BHP Posts Record Copper-Driven Profit, Lifts Dividend to Four-Year High

BHP Group has delivered a stronger-than-expected full-year performance, with underlying profit climbing 30% to $13.20 billion for the year ended June 30. The result, which surpassed analyst consensus of $12.66 billion, was powered by record copper prices that have reshaped the miner's earnings profile.

The company declared a final dividend of 99 cents per share, taking the total annual payout to $1.72 per share — the highest in four years. The bumper distribution reflects robust cash generation across its portfolio.

Copper emerged as the clear earnings leader, contributing $18.19 billion in operating earnings, comfortably ahead of iron ore's $14.53 billion. The red metal's ascent has been fueled by surging demand from AI data centre buildouts and the global transition to cleaner energy, with prices touching record highs above $14,000 per tonne this year.

Chief Executive Brandon Craig, who assumed the top role last month, underscored the company's bullish outlook for copper. BHP expects to increase copper output by up to 40% by 2035, reaching around 2 million tonnes annually, while global demand is projected to grow to over 50 million tonnes per year by 2050 from 34 million tonnes today.

The company's Western Australia Iron Ore operations generated $14.67 billion in operating earnings, up 2% year-on-year and broadly in line with expectations. BHP also highlighted potential to unlock an additional $3.5 billion in value from these assets through active portfolio management. Global Infrastructure Partners recently invested $2 billion in the project's inland power network for a minority stake.

Net debt fell to $8.69 billion at year-end, below the company's target range of $10 billion to $12 billion and lower than the consensus estimate of $9.10 billion, underscoring the strength of its balance sheet.