Key Highlights

  • BHP (ASX:BHP) reported attributable profit of US$9.8 billion, up 9% from US$9.0 billion in FY25.
  • Net Operating Cash Flow increased 17% to US$21.8 billion, while net Debt fell to US$8.7 billion from US$12.9 billion.
  • Copper generated more than US$18 billion of Underlying EBITDA, representing 54% of Group Underlying EBITDA.
  • BHP declared a fully franked final Dividend of US$0.99 per share, taking total cash returns announced for FY26 to US$8.7 billion.

BHP Group Limited (ASX:BHP) delivered higher Earnings and cash generation for the year ended 30 June 2026, supported by improved realised Commodity prices, production performance and cost management. The Mining group reported attributable profit of US$9.8 billion, a 9% increase from US$9.0 billion in FY25. Underlying attributable profit exceeded US$13 billion, representing a 30% increase from the previous year. BHP's FY26 results follow record iron ore production and a second consecutive year of copper production at approximately 2 million tonnes.

Underlying EBITDA rose to approximately US$33 billion, compared with US$26 billion in FY25. Copper was the largest contributor, generating more than US$18 billion of Underlying EBITDA and accounting for 54% of the Group total. Copper also produced US$6.9 billion of free cash flow, while its Underlying EBITDA Margin reached 70%. Iron ore generated more than US$14 billion of Underlying EBITDA with a 61% margin.

Cash Flow and Balance Sheet

BHP's net operating cash flow increased 17% to US$21.8 billion from US$18.7 billion in FY25. After Capital and exploration expenditure, the group generated approximately US$10 billion of free cash flow. Capital and exploration expenditure itself increased 5% to US$10.3 billion from US$9.8 billion.

The Balance Sheet also improved during the year. Net debt fell to US$8.7 billion from US$12.9 billion in FY25, reducing the net debt-to-Underlying EBITDA ratio to 0.3 times. Gearing stood at 13.4%. The company also received US$4.3 billion from a silver streaming transaction and subsequently disclosed a further US$2 billion contribution from Global Infrastructure Partners relating to BHP's share of WAIO's inland power consumption.

Copper Becomes the Largest Earnings Contributor

Copper's increasing contribution is a notable shift in BHP's earnings mix. The group produced approximately 2 million tonnes for the second consecutive year, while Escondida recorded a 10% reduction in unit costs and Copper South Australia reported a 73% reduction, aided by by-product contributions.

BHP is continuing to expand its copper pipeline across Chile, Australia and Argentina. The company expects its organic growth projects to support attributable copper-equivalent production growth of approximately 3% to 4% annually between FY27 and FY35. At Escondida, US$0.5 billion of pre-commitment funding has been approved for a new concentrator ahead of a potential final Investment decision in calendar 2027-28.

Iron Ore and Potash Growth

Iron ore remained a major source of earnings, with WAIO achieving record production and shipments while maintaining its cost position. BHP has also announced plans for Ministers North, a new Pilbara mine intended to help sustain WAIO production above 305 million tonnes per annum.

Beyond its established commodities, Jansen in Canada remains a major Diversification project. Stage 1 was 84% complete at the reporting date and remains scheduled for first production in mid-calendar 2027. BHP expects the project to operate for more than 60 years, establishing exposure to the potash market.

Shareholder Returns and Safety

BHP determined a fully franked final dividend of US$0.99 per share, equivalent to a 72% payout ratio. Including the final dividend, total cash returns announced for FY26 reached US$8.7 billion, or US$1.72 per share, the highest annual level in four years.

Safety remains a material issue following the fatal injury of a contracting colleague at BMA's Peak Downs mine in July 2026. BHP said investigations remain underway and that findings will be used to reinforce controls around employees and contractors. The incident comes alongside the company's continuing focus on technology, contractor management and field leadership.

Conclusion

BHP's FY26 results show higher attributable profit, increased cash generation and a lower debt balance, while copper has become the group's largest earnings contributor. Record iron ore production and approximately 2 million tonnes of copper production provided the operating base for the financial improvement, although the fatal incident at Peak Downs remains a significant operational concern. With continued investment in copper, Ministers North and Jansen, alongside a US$0.99 final dividend, BHP enters FY27 with a portfolio increasingly oriented toward copper growth while retaining substantial exposure to iron ore.