BHP Full-Year Profit Surges 30% with Highest Dividend in Four Years as Copper Business Overtakes Iron Ore
Nashnova编辑部
BHP posted FY2026 underlying profit of $13.2 billion, up 30% year-on-year, as copper overtook iron ore for the first time as its largest earnings source — the world's biggest listed miner is shifting its profit centre from iron ore to copper.
How much did this beat expectations?
Full-year underlying attributable profit hit $13.2 billion, topping the Visible Alpha consensus of $12.66 billion by roughly 4%.
Final dividend came in at 99 US cents per share; full-year payout totalled $1.72, a four-year high.
Shares rose as much as 4.2% intraday to a two-month high of A$64.79. This means → the market gave an immediate positive read on the beat-plus-dividend package.
Why did copper overtake iron ore for the first time?
Copper operations (including gold and uranium by-products) delivered $18.19 billion in operating profit; iron ore came in at $14.53 billion — copper on top for the first time.
This means → BHP's profit engine has shifted gears: from "selling iron ore to Chinese steel mills" toward "selling copper to AI data centres and clean energy."
Copper prices have climbed above $14,000 per tonne, a record, driven by two demand engines firing at once: accelerating AI data-centre construction + global clean-energy transition.
What is the outlook for copper output?
New CEO Brandon Craig said BHP's project pipeline could lift copper production by up to 40% by 2035.
In the short term, however, output will still dip. In plain terms = the long-term blueprint is large, but production must first pass through a near-term trough.
Craig added that acquiring copper assets costs roughly five times more than building them organically; BHP favours organic growth over high-priced M&A. This reflects just how fierce the race for high-grade copper assets has become at record prices.
How are iron ore and the balance sheet holding up?
Western Australia iron ore posted full-year operating profit of $14.67 billion, up 2% year-on-year, broadly in line with the $14.75 billion consensus.
Port Hedland saw its first major strike in decades, but BHP expects no material impact; labour negotiations continue.
Net debt fell to $8.69 billion, below the company's $10–12 billion target range and under the $9.1 billion consensus. In plain terms = the balance sheet is leaner than expected, leaving room for further expansion or bigger payouts.
Is BHP selling its coal? Any uranium progress?
Craig denied reports that BHP might divest its Queensland coking-coal operations within the next one to five years, saying the assets remain an important part of the portfolio if the market develops as expected.
Canadian uranium miner NexGen Energy is in regular contact with BHP regarding its Rook I uranium project in Saskatchewan; Craig said the company will "continue to study" other commodity options but declined to speculate further.
This means → two questions will be the market's key checkpoints for BHP's valuation: whether copper can keep delivering earnings growth at record prices, and whether the 40% capacity expansion target by 2035 stays on track.
Content is for reference only, not financial advice.