BHP Annual Profit Surges on Record Copper Prices

BHP Group (BHP), the world's largest miner by market value, announced strong financial results for the fiscal year ended June 30, 2026. The company reported a 9% rise in its net profit to $9.83 billion, up from $9.02 billion in the previous year. Underlying earnings, a key measure of operational performance, soared by 30% to $13.20 billion, surpassing analyst consensus estimates of around $12.66 billion. This impressive performance was primarily fueled by record-high copper prices and the company's strategic repositioning.

Revenue for the period climbed 15% to $58.76 billion, up from $51.26 billion a year earlier. This increase was significantly driven by copper sales, with BHP fetching 35% more for the red metal compared to the prior year. For the first time, copper became the largest contributor to BHP's annual earnings, accounting for 54% of the group's underlying earnings before interest, taxes, depreciation, and amortization (EBITDA). While a previously announced $2.3 billion write-down of a potash project in Canada weighed on its bottom line, higher prices for iron ore and steelmaking coal also bolstered earnings.

These robust financial results from BHP reflect dynamic shifts in global commodity markets. Copper prices have surged to record highs, exceeding $14,000 per tonne, driven by tightening global supplies. This surge is attributed to the rapid buildout of energy-hungry AI data centers and the accelerating global transition towards cleaner power, intensifying the race among mining majors to secure high-grade copper assets. Operating earnings from copper, including byproducts, reached $18.19 billion, eclipsing iron ore's $14.53 billion and establishing copper as BHP's top earnings driver.

BHP is strategically reshaping its business to capitalize on the sustained shift towards lower-carbon energy sources and global population growth through investments in copper and potash. This move aims to reduce its historical reliance on iron ore, which has long been the company's main source of profits. BHP Chief Executive Officer Brandon Craig emphasized that copper is the engine driving the company's growth, projecting that copper demand is set to increase from approximately 34 million tonnes per annum (Mtpa) today to more than 50 Mtpa by 2050. This strategic pivot is considered crucial for the company's future growth potential.

Market expectations and analyst assessments suggest that BHP's copper-centric strategy will provide significant long-term advantages. The company declared a final dividend of 99 cents per share, bringing the total annual payout to $1.72 per share, its highest in four years, and surpassing market expectations. Analysts anticipate that strong demand in the copper market and BHP's strategic positioning will contribute to the company's continued stable performance in the upcoming period.