centers, grid upgrades, and electrification have intensified market strain.
BHP Growth Frontiers and Headwinds
Beyond copper, Jansen potash Stage 1 is 84% complete, with first production targeted for mid-2027. The project is expected to establish BHP in a commodity tied to long-term food security, though the company booked a $2.3 billion impairment on Jansen after Stage 2 capital estimates rose.
Additionally, the firm faces other internal and external challenges. Samarco-related settlement obligations had a $2 billion cash impact, while cost pressures intensified due to the Middle East conflict.
Meanwhile, Port Hedland labor tensions persist, as the firm failed to reach a wage deal with unions. According to Reuters, the talks will resume on August 25.
Cash, Dividends and Portfolio Moves
BHP’s balance sheet strengthened sharply, with net debt falling to $8.69 billion from $12.92 billion a year earlier, below the company’s $10 billion to $20 billion target range.
The miner also unlocked capital from asset optimization. It realized $4.3 billion from the Antamina silver streaming transaction and received $2.0 billion from Global Infrastructure Partners in relation to BHP’s share of WAIO’s inland power consumption. BHP said it sees potential to unlock as much as an additional $3.5 billion through active portfolio and asset management.
Craig, who took the top job last month, succeeding Mike Henry, framed the strategy around disciplined growth, portfolio optimization and copper expansion.
“BHP is well set for what comes next,” he said. “We have significant opportunity to further lift performance across our assets and a clear pathway for growth.”
BHP Price Action
BHP Price Action: BHP Group shares were down 0.42% at $88.00 during premarket trading on Tuesday, according to Benzinga Pro data.
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