Business Context and Reporting Period
Company: BHP Group Ltd
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Half-year ended 31 December 2025 (HY26)
Announcement Date: 17 February 2026
BHP reported a strong half-year characterized by operational excellence, record copper earnings, and resilient margins. For the first time, the Copper segment contributed the majority (51%) of Group Underlying EBITDA. The company increased its FY26 copper production guidance to 1.9–2.0 Mt and announced a significant interim dividend.
Key Financial Metrics
| Metric | HY26 (US$) | HY25 (US$) | Change |
|---|---|---|---|
| Revenue | 27.9 bn | 25.2 bn | +11% |
| Underlying EBITDA | 15.5 bn | 12.4 bn | +25% |
| Underlying EBITDA Margin | 58.4% | 51.1% | +7.3 pp |
| Underlying Attributable Profit | 6.2 bn | 5.1 bn | +22% |
| Attributable Profit (Statutory) | 5.6 bn | 4.4 bn | +28% |
| Net Operating Cash Flow | 9.4 bn | 8.3 bn | +13% |
| Free Cash Flow | 2.9 bn | 2.6 bn | +10% |
| Capital & Exploration Expenditure | 5.3 bn | 5.2 bn | +1% |
| Net Debt | 14.7 bn | 11.8 bn | +25% |
| Gearing Ratio | 20.9% | 19.2% | +1.7 pp |
Material Changes vs. Prior Period
- Copper Dominance: Copper Underlying EBITDA reached a record US$8.0 bn (+59%), driven by higher realized prices and strong by-product credits (gold, silver, uranium). This marked the first time Copper contributed over 50% of Group EBITDA.
- Iron Ore Performance: Western Australia Iron Ore (WAIO) achieved record first-half production and shipments, maintaining its position as the world's lowest-cost major iron ore producer. Underlying EBITDA increased 4% to US$7.5 bn.
- Coal Segment: Underlying EBITDA decreased 60% to US$0.2 bn due to lower realized prices for steelmaking and energy coal, despite strong operational performance.
- Cost Discipline: Unit costs at Escondida and Copper SA fell by 16% and 53% respectively, offsetting inflationary pressures and unfavorable exchange rates.
- Balance Sheet: Net debt increased to US$14.7 bn, primarily due to dividend payments (US$3.1 bn to shareholders) and Samarco settlement obligations (US$1.0 bn), remaining within the US$10–20 bn target range.
Guidance, Outlook, and Management Commentary
- Production Guidance: FY26 Group copper production guidance increased to 1.9–2.0 Mt (previously 1.8–2.0 Mt). WAIO production guidance remains 284–296 Mt (100% basis).
- Capital Allocation: An interim dividend of US$0.73 per share (60% payout ratio) was declared. Total shareholder returns since 2016 now exceed US$110 bn.
- Asset Management: BHP announced a US$4.3 bn silver streaming agreement for Antamina and a US$2 bn agreement regarding WAIO power consumption, unlocking over US$6 bn in cash with potential to reach US$10 bn.
- Project Updates:
- Jansen Potash: Stage 1 expenditure increased to US$8.4 bn; first production expected mid-CY27.
- Vicuña: A joint venture with Lundin Mining; updated studies confirm a large copper-gold-silver resource. Stage 1 FID expected by CY26.
- Carajás Divestment: Expected to close in H1 CY26.
- Economic Outlook: Management expects ~3% global economic growth in CY26, with resilient demand in China and India supporting key commodities.
Investor Verification Checklist
- Copper Price Sensitivity: Verify the sustainability of record copper prices (~US$12,500/t) and the impact of potential tariff changes on demand.
- Jansen Cost Escalation: Monitor the US$8.4 bn expenditure for Jansen Stage 1 and the potential for further cost increases in Stage 2.
- Samarco Liabilities: Review the US$5.3 bn provision for the Samarco dam failure and the status of the Brazil Agreement settlement obligations.
- Net Debt Trajectory: Assess the impact of the US$14.7 bn net debt level against the US$10–20 bn target range, considering upcoming capital projects and dividend commitments.
- Coal Portfolio Strategy: Evaluate the long-term strategy for the coal segment given the significant decline in EBITDA and the planned closure of NSWEC by FY30.