BHP FY26 slides: copper drives record margins, 50% growth targeted

BHP released its full-year 2026 financial results on August 18, 2026, highlighting a significant transformation in its mining operations. The presentation, led by CEO Brandon Craig and CFO Vandita Pant, underscored strong performance fueled by operational efficiency and outlined a target of a 50% increase in copper production by the mid-2030s.

BHP's shares gained 1.83% in regular trading, followed by an additional 3.32% in after-hours trading, bringing the price near the top of its 52-week range. The company reported underlying EBITDA of US$32.9 billion, a 27% year-over-year increase, with an EBITDA margin of 59%, marking a 6 percentage point improvement. Copper emerged as the key earnings driver, contributing 54% of Group EBITDA at a 70% margin, marking the first time copper surpassed half of the company's annual EBITDA.

Return on capital employed reached 26%, up from the previous year, and net operating cash flow increased by 17% to US$21.8 billion. The company maintained financial strength with net debt of US$8.7 billion, representing approximately 0.3 times net debt to last twelve months EBITDA. BHP announced a dividend payout of US$8.7 billion for the year, which amounted to 172 cents per share and a 66% payout ratio.

The EBITDA improvement of US$6.9 billion was driven by favorable external conditions, particularly commodity prices, as well as strong operational execution. Copper accounted for 1,953 kilotons, up 3% year-over-year, with the segment's 70% EBITDA margin significantly outperforming other commodities and positioning BHP as a low-cost producer.

The company set an aspirational target of a 5% annual copper-equivalent production CAGR through FY35, aiming for approximately 2.5 million tons per annum by the mid-2030s.