BHP Group Limited

BHP reported underlying EBITDA growth of 25% with a margin of 58%. Underlying attributable profit was $6.2 billion and return on capital employed was 24%, both up significantly over the past year. Copper delivered a record $8 billion of EBITDA in the half, with a 66% margin; production across the group increased 2% and unit costs improved around 4.5% despite inflation of more than 2% and currency pressure. The interim dividend was $0.73 per share, up 46% half-on-half; the half-year dividend was $3.7 billion with a 60% payout ratio. On guidance, BHP said it remains on track for full-year guidance across the rest of the business, raised Escondida production guidance this year and next, and lifted FY27 Escondida guidance to between 1 million and 1.1 million tonnes. It also reiterated a pathway to grow iron ore volumes to over 305 million tonnes per year by FY28, reduce WAIO costs to below $17.50 per tonne in the medium term, and deliver compound annual copper equivalent production growth of 3% to 4% through to 2035.

Mike Henry framed the quarter as proof that BHP’s strategy is working: strong operating performance, cost control, and exposure to higher copper and iron ore prices are flowing through to cash returns and balance-sheet strength. He emphasized that more than half of earnings now come from copper, up 30 percentage points over three years, and pointed to a deliberate strategy of copper growth through operational improvement and acquisitions. His tone was confident and long-term focused, repeatedly stressing “stability plus growth” and highlighting a large pipeline of growth options and capital discipline.

Vandita Pant focused on the financial translation of operating performance: EBITDA up 25%, margin at 58%, attributable profit of $6.2 billion, ROCE of 24%, and a 60% payout ratio supporting the dividend. She noted the group captured higher copper, gold and iron ore prices while production rose 2% and unit costs fell around 4.5% despite inflation and currency headwinds. Pant also highlighted capital recycling, saying the Antamina silver streaming deal will bring in $4.3 billion and the WAIO inland power transaction will bring $2 billion, with more than $6 billion unlocked from those two deals and up to $10 billion potentially available for higher-return uses.

The main discussion points centered on capital allocation, asset monetization, and the durability of BHP’s commodity exposure. Management said the Antamina silver streaming deal monetizes a noncore commodity while preserving full copper exposure, and that the WAIO power agreement does not change ownership or operational control. Questions implied by the commentary included whether BHP is prioritizing returns over expansion; management answered by saying all capital still competes under the framework, and unlocked funds would be assessed for growth or shareholder returns.