Highlights

  • BHP Group (ASX:BHP) reported FY26 Revenue of US$58.8 billion, up 15%, with underlying EBITDA increasing 27% to US$32.9 billion.
  • Copper became BHP’s largest Earnings contributor, accounting for 54% of underlying earnings.
  • Underlying attributable profit increased 30% to US$13.2 billion, supporting the largest Dividend payout in four years.
  • Near-term copper guidance was lowered due to grade changes, operational disruptions and planned maintenance.

BHP Group (ASX:BHP) has strengthened its position as a diversified global Mining company, with FY26 results highlighting the growing importance of copper within its earnings profile.

The company delivered record financial performance during the year, supported by stronger Commodity prices and operational execution. However, investor attention has shifted towards near-term copper production guidance and the timing of major growth projects.

FY26 Performance

BHP reported revenue of US$58.8 billion for FY26, representing growth of 15%.

Underlying EBITDA increased 27% to US$32.9 billion, while underlying attributable profit rose 30% to US$13.2 billion.

The company achieved strong returns across its portfolio, with return on Capital employed reaching 26.1%.

BHP ended the year with net Debt of US$8.7 billion, below its target range of US$10 billion to US$20 billion, while gearing remained conservative at 13.4%.

Copper Growth

Copper emerged as the key theme from BHP’s FY26 performance.

For the first time, copper became the company’s largest earnings contributor, accounting for 54% of underlying earnings.

Copper production remained near two million tonnes at 1,953 kilotonnes, while the division generated underlying EBITDA of US$18.2 billion at a Margin of approximately 70%.

The stronger copper contribution reflects BHP’s long-term strategy of increasing exposure to commodities linked to electrification, renewable energy infrastructure and global energy transition trends.

Dividend And Returns

BHP continued rewarding shareholders following its strong financial performance.

The company declared a fully franked final dividend of US99 cents per share.

Total FY26 dividends reached US172 cents per share, representing the company’s largest annual distribution in four years.

The Payout Ratio was 72%, supported by strong cash generation and a healthy balance sheet.

Copper Outlook

While copper remains central to BHP’s long-term strategy, near-term production expectations have become a focus area.

FY27 copper production guidance was set at 1,650 to 1,800 kilotonnes, representing a reduction compared with FY26 levels.

The lower outlook reflects several operational factors, including declining feed grades at Escondida in Chile, an unplanned conveyor outage at Carrapateena and planned smelter maintenance.

BHP has indicated these challenges are linked to operational timing and mine sequencing rather than a reduction in long-term copper potential.

Growth Pipeline

BHP continues progressing several major projects designed to support future growth.

The company is advancing the Vicuña project in Argentina, with a final Investment decision targeted for the second half.

BHP is also progressing the potential restart of Cerro Colorado in Chile and remains on track for first production at the Jansen potash project in Canada.

These projects form part of BHP’s broader strategy to increase exposure to future-facing commodities while maintaining Shareholder returns.

Iron Ore Position

Iron ore remains a major contributor to BHP despite copper gaining greater importance.

Western Australia iron ore production guidance was maintained at 291 million tonnes, with volumes expected to increase towards 305 million tonnes annually in FY28.

The division continues generating significant cash flow, although long-term performance remains linked to global steel Demand and Chinese economic conditions.

Key Risks

BHP remains exposed to commodity price movements, operational execution and project delivery risks.

Copper growth expectations depend on successful delivery of major projects and stable production across key assets.

Iron ore earnings remain sensitive to Chinese demand, while large-scale developments such as Vicuña and Jansen require significant capital and execution discipline.

Changes in commodity prices could also influence dividend capacity and investor sentiment.

Outlook

BHP’s FY26 results reinforce the company’s transition towards a more copper-focused earnings profile.

The company enters the next phase with a strong balance sheet, record earnings and a pipeline of Long-term Growth projects.

Investors will continue monitoring copper production recovery, project execution, commodity prices and the ability of the company to convert its growth strategy into sustainable earnings expansion.