BHP Group H2 Earnings Call Highlights

BHP Group reported higher earnings, cash flow and shareholder returns for fiscal 2026, supported by stronger copper prices, record iron ore production in Western Australia and continued cost discipline across its portfolio. Chief Executive Officer Brandon Craig said the company produced about 2 million tonnes of copper for the second consecutive year, making it the world’s largest copper producer. Copper contributed more than half of BHP’s annual EBITDA for the first time, while Western Australia Iron Ore, or WAIO, delivered record production. The company also addressed a recent fatality involving a worker employed by a contracting partner at the Peak Downs Mine in Queensland’s Bowen Basin. Craig said BHP is investigating the incident and has directed leaders across its global operations to reverify critical controls for higher-risk activities. “The only acceptable number is zero, and we are not there yet,” Craig said of the company’s safety performance. Chief Financial Officer Vandita Pant said underlying EBITDA rose 27% to $33 billion for the fiscal year, with a margin of nearly 60%. Underlying attributable profit increased 30% to $13 billion, while return on capital employed reached 26%. Total attributable profit, including exceptional items, rose 9% to nearly $10 billion. The result included a $2.3 billion non-cash impairment related to the Jansen potash project. BHP ended the year with net debt below $9 billion. The board determined a final dividend of $5 billion, or $0.99 per share for the June half, bringing the full-year dividend to $8.7 billion, its highest level in four years. Pant said the dividend was supported by operating results and proceeds from the Antamina silver streaming agreement. Underlying EBITDA: $33 billion, up 27% Underlying attributable profit: $13 billion, up 30% Total attributable profit: nearly $10 billion, up 9% Return on capital employed: 26% Full-year dividend: $8.7 billion Higher commodity prices aided the result, with copper prices up 35% and iron ore prices up 3%, according to Pant. She said group unit costs improved by more than 6% despite currency pressures, inflation and higher diesel and asset prices. BHP’s copper business generated a record $18 billion in EBITDA, representing 54% of group EBITDA, at a 70% margin. Pant said Escondida’s unit costs improved 10%, while Copper South Australia’s unit costs improved by more than 70%, aided by $4.5 billion in by-product contributions across the copper business. At Olympic Dam in South Australia, BHP delivered its highest production in 20 years. Unit cost fell to $0.32 per pound, supported by $2.3 billion in by-product revenue, resulting in records for EBITDA and free cash flow.