Key Highlights

• For FY26, BHP reported underlying EBITDA of US$32.9 billion, up 27% on FY25, and underlying attributable profit of US$13.2 billion, up 30%.

• Copper's 54% share of EBITDA indicates that copper operations, which include its large Chilean mines and the South Australian Olympic Dam and Prominent Hill assets, now earn more than the iron ore franchise.

• Unit costs fell 6% across major assets, and operational emissions were down about a third since FY20, with BHP described as on track for its FY30 target.

• BHP said it unlocked US$6.3 billion of Capital during FY26, and flagged the potential for up to US$10 billion more from infrastructure deals and asset sales.

How far has copper become the engine of BHP's (ASX:BHP) earnings? The answer from the FY26 result, released on 18 August 2026, is that copper contributed 54% of group underlying EBITDA in the year to June 2026, a notable shift for a company long associated with iron ore. For investors, the result raises a practical question: how durable are the earnings, and how will the company deploy its cash?

Figures are in US dollars unless stated.

The FY26 numbers

For FY26, BHP reported underlying EBITDA of US$32.9 billion, up 27% on FY25, and underlying attributable profit of US$13.2 billion, up 30%. Net Operating Cash Flow was US$21.8 billion, up 17%. The Board determined dividends of US$8.7 billion, equal to 172 US cents per share and a 66% payout ratio. Net Debt was US$8.7 billion, or about 0.3 times net debt to EBITDA.

Cash flow is the figure that supports the dividend. Operating cash flow of US$21.8 billion comfortably exceeded the US$8.7 billion distributed, which left room for Investment and Balance Sheet strength. Net debt at 0.3 times EBITDA is low by the standards of capital-intensive miners.

Why copper now leads

BHP is a diversified miner with exposure to iron ore, copper, metallurgical coal and, in development, potash. Copper's 54% share of EBITDA indicates that copper operations, which include its large Chilean mines and the South Australian Olympic Dam and Prominent Hill assets, now earn more than the iron ore franchise.

The summary also said iron ore production reached a record, though no figure was given. That is important context: copper's rising share reflects both its contribution and the Commodity cycle for iron ore.

Costs and operations

Unit costs fell 6% across major assets, and operational emissions were down about a third since FY20, with BHP described as on track for its FY30 target. Lower unit costs lift margins at any given price.

Capital management and growth

BHP said it unlocked US$6.3 billion of capital during FY26, and flagged the potential for up to US$10 billion more from infrastructure deals and asset sales.

Looking forward, management guided to copper-equivalent Volume growth of 3 to 4% a year on a compound basis through FY35. FY27 Capital Expenditure is expected to be about US$11 billion, described as steady. Stated priorities are cost control, capital discipline, organic growth in copper and potash, and continuing capital returns. CEO Brandon Craig said BHP was well set for what comes next.

The growth guidance is modest in percentage terms but substantial in tonnes given BHP's size. It also reveals the strategy: rather than chasing acquisitions, the company is emphasising organic projects and portfolio management.

Sector and competitive position

BHP competes with other large diversified miners and with specialists in iron ore and copper. Its scale, low-cost iron ore position and large copper resources are its competitive strengths, according to the strategy described. Copper Demand is widely linked to electrification and grid investment, which is the thesis behind the pivot, but the Supply side is also influenced by project delays and grade decline across the industry.

Risks

- Commodity prices: iron ore and copper prices drive earnings. A drop in either would flow through quickly because costs are largely fixed.

- China exposure: iron ore demand is closely tied to Chinese steel production. This is a general industry dynamic rather than something stated in the summary.

- Project execution: copper and potash growth involve large, long-dated capital programmes that may face cost overruns or delays.

- Capital allocation: capex of about US$11 billion a year, alongside high dividends, needs sustained cash flow.

- Regulatory and operational risk across multiple jurisdictions, including safety and environmental performance.

- Asset sale uncertainty: the potential US$10 billion of additional capital depends on transactions that are not yet complete.

What to watch next

Upcoming items include BHP's quarterly operational reviews, with the next expected around October 2026 and January 2027 based on past timing, which will show copper and iron ore volumes. The half-year result in February 2027 (an assumption based on the usual calendar) will update the cash flow and Dividend picture. Investors should also follow progress on the capital unlock programme, any announcements on infrastructure transactions, and updates to the copper growth projects.

BHP's FY26 result shows a company with encouraging cash generation, low Leverage and a clear strategic tilt towards copper. The tilt is real, but its pace will depend on prices, project delivery and discipline in how the cash is spent.