Why is BHP stock surging today?

On Monday, BHP stock experienced a substantial surge of 2.6% after the company announced impressive FY2026 annual results. The mining giant reported a remarkable 30% increase in underlying attributable profit, reaching US$13.2 billion, and a 27% rise in underlying EBITDA, amounting to US$32.9 billion. Both figures exceeded market expectations.

Revenue for the company climbed by 15% to US$58.8 billion, driven by higher realized prices for copper, iron ore, and steelmaking coal. Notably, net debt fell to US$8.7 billion, well within BHP's target range of US$10–20 billion. The most significant positive surprise for investors came in the form of a higher dividend payout, with BHP declaring a payout ratio of 66%, surpassing analysts' expectations of around 63%.

The dividend reward exceeded market expectations. Among the key highlights of the results, the copper division stood out with a substantial increase in underlying EBITDA, rising to US$18.2 billion from US$12.3 billion a year earlier. This marked a milestone, constituting 54% of total group EBITDA for the first time, signaling BHP's strategic shift towards electrification-linked metals.

Notably, BHP's copper revenue surpassed iron ore earnings for the first time in the company's history. As a result, BHP became one of the top contributors to the ASX 200 index, adding 0.2% to its value.