BHP Group Limited announced its first‑half 2026 financial results, reporting revenue of $27.9 billion and underlying EBITDA of $15.5 billion. The company’s underlying attributable profit rose to $6.2 billion, up from $5.1 billion in the same period a year earlier, and the dividend was increased to 73 cents per share, a 60 % payout ratio that exceeds the 50 % estimate from analysts.
Revenue grew 10.5 % year‑over‑year, driven by higher copper and iron‑ore prices and a 12 % increase in copper production. Underlying EBITDA expanded 25 % to $15.5 billion, beating the consensus estimate of $15.11 billion and reflecting a 58.4 % margin that is 7.3 percentage points above the 51.1 % margin reported in the first half of 2025. The margin lift was largely due to copper’s higher price‑to‑cost profile and the company’s continued focus on low‑cost iron‑ore operations.
The 73‑cent dividend represents a 46 % increase over the 50‑cent interim dividend paid in the first half of 2025. The payout ratio of 60 % is above the 50 % estimate, underscoring BHP’s confidence in its cash‑flow generation. Management guided for a full‑year 2026 revenue of $55.5 billion to $56.5 billion, up from the $54.0 billion to $55.0 billion range previously issued, and a full‑year EBITDA margin of 58 % to 59 %, reflecting continued margin expansion.
Copper now accounts for 51 % of BHP’s underlying EBITDA, making it the company’s primary earnings engine. The copper segment’s margin of 66 % is the highest among BHP’s core businesses, while the iron‑ore franchise remains the lowest‑cost major producer globally. The dual‑engine strategy—low‑cost iron‑ore and high‑margin copper—has accelerated, with copper production guidance raised to 1.9‑2.0 million tonnes for FY26, a 30 % increase over the previous guidance.
Investors reacted positively to the results, citing the strong earnings beat, the significant dividend increase, and the strategic pivot toward copper. Analysts highlighted the company’s ability to maintain high margins in a structurally higher cost environment and praised the disciplined cost management that enabled the 58.4 % EBITDA margin. The announcement reinforced confidence in BHP’s long‑term growth prospects driven by electrification, renewable energy, and AI infrastructure demand for copper.
Management emphasized that the results were driven by “strong operating performance, disciplined capital allocation and confidence in our outlook.” CEO Mike Henry noted that copper’s contribution to earnings had reached a milestone, while CFO Vandita Pant highlighted the 25 % growth in underlying EBITDA and a 24 % return on capital employed, underscoring the company’s efficient use of capital and its commitment to shareholder returns.
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