Highlights

  • BHP (ASX:BHP) appointed Brandon Craig as chief executive in July 2026 following Mike Henry’s departure.
  • FY2026 underlying attributable profit increased 30% to US$13.2 billion, while Revenue rose 15% to US$58.8 billion.
  • Copper became the company’s largest contributor to underlying earnings, accounting for 54% of group underlying earnings.
  • Chief commercial officer Ragnar Udd is set to leave BHP in January 2027 after nearly three decades with the company.

BHP Group Ltd (ASX:BHP) is entering a new Leadership phase as Brandon Craig takes over as chief executive, while the company continues its strategic shift toward copper and maintains its position as one of the world’s largest diversified Mining groups. The company’s shares were priced at AUD 64.65, up 3.28%, as on 2 September 2026.

Leadership Transition

BHP has begun a new chapter following the appointment of Brandon Craig as chief executive, succeeding Mike Henry from 1 July 2026. Craig brings more than 25 years of experience within BHP, having most recently served as President Americas from March 2024, where he oversaw copper and potash growth across Canada, the United States and South America.

Before that role, Craig led BHP’s Western Australia Iron Ore business, one of the company’s most significant operations. His operational background positions him to lead BHP during a period where the company is increasingly focused on expanding future-facing commodities.

Chair Ross McEwan highlighted Craig’s experience and leadership approach, while recognising Henry’s contribution during his six-and-a-half-year tenure as chief executive.

Alongside the CEO transition, BHP chief commercial officer Ragnar “Rag” Udd is scheduled to leave the company at the end of January 2027 to pursue an external opportunity. Udd joined BHP in 1997 and held several senior positions, including President Americas, interim chief technology officer, president of the BHP Mitsubishi Alliance and vice-president of logistics and infrastructure for Western Australia Iron Ore.

Copper Growth Strategy

The leadership transition comes as BHP continues reshaping its portfolio around copper, a Commodity expected to benefit from long-term Demand linked to electrification, renewable energy infrastructure and global power requirements.

For FY2026, copper became the largest contributor to BHP’s underlying earnings, accounting for 54% of group underlying Earnings for the first time, overtaking iron ore.

Copper production remained close to two million tonnes for the second consecutive year, while average realised copper prices increased 35% to US$5.74 per pound. Copper underlying EBITDA increased 48% to a record US$18.2 billion.

BHP has positioned copper as a key growth driver for the company, with Craig describing the commodity as the “engine that is driving BHP’s growth.”

However, the copper strategy also comes with operational challenges. BHP has guided copper production of approximately 1,650 to 1,800 kilotonnes in FY2027, representing a decline of around 12%, primarily due to lower ore grades at the Escondida mine in Chile.

Grade declines are a common challenge at mature mining operations and highlight the importance of continued Investment in new projects and expansion opportunities.

FY2026 Financial Performance

BHP reported a strong financial performance for the year ended 30 June 2026, supported by commodity markets and operational performance.

The company reported underlying attributable profit of US$13.2 billion, representing a 30% increase compared with the previous year. Revenue increased 15% to US$58.8 billion, while underlying EBITDA rose 27% to US$32.9 billion.

The board declared a total Dividend of US172 cents per share, including a final dividend of US99 cents per share. The payout represented the largest dividend in four years, with a Payout Ratio of 72%.

Iron ore remained an important contributor to BHP’s earnings and continued to provide significant cash generation. The company reported record iron ore output, although copper’s growing contribution has changed the earnings mix of the group.

Commercial Challenges and Market Position

Ragnar Udd’s departure comes at an important time for BHP’s commercial operations. As chief commercial officer, Udd was involved in negotiations with China Mineral Resources Group, the state-backed buyer involved in centralising iron ore purchasing discussions.

Iron ore pricing discussions with major customers remain strategically important for BHP, given China’s role as a key market for Australian iron ore exports.

The company continues to balance its traditional strength in iron ore with increasing investment in copper and other future-facing commodities. Projects such as the Jansen potash development in Canada form part of BHP’s broader Diversification strategy.

BHP’s scale provides financial flexibility, but managing a global portfolio of large Assets requires ongoing focus on operational performance, commodity cycles and Capital allocation.

Key Risks

BHP faces several operational and market-related risks as it enters the next phase of growth.

Copper production guidance for FY2027 indicates near-term pressure from lower ore grades at Escondida. Maintaining copper output and advancing growth projects will remain important for the company’s long-term strategy.

Commodity price movements also remain a major factor. BHP’s earnings are exposed to changes in copper, iron ore and other commodity markets, with Chinese demand remaining particularly important for iron ore.

Leadership transition is another Factor investors may monitor, particularly as the company replaces experienced executives responsible for important commercial relationships.

Other considerations include project execution, Capital Expenditure requirements, geopolitical factors and broader changes across global commodity markets.

Investor Outlook

BHP Group (ASX:BHP) enters the Brandon Craig era with strong financial performance, a growing copper focus and a diversified portfolio of mining assets.

The company’s FY2026 results highlight the increasing importance of copper within the group, while iron ore continues to provide significant cash generation. The challenge ahead will be balancing near-term production pressures with long-term investment in growth commodities.

As BHP moves through this leadership transition, investors may continue to watch copper production, major project development, China-related demand trends and the company’s ability to maintain Shareholder returns.