BHP Group Limited BHP announced that its iron ore production dipped 3% year over year to 68.1 Mt in the fourth quarter of fiscal 2026 (ended June 30, 2026). However, the production increased 8% from the third quarter’s reported figure and 1% year over year, bringing the company’s total iron ore production for fiscal 2026 to a record 264.7 Mt. It came within its iron ore production guidance of 258-269 Mt for fiscal 2026.
The upside was driven by record production at Western Australia Iron Ore (“WAIO”) as a result of the strong operational performance. WAIO’s iron ore production was 256.9 Mt for fiscal 2026 (291.2 Mt on a 100% basis). This reflects solid supply-chain performance, along with a strong performance at South Flank. WAIO's production is expected between 253 Mt and 264 Mt (286 Mt and 298 Mt on a 100% basis) for fiscal 2027.
BHP’s FY26 Copper Output Within Guidance
The company’s opper output declined 5% year over year to 491.9 kt in the fourth quarter 2026 but increased 3% sequentially. BHP’s fiscal 2026 copper output fell 3% year over year to 1,952.8 kt. BHP’s guidance for copper production for fiscal 2026 was within 1,900-2,000 kt.
Copper production at Escondida fell 3% year over year to 1,261.2 kt due to planned lower concentrator feed grade. This was partially offset by continued solid operational performance and productivity. Copper output at Pampa Norte was down 21% year over year to 212.6 kt in fiscal 2026. Production at Spence fell due to ongoing challenges with processing complex ore. Production was also impacted by Cerro Colorado remaining in care and maintenance throughout the year.
Production from Copper South Australia was 320.7 kt, which marked a 2% rise from the prior fiscal quarter, aided by a strong operational performance. Antamina’s copper production rose 27% to record 151.5 kt in fiscal 2026 as a result of higher feed grades and improved operational performance.
The company expects copper production of 1,650-1,800 kt for fiscal 2027.
BHP Group’s Energy & Steelmaking Coal Output Rises Y/Y
Energy coal production rose 3% year over year to 4.2 Mt in the fiscal fourth quarter, bringing the year’s total to 16.4 Mt. The fiscal 2026 energy coal production marked a 9% year-over-year increase. It came slightly above its production guidance of 14-16 Mt for fiscal 2026.
Steelmaking coal production was 5.7 Mt, which increased 10% from the year-ago quarter. The fiscal 2026 production was up 3% year over year to 18.6 Mt. It came within its guidance of 18-20 Mt for fiscal 2026.
The production guidance for steelmaking coal is 18.5-20.5 Mt, while the energy coal guidance is 14-16 Mt for fiscal 2027.
BHP Sees Y/Y Growth in Average Prices
In the fiscal fourth quarter, average realized prices for iron ore were up 5% year over year to $83.58 per ton. Copper prices increased 47% year over year to $6.53 per pound. In fiscal 2024, average realized prices for iron ore grew 3% year over year to $84.56 per ton. Copper prices were up 35% to $5.74 per pound.
BHP Group’s Peer Performances
Rio Tinto Group RIO reported iron ore shipments from Pilbara (on a 100% basis) of 85.3 Mt for the second quarter of 2025, which increased 7% year over year. On a sequential basis, shipments rose 18%. Total iron ore production from Pilbara for the quarter was 83.5 Mt, in line with the year-ago quarter. This marked the highest first-half iron ore production at Pilbara since 2018.
In the second quarter, Rio Tinto’s mined copper production was 213 thousand tons, 7% lower than the year-ago quarter. Production at Kennecott was 49% lower year over year due to lower cathode production. Copper production at Escondida decreased 13% year over year due to expected lower ore grades from the mine sequence.
BHP’s Price Performance
The company’s shares have surged 72.4% in a year compared with the industry’s 38.7% growth.
BHP Group’s Zacks Rank & Stocks to Consider
BHP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS and Albemarle Corporation ALB. CRS sports a Zacks Rank #1 (Strong Buy) at present and ALB carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 8.9%. The Zacks Consensus Estimate for Carpenter Technology’s 2026 earnings is pegged at $10.57 per share, indicating 41.3% year-over-year growth. Its shares have surged 101% in a year.
Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 66% so far this year.
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BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report
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