BHP reports record copper earnings as metal contributes over half of profit

BHP Group Limited announced a record $9.8 billion attributable profit for the year ending June 30, 2026, marking a 9% increase from the previous year. Underlying earnings before interest, taxes, depreciation, and amortization surged 27% to $32.9 billion. Copper operations propelled the group's underlying EBITDA to $18.2 billion, representing a record 70% margin.

The firm mined 1,953 kilotonnes of copper, a 3% decrease compared to the prior period. Iron ore production and shipments at BHP's Western Australia Iron Ore operations also set new records. The company met or exceeded production targets in most areas, with net operating cash flow rising 17% to $21.8 billion. Total net debt decreased to $8.7 billion, down from $12.9 billion a year earlier.

BHP declared a final dividend of 99 U.S. cents per share, contributing $8.7 billion to cash returns. The company announced a $500 million pre-commitment funding for a new concentrator at Escondida in Chile, with final investment decisions due by 2027-28. The Jansen potash project in Canada is 84% complete and set for first production in mid-2027.

The company recognized a $2.3 billion impairment charge for the Jansen project due to a revised Stage 2 capital estimate. BHP's operational greenhouse gas emissions decreased by 33% compared to baseline levels from 2020. Female workforce representation reached 41.5%. Capital and exploration expenditure amounted to $10.3 billion, growing by 5% from the prior year. The firm anticipates capital expenditure of around $11 billion in fiscal 2027.