BHP's Profit Soars 30% Driven by Strong Copper and Iron Ore Demand

Global mining behemoth BHP Group recorded a significant 30% increase in its underlying profit, reaching $13.2 billion for the fiscal year that ended on June 30, 2026, primarily driven by strong demand for copper and resilient iron ore. This performance surpassed analyst expectations, with the company's revenue climbing 15% to $58.8 billion.

The company's robust results were largely underpinned by record-high copper prices and consistent demand for iron ore. For the first time, copper became BHP's largest earnings contributor, generating $18.19 billion in operating earnings, while iron ore accounted for $14.53 billion. BHP CEO Brandon Craig highlighted copper as the 'engine room' driving the company's growth, noting that the rapid buildout of energy-hungry AI data centers and the global shift towards cleaner power have propelled copper prices to over $14,000 per tonne.

BHP's Western Australia Iron Ore (WAIO) operations continued to be a significant profit generator with record shipments, and the company maintained its position as the world's lowest-cost major iron ore producer. Although copper production saw a 3% dip year-on-year to 1.95 million tonnes, the elevated prices and strong demand for the metal boosted the segment's profitability.

These strong financial outcomes reflect the global economy's considerable resilience despite a backdrop of heightened geopolitical tensions, trade policy uncertainties, and shifting monetary and fiscal settings. Notably, a strong uplift in technology-related investment, particularly in artificial intelligence and supporting electrification infrastructure, has fueled copper demand. Resilient Chinese demand for iron ore also contributed to the overall positive sentiment in commodity markets.

BHP announced its highest dividend in four years, with a final dividend of 99 cents per share, bringing the full-year distribution to $1.72 per share. Looking ahead, BHP aims to increase its copper production by approximately 40% to 2 million tonnes per annum by 2035. Analysts suggest that BHP's growth trajectory remains solid, given copper's critical role in the energy transition and the ongoing demand from AI infrastructure. However, some market experts indicate that BHP's shares might be overvalued after a 41% rise this year.